<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.
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(Exact name of registrant as specified in its charter)
COMMISSION FILE NUMBER 1-12970
PROVINCE OF ONTARIO 98770100
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(State of other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
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>
FIRST QUARTER REPORT
FOR THE THREE MONTHS ENDED MARCH 31, 1998
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GOLDCORP INC.
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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 Options
Telephone: (416) 865-0326
Facsimile: (416) 361-5741 Shares included in the TSE 200
Shareholder enquires: (800)813-1412 and 300 indices
(Canada and United States)
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
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GOLDCORP INC.
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Suite 2700
145 King Street West
Toronto, Ontario
Canada, M5H 1J8
Telephone
(416) 865-0326
Facsimile
(416) 361-5741
NEWS RELEASE
Toronto, Canada
May 28, 1998
1998 FIRST QUARTER RESULTS
(ALL AMOUNTS IN THIS NEWS RELEASE ARE EXPRESSED IN UNITED STATES DOLLARS, UNLESS
OTHERWISE INDICATED.)
OVERVIEW
Exploration and definition drilling at the Red Lake Mine continues to have
positive results from the high grade zones, with a new hanging wall zone
discovered above the 30 level. The high grade structure now extends from the 27
level to the 42 level. The sulphide zone has been extended to the 16 level and a
new sulphide zone has been discovered in the same area. Mine development
alternatives are being re-evaluated in light of current weakness in the gold
price with a view to optimizing the capital required and shortening the payback
period.
For the next two years, beginning in the second half of 1998, Goldcorp has
earmarked C$5.0 million for an extensive exploration program at its 100%-owned
Wilanour property in the Red Lake mining district. This property is contiguous
to the western boundary of Placer Dome's Campbell Mine. During the first
quarter, Goldcorp successfully completed the acquisition of the minority
interest in Wilanour Resources Limited, which included the past-producing
Cochenour-Willans Mine.
The Wharf Mine had a successful first quarter. Its cash production cost was
reduced by 18% to $194 per ounce from $238 a year ago, and gold production
increased 48% to 30,898 ounces from 20,876 ounces. In April, the Board of
Commissioners of Lawrence County voted unanimously to grant a Conditional Use
Permit for the Clinton Project. On May 22, 1998 the South Dakota Board of
Minerals and Environment voted unanimously to approve the Large Scale Mine
Permit application for the Wharf Mine's Clinton Project. The granting of these
two permits paves the way for the development of the Clinton Project commencing
in the third quarter of 1998. The mine permit will be effective on June 18,
1998 subject to the Board of Minerals and Environment adopting formal written
findings of fact in support of its decision at its next regularly scheduled
meeting in mid-June.
<PAGE>
Goldcorp Inc. - 1998 First Quarter Results Page 2
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The Clinton Project will increase the Wharf Mine's permitted gold reserves by
647,000 ounces to 1,275,000 ounces. The additional Clinton reserves will allow
the Wharf Mine to continue operation for over 10 years. Development costs
associated with the project will be approximately $3.0 million. Most of these
costs will be for the initial stripping of overburden and construction of haul
and access roads to service the project area, including a road overpass to
separate local traffic from mine haul traffic. The ore from the Clinton Project
will be processed at the existing Wharf Mine facilities.
In late 1997, Goldcorp announced that it would sell its industrial mineral
operations to a newly formed income trust. Due to weak market conditions the
proposed transaction was withdrawn in April. Goldcorp is currently looking at
other financing alternatives for the development of the Red Lake Mine.
