9 Aug 2010dividend declaration● Neutral
Goldcorp declared its eighth monthly dividend of 2010, US$0.015 per share, for holders of record on August 19, 2010, payable August 27, 2010. The rate is unchanged.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
15 July 2010business combination▲ GoodMajor
Goldcorp agreed to vote its Terrane Metals holdings (58% of the company, via 240 million preferred and 27.3 million common shares) in favour of Thompson Creek Metals buying Terrane. On completion Goldcorp is to receive C$240.5 million in cash and 13.9 million Thompson Creek shares (about 8%). The CEO says the cash will go toward developing its core gold projects. Terrane's main project is Mt. Milligan, a copper-gold project; this is a new sale of a stake Goldcorp already held, and completion is not yet confirmed.
12 July 2010capital raising announcement● Neutral
Goldcorp bought 19,047,721 shares of Evolving Gold Corp. in a private placement at C$0.82 per share (C$15,619,131 total raised by Evolving Gold), giving it about 15% of the company. It can take part in future financings for up to five years to keep its share, and says it holds the stake for investment with no present intention to buy more. Evolving Gold explores Rattlesnake Hills, Wyoming and gold properties in Nevada. This is a new, small exploration-stage minority investment.
6 July 2010dividend declaration● Neutral
Goldcorp declared its seventh monthly dividend of 2010, US$0.015 per share, for holders of record on July 15, 2010, payable July 23, 2010. The rate is unchanged.
25 June 2010regulatory community update▼ BadMajor
Goldcorp responded to Guatemala's government agreeing to start an administrative process in response to a request from the Inter-American Commission on Human Rights to suspend the Marlin mine. Goldcorp says the government's own studies found no evidence of water contamination or linked disease, that the mine continues to operate, and that it expects normal operations to continue during the process. An IACHR mission is to visit Guatemala in July. This is a new risk to Marlin (1,900 employees); no suspension order is reported.
8 June 2010asset acquisition disposition▲ GoodMajor
Goldcorp completed the sale of the Escobal silver deposit to Tahoe Resources, announced May 3, on the expected date. It received 43,686,667 Tahoe shares, representing 40% of Tahoe on a fully diluted basis, and $253 million in cash. If the IPO underwriters' over-allotment option is used, Goldcorp gets more shares to keep 40% and part of the cash is repaid, but cash cannot fall below $230 million. Goldcorp says it has no present intention to buy more Tahoe securities beyond its right to maintain its percentage while it holds at least 20%, and will review the holding on an ongoing basis.
7 June 2010dividend declaration● Neutral
Goldcorp declared its sixth monthly dividend of 2010, US$0.015 per share, for holders of record on June 17, 2010, payable June 25, 2010. The rate is unchanged.
2 June 2010asset acquisition disposition● NeutralMajor
Goldcorp subsidiaries signed a binding letter agreement to sell the San Dimas gold-silver mine in Mexico to Mala Noche Resources for $500 million: $275 million cash, $175 million of Mala Noche shares (about 30% ownership expected) and a $50 million five-year promissory note at 6%. San Dimas made 113,000 oz of gold and 5.1 million oz of silver in 2009. Silver Wheaton has agreed to amend its existing silver purchase deal, which Mala Noche assumes, with Goldcorp still delivering an extra 1.5 million oz a year for about $4.00 per ounce during the first four years. Closing is expected around July 30, 2010 and depends on Mala Noche's equity financing. The CEO says the proceeds will fund growth without diluting shareholders, following the Escobal sale.
4 May 2010asset acquisition disposition● NeutralMajor
Goldcorp subsidiaries agreed to sell the Escobal silver deposit in Guatemala (the discovery highlighted in earlier drilling reports) to Tahoe Resources, a private company headed by former Goldcorp CEO Kevin McArthur. Goldcorp is to receive total consideration of $505 million: Tahoe shares giving it 40% of Tahoe after Tahoe's proposed IPO in Canada, plus at least $230 million in cash depending on the IPO's final results. Closing is expected on or about June 8, 2010 and depends on the IPO completing. Goldcorp could appoint three Tahoe directors and keep its 40% while above 20%.
