<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 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
- ------------------------------- -------------------
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
SUITE 2700, 145 KING STREET WEST
TORONTO, ONTARIO, CANADA M5H 1J9
(416) 865-0326
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(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>
SECOND QUARTER REPORT
FOR THE SIX MONTHS ENDED JUNE 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
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)
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.
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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
August 12, 1998
1998 SECOND QUARTER RESULTS
(ALL AMOUNTS IN THIS NEWS RELEASE ARE EXPRESSED IN UNITED STATES DOLLARS,
UNLESS OTHERWISE INDICATED.)
OVERVIEW
GOLD
RED LAKE MINE DEVELOPMENT
- - exploration continues to intersect economic mineralization
- - feasibility study to be completed in mid September
- - current estimates: capex $50 million; year 2000 production starts; 200,000
ounces per year; cash production cost of $150 per ounce
WHARF MINE
- - higher production, up 20% for the first 6 months to 58,067 ounces (27,169
ounces produced in the second quarter)
- - lower cash production cost per ounce, down 21% for the first 6 months to $190
($187 per ounce in the second quarter)
- - South Dakota approves mine expansion application; reserves increase by 100%;
total permitted reserves increased to 1.3 million ounces
INDUSTRIAL MINERALS
- - performance below expectations due to weaker market conditions
<PAGE>
Goldcorp Inc. - 1998 Second Quarter Results Page 2
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FINANCIAL RESULTS
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
1998 1997 1998 1997
-------- --------- -------- ---------
(IN MILLIONS OF U.S. DOLLARS, EXCEPT PER SHARE AND PER OUNCE AMOUNTS)
<S> <C> <C> <C> <C>
Revenues $ 16.3 $15.9 $29.8 $30.0
Loss (0.01) (4.9) (0.9) (3.4)
Loss per share (fully diluted) nil (0.07) (0.01) (0.05)
Cash flow (deficiency) from operations 2.9 1.9 3.0 (3.2)
Cash flow (deficiency) from operations
per share (fully diluted) 0.04 0.02 0.04 (0.05)
Gold sales (OUNCES) 29,896 25,100 56,896 46,400
Average realized gold price per ounce 302 343 296 342
</TABLE>
LIQUIDITY AND CAPITAL RESOURCES
<TABLE>
<CAPTION>
As at As at
June 30, December 31,
1998 1997
----------- ------------
(IN MILLIONS OF U.S. DOLLARS)
<S> <C> <C>
Cash and short-term investments $10.1 $12.5
Marketable securities
-book value 17.5 22.8
-market value 7.6 15.4
Working capital 23.7 29.9
</TABLE>
Goldcorp realized a pre-tax loss of $0.9 million on the sale of marketable
securities in the second quarter ($0.5 million after-tax). For the six
months ended June 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 six
months ended June 30, 1998, Goldcorp also recorded a further $2.7 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 half of 1998 were $8.7 million. The remaining budgeted
expenditures of approximately $3.0 million for the second half of 1998 are
expected to be financed by existing working capital and internally generated
cash flows.
<PAGE>
Goldcorp Inc. - 1998 Second Quarter Results Page 3
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RED LAKE MINE
MINE PLAN
The development of the Red Lake Mine is envisioned in three phases. The
feasibility study for Phase I development is expected to be completed in
mid-September. The consulting firm Watts, Griffiths & McQuat Limited of
Toronto has been engaged to independently audit the feasibility study and
reserves. Preliminary numbers for Phase I of the mine plan contemplates
mining the high grade deposit at an annual production rate of 200,000 ounces
with a cash production cost of less than $150 per ounce. Under Phase I, the
existing Number 1 and Number 2 shafts will be rehabilitated and a mill with
an initial capacity of 600 tons per day will be constructed on site. Mining
is expected to commence in the second quarter of 2000. The total initial
capital expenditures is $50 million with a payback period of approximately
two years.
Phase II of the mine plan contemplates concurrent mining of the high grade
and the lower grade sulphide reserves with a new 7,500 foot shaft. Such a
plan is contingent upon finding additional sulphide ore at the lower levels
of the mine, and a sustained improvement in the price of gold. Under Phase
II, the expected annual production rate is 300,000 ounces. The cash flow
from Phase I is expected to finance this expansion.
The preferred method of financing for the Phase I $50 million capital
expenditures is through debt.
DEFINITION DRILLING
Drilling at the Red Lake Mine has continued to define the high grade
discovery zones. The focus of the drilling is to provide better geometrical
definition of the high grade zones for the current feasibility study.
Updated, independently audited, reserves and resource calculations of the
high grade zones will be published during the third quarter.
