<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
F O R M 6 - K
[X] Pursuant to Rule 13a-16 or 15d-16 of the SECURITIES EXCHANGE ACT OF 1934
For the six month period ended June 30, 1997.
GOLDCORP INC.
--------------------------------------------------------
(Exact name of registrant as specified in its charter)
COMMISSION FILE NUMBER 1-12970
PROVINCE OF ONTARIO 98770100
- ------------------------------------- -----------------------------------
(State of other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
SUITE 2700, 145 KING STREET WEST
TORONTO, ONTARIO, CANADA M5H 1J9
(416) 865-0326
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant files or will file annual reports
under cover Form 20-F or Form 40-F.
Form 20 - F [ ] Form 40-F [ X ]
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
commission pursuant to Rule 12g3-(b) under the Securities Exchange Act of 1934.
Yes [ ] No [ X ]
<PAGE>
1997 SECOND QUARTER RESULTS
(ALL AMOUNTS IN THIS NEWS RELEASE ARE EXPRESSED IN UNITED STATES
DOLLARS, UNLESS OTHERWISE INDICATED.)
GENERAL
Exploration efforts at the Red Lake Mine continue to expand the high grade
discovery zones. A new gold zone located on the opposite side to the main ore
body at Red Lake has also been discovered. Cash production costs at the Wharf
Mine continue the favourable trend of declining from 1996 levels.
FINANCIAL RESULTS
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
1997 1996 1997 1996
-------- --------- ------- --------
(IN MILLIONS OF U.S. DOLLARS, EXCEPT PER SHARE AND PER OUNCE AMOUNTS)
<S> <C> <C> <C> <C>
Revenues $ 15.9 $ 22.3 $ 30.0 $ 44.4
Earnings (loss) (4.9) 4.5 (3.4) 8.1
Earnings (loss) per share (fully diluted) (0.07) 0.07 (0.05) 0.12
Cash flow (deficiency) from operations 1.9 4.7 (3.2) 9.0
Cash flow (deficiency) from operations
per share (fully diluted) 0.02 0.07 (0.05) 0.14
Gold sales (OUNCES) 25,100 40,625 46,400 82,138
Average realized gold price per ounce 343 385 342 385
</TABLE>
LIQUIDITY AND CAPITAL RESOURCES
As at As at
June 30, December 31,
1997 1996
----------- ------------
(IN MILLIONS OF DOLLARS, EXCEPT RATIOS)
Cash and short-term investments $ 25.3 $ 30.0
Marketable securities
-book value 16.9 26.6
-market value 12.3 40.0
Working capital 37.9 43.7
Total debt 1.6 7.2
Debt-to-equity ratio 0.01:1 0.04:1
Goldcorp realized pre-tax gains of $4.1 million on the sale of marketable
securities ($2.3 million after-tax). Also, a provision for the decline in
marketable securities of $4.6 million was recorded in the second quarter,
reflecting an overall decline in gold stocks.
<PAGE>
GOLD MINING OPERATIONS
Three months ended Six months ended
June 30, June 30,
1997 1996 1997 1996
------- -------- ------ --------
(IN MILLION OF U.S. DOLLARS, EXCEPT AS NOTED OTHERWISE)
Operating loss $ (1.6) $ (4.8) $ (3.6) $ (4.0)
Operating cash flow 0.4 1.5 0.8 5.8
Gold production (OUNCES) 27,554 38,061 48,430 80,201
Average operating cost per ounce (US $)
Cash production cost 235 337 240 311
Royalties and severance taxes 19 17 17 15
Non-cash costs 86 73 87 69
------- ------- ------- -------
Total operating cost 340 427 344 395
------- ------- ------- -------
------- ------- ------- -------
The decrease in operating loss from gold mining operations for both the second
quarter and the six months ended June 30, 1997, compared to a year ago, was
mainly as a result of the writedown of $3.1 million of the Golden Reward Mine
assets recorded in the second quarter of 1996. Before giving effect to the
writedown, the operating results from gold mining operations for the six months
ended June 30, 1997, decreased compared to a year ago, mainly as a result of
lower total gold production, a lower realized gold price and ongoing operating
costs incurred at Red Lake during the labour stoppage. The operating loss for
the second quarter of 1997 remained consistent with the prior year, before
giving effect to the writedown. Lower total gold production, a lower realized
gold price and ongoing operating costs incurred at Red lake during the labour
stoppage, were offset by an improvement in the cash production cost per ounce at
the Wharf Mine.
