gg-ex991_257.htm

This Management’s Discussion and Analysis (“MD&A”) should be read in conjunction with the condensed interim consolidated financial statements of Goldcorp Inc. (“Goldcorp” or “the Company”) for the three and six months ended June 30, 2018 and related notes thereto which have been prepared in accordance with International Accounting Standard 34 – Interim Financial Reporting of International Financial Reporting Standards (“GAAP” or “IFRS”) as issued by the International Accounting Standards Board (“IASB”). All figures are in United States (“US”) dollars unless otherwise noted. References to C$ are to Canadian dollars. This MD&A has been prepared as of July 25, 2018.

This MD&A contains "forward-looking statements" within the meaning of Section 27A of the United States Securities Act of 1933, as amended, Section 21E of the United States Exchange Act of 1934, as amended, the United States Private Securities Litigation Reform Act of 1995, or in releases made by the United States Securities and Exchange Commission ("SEC"), all as may be amended from time to time, and "forward-looking information" under the provisions of applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of Goldcorp. Forward-looking statements include, but are not limited to, statements with respect to the future price of gold, silver, zinc, copper and lead, the estimation of Mineral Reserves and Mineral Resources (as each term is defined below), the realization of Mineral Reserve estimates, the timing and amount of estimated future production, costs of production, targeted cost reductions, capital expenditures, free cash flow, costs and timing of the development of new deposits, success of exploration activities, permitting and certification time lines, timing and cost of construction and expansion projects, hedging practices, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, health, safety and diversity initiatives, timing and possible outcome of pending litigation, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", or variations or comparable language of such words and phrases or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will", "occur" or "be achieved" or the negative connotation thereof.

Forward-looking statements are necessarily based upon a number of factors and assumptions that, if untrue, could cause the actual results, performances or achievements of Goldcorp to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding Goldcorp’s present and future business strategies and the environment in which Goldcorp will operate in the future, including the price of gold, anticipated costs and ability to achieve goals. Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, among others, gold price volatility, discrepancies between actual and estimated production, Mineral Reserves and Mineral Resources and metallurgical recoveries, mining operational and development risks, litigation risks, regulatory restrictions (including environmental regulatory restrictions and liability), changes in national and local government legislation, taxation, controls or regulations and/or change in the administration of laws, policies and practices, expropriation or nationalization of property and political or economic developments in Canada, the United States, Mexico, Argentina, the Dominican Republic, Chile or other jurisdictions in which the Company does or may carry on business in the future, delays, suspension and technical challenges associated with capital projects, higher prices for fuel, steel, power, labour and other consumables, currency fluctuations, the speculative nature of gold exploration, the global economic climate, dilution, share price volatility, competition, loss of key employees, additional funding requirements and defective title to mineral claims or property. Although Goldcorp believes its expectations are based upon reasonable assumptions and has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended.

Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of Goldcorp to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: future prices of gold, silver, zinc, copper and lead; mine development and operating risks; possible variations in ore reserves, grade or recovery rates; risks related to international operations, including economic and political instability in foreign jurisdictions in which Goldcorp operates; risks related to current global financial conditions; risks related to joint venture operations; actual results of current exploration activities; actual results of current reclamation activities; environmental risks; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; risks associated with restructuring and cost-efficiency initiatives; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; risks related to the integration of acquisitions; risks related to indebtedness and the service of such indebtedness, as well as those factors discussed in the section entitled "Description of the Business - Risk Factors” in Goldcorp’s most recent annual information form available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. Although Goldcorp has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Forward-looking statements are made as of the date hereof and, accordingly, are subject to change after such date. Except as otherwise indicated by Goldcorp, these statements do not reflect the potential impact of any non-recurring or other special items or of any disposition, monetization, merger, acquisition, other business combination or other transaction that may be announced or that may occur after the date hereof. Forward-looking statements are provided for the purpose of providing information about management’s current expectations and plans and allowing investors and others to get a better understanding of Goldcorp's operating environment. Goldcorp does not intend or undertake to publicly update any forward-looking statements that are included in this document, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.

This MD&A presents certain measures, including "total cash costs: by-product", "total cash costs: co-product", "all-in sustaining costs", "adjusted operating cash flow", "EBITDA", "adjusted EBITDA" and "adjusted net debt", that are not recognized measures under IFRS. This data may not be comparable to data presented by other gold producers. For a reconciliation of these measures to the most directly comparable financial information presented in the consolidated financial statements prepared in accordance with IFRS, see Non-GAAP Financial Performance Measures in this MD&A. The Company believes that these generally accepted industry measures are realistic indicators of operating performance and are useful in performing year over year comparisons. However, these non-GAAP measures should be considered together with other data prepared in accordance with IFRS, and these measures, taken by themselves, are not necessarily indicative of operating costs or cash flow measures prepared in accordance with IFRS. This MD&A also contains information as to estimated future all-in sustaining costs. The estimates of future all-in sustaining costs are not based on total production cash costs calculated in accordance with IFRS, which forms the basis of the Company’s cash costs: by-product. The estimates of future all-in sustaining costs are anticipated to be adjusted to include sustaining capital expenditures, corporate administrative expense, exploration and evaluation costs and reclamation cost accretion and amortization, and exclude the effects of expansionary capital, tax payments, dividends and financing costs. Projected IFRS total production cash costs for the full year would require inclusion of the projected impact of future included and excluded items, including items that are not currently determinable, but may be significant, such as sustaining capital expenditures, reclamation cost accretion and amortization and tax payments. Due to the uncertainty of the likelihood, amount and timing of any such items, the Company does not have information available to provide a quantitative reconciliation of projected all-in sustaining costs to a total production cash costs projection.

Scientific and technical information contained in this MD&A, including the Mineral Reserves and Mineral Resources, was reviewed and approved by Ivan Mullany, FAusIMM, Senior Vice-President, Technical Services for Goldcorp, and a "qualified person" as defined by Canadian Securities Administrators' National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). All Mineral Reserves and Mineral Resources have been estimated in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum ("CIM") and NI 43-101, or the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves equivalent. All Mineral Resources are reported exclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Information on data verification performed on the mineral properties mentioned in this MD&A that are considered to be material mineral properties to the Company are contained in Goldcorp’s most recent annual information form and the current technical report for each of those properties, all available on SEDAR at www.sedar.com.

Cautionary Note to United States investors concerning estimates of measured, indicated and inferred resources: The Mineral Resource and Mineral Reserve estimates contained in this MD&A have been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of United States securities laws and use terms that are not recognized by the SEC. Canadian reporting requirements for disclosure of mineral properties are governed by NI 43-101. The definitions used in NI 43-101 are incorporated by reference from the CIM Definition Standards adopted by CIM Council on May 10, 2014 (the "CIM Definition Standards"). U.S. reporting requirements are governed by the SEC Industry Guide 7 ("Industry Guide 7") under the United States Securities Act of 1933, as amended. These reporting standards have similar goals in terms of conveying an appropriate level of confidence in the disclosures being reported but embody different approaches and definitions. For example, the terms "Mineral Reserve", "Proven Mineral Reserve" and "Probable Mineral Reserve" are Canadian mining terms as defined in in NI 43-101, and these definitions differ from the definitions in Industry Guide 7. Under Industry Guide 7 standards, a "final" or "bankable" feasibility study is required to report reserves and the primary environmental analysis or report must be filed with the appropriate governmental authority. Further, under Industry Guide 7, mineralization may not be classified as "reserve" unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made.

While the terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource" are defined in and required to be disclosed by NI 43-101, these terms are not defined terms under Industry Guide 7 and are normally not permitted to be used in reports and registration statements filed with the SEC. United States readers are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. In addition, "Inferred Mineral Resources" have a great amount of uncertainty as to their existence and their economic and legal feasibility. A significant amount of exploration must be completed in order to determine whether an Inferred Mineral Resource may be upgraded to a higher category. Under Canadian regulations, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. United States readers are cautioned not to assume that all or any part of an Inferred Mineral Resource exists or is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations if such disclosure includes the grade or quality and the quantity for each category of Mineral Resource and Mineral Reserve; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in place tonnage and grade without reference to unit measures.

Accordingly, information contained in this MD&A containing descriptions of Goldcorp’s mineral deposits may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.

Net loss was $131 million, or $0.15 per share, which was impacted by non-cash foreign exchange losses of $178 million, or $0.20 per share, primarily arising on deferred tax balances. Operating cash flows and adjusted operating cash flows⁽¹⁾ for the three months ended June 30, 2018 were $158 million and $310 million, respectively, compared to $158 million and $320 million, respectively, for the three months ended June 30, 2017.

Gold production of 571,000 ounces at all-in sustaining costs⁽¹⁾ ("AISC") of $850 per ounce, compared to 635,000 ounces at AISC of $800 per ounce for the three months ended June 30, 2017. Ramp-up of sustainable capacity at Éléonore and Cerro Negro continued and are expected to be key contributors to increasing production in the second half of the year. Full year 2018 guidance reconfirmed for gold production of 2.5 million ounces (+/-5%) at AISC of $800⁽²⁾ per ounce (+/- 5%).

Project pipeline continues to advance in support of the Company's 20/20/20 growth plan. The Peñasquito Pyrite Leach project has completed construction with commissioning further accelerated to the third quarter of 2018, now two quarters ahead of schedule, while the Musselwhite Materials Handling project advanced to 76% completion, on schedule and 10% below budget.

Significant milestones reached at Coffee and Borden with the signing of agreements with First Nation communities. On April 30, 2018, Goldcorp signed a collaboration agreement with Tr'ondëk Hwëch'in with respect to the Coffee project and, on June 6, 2018, signed an Impacts and Benefits Agreement with three First Nation communities with respect to the development and operation of the Borden project.

Successfully executed on the Company’s $250 million sustainable annual efficiency program, with target now increased by a further $100 million. Through the execution of numerous cost reduction and productivity improvements across the portfolio, the Company achieved its target of $250 million of sustainable efficiencies and extended the program, targeting additional improvements of $100 million by the end of 2019.

Goldcorp is a leading gold producer focused on responsible mining practices, with production from a portfolio of long-life, high quality assets throughout the Americas, which the Company believes positions it to deliver long-term value.

The Company’s principal producing mining properties are comprised of the Éléonore, Musselwhite, Porcupine and Red Lake mines in Canada; the Peñasquito mine in Mexico; the Cerro Negro mine in Argentina; and the Pueblo Viejo mine (40.0% interest) in the Dominican Republic. The Company's significant projects include the Borden, Century and Coffee projects in Canada, and the NuevaUnión (50% interest) and Norte Abierto (50% interest) projects in Chile.

The Company’s current sources of operating cash flows are primarily from the sale of gold, silver, zinc, copper and lead. Goldcorp's principal product is refined gold bullion sold primarily in the London spot market. In addition to gold, the Company also produces silver, zinc, copper and lead primarily from concentrate produced at the Peñasquito mine, which is sold to third party smelters and refineries.

Goldcorp has an investment-grade credit rating, supported by a strong balance sheet, and remains 100% unhedged to gold sales, providing full exposure to gold prices.

Goldcorp's vision is to create sustainable value for its stakeholders by growing net asset value ("NAV") per share to generate long-term shareholder value. With a portfolio of long-life, high quality assets that provide economies of scale, coupled with low AISC per ounce and underpinned by a strong balance sheet, Goldcorp has optimized its portfolio of assets and is reinvesting in a strong pipeline of organic opportunities to drive increasing margins and returns on investment.

In 2016, the Company outlined its 20/20/20 growth plan under which it expects to deliver a 20% increase in gold production, a 20% increase in gold reserves and a 20% reduction in AISC per ounce by 2021. In the first quarter of 2018, the Company introduced its Beyond 20/20 program, which is focused on the potential for organic growth through the development of the Company's long-term portfolio, such as the Century project at the Porcupine camp, NuevaUnión and Norte Abierto.

Goldcorp is committed to being a responsible steward of the environment and building collaborative partnerships with communities, governments and all other stakeholders for mutual success.

Goldcorp believes its strong balance sheet provides the Company with flexibility and the ability to manage the risk of gold and commodity price volatility. The Company's capital allocation strategy focuses on investing in its pipeline of organic growth opportunities, further debt reduction and returning capital to its shareholders by paying a sustainable dividend. Furthermore, Goldcorp leverages its exploration spending in the most efficient way possible through investments in junior mining companies.

In 2016, the Company committed over one billion dollars of capital in a pipeline of organic growth opportunities, which are expected to support the growth in NAV of the Company by increasing production and decreasing AISC per ounce. These opportunities include Peñasquito’s Pyrite Leach project ("PLP"), Musselwhite’s Materials Handling project (“MHP”) and the Coffee project. The first two of these opportunities have entered into the final stages of construction as the PLP and MHP were 98% and 76% complete, respectively, as at June 30, 2018. Commissioning of the PLP is expected to commence in the third quarter of 2018, with first gold expected in the fourth quarter of 2018, two quarters ahead of schedule. At Musselwhite, the MHP is progressing as scheduled, with commissioning expected in the first quarter of 2019, and is expected to be approximately 10% under budget. In addition, significant milestones were reached during the second quarter of 2018 at the Coffee and Borden projects with the signing of a collaboration agreement with Tr'ondëk Hwëch'in relating to the Coffee project and an Impacts and Benefits Agreement with three First Nation communities with respect to the development and operation of the Borden project. Lastly, during the second quarter of 2018, an underground extension at the Alumbrera mine was approved which is expected to be fully funded through Alumbrera’s operating cash flows. The extension has an expected 10-year mine life and is expected to commence operations in late 2019 . Due to the approval of the underground mine extension and the resulting improved cashflows from Alumbrera, the remaining $30 million provision, which the Company had previously recognized in respect of the Company’s obligation to fund its 37.5% share of Alumbrera’s reclamation closure costs, was reduced to $nil, resulting in a $30 million credit to net earnings in the second quarter of 2018.

Since announcing the program to achieve $250 million in annual sustainable efficiencies in 2016, the Company has embarked upon numerous cost reduction and productivity improvement initiatives across the portfolio. As at June 30, 2018, the Company has successfully executed these productivity and cost optimization programs and achieved $250 million in annual sustainable efficiencies. Building upon this momentum the Company is extending the program, targeting additional improvements of $100 million

to be achieved by the end of 2019. New productivity initiatives, such as decreasing stope cycle times at Red Lake, increasing mine to mill efficiencies at Peñasquito and improving underground equipment and operator productivity at Cerro Negro, have already been identified. Along with the results from the initial $250 million efficiency program and an ongoing focus on cost at every location, these initiatives are expected to position the Company to achieve its 20/20/20 strategy.

The market price of gold is the primary driver of Goldcorp's profitability. The price of gold can fluctuate widely and is affected by a number of macroeconomic factors, including the sale or purchase of gold by central banks and financial institutions, interest rates, exchange rates, inflation or deflation, global and regional supply and demand and the political and economic conditions of major gold-producing and gold-consuming countries throughout the world.