3 May 2010dividend declaration● Neutral
Goldcorp declared its fifth monthly dividend of 2010, US$0.015 per share, for holders of record on May 13, 2010, payable May 21, 2010. The rate is unchanged.
5 Apr 2010dividend declaration● Neutral
Goldcorp declared its fourth monthly dividend of 2010, US$0.015 per share, for holders of record on April 15, 2010, payable April 23, 2010. The rate is unchanged.
1 Mar 2010dividend declaration● Neutral
Goldcorp declared its third monthly dividend of 2010, US$0.015 per share, for holders of record on March 11, 2010, payable March 19, 2010. The rate is unchanged.
17 Feb 2010business combination▲ GoodMajor
Goldcorp completed the purchase of the 70% interest in El Morro announced January 7. It lent US$463 million to a New Gold subsidiary to buy the stake from Xstrata, a Goldcorp subsidiary then acquired that interest, and Goldcorp transferred US$50 million to New Gold. El Morro is now 70% Goldcorp and 30% New Gold, and Goldcorp is operator. The shareholders agreement was amended so Goldcorp will advance 100% of New Gold's share of development and construction funding through commercial production, as interest-bearing loans repaid from New Gold's share of production. This resolves the pending deal and adds a funding commitment beyond the initial outlay; the filing does not give the total.
1 Feb 2010dividend declaration● Neutral
Goldcorp declared its second monthly dividend of 2010, US$0.015 per share, for holders of record on February 11, 2010, payable February 19, 2010. The rate is unchanged.
7 Jan 2010business combination▲ GoodMajor
Goldcorp signed a binding agreement with New Gold to get the 70% interest in the El Morro copper-gold project in Chile that Xstrata Copper Chile holds. Goldcorp will advance US$463 million to New Gold so a New Gold subsidiary can exercise its right of first refusal, then buy that subsidiary and pay New Gold US$50 million in cash on closing. Goldcorp would hold 70% and New Gold 30%, with closing expected within 15 business days of the sale agreement. The filing states 100%-basis reserves of 6.7 million ounces of gold and 5.7 billion pounds of copper, and calls this a re-entry into Chile; it adds a new copper-gold project to the existing portfolio.
4 Jan 2010dividend declaration● Neutral
Goldcorp declared its first monthly dividend of 2010, US$0.015 per share, for holders of record on January 14, 2010, payable January 22, 2010. The rate is unchanged from 2009.
24 Dec 2009business combination● NeutralMajor
Goldcorp matched Penmont's competing bid for Canplats, now offering C$4.40 per share: C$4.20 in cash plus shares of a new exploration company with notional value C$0.20 per share. This replaces the earlier share-based terms from Nov 16 with a cash-heavy offer, so the deal is likely to cost more cash and fewer new Goldcorp shares (an inference; the filing doesn't restate the share count). Canplats must now sign the amended agreement and recommend it, and the Penmont proposal lapses with no fee payable. Closing has not been confirmed.
23 Dec 2009business combination▼ BadMajor
Canplats told Goldcorp that Minera Penmont had proposed buying Canplats for C$4.20 cash per share plus shares of a new exploration company, and Canplats' board judged it a 'Superior Proposal' versus Goldcorp's Nov 16 deal. Goldcorp has five business days to match and is considering its position. This puts the Canplats acquisition announced Nov 16 at risk of being lost or costing more.
2 Dec 2009asset acquisition disposition● Neutral
Goldcorp's subsidiary agreed to sell its 21.2% interest in the Morelos gold project in Mexico to Newstrike Capital for at least C$52 million, made up of C$44.5 million in cash and 15 million Newstrike shares. Completion is subject to a Newstrike financing condition and due diligence, and Gleichen Resources holds a 90-day right of first refusal on the interest. Closing is expected in early 2010.
1 Dec 2009dividend declaration● Neutral
Goldcorp declared its twelfth monthly dividend of 2009, US$0.015 per share, for holders of record on December 11, 2009, payable December 18, 2009. The rate is unchanged.
