-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, P7xQnJcb1DDkwoe5mM3+PN6UGRCL7PikseFf6zftV6JjLw3fqDwVI7vU2Ng2OW40 5HCl2CpMG3JBbrL2dPJLhw== 0000912057-97-019148.txt : 19970602 0000912057-97-019148.hdr.sgml : 19970602 ACCESSION NUMBER: 0000912057-97-019148 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970530 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: GOLDCORP INC CENTRAL INDEX KEY: 0000919239 STANDARD INDUSTRIAL CLASSIFICATION: GOLD & SILVER ORES [1040] IRS NUMBER: 98770100 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-12970 FILM NUMBER: 97617138 BUSINESS ADDRESS: STREET 1: 145 KING ST WEST STREET 2: STE 2700 M5H 1J8 CITY: TORONTO ONTARIO CANA STATE: A6 BUSINESS PHONE: 4168650326 6-K 1 FORM 6-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 F O R M 6 - K [X] Pursuant to Rule 13a-16 or 15d-16 of the SECURITIES EXCHANGE ACT OF 1934 For the three month period ended March 31, 1997. GOLDCORP INC. ---------------------------------------------------------- (Exact name of registrant as specified in its charter) COMMISSION FILE NUMBER 1-12970 PROVINCE OF ONTARIO 98770100 ------------------------------- ------------------------------------ (State of other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) SUITE 2700, 145 KING STREET WEST TORONTO, ONTARIO, CANADA M5H 1J9 (416) 865-0326 (Registrant's telephone number, including area code) Indicate by check mark whether the Registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20 - F [ ] Form 40-F [ X ] Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the commission pursuant to Rule 12g3-(b) under the Securities Exchange Act of 1934. Yes [ ] No [ X ] Goldcorp Inc. - 1997 First Quarter Results Page 2 - -------------------------------------------------------------------------------- 1997 FIRST QUARTER RESULTS (ALL AMOUNTS IN THIS NEWS RELEASE ARE EXPRESSED IN UNITED STATES DOLLARS, UNLESS OTHERWISE INDICATED.) FINANCIAL RESULTS Three months ended March 31, 1997 1996 -------- -------- (IN MILLIONS OF U.S. DOLLARS, EXCEPT PER SHARE AND PER OUNCE AMOUNTS) Revenues $ 14.1 $ 22.1 Earnings 1.5 3.6 Earnings per share (fully diluted) 0.02 0.05 Cash flow (deficiency) from operations (5.1) 4.3 Cash flow (deficiency) from operations per share (fully diluted) (0.07) 0.07 Gold sales (OUNCES) 21,300 41,513 Average realized gold price per ounce 340 385 The Red Lake Mine continues to incur certain operating costs during the ongoing labour strike. LIQUIDITY AND CAPITAL RESOURCES As at As at March 31, December 31, 1997 1996 --------- ------------ (IN MILLIONS OF U.S. DOLLARS, EXCEPT RATIOS) Cash and short-term investments $ 29.8 $ 30.0 Marketable securities -book value 15.7 26.6 -market value 15.9 40.0 Working capital 44.8 43.7 Total debt 3.3 7.2 Debt-to-equity ratio 0.02:1 0.04:1 Goldcorp realized pre-tax gains of $3.8 million on the sale of marketable securities ($2.1 million after-tax). Goldcorp Inc. - 1997 First Quarter Results Page 3 - -------------------------------------------------------------------------------- GOLD MINING OPERATIONS Three months ended March 31, 1997 1996 --------- -------- (IN MILLION OF U.S. DOLLARS, EXCEPT AS NOTED OTHERWISE) Operating profit (loss) $ (2.0) $ 0.8 Operating cash flow 0.4 4.3 Gold production (OUNCES) 20,876 42,140 Average operating cost per ounce (US $) Cash production cost 238 286 Royalties and severance taxes 15 14 Non-cash costs 96 65 -------- -------- Total operating cost 349 365 -------- -------- -------- -------- The decrease in the operating results from gold mining operations compared to a year ago, was mainly as a result of lower total gold production, a lower realized gold price and ongoing operating costs incurred at Red Lake during the labour strike. The improvement in the cash production cost per ounce was mainly the result of an improvement in the cash production cost per ounce at the Wharf Mine, as well as from the lack of high cost production at both the Red Lake and Golden Reward mines. RED