The price of gold started the second quarter of 2018 at $1,325 per ounce and rallied quickly to a high of $1,365, testing resistance levels from the first quarter of 2018. However, the price was unable to sustain this rally and subsequently trended downwards over the next two months. Gold closed the second quarter of 2018 at a price of $1,250 per ounce for an overall quarterly loss of $75 per ounce, or 5.5%. On an attributable basis, the Company realized an average gold price of $1,289 per ounce in the second quarter of 2018, a 3% increase compared to $1,256 per ounce in the second quarter of 2017, and a 4% decrease compared to $1,337 per ounce in the first quarter of 2018. Weakness in the gold price during the second quarter was driven predominantly by strength in the US dollar and expectations for higher interest rates over the second half of 2018 as the US Federal Reserve continues to wind down its Quantitative Easing program. The threat of a broad-based global trade war, and its impact on the market, remains to be seen with market participants currently giving more weight to US dollar strength, and corresponding weakness in emerging market currencies, most notably the Argentine Peso.

The results of Goldcorp's mining operations are affected by changes in the US dollar exchange rate compared to currencies of the countries in which Goldcorp has foreign operations. The Company has exposure to the Canadian dollar relating to its Éléonore, Musselwhite, Porcupine and Red Lake operations and the Coffee and Century projects, exposure to the Mexican peso relating to its Peñasquito operation, exposure to the Argentine peso at its Cerro Negro operation, exposure to the Dominican Republic peso relating to its investment in Pueblo Viejo and exposure to the Chilean peso with respect to its NuevaUnión and Norte Abierto joint ventures.

Fluctuations in the US dollar can cause volatility of costs reported in US dollars. In addition, monetary assets and liabilities that are denominated in non-US dollar currencies, such as cash and cash equivalents and value-added taxes, are subject to currency risk. Goldcorp is further exposed to currency risk through non-monetary assets and liabilities of entities whose taxable profit or tax loss are denominated in non-US dollar currencies. Changes in exchange rates give rise to temporary differences resulting in deferred tax assets and liabilities with the resulting deferred tax charged or credited to income tax expense.

Goldcorp's financial risk management policy allows the hedging of foreign exchange exposure to reduce the risk associated with currency fluctuations. The Company enters into Mexican peso currency hedge contracts to purchase Mexican pesos at pre-determined US dollar amounts. These contracts are entered into to normalize operating expenses and capital expenditures at Peñasquito, expressed in US dollar terms.

Currency markets continued to experience general volatility during the second quarter of 2018. A strong US dollar and uncertainty in the future of the NAFTA trade agreement have resulted in a trend of depreciation of both the Canadian dollar and Mexican peso. Although the Canadian dollar weakened by 2% during the second quarter of 2018, strong economic data and the Central Bank of Canada’s restrictive monetary policy has enabled the Canadian dollar to outperform other G7 currencies. After a positive first quarter of 2018, the Mexican peso weakened by nearly 10%, as the Mexican economy proved more susceptible to NAFTA-related headline risk. Mexico elected the liberal government of Andrés Manuel López Obrador in early July 2018. The market reacted positively to the news, with the peso experiencing a modest appreciation following the election.

The Argentine peso has been the worst performing emerging market currency in 2018 through the end of the second quarter of 2018 as a large fiscal deficit, weak economic outlook, and significant inflation have combined to see the peso depreciate over 50% since the beginning of 2018. To gain control of the currency, Argentina’s Central Bank hiked target interest rates and the Government of Argentina entered a 36-month Stand-By Agreement (“SBA”) with the International Monetary Fund in June 2018, agreeing to a US $50 billion standby credit line. These actions led to a further rate spike, where the peso reached the historic low of 28.85 at June 30, 2018. The peso may further depreciate in the short term due to negative economic impacts from lower agricultural exports caused by severe drought and inflationary pressure from macroeconomic normalization. The $50 billion SBA is expected to help stabilize the currency, and allow the government to continue its macroeconomic reforms, with economic growth expected to return in 2019 when agricultural conditions are expected to improve.

	June 30					March 31				December 31				September 30
	2018			2017		2018		2017		2017		2016		2017		2016
Financial Results
Revenues	$	793		$	822	$	846	$	882	$	853	$	898	$	866	$	915
Net earnings (loss)	$	(131	)	$	135	$	67	$	170	$	242	$	101	$	111	$	59
Net earnings (loss) per share
– Basic and diluted	$	(0.15	)	$	0.16	$	0.08	$	0.20	$	0.28	$	0.12	$	0.13	$	0.07
Operating cash flow	$	158		$	158	$	271	$	227	$	511	$	239	$	315	$	267
Adjusted operating cash flow ⁽¹⁾	$	310		$	320	$	350	$	315	$	401	$	306	$	308	$	401
Adjusted EBITDA⁽¹⁾	$	334		$	432	$	433	$	427	$	448	$	477	$	400	$	491
Expenditures on mining interests (cash basis)	$	318		$	233	$	287	$	186	$	420	$	217	$	291	$	168
– Sustaining	$	127		$	133	$	119	$	113	$	187	$	145	$	143	$	112
– Expansionary	$	191		$	100	$	168	$	73	$	233	$	72	$	148	$	56
Dividends paid	$	15		$	16	$	14	$	15	$	16	$	16	$	15	$	14
Operating Results ⁽¹⁾
Gold produced (thousands of ounces)		571			635		590		655		646		761		633		715
Gold sold (thousands of ounces)		562			649		585		646		633		768		606		686
Silver produced (thousands of ounces)		6,100			7,400		6,800		7,100		7,100		7,400		7,000		7,700
Zinc produced (thousands of pounds)		77,500			84,100		88,700		80,700		96,500		78,300		98,400		75,200
Copper produced (thousands of pounds)		6,600			7,900		5,400		9,700		4,500		20,400		6,300		16,900
Lead produced (thousands of pounds)		26,800			26,100		27,000		32,400		36,500		29,600		38,300		33,700
Average realized gold price (per ounce)	$	1,289		$	1,256	$	1,337	$	1,236	$	1,286	$	1,181	$	1,287	$	1,333
Cash costs: by-product (per ounce) ⁽²⁾	$	527		$	510	$	511	$	540	$	462	$	481	$	483	$	554
Cash costs: co-product (per ounce) ⁽³⁾	$	700		$	644	$	696	$	701	$	627	$	619	$	663	$	657
All-in sustaining costs (per ounce)	$	850		$	800	$	810	$	800	$	870	$	747	$	827	$	812

Three months ended June 30, 2018 compared to the three months ended June 30, 2017

The net loss for the three months ended June 30, 2018 was $131 million, or $0.15 per share, compared to net earnings of $135 million, or $0.16 per share, for the three months ended June 30, 2017. The net loss in the second quarter of 2018 compared to net earnings in the same period in 2017 was primarily due to an increase in deferred tax expense arising from currency devaluations, particularly in Argentina. Additionally, the second quarter of 2018 was impacted by a decrease in production volumes, primarily at Peñasquito due to planned mine sequencing, offset partially by increases at Cerro Negro and Éléonore as both mines continued to ramp up, and an increase in unrealized foreign exchange losses arising primarily on value added tax receivables denominated in local currencies as a result of the currency devaluations. The increase in deferred tax expense, decrease in production volumes and increase in unrealized foreign exchange losses for the second quarter of 2018 as compared to the same period in 2017 were offset partially by the impact of increases in average realized gold and by-product metal prices.

Net earnings and earnings per share for the three months ended June 30, 2018 and 2017 were affected by, among other things, the following significant non-cash or other items that management believes are not reflective of the performance of the underlying operations (items are denoted as having (increased)/decreased net earnings and net earnings per share in the three months ended June 30, 2018 and 2017):

Three months ended June 30	2018 ⁽¹⁾		2017 ⁽¹⁾		Change
Gold
Revenue (millions)	$	588	$	624		(6	)%
Ounces sold (thousands)		457		497		(8	)%
Average realized price ($/ounce)	$	1,291	$	1,257		3	%
Silver
Revenue (millions)	$	85	$	92		(8	)%
Ounces sold (thousands)		6,025		7,181		(16	)%
Average realized price ($/ounce)	$	14.31	$	13.38		7	%
Zinc
Revenue (millions)	$	94	$	86		9	%
Pounds sold (thousands)		73,700		85,700		(14	)%
Average realized price	$	1.35	$	1.16		16	%
Other metals
Revenue (millions)	$	26	$	20		30	%
Total revenue (millions)	$	793	$	822		(4	)%

Revenues decreased by $29 million, or 4%, primarily due to decreases in gold, silver and zinc sales volumes of 8%, 16% and 14%, respectively. These decreases were offset partially by increases in the average realized price of all three metals and lower treatment and refining charges. The decrease in gold sales volumes was primarily due to lower sales volumes at Peñasquito and the impact of the closure of Marlin in the second quarter of 2017, offset by higher sales volumes at Cerro Negro and Éléonore. The decrease in gold sales volumes at Peñasquito was as a result of the planned transition from high-grade ore in Phase 5D at the bottom of the Peñasco pit, to lower grade ore from stockpiles and the remnants of Phase 5D, while the increase at Cerro Negro was due to higher mill head grade, as a result of improved dilution control and mine sequencing in Mariana Central and Eureka. The increase in gold sales volume at Éléonore reflected the ongoing ramp up and contribution of higher grade ore from Horizon 5 during the second

quarter of 2018. The decrease in silver sales volumes was due to the closure of Marlin while the decrease in zinc sales volumes was due to mine sequencing at Peñasquito.

Production costs in the second quarter of 2018 decreased by $14 million, or 3%, when compared to the same period in 2017 primarily due to the closure of Marlin in the second quarter of 2017 ($26 million), the favourable impact of the weakening Argentine peso by 49% compared to the same period in the prior year at Cerro Negro, which was not fully offset by inflation, and a decrease in production costs at Peñasquito due to continuing cost optimization efforts, offset partially by an increase in production costs at Éléonore associated with its ramp up.

Depreciation and depletion increased by $17 million, or 7%, due to an increase in depreciation and depletion per ounce, offset partially by a decrease in sales volumes. The increase in depreciation and depletion per ounce was mainly due to a higher depletable cost base at Peñasquito in 2018. The decrease in sales volumes was primarily due to lower sales volumes at Peñasquito, offset partially by higher sales volumes at Éléonore and Cerro Negro.

The Company’s share of net earnings related to associates and joint venture decreased by $3 million in the three months ended June 30, 2018 compared to the same period in 2017 primarily due to a $29 million decrease in net earnings from Pueblo Viejo offset by an increase in the Company’s share of net earnings from Alumbrera. The decrease in net earnings from Pueblo Viejo was primarily due to lower revenues, increased production costs and higher depreciation and depletion. The increase in Pueblo Viejo’s production costs was due to the impact of higher fuel, power and maintenance costs whereas the increase in depreciation and depletion was due to the impact of the reversal of the previously recognized impairment in the fourth quarter of 2017.

The Company’s share of net earnings related to Alumbrera in the three months ended June 30, 2018 related to a $30 million reversal of the Company's provision to fund its share of Alumbrera’s reclamation costs to nil resulting from improved operating cashflows associated with a 10 year extension of Alumbrera’s mine life which was approved in April 2018. The Company discontinued recognizing its share of earnings of Alumbrera effective January 1, 2016 but as of May 1, 2018 commenced recognizing its share of earnings for Alumbrera as the total cumulative losses of Alumbrera had been reversed.

Other expense of $16 million for the three months ended June 30, 2018 included $27 million of foreign exchange losses arising primarily on value added tax receivables denominated in Argentine and Mexican pesos. These losses were offset partially by interest income on loans held with Pueblo Viejo and a gain recognized upon the dilution of the Company’s interest in Leagold to 12% in May 2018. Upon dilution, the Company’s investment in associate was derecognized with the remaining investment in Leagold classified as an equity security and remeasured to fair value market value as at the date of dilution.

Other income of $4 million for the three months ended June 30, 2017 was comprised primarily of gains on dispositions of securities and interest income on loans held with Pueblo Viejo, offset partially by foreign exchange losses arising primarily on value added tax receivables denominated in Argentine pesos and accounts payable denominated in Mexican pesos.

The income tax expense of $156 million for the three months ended June 30, 2018 resulted in a 624% tax rate (three months ended June 30, 2017 - $57 million income tax recovery and a negative 73% tax rate) and was impacted primarily by currency translations.

The impact of changes in foreign exchange rates on deferred tax balances, current tax balances, intra-group financing arrangements, and tax rate differences resulted in a $147 million income tax expense for the three months ended June 30, 2018 (three months ended June 30, 2017 - $51 million income tax recovery). Other items resulted in a $4 million income tax expense for the three months ended June 30, 2018 (three months ended June 30, 2017 - $19 million income tax recovery).

Earnings before income taxes of $25 million for the three months ended June 30, 2018 was impacted by the following items: $7 million of non-deductible share-based compensation expense (three months ended June 30, 2017 - $8 million); $38 million of after-tax income related to associates and joint venture (primarily Pueblo Viejo and Alumbrera) that are not subject to further income tax in the accounts of the Company (three months ended June 30, 2017 - $41 million, primarily Pueblo Viejo); a $13 million gain on the dilution of the Leagold equity investment which is not subject to income tax (three months ended June 30, 2017 - $nil); and $27 million of non-cash foreign exchange losses which are not subject to income tax (three months ended June 30, 2017 - $4 million). Additionally, earnings before income taxes for the three months ended June 30, 2017 was impacted by a loss on disposition of mining interest of $6 million.

After adjusting for the above-mentioned items, the effective income tax rate for three months ended June 30, 2018 was 63% (three months ended June 30, 2017 – 24%).

AISC⁽¹⁾ per ounce was $850 for the three months ended June 30, 2018, compared to $800 per ounce for the three months ended June 30, 2017. The increase in AISC per ounce was due primarily to lower gold sales ($122 per ounce) and lower by-product credits ($36 per ounce), offset partially by lower production costs ($96 per ounce) and lower sustaining capital ($14 per ounce). The decrease in gold sales was primarily due to lower sales at Peñasquito due to planned mine sequencing, and the impact of the closure of Marlin in the first half of 2017, offset partially by the increase in gold sales at Cerro Negro and Éléonore. The decrease in production costs was primarily due to the closure of Marlin in the second quarter of 2017, the favourable impact of the weakening Argentine peso compared to the same period in the prior year at Cerro Negro, which was not fully offset by inflation, and a decrease in production costs at Peñasquito due to continuing cost optimization efforts, offset partially by an increase in production costs at Éléonore associated with its ramp up. The decrease in sustaining capital was primarily due to timing of underground projects and improved mine sequencing at Éléonore, timing of expenditures at Cerro Negro, offset partially by planned ramp up in the tailings dam raise and the purchase of large equipment components at Peñasquito. The decrease in by-product credits was primarily due to lower by-product sales for all metals, which were impacted partially by the closure of Marlin in 2017 and lower copper volumes from Alumbrera, offset partially by a 16% increase in the average realized price of zinc.

