<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
GOLDCORP INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
COMMISSION FILE NUMBER 1-12970
PROVINCE OF ONTARIO 98770100
---------------------------- ------------------------------------
(State of other jurisdiction (I.R.S. Employer Identification No.)
of 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>
THIRD QUARTER REPORT
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1998
------------------------------------------
GOLDCORP INC.
------------------------------------------
GOLDCORP IS A NORTH AMERICAN BASED GOLD PRODUCER.
GOLDCORP'S SHARES ARE LISTED ON THE TORONTO,
NEW YORK AND MONTREAL STOCK EXCHANGES. ITS HEAD
OFFICE IS LOCATED IN TORONTO, CANADA.
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MARKET FOR THE COMPANY'S
CORPORATE OFFICE: COMMON SHARES:
145 King Street West The Toronto Stock Exchange and
Suite 2700 Montreal Exchange (G.A & G.B)
Toronto, Ontario New York Stock Exchange (GG.A & GG.B)
Canada M5H 1J8 Options traded on the Trans Canada
Telephone: (416) 865-0326 Options
Facsimile: (416) 361-5741 Shares included in the TSE 200
Shareholder enquires: (800) 813-1412 and 300 indices
(Canada and United States)
Website: www.goldcorp.com
Email: [email protected]
PRINCIPAL REGISTRAR AND CO-REGISTRAR AND
TRANSFER AGENT: TRANSFER AGENT:
Montreal Trust Company of Canada The Bank of New York
151 Front Street West 101 Barclay Street
Suite 800 New York, New York 10286
Toronto, Ontario Telephone: (212) 815-2450
Canada M5J 2N1 Facsimile: (212) 815-3201
Telephone: (416) 981-9500
Facsimile: (416) 981-9800
<PAGE>
GOLDCORP INC.
- -------------------------------------------------------------------------------
www.goldcorp.com Suite 2700
145 King Street West
Toronto, Ontario
Canada, M5H 1J8
Telephone
(416) 865-0326
Facsimile
(416) 361-5741
NEWS RELEASE
Toronto, Canada
November 10, 1998
GOLDCORP INC.
1998 THIRD QUARTER RESULTS
--------------------------
(ALL AMOUNTS IN THIS NEWS RELEASE ARE EXPRESSED IN UNITED STATES DOLLARS,
UNLESS OTHERWISE INDICATED.)
OVERVIEW
GOLD
RED LAKE MINE DEVELOPMENT
- - RESERVE INCREASE: independent reserve audit completed with Red Lake's High
Grade ounces increasing by 47% to 1.89 million ounces with an average cut
grade of 1.36 ounces per ton and an average uncut grade of 2.63 ounces per
ton
- - POSITIVE FEASIBILITY STUDY results announced on October 5, 1998
study results: capex $56 million; year 2000 production starts; 240,000
ounces per year; cash production cost of $88 per ounce; 17 month payback;
internal rate of return of 49%
WHARF MINE
- - higher production, up 15% for the first 9 months to 88,128 ounces (30,061
ounces produced in the third quarter)
- - lower cash production cost per ounce, down 20% for the first 9 months to
$187 ($180 per ounce in the third quarter)
INDUSTRIAL MINERALS
- - performance below expectations due to weaker market conditions
<PAGE>
Goldcorp Inc. -- 1998 Third Quarter Results Page 2
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FINANCIAL RESULTS
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
1998 1997 1998 1997
------- ------- ------- -------
(IN MILLIONS OF U.S. DOLLARS, EXCEPT
PER SHARE AND PER OUNCE AMOUNTS)
<S> <C> <C> <C> <C>
Revenues $ 14.6 $ 16.7 $ 44.4 $ 46.8
Earnings (loss) (0.4) 1.4 (1.3) (2.0)
Earnings (loss) per share (fully diluted) (0.01) 0.02 (0.02) (0.03)
Cash flow from operations 2.2 6.9 5.2 3.7
Cash flow from operations
per share (fully diluted) 0.04 0.10 0.08 0.05
Gold sales (OUNCES) 29,200 29,500 86,096 75,900
Average realized gold price per ounce 289 325 294 336
</TABLE>
LIQUIDITY AND CAPITAL RESOURCES
<TABLE>
<CAPTION>
As at As at
September 30, December 31,
1998 1997
------------ ------------
(IN MILLIONS OF U.S. DOLLARS)
<S>> <C> <C>
Cash and short-term investments $ 9.7 $ 12.5
Marketable securities
-book value 17.7 22.8
-market value 6.4 15.4
Working capital 20.6 29.9
</TABLE>
For the nine months ended September 30, 1998, Goldcorp realized a pre-tax
loss of $2.3 million on the sale of marketable securities ($1.3 million
after-tax). For the nine months ended September 30, 1998, Goldcorp also
recorded a further $4.6 million decline in the market value of the marketable
securities. These holdings remain as available sources of additional capital
for future mine expansion and joint venture opportunities.