24 Nov 2009drilling progress report▲ Good
Goldcorp reported highlights of its $110 million 2009 exploration program, with positive drill results at Red Lake, Peñasquito's Noche Buena deposit, Porcupine's Hoyle Pond, Musselwhite, Los Filos, Éléonore, Marlin and Escobal. It says Cochenour/Bruce Channel (the Gold Eagle discovery from the earlier deal) is sized at 5 million mineable gold ounces for planning, with a study favouring a 5 km drift to the Red Lake mill. The Éléonore pre-feasibility study is due by year-end, and the Noche Buena link to the Canplats deal will be assessed after that deal closes (expected January 2010). These are drill results and plans, not reserve or production figures.
16 Nov 2009business combination▲ GoodMajor
Goldcorp agreed to buy Canplats Resources through a plan of arrangement for about C$238 million. Each Canplats share gets 0.074 of a Goldcorp share plus an interest in a new exploration company, worth C$3.60 per share combined based on the Nov 13, 2009 Goldcorp close. It adds the Camino Rojo project, about 50 km southeast of the Peñasquito mine, with reported measured and indicated resources of 3,445,000 ounces of gold and 60,708,000 ounces of silver. About 4.3 million new Goldcorp shares would be issued (subject to adjustment), closing is expected in January 2010, and it needs a 66 2/3% Canplats securityholder vote. Canplats would owe Goldcorp a C$7.2 million termination fee in certain circumstances. Note the CEO is now named as Chuck Jeannes.
2 Nov 2009dividend declaration● Neutral
Goldcorp declared its eleventh monthly dividend of 2009, US$0.015 per share, for holders of record on November 12, 2009, payable November 20, 2009. The rate is unchanged.
5 Oct 2009dividend declaration● Neutral
Goldcorp declared its tenth monthly dividend of 2009, US$0.015 per share, for holders of record on October 15, 2009, payable October 23, 2009. The rate is unchanged.
8 Sept 2009dividend declaration● Neutral
Goldcorp declared its ninth monthly dividend of 2009, US$0.015 per share, for holders of record on September 18, 2009, payable September 25, 2009. The rate is unchanged.
10 Aug 2009dividend declaration● Neutral
Goldcorp declared its eighth monthly dividend of 2009, US$0.015 per share, for holders of record on August 20, 2009, payable August 28, 2009. The rate is unchanged.
6 July 2009dividend declaration● Neutral
Goldcorp declared its seventh monthly dividend of 2009, US$0.015 per share, for holders of record on July 16, 2009, payable July 24, 2009. The rate is unchanged.
5 June 2009debt financing● NeutralMajor
Goldcorp closed its private sale of US$862.5 million of 2.00% convertible senior notes due 2014, including the full over-allotment. Net proceeds are about US$839.9 million, of which about US$330.0 million is intended to repay its revolving term credit facility and the rest is for general purposes including capital expenditures. On conversion Goldcorp may pay in cash or a mix of cash and shares instead of shares, so dilution is possible but not certain. This completes the offering announced June 1 and closes the open thread on closing and over-allotment; the filing says the repayment is intended, not yet done.
3 June 2009debt financing● Neutral
The initial purchasers of Goldcorp's 2% convertible senior notes due 2014 exercised their full over-allotment option, buying an extra US$112.5 million, so US$862.5 million of notes will be issued at closing, expected around June 5, 2009 subject to customary conditions including TSX and NYSE approval. This resolves the open question of whether the option would be used: it was, in full.
2 June 2009debt financing● NeutralMajor
Goldcorp priced the US$750 million convertible senior notes due August 1, 2014, with closing expected around June 5, 2009 and a further US$112.5 million available if the over-allotment option is used. The notes pay 2% interest and convert at about US$47.98 per share (20.8407 shares per US$1,000), roughly 130% of the June 1 NYSE closing price. Net proceeds are about US$730.3 million (about US$839.9 million if the option is fully used), of which about US$330 million will repay the revolving credit facility and the rest goes to general purposes including capital expenditures. On conversion Goldcorp may pay in shares, cash or a mix, so dilution is possible but not certain. This confirms the plan announced earlier the same day.