The net loss for the six months ended June 30, 2018 was $64 million, or $0.07 per share, compared to net earnings of $305 million, or $0.36 per share, for the six months ended June 30, 2017. The net loss in the second quarter of 2018 compared to net earnings in the same period in 2017 was primarily due to an increase in deferred tax expense arising from currency devaluations, particularly in Argentina. Additionally, the net loss was impacted by a decrease in production volumes, primarily due to planned mine sequencing at Peñasquito, offset partially by increases at Cerro Negro and Éléonore, a decrease in net earnings relating to the Company's investment in Pueblo Viejo and an increase in unrealized foreign exchange losses arising primarily on value added tax receivables denominated in local currencies as a result of the currency devaluations. The increase in deferred tax expense, decrease in production volumes, decrease in net earnings relating to the Company’s investment in Pueblo Viejo and increase in unrealized foreign exchange losses for the second quarter of 2018 as compared to the same period in 2017 were offset partially by the impact of increases in average realized gold and zinc prices.

Net earnings and earnings per share for the six months ended June 30, 2018 and 2017 were affected by, among other things, the following significant non-cash or other items that management believes are not reflective of the performance of the underlying operations (items are denoted as having (increased)/decreased net earnings and net earnings per share in the six months ended June 30, 2018 and 2017):

Six months ended June 30	2018 ⁽¹⁾		2017 ⁽¹⁾		Change
Gold
Revenue (millions)	$	1,208	$	1,288		(6	)%
Ounces sold (thousands)		923		1,036		(11	)%
Average realized price ($/ounce)	$	1,312	$	1,246		5	%
Silver
Revenue (millions)	$	166	$	192		(14	)%
Ounces sold (thousands)		12,028		13,950		(14	)%
Average realized price ($/ounce)	$	14.26	$	14.39		(1	)%
Zinc
Revenue (millions)	$	215	$	179		20	%
Pounds sold (thousands)		161,700		174,200		(7	)%
Average realized price	$	1.44	$	1.24		16	%
Other metals
Revenue (millions)	$	50	$	45		11	%
Total revenue (millions)	$	1,639	$	1,704		(4	)%

Revenues decreased by $65 million, or 4%, primarily due to decreases in gold, silver and zinc sales volumes of 11%, 14% and 7%, respectively, offset partially by increases in the average realized prices of gold and zinc of 5% and 16%, respectively, and lower treatment and refining charges. The decrease in gold sales volumes was primarily due to lower sales volumes at Peñasquito and the impacts of the sale of Los Filos and closure of Marlin, offset partially by higher gold sales volumes at Cerro Negro and Éléonore. The decrease in silver sales volumes was also due to the impacts of the closure of Marlin in 2017, while the decrease in zinc sales volumes was due to lower production at Peñasquito. The decrease in gold and zinc sales volumes at Peñasquito was primarily due to the planned transition from high-grade ore in Phase 5D at the bottom of the Peñasco pit, to lower grade ore from stockpiles and the remnants of Phase 5D, while the increase in gold sales volumes at Cerro Negro was mainly due to higher mill grade as a result of improved dilution control and mine sequencing in Mariana Central and Eureka.

Production costs for the six months ended June 30, 2018 decreased by $70 million, or 7%, when compared to the same period in 2017 primarily due to the closure of Marlin in the second quarter of 2017 ($61 million), the divestiture of Los Filos in April 2017 ($39 million), the favourable impact of the weakening Argentine peso by 37% compared to the same period in 2017 at Cerro Negro which was not fully offset by inflation, and lower production costs at Peñasquito as a result of its cost optimization efforts, offset partially by an increase in production costs at Cerro Negro primarily due to an increase in royalties due to higher sales, and higher employee costs, and an increase in production costs at Éléonore associated with its ramp up.

Depreciation and depletion increased by $22 million, or 5%, due to an increase in depreciation and depletion per ounce, offset partially by a decrease in sales volumes. The increase in depreciation and depletion per ounce was mainly due to a higher depletable cost base at Peñasquito in 2018. The decrease in sales volumes was primarily due to the impacts of the sale of Los Filos in April 2017, the closure of Marlin in the second quarter of 2017, and lower sales volumes at Peñasquito, offset partially by higher sales volumes at Éléonore and Cerro Negro.

The Company’s share of net earnings related to associates and joint venture decreased by $54 million in the six months ended June 30, 2018 compared to the same period in 2017 primarily due to a $47 million decrease in net earnings from Pueblo Viejo. The decrease in net earnings from Pueblo Viejo was driven by lower revenues, an increase in tax expense arising from the settlement of a Dominican Republic tax audit, higher production costs due to the impact of higher fuel, power and maintenance costs and higher depreciation and depletion due to the impact of the reversal of the previously recognized impairment in the fourth quarter of 2017.

The Company’s share of net earnings related to Alumbrera in both the six months ended June 30, 2018 and 2017 related to a reduction in the Company's provision to fund its share of Alumbrera’s reclamation costs. The reduction in the six months ended June 30, 2018 reduced the provision to nil and was the result of improved operating cashflows associated with a 10-year extension of Alumbrera’s mine life which was approved in April 2018. The Company discontinued recognizing its share of earnings of Alumbrera effective January 1, 2016 but as of May 1, 2018 commenced recognizing its share of earnings for Alumbrera as the total cumulative losses of Alumbrera had been reversed.

Other expense of $3 million for the six months ended June 30, 2018 was comprised primarily of $20 million of foreign exchange losses arising primarily on value added tax receivables denominated in Argentine and Mexican pesos, offset partially by interest income on loans held with Pueblo Viejo and a gain associated with the dilution of the Company’s investment in Leagold to 12%.

Other income of $23 million for the six months ended June 30, 2017 was comprised primarily of interest income on loans held with Pueblo Viejo, foreign exchange gains arising primarily on value added tax receivables denominated in Mexican pesos and gains on dispositions of securities.

The income tax expense of $160 million for the six months ended June 30, 2018 resulted in a 167% tax rate (six months ended June 30, 2017 - $105 million income tax recovery and a negative 53% tax rate) and was impacted primarily by currency translations.

The impact of changes in foreign exchange rates on deferred tax balances, current tax balances, intra-group financing arrangements, and tax rate differences resulted in a $135 million income tax expense for the three months ended June 30, 2018 (six months ended June 30, 2017 - $126 million income tax recovery). Other items resulted in a $3 million income tax expense for the six months ended June 30, 2018 (six months ended June 30, 2017 - $18 million income tax recovery).

Earnings before income taxes of $96 million for the six months ended June 30, 2018 were impacted by the following items: $14 million of non-deductible share-based compensation expense (six months ended June 30, 2017 - $17 million); $47 million of after-tax income related to associates and joint venture (primarily Pueblo Viejo and Alumbrera) that are not subject to further income tax in the accounts of the Company (six months ended June 30, 2017 - $101 million); a $13 million gain on the dilution of the Leagold equity investment which is not subject to income tax (six months ended June 30, 2017 - $nil); and $20 million of non-cash foreign exchange losses which are not subject to income tax (six months ended June 30, 2017 - $17 million of foreign exchange gains). Additionally, earnings before income taxes for the six months ended June 30, 2017 was impacted by a $6 million loss on disposition of mining interest and a net impairment reversal of $3 million.

After adjusting for the above-mentioned items, the effective income tax rate for six months ended June 30, 2018 was 31% (six months ended June 30, 2017 – 38%).

AISC⁽¹⁾ per ounce was $830 for the six months ended June 30, 2018, compared to $800 per ounce for the six months ended June 30, 2017. The increase in AISC per ounce was primarily due to lower gold sales ($103 per ounce) and lower by-product credits ($38 per ounce), offset partially by lower production costs ($113 per ounce). The decrease in gold sales was primarily due to lower sales at Peñasquito due to planned mine sequencing, and the impacts of the sale of Los Filos and closure of Marlin in the first half of 2017, offset partially by an increase in gold sales at Cerro Negro and Éléonore associated with their ramp-up. The decrease in production costs was primarily due to the sale of Los Filos and closure of Marlin in 2017 and the favourable impact of the weakening Argentine peso compared to the same period in 2017 at Cerro Negro which was not fully offset by inflation. The decrease in by-product credits was primarily due to lower by-product sales for all metals, including the impact of the closure of Marlin, and lower copper volumes from Alumbrera, offset partially by 16% increase in the average realized price of zinc.

	Three months ended June 30						Six months ended June 30
	2018			2017			2018			2017
Cash flow
From continuing operations provided by operating activities	$	158		$	158		$	429		$	385
From continuing operations used in investing activities		(286	)		(256	)		(554	)		(503	)
From continuing operations provided by (used in) financing activities		123			(33	)		57			21
Increase (decrease) in cash and cash equivalents		(5	)		(131	)		(68	)		(97	)
Cash and cash equivalents, beginning of period		123			169			186			157
Increase in cash and cash equivalents reclassified as held for sale		—			42			—			20
Cash and cash equivalents, end of period	$	118		$	80		$	118		$	80

Cash flow provided by operating activities for the three months ended June 30, 2018 was consistent with the same period in the prior year due to higher average realized prices of gold and zinc of 3% and 16%, respectively, offset partially by a decrease in earnings from mine operations, primarily due to decreases in sales volumes of gold, silver and zinc, and an increase in income taxes paid.

The increase in cash flow of $44 million provided from operating activities in the six months ended June 30, 2018 compared to the same period in the prior year was primarily due to the impact of higher average realized metal prices and positive changes in other operating activities, offset partially by negative changes in working capital, predominately attributed to income taxes payable.

The increase in cash flow used in investing activities for the three and six months ended June 30, 2018 compared to the same periods in 2017 was due mainly to an increase in expenditures on mining interests of $85 million and $172 million, respectively, and net proceeds received in 2017 on the sale of Los Filos and Cerro Blanco, offset partially by cash used in connection with the acquisition of the Cerro Casale project in 2017.

Expenditures on mining interests (including deposits on mining interest expenditures) were as follows:

The increase in expenditures on mining interests during the three and six months ended June 30, 2018 compared to the same periods in the prior year was due primarily to an increase in expansionary capital of $89 million and $178 million, respectively, related primarily to the construction of the PLP at Peñasquito.

Cash flow provided by financing activities for the three months ended June 30, 2018 increased as compared to the same period in 2017 primarily due to a net credit facility draw down of an aggregate $140 million as compared to a net credit facility repayment of $16 million in the same period in 2017. Cash flow provided by financing activities for the six months ended June 30, 2018 increased as compared to the same period in 2017 primarily due to a net credit facility draw down of an aggregate $190 million as compared to a net credit facility draw down of $54 million in the same period in 2017.

On March 14, 2018, the Company entered into three one-year non-revolving term loan agreements, totaling $400 million. The term loans bear interest at LIBOR plus 0.65%, reset monthly, and are repayable before March 14, 2019 without penalty. The proceeds from the term loans were used to repay the $500 million note that was due on March 15, 2018.

On June 29, 2018, the Company completed the extension of its $3.0 billion credit facility term by one year to June 30, 2023. The unsecured, floating rate facility bears interest at LIBOR plus 140 basis points when drawn and 20 basis points on the undrawn amount, based on Goldcorp’s current bond ratings, and is intended to be used for liquidity and general corporate purposes.

At June 30, 2018, the Company's net debt and adjusted net debt⁽¹⁾ was $2.4 billion and $2.3 billion, respectively. At June 30, 2018, excluding cash and cash equivalents held at associates of $111 million, the Company had $3.0 billion of available liquidity, comprised of $0.2 billion of cash and cash equivalents and short-term investments, and $2.8 billion available on its $3.0 billion credit facility.

The Company may from time to time seek to retire or repurchase its outstanding debt in open market purchases, privately negotiated transactions or otherwise. Such repurchases, if any, will depend upon prevailing market conditions, the Company's liquidity requirements, contractual restrictions and other factors. The amount of debt retired or repurchased may be material.

As at July 25, 2018, there were 869 million common shares of the Company issued and outstanding and 5 million stock options outstanding, which are exercisable into common shares at exercise prices ranging between C$20.27 per share to C$31.03 per share, and 3 million restricted share units outstanding.

Goldcorp expects to produce 2.5 million ounces (+/- 5%) of gold and AISC are expected to be $800 per ounce (+/- 5%) in 2018, consistent with previous 2018 guidance. With the dilution of Goldcorp’s interest in Leagold and cessation of operations at Alumbrera beginning in the third quarter, the Company will not report production from these “other mines” for the remainder of 2018.

The Company’s 20/20/20 plan remains unchanged. As previously guided, gold production is expected to increase 20% to 3.0 million ounces by 2021 compared to baseline production of 2.5 million ounces in 2017. AISC are expected to decrease by 20% to approximately $700 per ounce over the same period driven by the ongoing focus on cost efficiencies and productivity improvements. Gold mineral reserves are expected to increase by 20% to 60 million ounces by 2021 supported by the exploration potential and ongoing programs across the Company's operating assets, joint ventures and projects.

Production (+/- 5%) ⁽²⁾	Units	2018E		2019E		2020E		2021E
Gold Production	Moz		2.5		2.7		3.0		3.0
Silver Production	Moz		30		50		40		35
Zinc Production	Mlbs		300		425		450		400
Lead Production	Mlbs		160		300		250		150

Costs (+/- 5%) ^{(2, 3)}	Units	2018E		2019E		2020E		2021E
AISC ⁽⁴⁾	$/oz		800		750		700		700
By-product Cash Costs	$/oz		450		400		400		400

Capital Expenditures (+/- 5%)	Units	2018E		2019E		2020E		2021E
Sustaining Capital ^{(2, 5)}	$M		550		575		575		575
Expansionary Capital^{(2, 5)}	$M		750		250		300		300

Operating results of operating segments are reviewed by the Company's chief operating decision maker ("CODM") to make decisions about resources to be allocated to the segments and to assess their performance. The Company considers each individual operating mine as an operating segment for financial reporting purposes except for Alumbrera and Leagold. Alumbrera and Leagold are not considered to be reportable operating segments as their financial results do not meet the quantitative threshold required for segment disclosure purposes. As a result, Alumbrera and Leagold are included in Other. The operating results presented below include the results of Leagold up to May 24, 2018, the date on which the Company ceased to have significant influence over Leagold.

The Company’s 100% interest in the HG Young project is included in the Red Lake reporting operating segment while the Borden and Century projects are included in the Porcupine reportable operating segments. The Company's 50% interests in the NuevaUnión and Norte Abierto projects in Chile, and 100% interest in the Coffee project in the Yukon, are included in Other.

The Company’s principal product is gold bullion which is sold primarily in the London spot market. Concentrate produced at Peñasquito and Alumbrera, containing both gold and by-product metals, is sold to third party smelters and traders.

