Goldcorp - Bank of Americal Merrill Lynch, 2012 Global Metals, Mining & Steel Conference
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CORPORATE UPDATEBank of America Merrill Lynch
2012 Global Metals, Mining & Steel Conference
Forward Looking Statements
This presentation contains “forward-looking statements”, within the meaning of the United States Private Securities LitigationReform Act of 1995 and applicable Canadian securities legislation, concerning the business, operations and financial performanceand condition of Goldcorp Inc. (“Goldcorp”). Forward-looking statements include, but are not limited to, statements with respect tothe future price of gold, silver, copper, lead and zinc, the estimation of mineral reserves and resources, the realization of mineralreserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timingof the development of new deposits, success of exploration activities, permitting time lines, hedging practices, currency exchangerate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipatedreclamation expenses, timing and possible outcome of pending litigation, title disputes or claims and limitations on insurancecoverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”,“expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does notanticipate”, “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”,“would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are subject to known and unknown risks,uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Goldcorp to bematerially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related tothe integration of acquisitions; risks related to international operations; risks related to joint venture operations; actual results ofcurrent exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes inproject parameters as plans continue to be refined; future prices of gold, silver, copper, lead and zinc; possible variations in orereserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes;delays in obtaining governmental approvals or financing or in the completion of development or construction activities and otherrisks of the mining industry, as well as those factors discussed in the section entitled “Description of the Business – Risk Factors” inGoldcorp’s annual information form for the year ended December 31, 2011 available at www.sedar.com. Although Goldcorp hasattempted to identify important factors that could cause actual results to differ materially from those contained in forward-lookingstatements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be noassurance that such statements will prove to be accurate, as actual results and future events could differ materially from thoseanticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Goldcorpdoes not undertake to update any forward-looking statements that are included in this document, except in accordance withapplicable securities laws.
2
All amounts are in U.S. dollars, unless otherwise stated.
Consistent Strategic Focus
3
TOGETHER, CREATING
SUSTAINABLE VALUE
Growth Leader
Low Cost Producer
Outstanding Balance Sheet
Responsible Mining
Practices
Low Political
Risk
Focus in Stable Jurisdictions
4
CANADA
ARGENTINA
DOMINICAN REPUBLIC
MEXICO
GUATEMALA
USA
Operating Mines
Development Projects
CHILE
Canada
46%
US
5%
Mexico
33%
Guatemala
8%
Dominican Republic
3%Argentina
5%
2012E GOLD PRODUCTION
Continuous Gold Reserve Growth
5
2007 2008 2009 2010 2011
2012 Exploration Budget - $200M
2011 INCREASE OF 8%,
6% ON A PER SHARE BASIS(Thousands of ounces)
43,400
46,300
48,800
60,060
64,700
Strong, Steady Growth Profile
6
1.4
1.8
2.2
2.6
3.0
3.4
3.8
4.2
2011A 2012E 2013E 2014E 2015E 2016E
Current Operations New Projects
(Millions of ounces)
Realistic, Achievable Growth
GOLD PRODUCTION
4.2
2.5
70%
PUEBLO VIEJO (2012)
CERRO NEGRO (2013)
COCHENOUR (2014)
ÉLÉONORE (2014)
Robust Development Pipeline
7
RED LAKE / PORCUPINE / MUSSELWHITE / EL SAUZAL / ALUMBRERA / MARIGOLD / WHARF
MARLIN (2006)
LOS FILOS (2008)
PEÑASQUITO (2010)
CAMINO ROJO (2014)
NOCHE BUENA
CERRO BLANCO
AGUA RICA
El MORRO U/G
PEÑASQUITO UG
EL MORRO (2017)
S C O P I N G
F E A S I B I L I T Y
P R O D U C T I O N
C O N S T R U C T I O N
S C O P I N G
F E A S I B I L I T Y
P R O D U C T I O N
C O N S T R U C T I O N
DOMINICAN REPUBLIC
Pueblo Viejo - Dominican Republic
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Next New Source of Gold Production
*Goldcorp interest (%)40
• Construction 93% complete
• $350 million* capital budget for 2012
• Annual output 415,000 to 450,000
ounces per year* in first five years
• First gold targeted mid-2012