Ongoing capital and deferred exploration and development expenditures during
the first three quarters of 1998 were $11.2 million. The remaining budgeted
expenditures of approximately $5.6 million for the fourth quarter of 1998 are
expected to be financed by existing working capital and internally generated
cash flows.
<PAGE>
Goldcorp Inc. -- 1998 Third Quarter Results Page 3
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RED LAKE MINE
FEASIBILITY STUDY RESULTS
A positive feasibility study has been completed on the High Grade Zone at
Goldcorp's Red Lake Mine by Watts, Griffis and McOuat and Goldcorp staff.
Mine startup is contemplated 18 months from the date development begins.
The economics of the project are very robust. Based on a gold price of $300
per ounce and a recovery rate of 83%, the project has a payback period of 17
months with an internal rate of return of 49%. The total capital cost for
the project is $56.2 million. The cash production cost over the 6.5 year
mine life is $88 per ounce and the total operating cost is $137 per ounce.
The mining rate of only 600 tons per day yields an average annual production
of 240,000 ounces of gold. In addition, 35,000 ounces per year is expected
to be recovered upon installation of a refractory treatment process.
The capital expenditures of $56.2 million consist of: $23.8 million for
underground development, $15.5 million for process plant, $3.4 million for
surface facilities, $8.2 million for overhead and construction management and
$5.3 million for contingency. The schedule of expenditures is $4.4 million
in 1998, $51.1 million in 1999 and $0.7 million in 2000.
The underground operation will primarily employ the cut and fill mining
method which allows for extensive grade control and minimum dilution. Other
methods will be investigated during mine development.
The new processing plant will include the major pieces of equipment purchased
from the recently closed Contact Lake Mine along with additional new
equipment required to complete the Red Lake Mine's milling circuit.
Metallurgical testwork was conducted by Lakefield Research. The refractory
gold concentrate in the flotation circuit will be stockpiled on site for
future treatment.
We believe that attractive debt financing can be arranged given the project's
very short payback, Goldcorp's debt-free balance sheet and its multiple
sources of cash flow. Discussions with potential lenders for the financing
at the Red Lake Mine development are underway.
NEW EXPLORATION TARGETS
Drilling continued at the new exploration targets that have been identified
on the east side of the mine property. The targets are located some 1,000 to
1,400 feet east of any previous mining activity. To date, exploration
drilling from surface and from underground has encountered mineralization in
several areas contained within a vertical distance of 5,000 feet. Presently,
the best assay grade was 1.28 ounces per ton over 6.2 feet. This suggests
that higher grade potential may exist. Exploration continues in this area.
<PAGE>
Goldcorp Inc. -- 1998 Third Quarter Results Page 4
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WHARF MINE
PRODUCTION STATISTICS
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
1998 1997 1998 1997
------- -------- -------- --------
<S> <C> <C> <C> <C>
Tons of ore mined (000S) 1,340 1,387 3,350 3,395
Tons of waste removed (000S) 1,888 1,688 5,428 4,238
Ratio of waste to ore 1.41:1 1.22:1 1.62:1 1.25:1
Tons of ore processed (000S) 1,144 1,281 3,230 3,335
Average grade of gold processed
(OUNCES PER TON) 0.033 0.029 0.032 0.030
Gold production (OUNCES) 30,061 28,362 88,128 76,792
Operating cost per ounce
Cash production cost $ 180 $ 228 $ 187 $ 235
Royalties and severance taxes 19 20 20 18
Non-cash costs 13 91 11 88
------- -------- -------- --------
Total operating cost $ 212 $ 339 $ 218 $ 341
------- -------- -------- --------
Percentage decrease in total
operating cost per ounce 37% 36%
------- --------
</TABLE>
The Wharf Mine has continued to improve its operating performance, reducing
the cash production cost per ounce by 20% to $187. Gold production target
for 1998 is 105,000 ounces at a cash production cost of $190 per ounce and a
total operating cost of $225 per ounce.
COCHENOUR MINE
Exploration on the 100% owned and former producing Cochenour Mine began in
the third quarter. Anomalous gold values were returned from diamond
drilling, with the best results being 3.78 ounces of gold per ton over 2 feet
and 0.59 ounces of gold per ton over 1 foot. Geological work is continuing
on the property.