FINANCIAL RESULTS
<TABLE>
<CAPTION>
Three months ended
March 31,
1998 1997
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(IN MILLIONS OF U.S. DOLLARS, EXCEPT PER
SHARE AND PER OUNCE AMOUNTS)
<S> <C> <C>
Revenues $ 13.5 $ 14.1
Earnings (loss) (0.9) 1.5
Earnings (loss) per share (fully diluted) (0.01) 0.02
Cash flow (deficiency) from operations 0.1 (5.1)
Cash flow (deficiency) from operations per share
(fully diluted) -- (0.07)
Gold sales (OUNCES) 27,000 21,300
Average realized gold price per ounce 290 340
LIQUIDITY AND CAPITAL RESOURCES
<CAPTION>
As at As at
March 31, December 31,
1998 1997
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(IN MILLIONS OF U.S. DOLLARS)
<S> <C> <C>
Cash and short-term investments $ 10.2 $ 12.5
Marketable securities
-book value 21.8 22.8
-market value 13.8 15.4
Working capital 27.9 29.9
</TABLE>
Goldcorp realized a pre-tax loss of $1.4 million on the sale of marketable
securities ($0.8 million after-tax) during the first quarter of 1998. These
holdings remain as available sources of additional capital for future mine
expansion and joint venture opportunities.
<PAGE>
Goldcorp Inc. - 1998 First Quarter Results Page 3
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WHARF MINE
<TABLE>
<CAPTION>
Three months ended
March 31,
1998 1997
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<S> <C> <C>
Tons of ore mined (000S) 1,116 912
Tons of waste removed (000S) 2,291 960
Ratio of waste to ore 2.05:1 1.05:1
Tons of ore processed (000S) 1,018 901
Average grade of gold processed (OUNCES PER TON) 0.032 0.031
Gold production (OUNCES) 30,898 20,876
Operating cost per ounce
Cash production cost $ 194 $ 238
Royalties and severance taxes 19 15
Non-cash costs 8 96
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Total operating cost $ 221 $ 349
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</TABLE>
The increase in gold production and the decrease in the cash production cost per
ounce were due to improvements made in operating efficiency, favourable weather
conditions and modifications made to the crusher. Gold production target for
1998 is 102,000 ounces at a cash production cost of $215 per ounce and a total
operating cost of $245 per ounce.
INDUSTRIAL MINERAL OPERATIONS - SASKATCHEWAN MINERALS AND HAVELOCK LIME
<TABLE>
<CAPTION>
Three months ended
March 31,
1998 1997
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(IN MILLIONS OF U.S. DOLLARS)
<S> <C> <C>
Revenues $ 5.7 $ 6.9
Operating profit 1.7 2.3
Operating cash flow 2.0 2.6
</TABLE>
The decline in operating results during the first quarter were due to the
following:
- - lower demand for our sodium sulphate products in the North American and
export markets
- - extreme weather conditions in early 1998 in the Maritime provinces
adversely affected the seasonal needs of Havelock Lime's customers
Demand for processed limestone products began to improve in the second quarter,
while the weak market for sodium sulphate products is expected to continue.
<PAGE>
Goldcorp Inc. - 1998 First Quarter Results Page 4
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OTHER DEVELOPMENTS
Early this year, several senior management appointments were announced: Bruce
Humphrey was appointed Vice President, Gold Operations; Gilles Filion was
appointed Vice President, Exploration; Floriana Cipollone was promoted to Vice
President, Finance; and Abraham Rubinfeld was promoted to Vice President, Legal
and Secretary. These individuals have extensive experience in their respective
fields.
Robert "Dutch" Van Tassell, will be retiring on May 29, 1998. His 42-year
career in the Canadian mining industry, included 15 1/2 years of distinguished
service as Vice President, Exploration of Goldcorp. The Board of Directors,
management and staff wish him well.
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 months ended March 31, 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 First Quarter Results Page 5
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GOLDCORP INC.
CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS OF UNITED STATES DOLLARS)
As at As at
March 31, December 31,
1998 1997
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<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and short-term investments $ 10,164 $ 12,473
Gold bullion inventory 730 100
Accounts receivable 6,771 7,285
Marketable securities 13,845 15,445
Inventories 7,793 8,102
Deferred income taxes 3,647 3,382
Prepaid expenses 1,001 1,507
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43,951 48,294
MINING INTERESTS, NET 77,986 68,378
DEPOSITS FOR RECLAMATION COSTS 880 3,135
OTHER ASSETS 421 2,941
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$ 123,238 $ 122,748
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 13,002 $ 14,602
Taxes payable 3,065 3,785
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16,067 18,387
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PROVISION FOR RECLAMATION COSTS
AND OTHER LIABILITIES 6,886 6,466
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DEFERRED INCOME TAXES 11,700 10,890
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SHAREHOLDERS' EQUITY
Capital stock 84,382 81,734
Contributed surplus 5,472 5,472
Cumulative translation adjustment (373) (201)
Deficit (896)
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88,585 87,005
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$ 123,238 $ 122,748
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</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL
STATEMENTS.
<PAGE>
Goldcorp Inc. - 1998 First Quarter Results Page 6
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CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS OF UNITED STATES DOLLARS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Three months ended
March 31,
1998 1997
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<S> <C> <C>
Revenues
Gold bullion $ 7,853 $ 7,273
Industrial minerals 5,654 6,863
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13,507 14,136
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Expenses
Operating 12,087 11,543
Corporate administration 900 939
Depreciation and depletion 654 2,311
Exploration 92 49
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13,733 14,842
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Loss from operations (226) (706)
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Other income (expense)
Interest and other income 926 625
Gain (loss) on marketable securities (1,445) 3,764
Increase in provision for decline
in marketable securities (517)
Interest expense
Long-term debt (75)
Other (4)
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(1,036) 4,310
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Earnings (loss) before taxes (1,262) 3,604
Income and mining taxes (recovery) (366) 2,125
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Earnings (loss) for the period $ (896) $ 1,479
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Earnings (loss) per share
Basic $ (0.01) $ 0.02
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Fully diluted $ (0.01) $ 0.02
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Weighted average number of shares
outstanding (000's)
Basic 68,718 68,344
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Fully diluted 74,759 73,156
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</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL
STATEMENTS.
<PAGE>
Goldcorp Inc. - 1998 First Quarter Results Page 7
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<TABLE>
<CAPTION>
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS OF UNITED STATES DOLLARS)
Three months ended
March 31,
1998 1997
-------- --------
<S> <C> <C>
Cash provided by (used in)
Operating activities
Earnings (loss) for the period $ (896) $ 1,479
Items not affecting cash
Depreciation, depletion and amortization 654 2,696
Loss (gain) on marketable securities,
net of tax provision 800 (2,085)
Increase in provision for decline
in marketable securities 517
Deferred income taxes 486 783
Other (530) (37)
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1,031 2,836
Change in non-cash operating
working capital (899) (7,895)
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Net cash provided by (used in) operating activities 132 (5,059)
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Investing activities
Mining interests (4,572) (3,726)
Purchases of marketable securities (1,560) (2,994)
Proceeds from sale of marketable securities 1,452 17,724
Purchases of other assets (29)
Acquisition of remaining Wilanour Resources
Limited shares outstanding (2,636)
Taxes paid on sale of marketable
securities, prior year (2,172)
Decrease (increase) in deposits for
reclamation costs 2,255 (10)
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Net cash provided (used in) by investing activities (5,061) 8,793
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Financing activities
Repayment of long-term debt (4,053)
Shares issued to acquire remaining Wilanour
Resources Limited shares outstanding 2,636
Issue of capital stock, net 12 249
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Net cash provided by (used in) financing activities 2,648 (3,804)
-------- --------
Effect of exchange rate changes on cash (28) (160)
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Decrease in cash and
short-term investments (2,309) (230)
Cash and short-term investments
at beginning of period 12,473 30,007
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Cash and short-term investments
at end of period $ 10,164 $ 29,777
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-------- --------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL
STATEMENTS.
<PAGE>
Goldcorp Inc. - 1998 First Quarter Results Page 8
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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>
Goldcorp Inc. - 1998 First Quarter Results Page 9
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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/ Abraham N. Rubinfeld
Abraham N. Rubinfeld
Vice President, Legal and
Secretary
(Duly Authorized Officer)
Date: May 28, 1998