LAKE MINE Three months ended March 31, 1997 1996 -------- -------- (IN MILLION S OF U.S. DOLLARS, EXCEPT AS NOTED OTHERWISE) Operating profit (loss) $ (1.8) $ 0.3 Operating cash flow (deficiency) (1.6) 1.3 Gold production (OUNCES) 14,702 Operating cost per ounce (US $) Cash production cost 309 Non-cash costs 32 -------- -------- Total operating cost 341 -------- -------- -------- -------- The exploration program at the Red Lake Mine continues to expand the high grade discovery zones. Projected annual production has been raised to 200,000 ounces based on the exploration success to date. Gold production was interrupted by a labour strike, however, in June 1996. Exploration and development work have continued. Ongoing operating costs incurred during the labour stoppage have resulted in an operating loss and an operating cash deficiency being recorded during the first quarter of 1997. Goldcorp Inc. - 1997 First Quarter Results Page 4 - -------------------------------------------------------------------------------- WHARF MINE Three months ended March 31, 1997 1996 -------- -------- (IN MILLIONS OF U.S. DOLLARS, EXCEPT AS NOTED OTHERWISE) Operating profit (loss) $(0.024) $ 1.1 Operating cash flow 2.1 2.7 Gold production (OUNCES) 20,876 22,143 Operating cost per ounce (US$) Cash production cost 238 250 Royalties and severance taxes 15 23 Non-cash costs 96 73 -------- -------- Total operating cost 349 346 -------- -------- -------- -------- The decrease in gold production compared to a year ago was mainly due to problems experienced with the crusher in March, that kept it out of production for part of the month. The problem has been resolved and it is expected that production targets and cash production costs per ounce will be maintained. The decrease in the cash production cost per ounce was mainly due to a higher grade of ore leached, while the increase in non-cash costs per ounce was mainly due to the acquisition of the remaining minority interest in Wharf Resources Ltd. in December 1996, and the resulting amortization of that purchase price discrepancy. The Wharf Mine's lower operating results were mainly the result of lower gold production and a lower realized gold price per ounce. GOLDEN REWARD MINE (GOLDCORP'S 60% CONSOLIDATED SHARE) Three months ended March 31, -------- -------- 1997 1996 (IN MILLIONS OF U.S. DOLLARS, EXCEPT AS NOTED OTHERWISE) Operating loss $ (0.1) $ (0.6) Operating cash flow (deficiency) (0.1) 0.3 Gold production (OUNCES) -100% 8,825 -Goldcorp's 60% share 5,295 Operating cost per ounce (US$) Cash production cost 358 Royalties and severance taxes 13 -------- Non-cash costs 119 -------- Total operating cost 490 -------- -------- -------- -------- Goldcorp Inc. - 1997 First Quarter Results Page 5 - -------------------------------------------------------------------------------- Gold production at the Golden Reward Mine was suspended in June 1996. The mine is on a care and maintenance basis. INDUSTRIAL MINERAL OPERATIONS - SASKATCHEWAN MINERALS AND HAVELOCK LIME Three months ended March 31, 1997 1996 ------------- ------------- (IN MILLION S OF U.S. DOLLARS) Revenues $ 6.9 $ 6.1 Operating profit 2.3 1.9 Operating cash flow 2.6 2.3 The improvement in operating results from industrial mineral operations was mainly due to an increase in revenues from sodium sulphate as a result of strong market conditions (both increased tonnage and increased prices). Havelock Lime's operations have remained relatively consistent compared to the prior year. FINANCIAL AND STATISTICAL INFORMATION Attached are the Production Statistics and the Consolidated Financial Statements of Goldcorp Inc. for the three months ended March 31, 1997. Goldcorp Inc. - 1997 First Quarter Results Page 6 - -------------------------------------------------------------------------------- GOLDCORP INC. PRODUCTION STATISTICS Three months ended March 31, 1997 1996 --------- -------- RED LAKE MINE PRODUCTION STATISTICS Tons of ore milled (000'S) 