INDUSTRIAL MINERAL OPERATIONS -- SASKATCHEWAN MINERALS AND HAVELOCK LIME
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
1998 1997 1998 1997
----- ----- ------ ------
(IN MILLIONS OF U.S. DOLLARS)
<S> <C> <C> <C> <C>
Revenues $ 6.1 $ 6.9 $ 19.0 $ 21.1
Operating profit 1.8 1.3 5.5 5.9
Operating cash flow 2.1 1.7 6.5 6.9
</TABLE>
<PAGE>
Goldcorp Inc. -- 1998 Third Quarter Results Page 5
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Sodium sulphate sales at Saskatchewan Minerals were lower than expected
during the nine months ended September 30, 1998. Worldwide oversupply of
sodium sulphate has driven the prices down. These conditions are expected to
continue at least for the balance of 1998.
Negotiations with the union have resulted in a favourable outcome with votes
on October 22 and 23, 1998 ratifying the proposed two-year contract.
BOARD OF DIRECTORS
Ian Delaney, a long standing director of the Company retired in September. We
wish to acknowledge his valued contribution to our corporate growth.
FORWARD-LOOKING STATEMENTS
This press release includes certain "Forward-Looking Statements" within the
meaning of section 21E of the United States SECURITIES EXCHANGE ACT OF 1934,
as amended. All statements, other than statements of historical fact,
included herein, including without limitation, statements regarding potential
mineralization and reserves, exploration results and future plans and
objectives of Goldcorp Inc., are forward-looking statements that involve
various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate, and actual results and future events
could differ materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from Goldcorp
expectations are disclosed under the heading "Risk Factors" and elsewhere in
Goldcorp documents filed from time to time with the Toronto Stock Exchange,
The United States Securities and Exchange Commission and other regulatory
authorities.
FINANCIAL INFORMATION
Attached are the Consolidated Financial Statements of Goldcorp Inc. for the
three and nine months ended September 30, 1998.
For further information, please contact:
Rolando C. Francisco
President
(416) 865-0326
email: [email protected]
website: www.goldcorp.com
Stock Symbols:
TSE, ME ("G.A"; "G.B")
NYSE ("GG.A"; "GG.B")
-30-
<PAGE>
Goldcorp Inc. -- 1998 Third Quarter Results Page 6
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GOLDCORP INC.
CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS OF UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
As at As at
September 30, December 31,
1998 1997
------------- ------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and short-term investments $ 9,651 $ 12,473
Gold bullion inventory 393 100
Accounts receivable 5,905 7,285
Marketable securities 6,385 15,445
Inventories 5,970 8,102
Deferred income taxes 5,255 3,382
Prepaid expenses 463 1,507
-------- --------
34,022 48,294
MINING INTERESTS, NET 77,934 68,378
DEPOSITS FOR RECLAMATION COSTS 2,043 3,135
OTHER ASSETS 453 2,941
-------- --------
$114,452 $122,748
-------- --------
-------- --------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 10,605 $ 14,602
Taxes payable 2,812 3,785
-------- --------
13,417 18,387
-------- --------
PROVISION FOR RECLAMATION COSTS
AND OTHER LIABILITIES 6,180 6,466
-------- --------
DEFERRED INCOME TAXES 12,036 10,890
-------- --------
SHAREHOLDERS' EQUITY
Capital stock 84,541 81,734
Contributed surplus 5,472 5,472
Cumulative translation adjustment (5,873) (201)
Deficit (1,321) --
-------- --------
82,819 87,005
-------- --------
$114,452 $122,748
-------- --------
-------- --------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED
FINANCIAL STATEMENTS.