2012E gold production of 85,000 ounces
• Life of mine +25 years
Cerro Negro - Argentina
• High grade vein system
• Outstanding reserve growth potential
• Santa Cruz mining province
Updated feasibility study results:
• 550 koz Au annually (1st 5 years)
• <$300 /oz cash costs (1st 5 years)
• Initial capital $800M
• First production H2 2013
9
Developing our Next
Cornerstone Mine
Cerro Negro
Alumbrera
El Morro
Cerro Negro - Argentina
• Eureka decline advanced to 1,621 M
• Mariana Central decline underway
• Construction & development activities
advancing:
Plant construction
Surface prep work at Mariana Norte vein
• Import restrictions introduced
• Strong exploration results continue
10
Construction on Schedule
Éléonore - Canada
• Development plan:
Upper/lower mine concept; 7 ktpd
Mine life ~15 years
+600,000 oz Au
Cash costs: <$400/oz
Capital cost - $1.4B
• Final EIA approval received
• Cree collaboration agreement
11
Pure Gold in a Safe JurisdictionRed Lake
Cochenour
Musselwhite
Porcupine
Éléonore
Éléonore - Canada
• Exploration shaft past 690 metres
• Exploration ramp extended over 1,200
metres
• Underground drilling to commence in
Q3
• Plant construction to commence
shortly
• Surface preparation for sinking of
second production shaft
12
Advancing Construction
Cerro Negro
Alumbrera
El Morro
El Morro - Chile
13
Next Generation Project
Goldcorp interest (%) 70
• Large, under-explored land position
• Jan. 2012 feasibility study update:
First production: 2017
+210,000 Au1; +200Mlb Cu1
By-product cash costs: ($700)/oz2
Capital cost $3.9B
17-year mine life
• Assessing effect of Supreme Court
decision1 LOM Average annual production (70%)2 Price Assumptions: Au - $1200/oz; Cu - $2.75/lb
Red Lake
Cochenour
Musselwhite
Porcupine
Éléonore
Cochenour - Canada
• Shaft widening advancing
• Haulage drift 43% complete (2 drill rigs)
• Construction underway:
First production late 2014
250,000 - 275,000 ounces Au annually
Cash costs < $350 per ounce
Capital cost - $420M
Mine life ~20 years
• Surface exploration with 3 drill rigs
• Development plan update underway
14
Key Growth Driver
in Red Lake District
Red Lake
15
Haulage drift
Rahill - Bonanza
Bruce Channel Discovery
Western
Discovery
Zone
EastWest
Drift location at end of 2012 Current drift location
Red Lake - Canada
• Robust, low cost gold production
• 2012 gold production forecast under
review
• 2012 exploration budget $38M
Focus on High Grade Zone extension
Hanging wall exploration success
• Utilizing excess milling capacity
• Focus on community initiatives
16
Cornerstone AssetRed Lake
Cochenour
Musselwhite
Porcupine
Éléonore
Red Lake - High Grade Zone Drilling
17
54 LEVEL
56 LEVEL
52 LEVEL
* Looking NE
58 LEVEL
High Grade Results
Drill rig locations
Peñasquito
Los Filos
El Sauzal
Peñasquito - Mexico
• 2012 gold production forecast –
425,000 ozs at negative cash costs
• Supplemental feed system
commissioned
• Focus on efficiencies & cost
reductions
• Largest cash flow generator in 2012
• 22-year mine life
18
Hitting Stride in 2012
Peñasquito - Exploration Success
• Camino Rojo
Over 77,000 meters drilled in 2011
Testing oxide & sulphide expansion
Feasibility study due mid-2012
• Noche Buena
Resource expansion drilling continues
In-fill drilling on higher grade
mineralization trends
Feasibility study due mid-2012
19
Advancing District Projects
2012 Deliverables
20
Commence construction at Hollinger
Peñasquito – HPGR supplemental feed commissioned
Complete exploration shaft sinking at Éléonore Q2
Complete heap leach pad expansion at Los Filos Q2
First gold at Pueblo Viejo mid-year
Complete feasibility study at Camino Rojo mid-year
Complete feasibility study at Noche Buena mid-year
Gold Production
Q1 2012 Results
21
Revenues
$1.3
$1.2
By-Product Cash Costs
Co-Product Cash Costs
Adjusted Net Earnings
Operating Cash Flow*
524,700
637,600
$251
$188
$404
$392
$480
$463
(billions) (ounces) ($ per oz)
$648
$504
(millions) (millions)
Q1 2011 Q1 2012
1 Cash flow before changes in working capital
Sector Leading Cash Margins
22
$163$305 $295 $274 $223 $251
$540
$563 $683$966
$1,349$1,456
2007 2008 2009 2010 2011 Q1'12
By-Product Cash Costs Cash Margin
$703
$868$978
$1,240
$1,572
$1,707($ per oz)
Strong Per Share Growth
23
(US$ / share)
$0.62 $0.56$0.80
$1.43
$2.22
2007 2008 2009 2010 2011
(US$ / share)
61.565.0
66.7
75.3
80.4
2007 2008 2009 2010 2011
(per 1000 shares)
1Cash flow before changes in working capital (from continuing operations as applicable). 2Adjusted earnings per share. 3Reserves for gold only. 4Non-GAAP financial measures see pages 29-95 of the 2011 Annual report for further details.