The improvement in the cash production cost per ounce for both the second
quarter and the six months ended June 30, 1997, was mainly the result of the
improvement in the cash production cost per ounce at the Wharf Mine.
RED LAKE MINE
Three months ended Six months ended
June 30, June 30,
1997 1996 1997 1996
------- -------- ------ --------
(IN MILLIONS OF U.S. DOLLARS, EXCEPT AS NOTED OTHERWISE)
Operating loss $(1.5) $ (0.9) $(3.3) $ (0.6)
Operating cash flow (deficiency) (1.4) (0.4) (3.0) 0.9
Gold production (OUNCES) 9,476 24,178
Operating cost per ounce (US $)
Cash production cost 429 359
Non-cash costs 34 33
------- ------- ------- -------
Total operating cost 463 392
------- ------- ------- -------
------- ------- ------- -------
<PAGE>
The exploration program at the Red Lake Mine continues to expand the high grade
discovery zones. Also, in June 1997, Goldcorp announced the discovery of a new
gold zone which is located on the opposite side of the main ore body to all
previously announced drill results. Projected annual production, planned to
commence in 1999, has been raised to 200,000 ounces based on the exploration
success to date. Gold production was interrupted by a labour stoppage, however,
in June 1996. Exploration and development work have continued. Ongoing
operating costs incurred during the labour stoppage have resulted in an
operating loss and an operating cash deficiency being recorded during the second
quarter of 1997.
WHARF MINE
Three months ended Six months ended
June 30, June 30,
1997 1996 1997 1996
------- -------- ------ --------
(IN MILLIONS OF U.S. DOLLARS, EXCEPT AS NOTED OTHERWISE)
Operating profit (loss) $ 0.013 $ 0.1 $(0.011) $ 1.2
Operating cash flow 2.0 2.0 4.1 4.7
Gold production (OUNCES) 27,554 23,211 48,430 45,354
Operating cost per ounce (US$)
Cash production cost 235 284 240 268
Royalties and severance taxes 19 25 17 24
Non-cash costs 86 76 87 74
------- ------- ------- -------
Total operating cost 340 385 344 366
------- ------- ------- -------
------- ------- ------- -------
The increase in gold production both for the second quarter and the six months
ended June 30, 1997, compared to a year ago, was mainly due to a higher grade of
ore leached.
The decrease in the cash production cost per ounce for both the second quarter
and the six months ended June 30, 1997, was mainly due to a higher grade of ore
leached, as well as not having the negative impact of the write-off of 4,393
ounces or $1.3 million from one of the leach pads recorded in the second quarter
of 1996. The increase in non-cash costs per ounce for both the second quarter
and the six months ended June 30, 1997, was mainly due to the acquisition of the
remaining minority interest in Wharf Resources Ltd. in December 1996, and the
resulting amortization of that purchase price discrepancy.
The Wharf Mine's lower operating results for both the second quarter and the six
months ended June 30, 1997, were mainly the result of a lower realized gold
price per ounce.
The production target at the Wharf Mine has been revised to 103,000 ounces at a
cash production cost of $237 per ounce and a total operating cost of $341 per
ounce.
<PAGE>
GOLDEN REWARD MINE
(GOLDCORP'S 60% CONSOLIDATED SHARE)
Three months ended Six months ended
June 30, June 30,
1997 1996 1997 1996
------- -------- ------ --------
(IN MILLIONS OF U.S. DOLLARS, EXCEPT AS NOTED OTHERWISE)
Operating loss $ (0.2) $ (4.0) $ (0.3) $ (4.6)
Operating cash flow (deficiency) (0.2) (0.1) (0.3) 0.2
Gold production (OUNCES)
-100% 8,957 17,782
-Goldcorp's 60% share 5,374 10,669
Operating cost per ounce (US$)
Cash production cost 409 383
Royalties and severance taxes 13 13
Non-cash costs 133 126
------- ------- ------- -------
Total operating cost 555 522
------- ------- ------- -------
------- ------- ------- -------
Gold production at the Golden Reward Mine was suspended in June 1996. The mine
continues to be on a care and maintenance basis.