Three months ended June 30		Revenue ($ millions)			Gold produced (000's of ounces)			Gold sold (000's of ounces)			Total cash costs: by- product ($/oz) ^{(1), (4)}			AISC ($/oz) ^{(3), (4)}			Earnings (loss) from mine operations ($ millions)
Peñasquito	2018		286			73			80			(269	)		490			35
	2017		335			123			133			26			328			95
Cerro Negro	2018		181			129			127			409			526			42
	2017		149			112			107			484			694			18
Pueblo Viejo ⁽⁴⁾	2018		119			82			84			524			623			39
	2017		153			115			114			333			440			94
Red Lake	2018		64			62			50			937			1,232			4
	2017		74			58			58			828			1,120			3
Éléonore	2018		113			85			86			810			948			(1	)
	2017		86			66			68			891			1,229			(7	)
Porcupine	2018		81			64			62			795			1,012			6
	2017		76			60			60			777			1,052			1
Musselwhite	2018		68			50			52			758			955			16
	2017		69			57			55			658			826			23
Other mines ⁽²⁾	2018		46			26			21			782			751			9
	2017		108			44			54			859			917			6
Other ⁽³⁾	2018		—			—			—			—			85			(5	)
	2017		—			—			—			—			68			(4	)
Attributable segment total ⁽⁴⁾	2018		958			571			562			527			850			145
	2017		1,050			635			649			510			800			229
Less associates and joint venture	2018		(165	)		(108	)		(105	)		(578	)		(650	)		(50	)
	2017		(228	)		(144	)		(152	)		(478	)		(574	)		(102	)
Total - Consolidated	2018		793			463			457			516			896			95
	2017		822			491			497			520			868			127

Six months ended June 30		Revenue ($ millions)			Gold produced (000's of ounces)			Gold sold (000's of ounces)			Total cash costs: by- product ($/oz) ^{(1), (4)}			AISC ($/oz) ^{(3), (4)}			Earnings (loss) from mine operations ($ millions)
Peñasquito	2018		615			171			170			(293	)		299			103
	2017		691			260			271			56			360			186
Cerro Negro	2018		358			247			247			429			562			76
	2017		270			207			195			473			675			33
Pueblo Viejo ⁽⁴⁾	2018		258			176			181			470			606			103
	2017		275			210			209			381			486			160
Red Lake	2018		145			122			111			918			1,180			9
	2017		140			107			112			844			1,134			1
Éléonore	2018		199			152			151			913			1,058			(16	)
	2017		174			144			140			870			1,141			(12	)
Porcupine	2018		174			132			132			749			951			21
	2017		152			121			122			810			1,031			(3	)
Musselwhite	2018		148			109			112			682			854			48
	2017		138			111			111			686			848			42
Other mines ⁽²⁾	2018		88			52			43			911			959			13
	2017		254			130			135			758			831			23
Other ⁽³⁾	2018		—			—			—			—			86			(14	)
	2017		—			—			—			—			66			(11	)
Attributable segment total ⁽⁴⁾	2018		1,985			1,161			1,147			519			830			343
	2017		2,094			1,290			1,295			525			800			419
Less associates and joint venture	2018		(346	)		(228	)		(224	)		(556	)		(675	)		(117	)
	2017		(390	)		(257	)		(259	)		(460	)		(564	)		(176	)
Total - Consolidated	2018		1,639			933			923			510			867			226
	2017		1,704			1,033			1,036			541			858			243

	Three months ended June 30						Six months ended June 30
Operating Data	2018			2017		Change	2018			2017		Change
Tonnes of ore milled (thousands)		9,085			8,740	4 %		18,044			18,250	(1)%
Mill head grade
Gold grade (grams/tonne)		0.42			0.73	(42)%		0.48			0.74	(35)%
Silver grade (grams/tonne)		20.70			22.03	(6)%		22.10			21.59	2 %
Lead grade	0.19%			0.20%		(5)%	0.19%			0.21%		(10)%
Zinc grade	0.55%			0.64%		(14)%	0.59%			0.60%		(2)%
Mill Recovery Rate
Gold recovery	64%			66%		(3)%	65%			66%		(2)%
Silver recovery	83%			81%		2 %	84%			82%		2 %
Lead recovery	74%			71%		4 %	75%			74%		1 %
Zinc recovery	83%			81%		2 %	83%			81%		2 %
Payable Metal Produced
Gold (thousands of ounces)		73			123	(41)%		171			260	(34)%
Silver (thousands of ounces)		4,450			5,331	(17)%		9,616			10,167	(5)%
Lead (thousands of pounds)		26,800			26,100	3 %		53,800			58,500	(8)%
Zinc (thousands of pounds)		77,500			84,100	(8)%		166,200			164,800	1 %
Payable Metal Sold
Gold (thousands of ounces)		80			133	(40)%		170			271	(37)%
Silver (thousands of ounces)		4,946			5,676	(13)%		9,889			10,501	(6)%
Lead (thousands of pounds)		26,600			27,300	(3)%		52,600			58,600	(10)%
Zinc (thousands of pounds)		73,700			85,700	(14)%		161,700			174,200	(7)%
Total Cash Costs: By-product (per ounce)	$	(269	)	$	26	(1135)%	$	(293	)	$	56	(623)%
Total Cash Costs: Co-product (per ounce)	$	709		$	601	18 %	$	708		$	635	11 %
AISC (per ounce)	$	490		$	328	49 %	$	299		$	360	(17)%
Financial Data (in millions)
Revenues ⁽¹⁾	$	286		$	335	(15)%	$	615		$	691	(11)%
Production costs	$	166		$	173	(4)%	$	347		$	366	(5)%
Depreciation and depletion	$	85		$	67	27 %	$	165		$	139	19 %
Earnings from mine operations	$	35		$	95	(63)%	$	103		$	186	(45)%
Expenditures on mining interests (cash basis)	$	151		$	81	86 %	$	282		$	156	81 %
– Sustaining	$	56		$	37	51 %	$	92		$	77	19 %
– Expansionary	$	95		$	44	116 %	190			$	79	141 %

Gold production for the three and six months ended June 30, 2018 was lower than the same periods in the prior year as a result of the planned transition from high-grade ore in Phase 5D at the bottom of the Peñasco pit, to lower grade ore from stockpiles and the remnants of Phase 5D. Production in Phase 5D was completed during the second quarter of 2018, and equipment was refocused on accelerating stripping activities in Phase 6D and in the Chile Colorado pit. With the commissioning schedule of the PLP accelerated into the third quarter of 2018, the production plan for the third quarter has been modified with lower than planned mill throughput and low mill head grades, exclusively from the surface stockpile, to accommodate the commissioning of a new major circuit, which is the preferred material to be processing during the commissioning phase where lower recoveries are expected. A resequencing to higher grades and mill tonnage in the fourth quarter, subsequent to the commissioning, is expected to allow the mine to meet its full year gold production objectives. Mining activities will transition to the newly developed Chile Colorado pit in late 2018 and into the higher-grade ore in Phase 6D in 2019 in the Peñasco pit.

Tonnes processed for the three months ended June 30, 2018 were higher than the same period in the prior year due to the continued improvements to ore delivery and processing at the primary crusher and plant. Recoveries remained consistent despite lower mill head grades in this period.

Earnings from mine operations for the three and six months ended June 30, 2018 were lower than the same periods in the prior year primarily due to lower production volumes and higher depletion and depreciation, offset partially by higher metal prices. Production costs for the three and six months ended June 30, 2018 were lower compared to the same periods in the prior year due to continuing cost optimization efforts, despite the impact of market price increases for diesel and electricity. Depreciation and depletion increased due to a higher depletable cost base in 2018.

AISC per ounce for the three months ended June 30, 2018 was higher than the same period in the prior year due to lower gold sales volume and planned higher sustaining capital expenditures, offset partially by higher by-product metal credits and lower concentrate treatment and refining charges. AISC per ounce for the six months ended June 30, 2018 was lower than the same period in the prior year due to higher by-product metal credits and lower concentrate treatment and refining charges, offset partially by lower gold sales volume and higher sustaining capital expenditures. Higher sustaining capital expenditures in the three and six months ended June 30, 2018, were mainly as a result of the planned ramp up in the tailings dam raise and the purchase of large equipment components, expenditures associated with the tailings dam raise will continue for the remainder of 2018.

Expansionary capital relates to the PLP (see the Project Pipeline section below) and Chile Colorado pre-stripping, both of which are expected to be completed during the fourth quarter of 2018.

	Three months ended June 30					Six months ended June 30
Operating Data	2018		2017		Change	2018		2017		Change
Tonnes of ore milled (thousands)		273		268	2 %		516		507	2 %
Mill Gold grade (grams/tonne)		15.80		13.42	18 %		15.11		13.04	16 %
Mill Silver grade (grams/tonne)		153.64		119.60	28 %		147.83		113.42	30 %
Gold recovery rate	96%		96%		— %	96%		96%		— %
Silver recovery rate	85%		85%		— %	86%		87%		(1)%
Gold Produced (thousands of ounces)		129		112	15 %		247		207	19 %
Silver Produced (thousands of ounces)		1,098		883	24 %		2,168		1,589	36 %
Gold Sold (thousands of ounces)		127		107	19 %		247		195	27 %
Silver Sold (thousands of ounces)		1,079		815	32 %		2,139		1,490	44 %
Total Cash Costs: By-product (per ounce)	$	409	$	484	(15)%	$	429	$	473	(9)%
Total Cash Costs: Co-product (per ounce)	$	485	$	547	(11)%	$	504	$	539	(6)%
AISC (per ounce)	$	526	$	694	(24)%	$	562	$	675	(17)%
Financial Data (in millions)
Revenues	$	181	$	149	21 %	$	358	$	270	33 %
Production costs	$	69	$	67	3 %	$	141	$	119	18 %
Depreciation and depletion	$	70	$	64	9 %	$	141	$	118	19 %
Earnings from mine operations	$	42	$	18	133 %	$	76	$	33	130 %
Expenditures on mining interests (cash basis)	$	23	$	22	5 %	$	42	$	38	11 %
– Sustaining	$	13	$	20	(35)%	$	30	$	34	(12)%
– Expansionary	$	10	$	2	400 %	$	12	$	4	200 %

Gold production for the three and six months ended June 30, 2018 was higher than the same periods in the prior year mainly due to higher mill grade as a result of improved dilution control and mine sequencing in Mariana Central and Eureka.

Cerro Negro´s productivity improvement plan has resulted in a 20% higher development rates compared to the first quarter of 2018, positioning the mine for increased production rates in future periods.

Development work at Mariana Norte continued during the second quarter of 2018, with ramp breakthrough expected at the end of July 2018. Development of the Emilia vein will continue throughout 2018. Both development projects will commence production in 2019, supplementing Eureka production, which is expected to decline in 2019. The mine expects to achieve nominal run rates of 4,000 tonnes per day to the mill by the end of 2018. The concept work to define optimization options for the mine continues on schedule while various combinations of mine and mill expansion are undergoing trade-off studies with grade optimization scenarios.

Earnings from mine operations for the three and six months ended June 30, 2018 were higher than the same periods in the prior year due to higher metal sales and realized metal prices, offset partially by higher depreciation and depletion. Production costs for the three and six months ended June 30, 2018 were higher than the same periods in the prior year due to higher production volumes, higher royalties due to higher sales, and higher employee costs.

AISC per ounce for the three and six months ended June 30, 2018 was lower than the same periods in the prior year due to higher gold sales and lower sustaining capital expenditures, offset partially by higher production costs.

	Three months ended June 30					Six months ended June 30
Operating Data	2018		2017		Change	2018		2017		Change
Tonnes of ore milled (thousands)		781		837	(7)%		1,639		1,567	5 %
Mill head grade (grams/tonne)		3.60		4.53	(21)%		3.68		4.52	(19)%
Recovery rate	91%		94%		(3)%	91%		92%		(1)%
Gold Produced (thousands of ounces)		82		115	(29)%		176		210	(16)%
Gold Sold (thousands of ounces)		84		114	(26)%		181		209	(13)%
Total Cash Costs: By-product (per ounce)	$	524	$	333	57 %	$	470	$	381	23 %
Total Cash Costs: Co-product (per ounce)	$	584	$	391	49 %	$	530	$	424	25 %
AISC (per ounce)	$	623	$	440	42 %	$	606	$	486	25 %
Financial Data (in millions) ⁽¹⁾
Revenues	$	119	$	153	(22)%	$	258	$	275	(6)%
Production costs	$	53	$	48	10 %	$	104	$	95	9 %
Depreciation and depletion	$	27	$	11	145 %	$	51	$	20	155 %
Earnings from mine operations	$	39	$	94	(59)%	$	103	$	160	(36)%
Expenditures on mining interests (cash basis)	$	7	$	10	(30)%	$	22	$	19	16 %
– Sustaining	$	7	$	10	(30)%	$	22	$	19	16 %
– Expansionary	$	—	$	—	n/a	$	—	$	—	n/a

Gold production for the three and six months ended June 30, 2018 was lower than the same periods in the prior year primarily due to lower head grades and lower recovery rates. The decrease in head grade was attributable to the expected decline in pit ore grades for these periods and delays in transitioning to higher grade ore benches in Moore pit Phases 5 and 6, which is expected to improve head grade for the second half of 2018. Tonnes milled decreased for the three months ended June 30, 2018 compared with the same period in the prior year, primarily due to the impact of the SAG mill reline, an autoclave shutdown that was deferred from the first quarter of 2018, and unplanned conveyor repairs. Lower gold recovery than planned, resulted from increased processing of lower grade materials and carbonaceous ore during April and June.

Earnings from mine operations for the three and six months ended June 30, 2018 were lower than the same periods in the prior year primarily due to lower revenues, higher production costs and higher depreciation and depletion costs. Production costs for the three and six months ended June 30, 2018 were higher than the same periods in the prior year primarily due to the impact of higher fuel, power, and maintenance costs. Higher depreciation and depletion costs were a result of the reversal of the previously recorded impairment at the end of 2017.

AISC per ounce for the three months ended June 30, 2018 was higher than the same period in the prior year primarily due to lower gold sales volume, higher production costs, offset partially by lower sustaining capital expenditures.

AISC per ounce for the six months ended June 30, 2018 was higher than the same period in the prior year primarily due to lower gold sales volume, higher production costs, and higher sustaining capital expenditures. Sustaining capital expenditures were higher due to higher capitalized stripping costs driven by the start of Moore phases 5 and 6, and higher expenditures on tailings facilities construction.