54 Average mill head grade (OUNCES PER TON) 0.317 Average recovery rate (%) 85.30 Gold production (OUNCES) 14,702 Operating cost per ounce (US $)* Cash production cost $ $ 309 Non-cash costs 32 -------- -------- Total operating cost $ $ 341 -------- -------- -------- -------- * excludes costs incurred during labour strike WHARF MINE PRODUCTION STATISTICS Tons of ore mined (000'S) 912 982 Tons of waste removed (000'S) 960 2,148 Ratio of waste to ore 1.05:1 2.19:1 Tons of ore processed (000'S) 901 976 Average grade of gold processed (OUNCES PER TON) 0.031 0.026 Gold production (OUNCES) 20,876 22,143 Operating cost per ounce (US$) Cash production cost $ 238 $ 250 Royalties and severance taxes 15 23 Non-cash costs 96 73 -------- -------- Total operating cost $ 349 $ 346 -------- -------- -------- -------- GOLDEN REWARD MINE PRODUCTION STATISTICS (100%) Tons of ore mined (000'S) 342 Tons of waste removed (000'S) 1,366 Ratio of waste to ore 3.99:1 Tons of ore processed (000'S) 353 Average grade of gold processed (OUNCES PER TON) 0.035 Gold production (OUNCES) - 100% 8,825 - Goldcorp's 60% share 5,295 Goldcorp's proportionate operating cost per ounce (US$) Cash production cost $ $ 358 Royalties and severance taxes 13 Non-cash costs 119 -------- -------- Total operating cost $ $ 490 -------- -------- -------- -------- CONSOLIDATED PRODUCTION STATISTICS Total gold production (OUNCES) 20,876 45,670 -------- -------- -------- -------- Goldcorp's consolidated share 20,876 42,140 -------- -------- -------- -------- Average operating cost per ounce (US$) Cash production cost $ 238 $ 286 Royalties and severance taxes 15 14 Non-cash costs 96 65 -------- -------- Total operating cost $ 349 $ 365 -------- -------- -------- -------- Goldcorp Inc. - 1997 First Quarter Results Page 7 - -------------------------------------------------------------------------------- GOLDCORP INC. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) CONSOLIDATED BALANCE SHEETS (IN THOUSANDS OF UNITED STATES DOLLARS) As at As at March 31, December 31, 1997 1996 --------- ------------ ASSETS CURRENT ASSETS Cash and short-term investments $ 29,777 $ 30,007 Gold bullion inventory 633 714 Accounts receivable 11,543 9,960 Marketable securities 15,670 26,607 Inventories 9,006 8,079 Prepaid expenses and other 1,693 1,012 --------- --------- 68,322 76,379 MINING INTERESTS, NET 147,587 146,926 DEPOSITS FOR RECLAMATION COSTS 3,531 3,520 OTHER ASSETS 2,298 2,459 --------- --------- $ 221,738 $ 229,284 --------- --------- --------- --------- LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued liabilities $ 10,134 $ 14,357 Taxes payable 10,118 11,203 Current portion of long-term debt 3,279 7,128 --------- --------- 23,531 32,688 --------- --------- LONG-TERM DEBT 50 60 --------- --------- PROVISION FOR RECLAMATION COSTS AND OTHER LIABILITIES 3,986 4,080 --------- --------- DEFERRED INCOME TAXES 7,876 7,179 --------- --------- SHAREHOLDERS' EQUITY Capital stock 81,548 81,299 Contributed surplus 76,223 76,223 Cumulative translation adjustment 3,502 4,212 Retained earnings 25,022 23,543 --------- --------- 186,295 185,277 --------- --------- $ 221,738 $ 229,284 --------- --------- --------- --------- THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS. Goldcorp Inc. - 1997 First Quarter Results Page 8 - -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF EARNINGS (IN THOUSANDS OF UNITED STATES DOLLARS, EXCEPT PER SHARE AMOUNTS) Three months ended March 31, 1997 1996 -------- -------- Revenues Gold bullion $ 7,273 $ 16,029 Industrial minerals 6,863 6,053 -------- -------- 14,136 22,082 -------- -------- Expenses Operating 11,543 16,263 Corporate administration 939 970 Depreciation and depletion 2,311 3,034 Exploration 49 77 -------- -------- 14,842 20,344 -------- -------- Earnings (loss) from operations (706) 1,738 -------- -------- Other income (expense) Interest and other income 625 694 Gain on marketable securities 3,764 4,863 Interest expense