INDUSTRIAL MINERAL OPERATIONS - SASKATCHEWAN MINERALS AND HAVELOCK LIME
Three months ended Six months ended
June 30, June 30,
1997 1996 1997 1996
------- -------- ------ --------
(IN MILLIONS OF U.S. DOLLARS)
Revenues $ 7.3 $ 6.6 $ 14.2 $ 12.7
Operating profit 2.3 1.8 4.6 3.7
Operating cash flow 2.6 2.0 5.2 4.3
The improvement in operating results from industrial mineral operations for both
the second quarter and the six months ended June 30, 1997, was mainly due to an
increase in revenues from sodium sulphate as a result of strong market
conditions (both increased tonnage and increased prices). Havelock Lime's
operations have remained relatively consistent compared to the prior year.
<PAGE>
FINANCIAL AND STATISTICAL INFORMATION
Attached are the Production Statistics and the Consolidated Financial Statements
of Goldcorp Inc. for the three and six months ended June 30, 1997.
For further information, please contact:
Dalen B. Fairbairn
Senior Vice President and
Chief Financial Officer
(416) 865-0326
email: [email protected]
website: www.goldcorp.com
Stock Symbols:
TSE, ME ("G.A"; "G.B")
NYSE ("GG.A"; "GG.B")
<PAGE>
GOLDCORP INC.
PRODUCTION STATISTICS
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
1997 1996 1997 1996
------- -------- ------- --------
<S> <C> <C> <C> <C>
RED LAKE MINE PRODUCTION STATISTICS
Tons of ore milled (000'S) 40 94
Average mill head grade (OUNCES PER TON) 0.290 0.310
Average recovery rate (%) 83.47 84.57
Gold production (OUNCES) 9,476 24,178
Operating cost per ounce (US $)*
Cash production cost $ $ 429 $ $ 359
Non-cash costs 34 33
------- ------- ------- -------
Total operating cost $ $ 463 $ $ 392
------- ------- ------- -------
------- ------- ------- -------
* excludes costs incurred during labour strike
WHARF MINE PRODUCTION STATISTICS
Tons of ore mined (000'S) 1,096 1,044 2,008 2,026
Tons of waste removed (000'S) 1,590 1,513 2,550 3,661
Ratio of waste to ore 1.45:1 1.45:1 1.27:1 1.81:1
Tons of ore processed (000'S) 1,153 1,086 2,054 2,062
Average grade of gold
processed (OUNCES PER TON) 0.030 0.029 0.030 0.027
Gold production (OUNCES) 27,554 23,211 48,430 45,354
Operating cost per ounce (US$)
Cash production cost $ 235 $ 284 $ 240 $ 268
Royalties and severance taxes 19 25 17 24
Non-cash costs 86 76 87 74
------- ------- ------- -------
Total operating cost $ 340 $ 385 $ 344 $ 366
------- ------- ------- -------
------- ------- ------- -------
GOLDEN REWARD MINE PRODUCTION STATISTICS (100%)
Tons of ore mined (000'S) 307 649
Tons of waste removed (000'S) 1,337 2,703
Ratio of waste to ore 4.36:1 4.16:1
Tons of ore processed (000'S) 349 702
Average grade of gold processed (OUNCES PER TON) 0.035 0.035
Gold production (OUNCES)
-100% 8,957 17,782
-Goldcorp's 60% share 5,374 10,669
Goldcorp's proportionate operating cost
per ounce (US$)
Cash production cost $ $ 409 $ $ 383
Royalties and severance taxes 13 13
Non-cash costs 133 126
------- ------- ------- -------
Total operating cost $ $ 555 $ $ 522
------- ------- ------- -------
------- ------- ------- -------
CONSOLIDATED PRODUCTION STATISTICS
Total gold production (OUNCES) 27,554 41,644 48,430 87,314
------- ------- ------- -------
------- ------- ------- -------
Goldcorp's consolidated share (OUNCES) 27,554 38,061 48,430 80,201
------- ------- ------- -------
------- ------- ------- -------
Average operating cost per ounce (US$)
Cash production cost $ 235 $ 337 $ 240 $ 311
Royalties and severance taxes 19 17 17 15
Non-cash costs 86 73 87 69
------- ------- ------- -------
Total operating cost $ 340 $ 427 $ 344 $ 395
------- ------- ------- -------
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</TABLE>
<PAGE>
GOLDCORP INC.
CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS OF UNITED STATES DOLLARS)
As at As at
June 30, December 31,
1997 1996
-------- ------------
ASSETS
CURRENT ASSETS
Cash and short-term investments $ 25,274 $ 30,007
Gold bullion inventory 1,349 714
Accounts receivable 10,364 9,960
Marketable securities 12,336 26,607
Inventories 9,065 8,079
Prepaid expenses and other 981 1,012
-------- --------
59,369 76,379
MINING INTERESTS, NET 149,889 146,926
DEPOSITS FOR RECLAMATION COSTS 3,543 3,520
OTHER ASSETS 2,975 2,459
-------- --------
$215,776 $229,284
-------- --------
-------- --------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 10,288 $ 14,357
Taxes payable 9,593 11,203
Current portion of long-term debt 1,542 7,128
-------- --------
21,423 32,688
-------- --------
LONG-TERM DEBT 39 60
-------- --------
PROVISION FOR RECLAMATION COSTS
AND OTHER LIABILITIES 4,028 4,080
-------- --------
DEFERRED INCOME TAXES 8,740 7,179
-------- --------
SHAREHOLDERS' EQUITY
Capital stock 81,600 81,299
Contributed surplus 76,068 76,223
Cumulative translation adjustment 3,739 4,212
Retained earnings 20,139 23,543
-------- --------
181,546 185,277
-------- --------
$215,776 $229,284
-------- --------
-------- --------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE
CONSOLIDATED FINANCIAL STATEMENTS.
<PAGE>
CONSOLIDATED STATEMENTS OF EARNINGS
(IN THOUSANDS OF UNITED STATES DOLLARS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
1997 1996 1997 1996
------- -------- ------- --------
<S> <C> <C> <C> <C>
Revenues
Gold bullion $ 8,616 $15,649 $15,889 $31,678
Industrial minerals 7,296 6,626 14,159 12,679
------- ------- ------- -------
15,912 22,275 30,048 44,357
------- ------- ------- -------
Expenses
Operating 12,693 18,954 24,236 35,217
Corporate administration 922 880 1,861 1,850
Depreciation and depletion 2,552 3,303 4,863 6,337
Exploration 38 101 87 178
Writedown of Golden Reward Mine 3,107 3,107
------- ------- ------- -------
16,205 26,345 31,047 46,689
------- ------- ------- -------
Loss from operations (293) (4,070) (999) (2,332)
------- ------- ------- -------
Other income (expense)
Interest and other income 533 926 1,158 1,620
Gain on marketable securities 358 11,452 4,122 16,315
Provision for decline in marketable
securities (4,618) (4,618)
Interest expense
Long-term debt (76) (211) (151) (455)
Other (4) (5) (8) (9)
------- ------- ------- -------
(3,807) 12,162 503 17,471
------- ------- ------- -------
Earnings (loss) before taxes
and minority interest (4,100) 8,092 (496) 15,139
Income and mining taxes 780 5,312 2,905 8,483
------- ------- ------- -------
Earnings (loss) before minority interest (4,880) 2,780 (3,401) 6,656
Minority interest 1,735 1,445
------- ------- ------- -------
Earnings (loss) for the period $(4,880) $ 4,515 $(3,401) $ 8,101
------- ------- ------- -------
------- ------- ------- -------
Earnings (loss) per share
Basic $ (0.07) $ 0.07 $ (0.05) $ 0.13
------- ------- ------- -------
------- ------- ------- -------
Fully diluted $ (0.07) $ 0.07 $ (0.05) $ 0.12
------- ------- ------- -------
------- ------- ------- -------
Weighted average number of shares
outstanding (000's)
Basic 68,334 63,154 68,339 63,068
------- ------- ------- -------
------- ------- ------- -------
Fully diluted 73,110 67,316 73,115 67,212
------- ------- ------- -------
------- ------- ------- -------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE
CONSOLIDATED FINANCIAL STATEMENTS.