	Three months ended June 30						Six months ended June 30
Operating Data	2018			2017		Change	2018			2017		Change
Tonnes of ore milled (thousands)		192			149	29 %		373			260	43 %
Mill head grade (grams/tonne)		9.17			12.75	(28)%		9.64			13.41	(28)%
Recovery rate		94	%	95%		(1)%		94	%	95%		(1)%
Gold Produced (thousands of ounces)		62			58	7 %		122			107	14 %
Gold Sold (thousands of ounces)		50			58	(14)%		111			112	(1)%
Total Cash Costs: By-product (per ounce)	$	937		$	828	13 %	$	918		$	844	9 %
AISC (per ounce)	$	1,232		$	1,120	10 %	$	1,180		$	1,134	4 %
Financial Data (in millions)
Revenues	$	64		$	74	(14)%	$	145		$	140	4 %
Production costs	$	46		$	48	(4)%	$	101		$	95	6 %
Depreciation and depletion	$	14		$	23	(39)%	$	35		$	44	(20)%
Earnings (loss) from mine operations	$	4		$	3	33 %	$	9		$	1	800 %
Expenditures on mining interests (cash basis)	$	20		$	20	— %	$	41		$	37	11 %
– Sustaining	$	14		$	16	(13)%	$	27		$	30	(10)%
– Expansionary	$	6		$	4	50 %	$	14		$	7	100 %

Gold production for the three and six months ended June 30, 2018 was higher than the same periods in the prior year due to higher tonnes despite lower grades, as Red Lake continued its planned transition to a bulk mining operation. With the increased use of bulk mining methods, the milling rate increased 29% and 43%, respectively, in the three and six months ended June 30, 2018, as compared to the same periods in the prior year. Red Lake is expected to continue to deliver higher tonnes in the second half of the year as compared to 2017, as well as realizing the benefits of investments in cost reduction and productivity initiatives during the first half of 2018.

Earnings from mine operations for the three and six months ended June 30, 2018 were higher than same periods in the prior year as a result of higher realized gold price and lower depreciation and depletion costs, resulting from a lower depletable base.

AISC per ounce for the three and six months ended June 30, 2018 was higher than the same periods in the prior year as a result of lower gold sales, offset partially by a reduction in sustaining capital expenditures.

	Three months ended June 30							Six months ended June 30
Operating Data	2018			2017			Change	2018			2017			Change
Tonnes of ore milled (thousands)		452			432		5 %		874			911		(4)%
Mill head grade (grams/tonne)		6.33			5.15		23 %		5.87			5.26		12 %
Recovery rate	92%			91%			1 %	91%			91%			— %
Gold Produced (thousands of ounces)		85			66		29 %		152			144		6 %
Gold Sold (thousands of ounces)		86			68		26 %		151			140		8 %
Total Cash Costs: By-product (per ounce)	$	810		$	891		(9)%	$	913		$	870		5 %
AISC (per ounce)	$	948		$	1,229		(23)%	$	1,058		$	1,141		(7)%
Financial Data (in millions)
Revenues	$	113		$	86		31 %	$	199		$	174		14 %
Production costs	$	71		$	61		16 %	$	138		$	122		13 %
Depreciation and depletion	$	43		$	32		34 %	$	77		$	64		20 %
Loss from mine operations	$	(1	)	$	(7	)	86 %	$	(16	)	$	(12	)	(33)%
Expenditures on mining interests (cash basis)	$	15		$	29		(48)%	$	32		$	58		(45)%
– Sustaining	$	11		$	22		(50)%	$	20		$	36		(44)%
– Expansionary	$	4		$	7		(43)%	$	12		$	22		(45)%

As planned, gold production for the three and six months ended June 30, 2018 was higher than the same periods in the prior year, reflecting the commencement of production and ongoing ramp up and contribution of higher grade ore from Horizon 5 during the second quarter of 2018. The ramp up at Éléonore led to an increase in tonnes milled of 5% for the three months ended June 30, 2018 compared to the second quarter of 2017 and an increase of 7% in tonnes milled for the three months ended June 30, 2018 compared to the first quarter of 2018, despite four days of production being lost due to a planned government inspection and maintenance of the main power line servicing the mine. Éléonore's tonnes milled were planned to be lower in the first half of 2018 and are expected increase in the second half of the year as part of the mine sequence and ramp up process.

During the month of May 2018, Éléonore began active mining on Horizon 5, opening new mining fronts and providing greater flexibility for the mine. The additional mining fronts allowed Éléonore to process an average of 5,600 tonnes of ore production per day over May and June, which is expected to reach an average over 6,000 tonnes per day in the second half of the year. The mine is expected to exit 2018 at a sustained annual gold production rate of 400,000 ounces per annum.

The loss from mine operations for the three months ended June 30, 2018 was lower than the same period in the prior year due to higher gold sales, offsetting increased production costs and higher depreciation and depletion. The loss from mine operations for the six months ended June 30, 2018 was higher than the comparative period due to higher production costs and depreciation and depletion, offset partially by higher gold sales. With the completion of the ramp in the first quarter of 2018 and the beginning of active mining on Horizon 5 in the second quarter of 2018, the increased flexibility is expected to allow the mine to more efficiently distribute resources, contributing to a decrease in mining costs.

AISC per ounce for the three and six months ended June 30, 2018 was lower than the same period in the prior year primarily due to higher gold sales and lower sustaining capital expenditures, offset partially by increased production costs, the latter driven by increased tonnes and commencement of production on Horizon 5. Sustaining capital expenditures were lower due to timing of underground projects, and lower sustaining capital development due to improved mine sequencing compared to the second quarter of 2017. The Company expects AISC per ounce to continue to decrease in 2018 as Éléonore continues ramp up.

Expansionary capital expenditures continued to decrease with the completion of the majority of the infrastructure required to support the designed throughput.

	Three months ended June 30					Six months ended June 30
Operating Data	2018		2017		Change	2018		2017			Change
Tonnes of ore milled (thousands)		892		688	30 %		1,735		1,454		19 %
Mill head grade (grams/tonne)		2.31		2.96	(22)%		2.49		2.80		(11)%
Recovery rate	92%		93%		(1)%	92%		92%			— %
Gold Produced (thousands of ounces)		64		60	7 %		132		121		9 %
Gold Sold (thousands of ounces)		62		60	3 %		132		122		8 %
Total Cash Costs: By-product (per ounce)	$	795	$	777	2 %	$	749	$	810		(8)%
AISC (per ounce)	$	1,012	$	1,052	(4)%	$	951	$	1,031		(8)%
Financial Data (in millions)
Revenues	$	81	$	76	7 %	$	174	$	152		14 %
Production costs	$	50	$	48	4 %	$	99	$	101		(2)%
Depreciation and depletion	$	25	$	27	(7)%	$	54	$	54		— %
Earnings (loss) from mine operations	$	6	$	1	500 %	$	21	$	(3	)	800 %
Expenditures on mining interests (cash basis)	$	33	$	36	(8)%	$	61	$	50		22 %
– Sustaining	$	10	$	14	(29)%	$	20	$	21		(5)%
– Expansionary	$	23	$	22	5 %	$	41	$	29		41 %

Gold production for the three and six months ended June 30, 2018 was higher than the same periods in the prior year as higher tonnes from both the Hoyle underground and Hollinger open pit offset the loss of higher grade material from the Dome underground, which closed on December 31, 2017. Mine optimization at Hoyle continues to focus on improving development, dilution control, and material movements to further increase mining rates.

Earnings from mine operations for the three and six months ended June 30, 2018 were higher than the same periods in the prior year as a result of higher gold sales and a higher realized gold price, while maintaining consistent production costs.

AISC per ounce for the three and six months ended June 30, 2018 was lower than the same period in the prior year primarily due to higher production and lower sustaining capital expenditures.

Expansionary capital relates to the commissioning and optimization of the Waste to Ore demonstration plant, the development and construction activities at the Borden and study costs at the Century project (see the Project Pipeline section below).

	Three months ended June 30					Six months ended June 30
Operating Data	2018		2017		Change	2018		2017		Change
Tonnes of ore milled (thousands)		263		277	(5)%		547		581	(6)%
Average mill head grade (grams/tonne)		6.04		6.52	(7)%		6.43		6.10	5 %
Average recovery rate	96%		96%		— %	96%		96%		— %
Gold Produced (thousands of ounces)		50		57	(12)%		109		111	(2)%
Gold Sold (thousands of ounces)		52		55	(5)%		112		111	1 %
Total Cash Costs: By-product (per ounce)	$	758	$	658	15 %	$	682	$	686	(1)%
AISC (per ounce)	$	955	$	826	16 %	$	854	$	848	1 %
Financial Data (in millions)
Revenues	$	68	$	69	(1)%	$	148	$	138	7 %
Production costs	$	39	$	36	8 %	$	76	$	76	— %
Depreciation and depletion	$	13	$	10	30 %	$	24	$	20	20 %
Earnings from mine operations	$	16	$	23	(30)%	$	48	$	42	14 %
Expenditures on mining interests (cash basis)	$	18	$	14	29 %	$	42	$	25	68 %
– Sustaining	$	8	$	7	14 %	$	16	$	14	14 %
– Expansionary	$	10	$	7	43 %	$	26	$	11	136 %

Gold production for the three and six months ended June 30, 2018 was lower than the same periods in the prior year primarily due to lower tonnes milled, offset partially by higher grades for the six months ended June 30, 2018. The mine sequence had planned for higher grade ore during the first quarter of 2018, with lower grade expected during the second quarter of 2018. The mine is focused on increasing development rates, which were 25% higher in May and June 2018 compared to previous months in 2018, and is expected to open additional mining fronts allowing Musselwhite to meet higher production rates once the Materials Handling project is commissioned, scheduled for the first quarter of 2019.

The increase in development is expected to positively impact mine sequence for the second half of 2018, as the mine is expected to move approximately 12% more total tonnes compared to the first half of 2018. Initiatives currently being implemented focus on opening new mining fronts near existing infrastructure.

Earnings from mine operations for the three months ended June 30, 2018 were lower than the same period in the prior year, primarily due to higher production costs related to increased development rates during May and June to meet expected higher production rates once the Materials Handling project is commissioned. Earnings from mine operations for the six months ended June 30, 2018 were higher than the same period in the prior year, primarily due to a higher realized gold price, offset partially by increased depreciation and depletion.

AISC per ounce for the three months ended June 30, 2018 was higher than the same period in the prior year due to lower gold sales, higher production costs, and higher sustaining capital expenditures. AISC per ounce for the six months ended June 30, 2018 was relatively consistent with the same period in the prior year.

Expansionary capital relates to construction of the Materials Handling project (see the Project Pipeline section below).

The current anticipated milestones for 2018 through 2021 for the Company's numerous projects are outlined below:

Expenditures relating to projects for the three and six months ended June 30, 2018 and 2017 were as follows (in millions):

Of the $206 million and $384 million of project expenditures for the three and six months ended June 30, 2018 (2017- $106 million and $180 million for the three and six months ended June 30, 2017), $191 million and $359 million ($100 million and $173 million for the three and six months ended June 30, 2017) were included in expenditures on mining interests as expansionary capital. Certain Peñasquito, Cerro Negro, and Red Lake costs have been expensed as non-sustaining project and exploration costs.

At the end of the second quarter of 2018, the PLP construction was 98% complete, pre-commissioning activities were 45% complete, and water testing was ongoing on an area and systems basis. All electrical rooms and the majority of plant equipment was energized and undergoing testing. Commissioning will begin during the third quarter of 2018, with first gold expected in the fourth quarter of 2018, two quarters ahead of schedule.

The Carbon Pre-flotation component of the PLP will allow Peñasquito to process ore which was previously considered uneconomic, including significant amounts already in stockpiles. During the second quarter of 2018, construction was completed under budget and the project was assigned to the operations team in May 2018.

The MHP is advancing as planned and has achieved 76% overall project completion with detailed engineering completed. In the second quarter of 2018, major excavations and construction were completed, including the hoistroom, coarse ore bin and crusher room. In the first quarter of 2018, the project completed the longer of two 6 metre diameter raise-bore holes, which was 400 metres in height and is required for the shaft. The second raise-bore hole is 387 metres in height, of which approximately 200 metres has been completed. Capital costs of the project are tracking 10% below budget and commissioning is expected, as planned in the first quarter of 2019.

In the second quarter of 2018, a series of trade-off studies were undertaken with a focus on evaluating the latest technologies to determine the single preferred option. The studies concluded on a 300 tonne and 150 tonne truck and shovel configuration for the Dome and Pamour pits, respectively, as well as a 50,000 tonne per day mill. Conclusions from the trade-off studies suggest there is approximately a 15% improvement in operating costs compared to the base case pre-feasibility study. The single preferred option has been selected and a series of optimizations in the areas of ore sorting and autonomous haulage are underway to add further value to the project. The optimized pre-feasibility study is expected to be completed in the fourth quarter of 2018.

Ramp development reached 1,523 metres, on schedule, with a corresponding depth of 260 metres. Development on levels 225 and 240, the area of the bulk sample, commenced and bulk sample extraction will begin in August 2018. Critical mine development to support production mining will be conducted throughout the second half of 2018. The mine is scheduled to begin commercial production in the second half of 2019 and is expected to comprise approximately one-third of Porcupine's production in 2020.

In the second quarter of 2018, Borden executed an Impacts and Benefits Agreement with three First Nation communities, Brunswick House First Nation, Chapleau Cree First Nation, and Chapleau Ojibwe First Nation.

Goldcorp submitted the project proposal to the Yukon’s Environmental and Socio-economic Assessment Board (the “YESAB”) on December 6, 2017. The First Nations of Na-Cho Nyak Dun and Tr’ondëk Hwëch’in both submitted letters to YESAB indicating that they have been adequately consulted per the YESAB Adequacy Review requirements. In June 2018, Goldcorp responded to the second round of clarification questions of the YESAB adequacy process and plans to advance the process throughout the year.

On April 30, 2018 Goldcorp signed a collaboration agreement with Tr’ondëk Hwëch’in, whose Traditional Territory covers 100% of the project footprint.

Engineering on the project continued to advance with 19% of engineering completed, with the target of being 90% complete by the time the final regulatory approval is received.

The HG Young project continued to advance with development on 14 level complete, rehabilitation on 21 level complete, and ongoing drilling for the project. Work continued on the concept study and, assuming a positive outcome, the Company expects to commence the development of the preferred material handling system to facilitate production. An initial Mineral Reserve statement and a starter mine plan are expected by late 2019.

Since the acquisition in mid-2017, a dedicated project team has been established in Santiago and Copiapo and work has commenced on key areas including geology studies, community relations, and environmental monitoring. A key milestone for the project was reached on December 29, 2017 when a three-year voluntary agreement was signed with a local community which enables site access, drilling, and baseline studies on all concessions owned by the project.

In 2018, the project continues to progress through the initial stage of planned studies with key focus areas including:

•Trade-off engineering studies of key value drivers including mining, metallurgy, water, power, and tailings.

Trade-off studies for the single preferred option are expected to be completed by the fourth quarter of 2019 and the pre-feasibility study is expected to be completed by the first quarter of 2020.

In the second quarter of 2018, the project commenced the evaluation and optimization of numerous opportunities to improve project economics identified in the pre-feasibility study (“PFS”), with a feasibility study expected to commence in the third quarter of 2018. In the first quarter of 2018, the PFS on the project was completed which incorporates key design changes to improve project economics and responses to community and Indigenous peoples input.