Long-term debt (75) (244) Other (4) (4) -------- -------- 4,310 5,309 -------- -------- Earnings before taxes and minority interest 3,604 7,047 Income and mining taxes 2,125 3,171 -------- -------- Earnings before minority interest 1,479 3,876 Minority interest (290) -------- -------- Earnings for the period $ 1,479 $ 3,586 -------- -------- -------- -------- Earnings per share Basic $ 0.02 $ 0.06 -------- -------- -------- -------- Fully diluted $ 0.02 $ 0.05 -------- -------- -------- -------- Weighted average number of shares outstanding (000's) Basic 68,344 62,980 -------- -------- -------- -------- Fully diluted 73,156 67,288 -------- -------- -------- -------- THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS. Goldcorp Inc. - 1997 First Quarter Results Page 9 - -------------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS OF UNITED STATES DOLLARS) Three months ended March 31, 1997 1996 -------- -------- Cash provided by (used in) Operating activities Earnings for the period $ 1,479 $ 3,586 Items not affecting cash Depreciation, depletion and amortization 2,696 3,625 Gain on marketable securities, net of tax provision (2,085) (2,693) Deferred income taxes 783 354 Minority interest 290 Other (37) 83 -------- -------- 2,836 5,245 Change in non-cash operating working capital (7,895) (959) -------- -------- Net cash provided by (used in) operating activities (5,059) 4,286 -------- -------- Investing activities Mining interests (3,726) (2,413) Purchases of marketable securities (2,994) (4,936) Proceeds from sale of marketable securities 17,724 8,806 Taxes paid on sale of marketable securities, prior year (2,172) Purchases of other assets (29) Other (10) (319) -------- -------- Net cash provided by investing activities 8,793 1,138 -------- -------- Financing activities Repayment of long-term debt (4,053) (2,796) Issue of capital stock, net 249 124 -------- -------- Net cash used in financing activities (3,804) (2,672) -------- -------- Effect of exchange rate changes on cash (160) (91) -------- -------- Increase (decrease) in cash and short-term investments (230) 2,661 Cash and short-term investments at beginning of period 30,007 40,398 -------- -------- Cash and short-term investments at end of period $ 29,777 $ 43,059 -------- -------- -------- -------- THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS. Goldcorp Inc. - 1997 First Quarter Results Page 10 - -------------------------------------------------------------------------------- NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. GENERAL The accompanying unaudited consolidated financial statements should be read in conjunction with the notes to the Company's audited consolidated financial statements for the year ended December 31, 1996. The unaudited consolidated financial statements include the financial statements of the Company and its subsidiaries. The Company accounts for its 60% undivided interest in the Golden Reward Mining Company Limited Partnership using the proportionate consolidation method of accounting. These unaudited interim consolidated financial statements reflect all normal and recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the respective interim periods presented. 2. REPORTING CURRENCY The Company has adopted the United States dollar as its reporting currency for its financial statements, commencing January 1, 1997. Comparative figures previously reported in Canadian dollars have been translated at the exchange rate in effect on January 1, 1997. Goldcorp Inc. - 1997 First Quarter Results Page 11 - -------------------------------------------------------------------------------- SIGNATURE Pursuant to the requirements of the SECURITIES EXCHANGE ACT OF 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. GOLDCORP INC. By /s/ Abraham N. Rubinfeld ------------------------------- Abraham N. Rubinfeld Corporate Counsel and Secretary (Duly Authorized Officer) Date: May 29, 1997. -----END PRIVACY-ENHANCED MESSAGE-----