<PAGE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS OF UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
1997 1996 1997 1996
------- -------- ------- --------
<S> <C> <C> <C> <C>
Cash provided by (used in)
Operating activities
Earnings (loss) for the period $(4,880) $ 4,515 $(3,401) $ 8,101
Items not affecting cash
Depreciation, depletion and amortization 2,445 3,463 5,141 7,088
Writedown of Golden Reward Mine 3,107 3,107
Gain on marketable securities,
net of tax provision (198) (6,391) (2,283) (9,084)
Provision for decline in marketable
securities 4,618 4,618
Deferred income taxes 838 432 1,621 786
Minority interest (1,735) (1,445)
Other (38) 57 (75) 140
------- ------- ------- -------
2,785 3,448 5,621 8,693
Change in non-cash operating
working capital (921) 1,298 (8,816) 339
------- ------- ------- -------
Net cash provided by (used in)
operating activities 1,864 4,746 (3,195) 9,032
------- ------- ------- -------
Investing activities
Mining interests (4,555) (2,769) (8,281) (5,182)
Purchases of marketable securities (2,110) (2,864) (5,104) (7,800)
Proceeds from sale of marketable securities 1,905 30,267 19,629 39,073
Taxes paid on sale of marketable
securities, prior year 22 (2,150)
Purchases of other assets (29)
Other (13) (315) (23) (634)
------- ------- ------- -------
Net cash provided by (used in)
investing activities (4,751) 24,319 4,042 25,457
------- ------- ------- -------
Financing activities
Repayment of long-term debt (1,605) (1,696) (5,658) (4,492)
Issue (redemption) of capital stock, net (103) 566 146 690
Dividends paid to minority shareholders_ (477) (477)
------ ------ ------
Net cash used in financing activities (1,708) (1,607) (5,512) (4,279)
------- ------- ------- -------
Effect of exchange rate changes on cash 92 86 (68) (5)
------- ------- ------- -------
Increase (decrease) in cash and
short-term investments (4,503) 27,544 (4,733) 30,205
Cash and short-term investments
at beginning of period 29,777 43,059 30,007 40,398
------- ------- ------- -------
Cash and short-term investments
at end of period $25,274 $70,603 $25,274 $70,603
------- ------- ------- -------
------- ------- ------- -------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE
CONSOLIDATED FINANCIAL STATEMENTS.
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. GENERAL
The accompanying unaudited consolidated financial statements should be read
in conjunction with the notes to the Company's audited consolidated
financial statements for the year ended December 31, 1996. The unaudited
consolidated financial statements include the financial statements of the
Company and its subsidiaries. The Company accounts for its 60% undivided
interest in the Golden Reward Mining Company Limited Partnership using the
proportionate consolidation method of accounting.
These unaudited interim consolidated financial statements reflect all
normal and recurring adjustments which are, in the opinion of management,
necessary for a fair presentation of the respective interim periods
presented.
2. REPORTING CURRENCY
The Company has adopted the United States dollar as its reporting currency
for its financial statements, commencing January 1, 1997.
Comparative figures previously reported in Canadian dollars have been
translated at the exchange rate in effect on January 1, 1997.
<PAGE>
SIGNATURE
Pursuant to the requirements of the SECURITIES EXCHANGE ACT OF 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
GOLDCORP INC.
By /s/ Floriana G. Cipollone
--------------------------------
Floriana G. Cipollone
Corporate Controller and
Treasurer
(Duly Authorized Officer)
Date: June 30, 1997.