<PAGE>
Goldcorp Inc. -- 1998 Third Quarter Results Page 7
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CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS OF UNITED STATES DOLLARS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
1998 1997 1998 1997
------- ------- ------- -------
<S> <C> <C> <C> <C>
Revenues
Gold bullion $ 8,455 $ 9,748 $25,377 $25,637
Industrial minerals 6,094 6,957 18,984 21,116
------- ------- ------- -------
14,549 16,705 44,361 46,753
------- ------- ------- -------
Expenses
Operating 10,303 14,762 34,532 38,998
Corporate administration 885 866 2,503 2,727
Depreciation and depletion 818 3,071 2,300 7,934
Exploration 1,436 61 1,618 148
------- ------- ------- -------
13,442 18,760 40,953 49,807
------- ------- ------- -------
Earnings (loss) from operations 1,107 (2,055) 3,408 (3,054)
------- ------- ------- -------
Other income (expense)
Interest and other income 250 398 1,658 1,556
Gain (loss) on marketable
securities 54 (1,024) (2,280) 3,098
Decrease (increase) in provision
for decline in marketable
securities (1,916) 3,666 (4,601) (952)
Interest expense
Long-term debt (7) (158)
Other (5) (13)
------- ------- ------- -------
(1,612) 3,028 (5,223) 3,531
------- ------- ------- -------
Earnings (loss) before taxes (505) 973 (1,815) 477
Income and mining taxes (recovery) (92) (470) (494) 2,435
------- ------- ------- -------
Earnings (loss) for the period $ (413) $ 1,443 $(1,321) $(1,958)
------- ------- ------- -------
Earnings (loss) per share
Basic $ (0.01) $ 0.02 $ (0.02) $ (0.03)
------- ------- ------- -------
Fully diluted $ (0.01) $ 0.02 $ (0.02) $ (0.03)
------- ------- ------- -------
Weighted average number of shares
outstanding (000s)
Basic 68,932 68,365 68,856 68,348
------- ------- ------- -------
Fully diluted 75,221 73,291 74,986 73,001
------- ------- ------- -------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED
FINANCIAL STATEMENTS.
<PAGE>
Goldcorp Inc. -- 1998 Third Quarter Results Page 8
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CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS OF UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
1998 1997 1998 1997
------- ------- -------- --------
<S> <C> <C> <C> <C>
Cash provided by (used in)
Operating activities
Earnings (loss) for the period $ (413) $ 1,443 $ (1,321) $ (1,958)
Items not affecting cash
Depreciation, depletion
and amortization 818 3,053 2,300 8,194
Loss (gain) on marketable
securities, net of tax
provision (31) 567 1,263 (1,716)
Increase (decrease) in
provision for decline
in marketable securities 1,916 (3,666) 4,601 952
Deferred income taxes (1,045) 1,079 (244) 2,700
Other (365) 114 (1,349) 39
------- ------- -------- --------
880 2,590 5,250 8,211
Change in non-cash operating
working capital 1,370 4,263 (10) (4,553)
------- ------- -------- --------
Net cash provided by operating
activities 2,250 6,853 5,240 3,658
------- ------- -------- --------
Investing activities
Mining interests (2,559) (4,403) (11,228) (12,684)
Purchases of marketable
securities (2,334) (7,293) (3,885) (12,397)
Proceeds from sale of
marketable securities 2,134 3,981 5,808 23,610
Purchases of other assets (29)
Acquisition of remaining
Wilanour Resources Limited
shares outstanding (2,636)
Taxes paid on sale of
marketable securities,
prior year 7 (2,143)
Decrease in deposits for
reclamation costs 97 1,092 74
------- ------- -------- --------
Net cash used in investing
activities (2,759) (7,611) (10,849) (3,569)
------- ------- -------- --------
Financing activities
Repayment of long-term debt (1,452) (7,110)
Shares issued to acquire
remaining Wilanour Resources
Limited shares outstanding 2,636
Issue of capital stock, net 75 132 171 278
------- ------- -------- --------
Net cash provided by (used in)
financing activities 75 (1,320) 2,807 (6,832)
------- ------- -------- --------
Effect of exchange rate changes
on cash 21 25 (20) (43)
------- ------- -------- --------
Decrease in cash and short-term
investments (413) (2,053) (2,822) (6,786)
Cash and short-term investments
at beginning of period 10,064 25,274 12,473 30,007
------- ------- -------- --------
Cash and short-term investments
at end of period $ 9,651 $23,221 $ 9,651 $ 23,221
------- ------- -------- --------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED
FINANCIAL STATEMENTS.
<PAGE>
Goldcorp Inc. -- 1998 Third Quarter Results Page 9
- -------------------------------------------------------------------------------
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, 1997. The unaudited
consolidated financial statements include the financial statements of the
Company and its subsidiaries.
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. ACQUISITION OF WILANOUR RESOURCES LIMITED
On February 19, 1998, the Company completed the acquisition of the
remaining 57% of Wilanour Resources Limited that it did not already own,
for 520,441 Class A shares and 520,441 Class A Warrants of the Company.
The Class A Warrants expire on June 30,1999 and have an exercise price of
C$7.25 per Goldcorp share.
<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/Rolando C. Francisco
Rolando C. Francisco
President
(Duly Authorized Officer
and Principal Financial
Officer)
Date: November 11, 1998