Cash Flow / Share1,4 Earnings / Share2,4
Reserves / Share3
$1.23$1.32
$1.62
$2.30
$3.35
2007 2008 2009 2010 2011
2012 Guidance
24
20121
Guidance
Gold Production (Moz) 2.60
Cash Costs $/oz – By-product
– Co-product
$250 - $275
$550 - $600
Capital Expenditures $2.6 B
Exploration Expenditures $200 M
Corporate administration $160 M
Depreciation /oz $325
Tax Rate 30%
1 2012 price assumptions: Au=$1600/oz, Ag=$34/oz, Cu=$3.50/lb, Zn=$0.90/lb, Pb=$0.90/lb
Financial Position - Excellent Liquidity
25
Balance Sheet (US$) as at March 31, 2012
Cash & cash equivalents1 $1.4 B
Available debt facility - undrawn $2.0 B
Convertible senior notes – due 2014 $862.5 M
Forecast avg. annual cash flow
over next 5 years~$3.7 B2
1 Includes money market instruments, non-GAAP measure2 Price Assumption 2012-2016: Au - $1600/oz; Ag - $34/oz; Cu - $3.50/lb; Zn - $0.90/lb; Pb - $0.90/lb3 Moody’s: Baa2; S&P: BBB+; Fitch: BBB
Investment Grade Balance Sheet3
Significant Return of Capital to Shareholders
26
19%
16%
13%12%
13%
10%
17%
12%10% 10% 10%
9%
Newmont Goldcorp Newcrest Barrick Yamana Kinross
2012E 2013E
DIVIDEND AS % OF OPERATING CASH FLOW
Source: Bloomberg consensus Company reports
Why Gold?
27
• Flat mine supply
• Stable investment demand
Inflation hedge
Currency protection
Safe haven/asset class
• Growing physical demand
Asia
Central bank buying
Source: Metals Economics Group, World Gold Council
Thomson Reuters GFMS Gold Survey
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
0
1,000
2,000
3,000
4,000
5,000
6,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
US
$ M
illion
sTo
nn
es
Global Gold Production vs Exploration Spend
Production Exploration Spend
Goldcorp Advantage
28
SUPERIORINVESTMENT PROPOSITION
GROWTH LEADER
LOW COST PRODUCER
OUTSTANDING
BALANCE SHEET
LOW POLITICAL RISK
RESPONSIBLE
MINING PRACTICES
CORPORATE UPDATEBank of America Merrill Lynch
2012 Global Metals, Mining & Steel Conference
Appendix A
30
88% 84% 88% 90% 91% 92%
12% 16% 12% 10% 9% 8%
2011A 2012E 2013E 2014E 2015E 2016E
Precious Metals Base Metals
(% of Revenues)
Metals Production
Price assumptions 2012-2016: Au=$1600/oz, Ag=$34/oz, Cu=$3.50/lb, Zn=$0.90/lb, Pb=$0.90/lb
Appendix B
31
(Millions of ounces)
Increasing GEO Production
Price assumptions 2012-2016: Au=$1600/oz, Ag=$35/oz, Cu=$3.50/lb, Zn=$0.90/lb, Pb=$0.90/lb
0.0
1.0
2.0
3.0
4.0
5.0
2004 2005 2006 2007 2008 2009 2010 2011 2012E 2013E 2014E 2015E 2016E
Total gold production Total GEO production
5.3 Moz
Appendix C - 2012 Sensitivities
32
Base PriceChange
IncrementsCFPS
($/share)
By Product Cash Costs
($/oz)
FCF ($mm)
Gold Price ($/oz) $1,600 $100 $0.23 $2 $186
Silver Price ($/oz) $34.00 $2.00 $0.05 $23 $41
Copper Price ($/lb) $3.50 $0.50 $0.03 $14 $25
Zinc Price ($/lb) $0.90 $0.10 $0.03 $16 $28
Lead Price ($/lb) $0.90 $0.10 $0.02 $8 $15
Canadian Dollars 1.00 10% $0.04 $17 $118
Mexican Peso 13.00 10% $0.04 $17 $41
Diesel ($/barrel) $95.00 10% $0.01 $6 $12
Electricity ($/kWh) $0.08 10% $0.02 $9 $16
38%
19%5%
6%
9%
10%
1%2%
6%4%
CANADA / USA
12%
14%
8%
12%
9%
18%
2%
6%
4%
15%
MEXICO
18%
8%
7%
14%13%
16%
1%
6%
4%
13%
CSA
Appendix D - Operating Costs Breakdown
33
22%
14%
7%
10%10%
15%
2%
5%
4%
11%CONSOLIDATED
Labour Contractors Fuel Costs Power Maintenance Parts Consumables Tires Explosives Site Costs Others
Endnotes
34