The PFS confirms the synergies expected through combining Teck and Goldcorp’s previously separate Relincho and La Fortuna projects and the benefits of ongoing early engagement with communities and Indigenous peoples, including:

The PFS design covers a processing plant, tailings management facilities and ancillary facilities at the Relincho site and a conveyor system to transport ore from the La Fortuna mine to the plant site at Relincho. It also includes power transmission lines and substations, a desalination plant, concentrate filtration plant, port and marine structures on the coast and both desalinated water and concentrate pipeline and pumping systems between the coast and the plant site.

The project is a long-life development opportunity. Numerous opportunities to improve project economics were identified in the PFS, some of which are included in the current project design, such as the use of High Pressure Grinding Rolls in the comminution circuit. Evaluation and optimization of these opportunities will continue in a value creation phase before starting feasibility level engineering in the third quarter of 2018. Project economics will be released with the completion of the feasibility study expected during the second half of 2019.

Social and environmental baseline work is ongoing, and a potential Environmental Impact Assessment permit application could be submitted during the feasibility study phase which is expected to last approximately twelve months.

The Alumbrera open pit is scheduled to cease mining operations at the end of July 2018. During the second quarter of 2018, an underground extension at the Alumbrera mine was approved. Expected to commence operations in late 2019, sub-level caving methodology and an electric Rail-Veyor haulage system will be utilized to transport material to the existing infrastructure, with the processing plant expected to process 20,000 tonnes per day over an expected 10-year mine life. The project is expected to be fully funded through Alumbrera’s operating cash flows.

Due to the approval of the underground mine extension and the resulting improved cashflows from Alumbrera, the remaining $30 million provision, which the Company had previously recognized in respect of the Company’s obligation to fund its 37.5% share of Alumbrera’s reclamation closure costs, was reduced to nil, resulting in a $30 million credit to net earnings.

The Company has included certain non-GAAP performance measures throughout this document. These performance measures are employed by the Company to measure its operating and economic performance internally and to assist in business decision-making as well as providing key performance information to senior management. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors and other stakeholders also use this information to evaluate the Company’s operating and financial performance; however, these non-GAAP performance measures do not have any standardized meaning. Accordingly, these performance measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The Company’s primary business is gold production and its future development and current operations focus are on maximizing returns from gold production, with other metal production being incidental to the gold production process. As a result, where applicable, the Company's non-GAAP performance measures are disclosed on a per gold ounce basis.

The Company calculates its non-GAAP performance measures on an attributable basis. Attributable performance measures include the Company’s mining operations and projects, and the Company’s share of Pueblo Viejo, Alumbrera, and NuevaUnión. Attributable performance measures also included Leagold up to May 24, 2018, the date on which the Company ceased to have significant influence over Leagold. The inclusion of NuevaUnión in the Company's non-GAAP performance measures primarily impacts the Company's adjusted operating cash flow metric at this time as it is a development stage project. The Company believes that disclosing certain performance measures on an attributable basis provides useful information about the Company’s operating and financial performance and reflects the Company’s view of its core mining operations.

Total cash costs: by-product incorporate Goldcorp’s share of all production costs, including adjustments to inventory carrying values, adjusted for changes in estimates in reclamation and closure costs at the Company’s closed mines which are non-cash in nature, and include Goldcorp’s share of by-product silver, zinc, lead, and copper credits, and treatment and refining charges included within revenue. Additionally, cash costs are adjusted for realized gains and losses arising on the Company’s commodity and foreign currency contracts which the Company enters into to mitigate its exposure to fluctuations in by-product metal prices, heating oil prices and foreign exchange rates, which may impact the Company’s operating costs.

In addition to conventional measures, the Company assesses this per ounce measure in a manner that isolates the impacts of gold production volumes, the by-product credits, and operating costs fluctuations such that the non-controllable and controllable variability is independently addressed. The Company uses total cash costs: by-product per gold ounce to monitor its operating performance internally, including operating cash costs, as well as in its assessment of potential development projects and acquisition targets. The Company believes this measure provides investors and analysts with useful information about the Company’s underlying cash costs of operations and the impact of by-product credits on the Company’s cost structure and is a relevant metric used to understand the Company’s operating profitability and ability to generate cash flow. When deriving the production costs associated with an ounce of gold, the Company includes by-product credits as the Company considers that the cost to produce the gold is reduced as a result of the by-product sales incidental to the gold production process, thereby allowing the Company’s management and other stakeholders to assess the net costs of gold production.

The Company reports total cash costs: by-product on a gold ounces sold basis. In the gold mining industry, this is a common performance measure but does not have any standardized meaning. The Company follows the recommendations of the Gold Institute Production Cost Standard. The Gold Institute, which ceased operations in 2002, was a non-regulatory body and represented a global group of producers of gold and gold products. The production cost standard developed by the Gold Institute remains the generally accepted standard of reporting cash costs of production by gold mining companies.

The Company also reports total cash costs: co-product as a secondary metric to provide further information to the Company's stakeholders. Total cash costs: co-product, per gold ounce, are calculated by allocating Goldcorp‘s share of production costs to each co-product based on the ratio of actual sales volumes multiplied by budget metal prices, as compared to realized sales prices. The Company uses budget prices to eliminate price volatility and improve co-product cash cost reporting comparability between periods. The budget metal prices used in the calculation of total cash costs: co-product were as follows:

The following tables provide a reconciliation of total cash costs: by-product per ounce to the consolidated financial statements:

	Production Costs ⁽¹⁾			By-Product Credits			Treatment and Refining Charges on Concentrate Sales			Other			Total Cash Costs: by- product			Ounces (thousands)			Total Cash Costs: by- product per ounce ^{(2), (3)}
Peñasquito	$	166		$	(201	)	$	15		$	(1	)	$	(21	)		80		$	(269	)
Cerro Negro		69			(17	)		—			—			52			127			409
Pueblo Viejo		53			(11	)		—			—			42			84			524
Red Lake		46			—			—			—			46			50			937
Éléonore		71			—			—			—			71			86			810
Porcupine		50			—			—			—			50			62			795
Musselwhite		39			—			—			—			39			52			758
Other mines		35			(20	)		2			—			17			21			782
Corporate		—			—			—			—			—			—			—
TOTAL - Attributable basis	$	529		$	(249	)	$	17		$	(1	)	$	296			562		$	527
Less associates and joint ventures		(87	)		29			(2	)		—			(60	)		(105	)		(578	)
Total - Consolidated	$	442		$	(220	)	$	15		$	(1	)	$	236			457		$	516

	Production Costs ⁽¹⁾			By-Product Credits			Treatment and Refining Charges on Concentrate Sales			Other			Total Cash Costs: by- product			Ounces (thousands)			Total Cash Costs: by- product per ounce ^{(2), (3)}
Peñasquito	$	173		$	(199	)	$	30		$	—		$	4			133		$	26
Cerro Negro		67			(14	)		—			(1	)		52			107			484
Pueblo Viejo		48			(10	)		—			—			38			114			333
Red Lake		48			—			—			—			48			58			828
Éléonore		61			—			—			—			61			68			891
Porcupine		48			—			—			(2	)		46			60			777
Musselwhite		36			—			—			—			36			55			658
Other mines		86			(43	)		3			1			47			54			859
TOTAL - Attributable basis	$	567		$	(266	)	$	33		$	(2	)	$	332			649		$	510
Less associates and joint ventures		(111	)		42			(3	)		—			(72	)		(152	)		(478	)
Total - Consolidated	$	456		$	(224	)	$	30		$	(2	)	$	260			497		$	520

	Production Costs ⁽¹⁾			By-Product Credits			Treatment and Refining Charges on Concentrate Sales			Other			Total Cash Costs: by- product			Ounces (thousands)			Total Cash Costs: by- product per ounce ^{(2), (3)}
Peñasquito	$	347		$	(431	)	$	38		$	(3	)	$	(49	)		170		$	(293	)
Cerro Negro		141			(35	)		—			—			106			247			429
Pueblo Viejo		104			(20	)		—			—			84			181			470
Red Lake		101			—			—			—			101			111			918
Éléonore		138			—			—			—			138			151			913
Porcupine		99			—			—			—			99			132			749
Musselwhite		76			—			—			—			76			112			682
Other mines		69			(32	)		3			—			40			43			911
Corporate		4			—			—			(4	)		-			—			—
TOTAL - Attributable basis	$	1,079		$	(518	)	$	41		$	(7	)	$	595			1,147		$	519
Less associates and joint ventures		(173	)		52			(3	)					(124	)		(224	)		(556	)
Total - Consolidated	$	906		$	(466	)	$	38		$	(7	)	$	471			923		$	510

	Production Costs ⁽¹⁾			By-Product Credits			Treatment and Refining Charges on Concentrate Sales			Other			Total Cash Costs: by- product			Ounces (thousands)			Total Cash Costs: by- product per ounce ^{(2), (3)}
Peñasquito	$	366		$	(426	)	$	75		$	—		$	15			271		$	56
Cerro Negro		119			(26	)		—			(1	)		92			195			473
Pueblo Viejo		95			(15	)		—			—			80			209			381
Red Lake		95			—			—			—			95			112			844
Éléonore		122			—			—			—			122			140			870
Porcupine		101			—			—			(2	)		99			122			810
Musselwhite		76			—			—			—			76			111			686
Other mines		189			(94	)		6			1			102			135			758
TOTAL - Attributable basis	$	1,163		$	(561	)	$	81		$	(2	)	$	681			1,295		$	525
Less associates and joint ventures		(187	)		74			(6	)		—			(119	)		(259	)		(460	)
Total - Consolidated	$	976		$	(487	)	$	75		$	(2	)	$	562			1,036		$	541

AISC include total production cash costs incurred at the Company’s mining operations, which forms the basis of the Company’s by-product cash costs. Additionally, the Company includes sustaining capital expenditures, corporate administrative expense, mine-site exploration and evaluation costs, and reclamation cost accretion and amortization. The measure seeks to reflect the full cost of gold production from current operations, therefore expansionary capital and non-sustaining expenditures are excluded. Certain other cash expenditures, including tax payments, dividends and financing costs are also excluded.

The Company believes that this measure represents the total costs of producing gold from current operations, and provides the Company and other stakeholders of the Company with additional information of the Company’s operational performance and ability to generate cash flows. AISC, as a key performance measure, allows the Company to assess its ability to support capital expenditures and to sustain future production from the generation of operating cash flows. This information provides management with the ability to more actively manage capital programs and to make more prudent capital investment decisions.

The Company reports AISC on a gold ounces sold basis. This performance measure was adopted as a result of an initiative undertaken within the gold mining industry; however, this performance measure has no standardized meaning and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The Company follows the guidance note released by the World Gold Council, which became effective January 1, 2014 in calculating AISC. The World Gold Council is a non-regulatory market development organization for the gold industry whose members comprise global senior gold mining companies.

As described above, AISC include total production cash costs incurred at the Company's mining operations, which forms the basis of the Company's cash costs: by-product and which are reconciled to reported production costs in the tables above.

The following tables provide a reconciliation of AISC per ounce to the consolidated financial statements:

	Total cash costs: by- product			Corporate Administration		Exploration and evaluation costs		Reclamation cost accretion and amortization			Sustaining capital expenditures			Total AISC			Ounces (thousands)			Total AISC per ounce ⁽¹⁾
Peñasquito	$	(21	)	$	—	$	2	$	3		$	56		$	40			80		$	490
Cerro Negro		52			—		1		1			13			67			127			526
Pueblo Viejo		42			—		—		1			7			50			84			623
Red Lake		46			—		—		—			14			60			50			1,232
Éléonore		71			—		—		—			11			82			86			948
Porcupine		50			—		2		2			10			64			62			1,012
Musselwhite		39			—		2		—			8			49			52			955
Other mines		17			—		—		—			—			17			21			751
Corporate ⁽²⁾		—			39		1		—			8			48			—			85
TOTAL - Attributable basis	$	296		$	39	$	8	$	7		$	127		$	477			562		$	850
Less associates and joint ventures		(60	)		—		—		(1	)		(7	)		(68	)		(105	)		(650	)
Total - Consolidated	$	236		$	39	$	8	$	6		$	120		$	409			457		$	896

	Total cash costs: by- product			Corporate Administration		Exploration and evaluation costs		Reclamation cost accretion and amortization			Sustaining capital expenditures			Total AISC			Ounces (thousands)			Total AISC per ounce ⁽¹⁾
Peñasquito	$	4		$	—	$	0	$	3		$	37		$	44			133		$	328
Cerro Negro		52			—		1		2			20			75			107			694
Pueblo Viejo		38			—		—		2			10			50			114			440
Red Lake		48			—		0		1			16			65			58			1,120
Éléonore		61			—		0		1			22			84			68			1,229
Porcupine		46			—		1		2			14			63			60			1,052
Musselwhite		36			—		2		—			7			45			55			826
Other mines		47			—		0		2			0			49			54			917
Corporate ⁽²⁾		—			36		1		—			7			44			—			68
TOTAL - Attributable basis	$	332		$	36	$	5	$	13		$	133		$	519			649		$	800
Less associates and joint ventures		(72	)		—		—		(4	)		(10	)		(86	)		(152	)		(574	)
Total - Consolidated	$	260		$	36	$	5	$	9		$	123		$	433			497		$	868

	Total cash costs: by- product			Corporate Administration		Exploration and evaluation costs		Reclamation cost accretion and amortization			Sustaining capital expenditures			Total AISC			Ounces (thousands)			Total AISC per ounce ⁽¹⁾
Peñasquito	$	(49	)	$	—	$	4	$	5		$	92		$	52			170		$	299
Cerro Negro		106			—		2		1			30			139			247			562
Pueblo Viejo		84			—		—		2			22			108			181			606
Red Lake		101			—		—		2			27			130			111			1,180
Éléonore		138			—		1		1			20			160			151			1,058
Porcupine		99			—		3		4			20			126			132			951
Musselwhite		76			—		2		1			16			95			112			854
Other mines		40			—		—		—			2			42			43			959
Corporate ⁽²⁾		—			80		2		—			17			99			—			86
TOTAL - Attributable basis	$	595		$	80	$	14	$	16		$	246		$	951			1,147		$	830
Less associates and joint ventures		(124	)		—		—		(3	)		(24	)		(151	)		(224	)		(675	)
Total - Consolidated	$	471		$	80	$	14	$	13		$	222		$	800			923		$	867

	Total cash costs: by- product			Corporate Administration		Exploration and evaluation costs		Reclamation cost accretion and amortization			Sustaining capital expenditures			Total AISC			Ounces (thousands)			Total AISC per ounce ⁽¹⁾
Peñasquito	$	15		$	—	$	1	$	4		$	77		$	97			271		$	360
Cerro Negro		92			—		2		4			34			132			195			675
Pueblo Viejo		80			—		—		2			19			101			209			486
Red Lake		95			—		1		1			30			127			112			1,134
Éléonore		122			—		1		1			36			160			140			1,141
Porcupine		99			—		1		5			21			126			122			1,031
Musselwhite		76			—		4		—			14			94			111			848
Other mines		102			—		1		7			2			112			135			831
Corporate ⁽²⁾		—			72		1		—			13			86			—			66
TOTAL - Attributable basis	$	681		$	72	$	12	$	24		$	246		$	1,035			1,295		$	800
Less associates and joint ventures		(119	)		—		—		(7	)		(19	)		(145	)		(259	)		(564	)
Total - Consolidated	$	562		$	72	$	12	$	17		$	227		$	890			1,036		$	858

Sustaining capital expenditures are defined as those expenditures which do not increase annual gold ounce production at a mine site and excludes all expenditures at the Company’s projects and certain expenditures at the Company’s operating sites which are deemed expansionary in nature. Sustaining capital expenditures can include, but are not limited to, capitalized stripping costs at open pit mines, underground mine development, mining and milling equipment and tailings dam raises. The following table reconciles sustaining capital expenditures to the Company’s total capital expenditures for continuing operations:

The following table provides a reconciliation of exploration, evaluation and project costs in the consolidated financial statements to exploration and evaluation costs included in the calculation of Goldcorp’s AISC:

Adjusted operating cash flows comprises Goldcorp’s share of operating cash flows before working capital changes, calculated on an attributable basis to include the Company's share of Pueblo Viejo, Alumbrera, NuevaUnión and Leagold's operating cash flows before working capital changes. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, the Company and certain investors use this information to evaluate the Company’s performance and ability to operate without reliance on additional external funding or use of available cash.

