Building our future.

With a strong balance sheet, an exceptional asset portfolio and a dedicated management team, we are building a future of sustained prosperity for our shareholders.

Financial Highlights: 2012

Gold production

Production totaled 700,400 ounces for the fourth quarter and 2,396,200 ounces for 2012, compared to 687,900 ounces and 2,514,700 ounces, respectively, in 2011.

Total cash costs

All-in sustaining cash costs⁽¹⁾ for the fourth quarter were $910 per ounce, and $874 per ounce for 2012.  On a by-product basis cash costs⁽²⁾ were $360 per ounce, compared to $261 per ounce in 2011, and $300 per ounce for 2012, compared to $223 per ounce in 2011. On a co-product basis cash costs⁽²⁾ were $621 and $638 per gold ounce for the fourth quarter and 2012, respectively, compared to $529 and $534 per gold ounce, respectively, in 2011.

Shareholder earnings

Net earnings attributable to shareholders of Goldcorp totaled $504 million for the fourth quarter ($0.62 per share) and $1,749 million ($2.16 per share) for 2012, compared to net earnings of $405 million ($0.50 per share) and $1,881 million ($2.34 per share), respectively, in 2011. Adjusted net earnings⁽³⁾ amounted to $465 million ($0.57 per share) for the fourth quarter and $1,642 million ($2.03 per share) for 2012, compared to $531 million ($0.66 per share) and $1,786 million ($2.22 per share), respectively, in 2011.

Operating cash flows
Operating cash flows totaled $787 million for the fourth quarter and $2,097 million for 2012, compared to $727 million and $2,366 million, respectively, in 2011. Operating cash flows before working capital changes⁽⁴⁾ were $721 million ($0.89 per share) for the fourth quarter and $2,408 million ($2.97 per share) for 2012, compared to $831 million ($1.03 per share) and $2,692 million ($3.35 per share), respectively, in 2011.

Dividends increased

Dividends paid increased to $438 million in 2012, compared to dividends paid of $330 million in 2011.

(1)  For 2013, the Company is adopting an "all-in sustaining cash cost" non-GAAP performance measure that the Company believes more fully defines the total costs associated with producing gold. All-in sustaining cash costs include by-product cash costs, sustaining capital, corporate general & administrative expenses, exploration expense and reclamation cost accretion. As the measure seeks to reflect the full cost of gold production from current operations, new project capital is not included in the calculation. Accordingly, it is 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 reports this measure on a sales basis.

All-in sustaining cash cost                                                                    2012
Total cash costs (by-product) (page 43 of the 2012 MD&A)           $702
Corporate administration                                                                       245
Exploration and evaluation costs                                                         $55
Reclamation cost accretion                                                                   $16
Sustaining capital expenditure                                                        $1,028
All-in sustaining cash costs                                                              $2,046
Gold sales ounces                                                                         2,340,600
All-in sustaining cash costs per ounce                                              $874

(2)  The Company has included non-GAAP performance measures - total cash costs, by-product and co-product, per gold ounce, throughout this document. 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 follows the recommendations of the Gold Institute Production Cost Standard. 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 generate cash flow. Accordingly, it is 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. Total cash costs on a by-product basis are calculated by deducting by-product silver, copper, lead and zinc sales revenues from production costs.

Commencing January 1, 2011, total cash costs on a co-product basis are calculated by allocating 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. Prior period comparatives have been restated accordingly. The budget metal prices used in the calculation of co-product total cash costs were as follows:
                       2012           2011         
Gold            $1,600        $1,250     
Silver           $34.00        $20.00            
Copper          $3.50          $3.25             
Lead              $0.90          $0.90         
Zinc               $0.90          $0.90             

(3)  Adjusted net earnings and adjusted net earnings per share are non-GAAP performance measures. 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. Accordingly, it is 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. Refer to page 45 for a reconciliation of adjusted net earnings to reported net earnings attributable to shareholders of Goldcorp.

(4)  Operating cash flows before working capital changes and operating cash flows before working capital changes per share are non-GAAP performance measures which the Company believes provides additional information about the Company’s ability to generate cash flows from its mining operations.