1. Goldcorp has included non-GAAP performance measures, total cash costs, by-product and co-product, per gold ounce, throughout thispresentation. Total cash costs are defined as cost of sales divided by ounces of gold and silver sold or pounds of copper sold. Thecalculation of total cash costs per ounce of gold is net of by-product sales revenue (by-product copper revenues for Alumbrera; by-productsilver revenues for Marlin at market silver prices; by-product lead, zinc and 75% of the silver for Peñasquito at market silver prices and25% of the silver for Peñasquito at $3.90 per silver ounce sold to Silver Wheaton). The Company reports total cash costs on a sales basis.In the gold mining industry, this is a common performance measure but does not have any standardized meaning. The Company followsthe recommendations of the Gold Institute Production Cost Standard. The Company believes that, in addition to conventional measuresprepared in accordance with GAAP, certain investors use this information to evaluate the Company’s performance and ability to generatecash flow. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute formeasures of performance prepared in accordance with GAAP. Total cash costs on a by-product basis are calculated by deducting by-product copper, silver, lead and zinc sales revenues from production cash costs.
Production costs in 2012 are allocated to each co-product based on the ratio of actual sales volumes multiplied by budget metals prices of$1,600 per ounce of gold, $34 per ounce of silver, $3.50 per pound of copper, $0.90 per pound of lead and $0.90 per pound of zinc, ratherthan realized sales prices.
2. All Mineral Reserves and Mineral Resources have been calculated as at December 31, 2011 in accordance with the standards of theCanadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101, or the AusIMM JORC equivalent. CautionaryNote to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources. United States investors areadvised that while such terms are recognized and required by Canadian regulations, the United States Securities and ExchangeCommission does not recognize them. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and as totheir economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to ahigher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economicstudies. United States investors are cautioned not to assume that all or any part of Goldcorp’s Measured or Indicated Mineral Resourceswill ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an InferredMineral Resource exists, or is economically or legally mineable. Calculations have been prepared by employees of Goldcorp, its jointventure partners or its joint venture operating companies, as applicable, under the supervision of Maryse Belanger, Director TechnicalServices. Reserve calculations incorporate current and/or expected mine plans and cost levels at each property. Varying cut-off gradeshave been used depending on the mine and type of ore contained in the reserves. Goldcorp’s normal data verification procedures havebeen employed in connection with the calculations. For a breakdown of Reserves and Resources by category and for a more detaileddescription of the key assumptions, parameters and methods used in calculating Goldcorp’s Reserves and Resources, see Goldcorp’sAnnual information Form/ Form 40-F on file with Canadian provincial securities regulatory authorities and the U.S. Securities andExchange Commission.
3. Goldcorp’s exploration programs are designed and conducted under the supervision of Charlie Ronkos, Senior Vice-President,Exploration of Goldcorp. For information on geology, exploration activities generally, and drilling and analysis procedures on Goldcorp’smaterial properties, see Goldcorp’s Annual Information Form/Form 40-F on file with Canadian provincial securities regulatory authoritiesand the U.S. Securities and Exchange Commission.
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