Prior to April 1, 2017, adjusted operating cash flows was presented on an attributable basis using operating cash flows as shown on the Company's statement of cash flows. In the second quarter of 2017, the Company revised its presentation of adjusted operating cash flows to present it on an attributable basis before working capital changes. The Company believes that this measure provides a better measure of the Company's performance of its core business operations as the Company can experience changes in working capital from one period to another which, at times, are not indicative of the performance of the Company’s business operations.

The following table provides a reconciliation of net cash provided by operating activities in the consolidated financial statements to Goldcorp’s share of adjusted operating cash flows:

Earnings before interest, taxes and depreciation and amortization ("EBITDA") is a non-GAAP financial measure which excludes the following items from net earnings:

Adjusted EBITDA removes the impact of impairments or reversals of impairment and other non-cash expenses or recoveries and is calculated on an attributable basis to include the Company's share of Pueblo Viejo, Alumbrera, NuevaUnión and Leagold's earnings before interest, taxes and depreciation and depletion. The non-cash expenses and recoveries are removed from the calculation of EBITDA as the Company does not believe they are reflective of the Company's ability to generate liquidity and its core operating results.

The Company believes that, in addition to conventional measures prepared in accordance with GAAP, the Company and certain investors use EBITDA and Adjusted EBITDA as an indicator of the Company's ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations and fund capital expenditures. EBITDA is also frequently used by investors and analysts for valuation purposes whereby EBITDA is multiplied by a factor or "EBITDA multiple" that is based on an observed or inferred relationship between EBITDA and market values to determine the approximate total enterprise value of a company.

EBITDA and Adjusted EBITDA are intended to provide additional information to investors and analysts and do not have any standardized definition under IFRS and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. EBITDA and Adjusted EBITDA exclude the impact of cash costs of financing activities and taxes, and the effects of changes in operating working capital balances, and therefore are not necessarily indicative of operating profit or cash flow from operations as determined under IFRS. Other companies may calculate EBITDA and Adjusted EBITDA differently.

The following table provides a reconciliation of net earnings in the consolidated financial statements to EBITDA and Adjusted EBITDA:

	Three months ended June 30						Six months ended June 30
	2018			2017			2018			2017
Net earnings	$	(131	)	$	135		$	(64	)	$	305
Income tax expense (recovery)		156			(57	)		160			(105	)
Depreciation and depletion		256			239			507			485
Finance income		(10	)		(9	)		(19	)		(19	)
Finance costs		26			37			56			73
EBITDA	$	297		$	345		$	640		$	739
Share of net earnings related to associates and joint venture		(38	)		(41	)		(47	)		(101	)
Associates and joint venture EBITDA		68			114			160			201
Reversal of impairment of mining interests, net		—			—			—			(3	)
Loss on disposition of mining interest, net of transaction costs		—			6			—			6
Non-cash share-based compensation		7			8			14			17
Adjusted EBITDA	$	334		$	432		$	767		$	859

The following table provides a reconciliation of net cash provided by operating activities in the consolidated financial statements to EBITDA and Adjusted EBITDA:

	Three months ended June 30						Six months ended June 30
	2018			2017			2018			2017
Net cash provided by operating activities	$	158		$	158		$	429		$	385
Current income tax expense		(2	)		47			57			117
Share of net earnings related to associates and joint venture		38			41			47			101
Reversal of impairment of mining interests, net		—			—			—			3
Increase in working capital		112			77			120			100
Finance costs		26			37			56			73
Finance income		(10	)		(9	)		(19	)		(19	)
Other non-cash adjustments		(25	)		(6	)		(50	)		(21	)
EBITDA	$	297		$	345		$	640		$	739
Share of net earnings related to associates and joint venture		(38	)		(41	)		(47	)		(101	)
Associates and joint venture EBITDA		68			114			160			201
Reversal of impairment of mining interests, net		—			0			—			(3	)
Loss on disposition of mining interest, net of transaction costs		—			6			—			6
Non-cash share-based compensation		7			8			14			17
Adjusted EBITDA	$	334		$	432		$	767		$	859

Adjusted net debt is comprised of Goldcorp’s short-term and long-term debt less cash and cash equivalents and short term investments, calculated on an attributable basis to include the Company's share of Pueblo Viejo, Alumbrera, Leagold and NuevaUnión's net debt. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, the Company and certain investors use this information to evaluate the Company’s financial position and its ability to take on new debt in the future to expand operations, purchase new assets or withstand adverse economic conditions.

The following table provides a reconciliation of short and long-term debt to adjusted net debt:

The Company manages its exposure to financial risks, including credit risk, liquidity risk, currency risk, interest rate risk and price risk, in accordance with its Financial Risk Management Policy. The Company's exposures to financial risks and how the Company manages each of those risks are described in note 26(e) to the Company's consolidated financial statements for the year ended December 31, 2017. There were no significant changes to the Company's exposures to those risks or to the Company's management of its exposures during the six months ended June 30, 2018 except as noted below.

Currency risk is the risk that the fair values or future cash flows of the Company’s financial instrument will fluctuate because of changes in foreign exchange rates. Exchange rate fluctuations may affect the costs that the Company incurs in its operations. Gold, silver, copper, lead and zinc are sold in US dollars and the Company’s costs are incurred principally in US dollars, Canadian dollars, Mexican pesos and Argentinean pesos. The appreciation or depreciation of non-US dollar currencies against the US dollar can increase or decrease the cost of metal production and capital expenditures in US dollar terms. The Company also holds cash and cash equivalents that are denominated in non-US dollar currencies which are subject to currency risk. Accounts receivable and other current and non-current assets denominated in non-US dollar currencies relate to goods and services taxes, income taxes, value-added taxes and insurance receivables. The Company is further exposed to currency risk through non-monetary assets and liabilities and tax bases of assets, liabilities and losses of entities whose taxable profit or tax loss are denominated in non-US currencies. Changes in exchange rates give rise to temporary differences resulting in a deferred tax liability or asset with the resulting deferred tax charged or credited to income tax expense.

During the three and six months ended June 30, 2018, the Company recognized a net foreign exchange loss of $27 million and $20 million, respectively (three and six months ended June 30, 2017 – loss of $4 million and gain of $17 million, respectively), and a net foreign exchange loss of $167 million and $192 million, respectively, in income tax expense on income taxes receivable (payable) and deferred income taxes (three and six months ended June 30, 2017 – loss of $5 million and gain of $63 million, respectively).

Based on the Company’s net foreign currency exposures at June 30, 2018, depreciation or appreciation of applicable foreign currencies against the US dollar would have resulted in the following decrease or increase in the Company's net earnings:

⁽¹⁾ Possible exposure is based on management’s best estimate of the reasonably possible fluctuation of the foreign exchange rates in the next twelve months.

⁽²⁾ The Argentine peso devalued significantly since the beginning of 2018; as a result, the possible exposure used to estimate the potential impact of the depreciation or appreciation of the Argentine peso to the Company’s net earnings in the table above has been increased to 25% as compared to 15% as included in the Company’s audited Consolidated Financial Statements for the year ended December 31, 2017.

During the three and six months ended June 30, 2018, the Company generated cash flows from operations, one of the Company's main sources of liquidity, of $158 million and $429 million, respectively (three and six months ended June 30, 2017 – $158 million and $385 million, respectively). At June 30, 2018, Goldcorp held cash and cash equivalents of $118 million (December 31, 2017 – $186 million) and short-term investments of $41 million (December 31, 2017 – $48 million). At June 30, 2018, the Company's working capital, defined as current assets less current liabilities, was $7 million (December 31, 2017 – negative $112 million).

On June 29, 2018, the Company completed the extension of its $3.0 billion credit facility term by one year to June 30, 2023. The unsecured, floating rate facility bears interest at LIBOR plus 140 points when draw and 20 points on the undrawn amount, based on Goldcorp’s current bond ratings, and is intended to be used for liquidity and general corporate purposes.

At June 30, 2018, the balance outstanding on the revolving credit facility was $190 million (December 31, 2017 – $nil) with $2.81 billion available for the Company's use (December 31, 2017 – $3.0 billion). Certain of the Company's borrowings are subject to various financial and general covenants with which the Company was in compliance at June 30, 2018.

At June 30, 2018, the Company had letters of credit outstanding in the amount of $410 million (December 31, 2017 – $420 million) of which $314 million (December 31, 2017 – $323 million) represented guarantees for reclamation obligations. The Company's capital commitments for the next twelve months amounted to $341 million at June 30, 2018, including the Company's funding obligation for the Norte Abierto project for the next twelve months.

This section describes the principal risk and uncertainties that could have an adverse effect on the Company's business and financial results.

The majority of the Company's revenues are derived from the sale of gold, silver and zinc, and to a lesser extent, copper and lead. The price of the Company’s Common Shares, its financial results and exploration, and its development and mining activities in the future may be materially adversely affected by declines in the price of gold, silver, zinc, copper and lead. Gold, silver, zinc, copper and lead prices fluctuate widely and are affected by numerous factors beyond the Company’s control, such as the sale or purchase of metals by various central banks and financial institutions, interest rates, exchange rates, inflation or deflation, fluctuation in the value of the United States dollar and foreign currencies, global and regional supply and demand, and the political and economic conditions of major metals-producing and metals-consuming countries throughout the world. The prices of gold, silver, zinc, copper and lead fluctuate widely, and future price declines could cause continued development of, and commercial production from, our properties to be uneconomic. Depending on the price of gold, silver, zinc, copper and lead, cash flow from mining operations may not be sufficient and the Company could be forced to discontinue production at, may lose its interest in, or may be forced to sell, some of

its properties. Future production from the Company’s mining properties is dependent on the price of gold, silver, zinc, copper and lead that are adequate to make these properties economically viable.

The Company prepares estimates and projections of its future production. Any such information is forward-looking and no assurance can be given that such estimates will be achieved. These estimates are based on existing mine plans and other assumptions that change from time to time, including the availability, accessibility, sufficiency and quality of ore, the Company’s costs of production, its ability to sustain and increase production levels, the sufficiency of its infrastructure, the performance of its workforce and equipment, the ability to maintain and obtain mining interests and permits and the Company’s compliance with existing and future laws and regulations. The Company’s actual production may vary from estimates for a variety of reasons, including: actual ore mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics; short-term operating factors relating to the Mineral Reserves, such as the need for sequential development of orebodies and the processing of new or different ore grades; revisions to mine plans; unusual or unexpected orebody formations; risks and hazards associated with mining; natural phenomena, such as inclement weather conditions, water availability, floods, and earthquakes; and unexpected labor shortages, strikes, local community opposition or blockades. Failure to achieve the estimated forecasts could have an adverse impact on the Company’s future cash flows, business, results of operations and financial condition.

The majority of the Company’s foreign operations are conducted in Mexico, Argentina, the Dominican Republic and Chile, and as such the Company’s operations are exposed to various levels of political, economic and other risks and uncertainties. These risks and uncertainties vary from country to country and include, but are not limited to, terrorism; hostage taking; military repression; expropriation; extreme fluctuations in currency exchange rates; high rates of inflation; labour unrest, opposition or blockades; the risks of war, civil unrest, protests or blockades; renegotiation or nullification of existing concessions, licenses, permits and contracts; ability of governments to unilaterally alter agreements; government imposed supply laws, including laws establishing, among other things, profit margins, production quotas, maximum and minimum price levels and the ability to confiscate merchandise in certain circumstances; surface land access issues; illegal mining; changes in taxation policies, practices, regulations and laws; restrictions on foreign exchange and repatriation; and changing political conditions, currency controls and governmental regulations that favour or require the awarding of contracts to local contractors or require foreign contractors to employ citizens of, or purchase supplies from, a particular jurisdiction.

In addition, adverse changes in mining or investment policies or shifts in political attitude in Mexico, Argentina, the Dominican Republic and Chile may adversely affect the Company’s operations or profitability. Operations may be affected in varying degrees by government regulations with respect to, but not limited to, restrictions on production, price controls, export controls, import restrictions on equipment, services and supplies, currency remittance, income taxes, expropriation of property, foreign investment, maintenance of claims, environmental legislation, land use, surface land access, land claims of local people, water use and mine safety.

Failure to comply strictly with applicable laws, regulations and local practices relating to mineral right applications and tenure, environmental requirements, land and water use, could result in loss, reduction or expropriation of entitlements, or the imposition of additional local or foreign parties as joint venture partners with carried or other interests. The occurrence of these various factors and uncertainties related to the economic and political risks of operating in foreign jurisdictions cannot be accurately predicted and could have a material adverse effect on the Company’s operations or profitability.

The Company’s mining, processing, development and mineral exploration activities are subject to various laws governing prospecting, development, production, taxes, labour standards and occupational health, mine safety, toxic substances, land use, water use, land claims of local and indigenous people and other matters. No assurance can be given that new rules and regulations will not be enacted or that existing rules and regulations will not be applied in a manner which could limit or curtail production or development. Amendments to current laws and regulations governing operations and activities of mining and milling or more stringent implementation thereof could have a material adverse impact on the operations and financial position of the Company. Changes to laws regarding mining royalties or taxes, or other elements of a country’s fiscal regime, may also adversely affect the Company’s costs of operations and financial results.

In addition, as governments continue to struggle with deficits and concerns over the effects of depressed economies, the mining and metals sector has been targeted to raise revenue. Governments are continually assessing the fiscal terms of the economic rent for a mining company to exploit resources in their countries. Numerous countries, including, but not limited to, Argentina, Australia, Brazil, Chile, the Dominican Republic, Guatemala, Honduras, Mexico and Venezuela, have implemented changes to their respective mining regimes that reflect increased government control or participation in the mining sector, including changes of law affecting foreign ownership and take-overs, mandatory government participation, taxation and royalties, working conditions, rates of exchange, exchange control, exploration licensing, export duties, repatriation of income or return of capital, environmental protection, as well as requirements for local goods, supplies and employment or other benefits to be provided to local residents.

The occurrence of mining regime changes in both developed and developing countries adds uncertainties that cannot be accurately predicted and any future adverse changes in government policies or legislation in the jurisdictions in which the Company operates that affect foreign ownership, mineral exploration, development or mining activities, may affect our viability and profitability.

The Company’s operations are subject to environmental regulation in the various jurisdictions in which it operates. These regulations mandate, among other things, the maintenance of air and water quality standards and land reclamation. They also set out limitations on the generation, transportation, storage and disposal of solid and hazardous waste. Environmental legislation is evolving in a manner that will likely, in the future, require stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects and a heightened degree of responsibility for companies and their officers, directors and employees. Continuing issues with tailings dam failures at other companies' operations may increase the likelihood that these stricter standards and enforcement mechanisms will be implemented in the future. The Company can provide no assurance that future changes in environmental regulation will not adversely affect the Company's results of operations. Failure to comply with these laws, regulations and permitting requirements may result in enforcement actions, including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed, and may include corrective measures requiring capital expenditures, installation of additional equipment, or remedial actions. Parties engaged in mining operations or in the exploration or development of mineral properties may also be required to compensate those suffering loss or damage due to the mining activities and may have civil or criminal fines or penalties imposed for violations of applicable laws or regulations. The occurrence of any environmental violation or enforcement action may have an adverse impact on the Company’s reputation and could adversely affect its results of operations. In addition, production at certain of the Company’s mines involves the use of sodium cyanide or other reagents and exposes rock material that could cause toxicity to the environment if released or not properly managed. Should sodium cyanide, other reagents, or contact water be improperly managed, leak or otherwise be discharged from the containment system, the Company may become subject to liability for clean-up work that may not be insured. In the event of any discharges of pollutants into the ground water and the environment, the Company may become subject to liability for hazards that we may not be insured against.

For further information regarding the Company’s operational risks, please refer to the section entitled “Description of the Business - Risk Factors” in the Company's most recent annual information form available on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

The Company's unaudited condensed interim consolidated financial statements have been prepared in accordance with International Accounting Standard 34 – Interim Financial Reporting ("IAS 34") as issued by the International Accounting Standards Board ("IASB"). Accordingly, certain disclosures included in the annual financial statements prepared in accordance with International Financial Reporting Standards ("IFRSs") as issued by the IASB have been condensed or omitted. The Company's unaudited condensed interim consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2017.

The accounting policies applied in the preparation of the Company's unaudited condensed interim consolidated financial statements are consistent with those applied and disclosed in the Company’s audited consolidated financial statements for the year ended December 31, 2017, except for the following:

On January 1, 2018, the Company adopted IFRS 9 – Financial Instruments ("IFRS 9") which replaced IAS 39 – Financial Instruments: Recognition and Measurement. IFRS 9 provides a revised model for recognition and measurement of financial instruments and a single, forward-looking 'expected loss' impairment model. IFRS 9 also includes significant changes to hedge accounting. The standard is effective for annual periods beginning on or after January 1, 2018. The Company adopted the standard using the modified retrospective approach, except for hedge accounting, which was applied prospectively. IFRS 9 did not impact the Company's accounting policies for the classification and measurement of financial assets and liabilities except for equity securities as described below. The standard also had negligible impact on the carrying amounts of our financial instruments at the transition date.

The following summarizes the significant changes in IFRS 9 compared to the current standard:

The Company has also adopted a narrow scope amendment to IFRS 7 - Financial Instruments - Disclosures. As a result of applying the amendment, the Company will add disclosure relating to its risk management strategies for which hedge accounting is applied in its consolidated financial statements for the year ended December 31, 2018.

On January 1, 2018, the Company adopted IFRS 15 – Revenue from Contracts with Customers ("IFRS 15") which supersedes IAS 18 – Revenue ("IAS 18"). IFRS 15 establishes a single five-step model framework for determining the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer. The standard is effective for annual periods beginning on or after January 1, 2018. The Company adopted the standard on January 1, 2018 using the full retrospective approach without applying any practical expedients.

IFRS 15 requires entities to recognize revenue when ‘control’ of goods or services transfers to the customer whereas the previous standard, IAS 18, required entities to recognize revenue when the ‘risks and rewards’ of the goods or services transfer to the customer. The Company concluded there is no change in the timing of revenue recognition of its bullion, doré and concentrate sales under the new standard as the point of transfer of risks and rewards of goods and services and transfer of control occur at the same time. As such, no adjustment was required to the Company's financial statements.

Additionally, IFRS 15 requires entities to apportion the transaction price attributable to contracts from customers to distinct performance obligations on a relative standalone selling price basis. In accordance with the terms of certain of the Company's concentrate agreements, the Company must contract for and pay the shipping and insurance costs necessary to bring the goods to the named destination. Therefore, a portion of the revenue earned under these contracts, representing the obligation to fulfill the shipping and insurance services that occur after the transfer of control, is deferred and recognized over time as the obligations are fulfilled. The impact of this change was insignificant to the Company’s financial statements.

IFRS 15 requires that variable consideration should only be recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The Company concluded that the adjustments relating to the final assay results for the quantity and quality of concentrate sold and the retroactive pricing adjustment for the new annual pricing terms are not significant and does not constrain the recognition of revenue.

Additional disclosures required as a result of adopting IFRS 9 and 15 have been presented in notes 3 and 11 of the notes to the Company's unaudited condensed interim consolidated financial statements for the six months ended June 30, 2018.

The Company has adopted narrow scope amendments/interpretations to IFRIC 22 - Foreign Currency Transactions and Advance Consideration, IFRS 2 - Share Based Payments and IAS 1 - Presentation of Financial Statements, which did not have an impact on the Company's unaudited condensed interim consolidated financial statements.

The Company’s management makes judgements in its process of applying the Company’s accounting policies in the preparation of its unaudited condensed interim consolidated financial statements. In addition, the preparation of the financial data requires that the Company’s management makes assumptions and estimates of the impacts of uncertain future events on the carrying amounts of the Company’s assets and liabilities at the end of the reporting period, and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates as the estimation process is inherently uncertain. Estimates are reviewed on an ongoing basis based on historical experience and other factors that are considered to be relevant under the circumstances. Revisions to estimates and the resulting impacts on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively.

Certain accounting judgements and estimates have been identified as being "critical" to the presentation of our financial condition and results of operations. Critical judgements and estimates are those that could have a material impact on the consolidated financial statements, are highly uncertain and are where changes are reasonably likely to occur from period to period. The Company's critical accounting judgements and estimates are generally discussed with the Audit Committee each quarter. The critical judgements and estimates applied in the preparation of the Company's unaudited condensed interim consolidated financial statements for the six months ended June 30, 2018 are consistent with those applied and disclosed in notes 5 and 6 of its audited consolidated financial statements for the year ended December 31, 2017 and the following critical judgments in applying accounting policies:

The Company applied judgement to determine if a good or service that is promised to a customer is distinct based on whether the customer can benefit from the good or service on its own or together with other readily available resources and whether the good or service is separately identifiable. Based on these criteria, the Company determined the primary performance obligation relating to its sales contracts is the delivery of the bullion, doré and concentrates. Shipping and insurance services arranged by the Company for its concentrate sales customers that occur after the transfer of control are also considered to be performance obligations

Judgement is required to determine when transfer of control occurs relating to the sale of the Company's bullion, doré and concentrate to its customers. Management based its assessment on a number of indicators of control, which include, but are not limited to whether the Company has present right of payment, and whether the physical possession of the goods, significant risks and rewards and legal title have been transferred to the customer.

Variable consideration should only be recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The Company identified two variable components in the sales proceeds it receives from its concentrate sales. They include (i) adjustments to the final sales price base on differences between the original and final assaying results relating to the quantity and quality of concentrate shipments and (ii) retroactive pricing adjustment based on new annual pricing terms. The Company applied judgement to determine the amount of variable consideration to be recognized during the period for which the likelihood of significant reversal is low.

Based on the Company's proficiency in its assaying process, evidenced by the insignificant amount of historical adjustments from the initial to final assays, the Company concluded the variability in consideration caused by assaying results is negligible. Therefore, the Company does not expect a significant amount of reversal in revenue related to assaying differences.

In January 2016, the IASB issued IFRS 16 – Leases ("IFRS 16") which replaces IAS 17 – Leases and its associated interpretative guidance. IFRS 16 applies a control model to the identification of leases, distinguishing between a lease and a service contract on the basis of whether the customer controls the asset. For those assets determined to meet the definition of a lease, IFRS 16 introduces significant changes to the accounting by lessees, introducing a single, on-balance sheet accounting model that is similar

to the current finance lease accounting, with limited exceptions for short-term leases or leases of low value assets. Lessor accounting remains similar to current accounting practice. The standard is effective for annual periods beginning on or after January 1, 2019, with early application permitted for entities that apply IFRS 15. A lessee can choose to apply IFRS 16 using either a full retrospective or a modified retrospective approach. The Company plans to apply IFRS 16 at the date it becomes effective and has selected the modified retrospective transition approach which does not require restatement of comparative periods, instead the cumulative impact of applying IFRS 16 will be accounted for as an adjustment to equity at the start of the accounting period in which it is first applied.

Upon the adoption of IFRS 16, the Company anticipates it will record a material balance of lease assets and associated lease liabilities related to leases with a term of 12 months or more on the Consolidated Balance Sheet at January 1, 2019. Due to the recognition of additional lease assets and liabilities, a higher amount of depreciation expense and interest on lease liabilities will be recognized under IFRS 16 as compared to the current standard. Additionally, a reduction in production and/or corporate administration costs is expected. Lastly, the Company expects a reduction in operating cash outflows with a corresponding increase in financing cash outflows under IFRS 16.

The Company has substantially completed the identification of agreements that may contain 'right-of-use' assets. These include land easements and service contracts that are contain embedded leases for property, plant and equipment.

At this time, it is not possible for the Company to make reasonable quantitative estimates of the effects of the new standard. The Company expects the time frame to develop and implement the accounting policies, estimates and processes (including the information technology systems) will continue into the latter part of 2018.

The Company’s management, with the participation of its (1) President and Chief Executive Officer and (2) Executive Vice President, Chief Financial Officer and Corporate Development, has evaluated the effectiveness of the Company’s disclosure controls and procedures. Based upon the results of that evaluation, the Company’s President and Chief Executive Officer and Executive Vice President, Chief Financial Officer and Corporate Development have concluded that, as of the end of the period covered by this report, the Company’s disclosure controls and procedures were effective to provide reasonable assurance that the information required to be disclosed by the Company in reports it files is recorded, processed, summarized and reported, within the appropriate time periods and is accumulated and communicated to management, including the President and Chief Executive Officer and Executive Vice President, Chief Financial Officer and Corporate Development, as appropriate to allow timely decisions regarding required disclosure.

The Company’s management, with the participation of its President and Chief Executive Officer and Executive Vice President, Chief Financial Officer and Corporate Development, is responsible for establishing and maintaining adequate internal control over financial reporting. Under the supervision of the President and Chief Executive Officer and Executive Vice President, Chief Financial Officer and Corporate Development, the Company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS. The Company’s internal control over financial reporting includes policies and procedures that:

There has been no change in the Company’s internal control over financial reporting during the six months ended June 30, 2018 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

The Company’s management, including the President and Chief Executive Officer and Executive Vice President, Chief Financial Officer and Corporate Development, believes that any disclosure controls and procedures or internal control over financial reporting, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, they cannot provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been prevented or detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by unauthorized override of the control. The design of any control system also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Accordingly, because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

	Page Number
Cautionary Statements	2
Quarter Highlights	4
Business Overview and Strategy	5
Corporate Developments	5
Market Overview	6
Quarterly Results	8
Liquidity and Capital Resources	17
Guidance	18
Operational and Projects Review	20
Non-GAAP Performance Measures	33
Risks and Uncertainties	41
Accounting Matters	44
Controls and Procedures	47

	Three months ended June 30, 2018									Three months ended June 30, 2017
(in millions, except per share)	Pre-tax			After-tax			Per share ($/share)			Pre-tax		After-tax			Per share ($/share)
Non-cash foreign exchange losses (gains) on deferred tax balances and other	$	27		$	178		$	0.20		$	4	$	(41	)	$	(0.05	)
Gain from reduction in provision for Alumbrera's reclamation costs	$	(30	)	$	(30	)	$	(0.03	)	$	—	$	-		$	-

	Six months ended June 30, 2018									Six months ended June 30, 2017
(in millions, except per share)	Pre-tax			After-tax			Per share ($/share)			Pre-tax			After-tax			Per share ($/share)
Non-cash foreign exchange losses (gains) on deferred tax balances and other	$	20		$	155		$	0.17		$	(17	)	$	(123	)	$	(0.14	)
Reduction in Goldcorp's share of Pueblo Viejo's earnings relating to settlement of a Dominican Republic tax audit	$	17		$	17		$	0.02		$	—		$	-		$	-
Gain from reduction in provision for Alumbrera's reclamation costs	$	(30	)	$	(30	)	$	(0.03	)	$	(26	)	$	(26	)	$	(0.03	)

Other 2018 Estimates		2018E
Corporate Administration ($M) (including non-cash stock compensation of $40M)		$140
Exploration ($M) ^{(2, 6)}		$125
Depreciation and depletion ($/oz) ⁽²⁾		$485
Tax rate ⁽²⁾		40 - 45%

	2018 - 2019	2020 - 2021
Gold (oz)	$1,300	$1,300
Silver (oz)	$19.00	$18.00
Copper (lb)	$2.75	$3.00
Zinc (lb)	$1.30	$1.15
Lead (lb)	$1.10	$1.00
Foreign exchange (respectively to the US$)
Canadian dollar	$1.25	$1.25
Mexican peso	19.00	19.00

	June 30 2018			December 31 2017
Current portion of long-term debt	$	400		$	499
Long-term debt		2,175			1,984
Cash and cash equivalents		(118	)		(186	)
Short term investments		(41	)		(48	)
Net Debt		2,416			2,249
Debt of associates and joint venture		—			—
Cash and short term investments of associates and joint venture		(162	)		(163	)
Adjusted Net Debt	$	2,254		$	2,086

At June 30, 2018	Possible exposure ⁽¹⁾	Impact on earnings excluding currency exposure related to taxes		Impact on earnings from foreign exchange exposure related to taxes
Canadian dollar	10%	$	12	$	102
Mexican peso	15%		21		78
Argentine peso ⁽²⁾	25%		3		62