NEW EXPLORATION TARGETS
New exploration targets have been identified on the east side of the mine
property. The targets are located underground, some 1,000 to 1,400 feet east
of any previous mining activity. Todate, exploration drilling from surface
and from underground plus underground sampling has encountered significant
sulphide mineralization in several areas contained within a vertical distance
of 4,600 feet. Presently, the best assay grade was 0.54 ounces per ton over
9.1 feet and the best width was 56 feet of 0.24 ounces per ton.
Conceptually, this mineralization could represent a down plunge repetition of
what has been mined since 1948. However, substantial investment in
exploration drilling, development, interpretation and time is required to
properly test this concept. This testing is currently in progress.
<PAGE>
Goldcorp Inc. - 1998 Second Quarter Results Page 4
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WHARF MINE
PRODUCTION STATISTICS
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
1998 1997 1998 1997
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Tons of ore mined (000s) 894 1,096 2,010 2,008
Tons of waste removed (000s) 1,249 1,590 3,540 2,550
Ratio of waste to ore 1.40:1 1.45:1 1.76:1 1.27:1
Tons of ore processed (000s) 1,068 1,153 2,086 2,054
Average grade of gold processed
(OUNCES PER TON) 0.033 0.030 0.033 0.030
Gold production (OUNCES) 27,169 27,554 58,067 48,430
Operating cost per ounce
Cash production cost $187 $235 $190 $240
Royalties and severance taxes 22 19 20 17
Non-cash costs 12 86 10 87
-------- -------- -------- --------
Total operating cost $221 $340 $220 $344
-------- -------- -------- --------
Percentage change in total
operating cost per ounce 35% 36 %
-------- --------
</TABLE>
The Wharf Mine has continued to improve its operating performance, reducing
the cash production cost per ounce by 21% to $190. Gold production target
for 1998 is 105,000 ounces at a cash production cost of less than $200 per
ounce and a total operating cost of $235 per ounce.
In June, the South Dakota Department of Environment and Natural Resources
issued a Mining/Milling Permit for the expansion of the Wharf Mine. This
permit has increased the Wharf Mine's total permitted gold reserves by
647,000 ounces to 1,275,000 ounces.
COCHENOUR MINE
Preparation of an exploration program for the 100% owned and former producing
Cochenour Mine was completed in the second quarter. The 2 year, $5 million
program will include compilation, stripping, mapping, structural study,
ground geophysics, airborne magnetic survey and drilling. The budget for
1998 is $1.0 million.
The Cochenour Mine is located in the Red Lake mining district and shares the
northwestern boundary of Placer Dome's Campbell Mine.
<PAGE>
Goldcorp Inc. - 1998 Second Quarter Results Page 5
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INDUSTRIAL MINERAL OPERATIONS - SASKATCHEWAN MINERALS AND HAVELOCK LIME
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
1998 1997 1998 1997
-------- -------- -------- --------
(IN MILLIONS OF U.S. DOLLARS)
<S> <C> <C> <C> <C>
Revenues $7.2 $7.3 $ 12.9 $14.2
Operating profit 2.0 2.3 3.7 4.6
Operating cash flow 2.4 2.6 4.4 5.2
</TABLE>
Sodium sulphate sales at Saskatchewan Minerals were lower than expected
during the six months ended June 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.
At Havelock Lime, the market for processed limestone products improved during
the second quarter.
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 six months ended June 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 Second 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
June 30, December 31,
1998 1997
---------- ------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and short-term investments $10,064 $12,473
Gold bullion inventory 221 100
Accounts receivable 7,671 7,285
Marketable securities 7,640 15,445
Inventories 6,701 8,102
Deferred income taxes 4,501 3,382
Prepaid expenses 839 1,507
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37,637 48,294
MINING INTERESTS, NET 78,973 68,378
DEPOSITS FOR RECLAMATION COSTS 2,043 3,135
OTHER ASSETS 421 2,941
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$119,074 $122,748
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $11,774 $14,602
Taxes payable 2,122 3,785
---------- ------------
13,896 18,387
---------- ------------
PROVISION FOR RECLAMATION COSTS
AND OTHER LIABILITIES 6,508 6,466
---------- ------------
DEFERRED INCOME TAXES 12,602 10,890
---------- ------------
SHAREHOLDERS' EQUITY
Capital stock 84,466 81,734
Contributed surplus 5,472 5,472
Cumulative translation adjustment (2,962) (201)
Deficit (908) --
---------- ------------
86,068 87,005
---------- ------------
$119,074 $122,748
---------- ------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL
STATEMENTS.
<PAGE>
Goldcorp Inc. - 1998 Second 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 Six months ended
June 30, June 30,
1998 1997 1998 1997
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Revenues
Gold bullion $9,069 $8,616 $16,922 $15,889
Industrial minerals 7,236 7,296 12,890 14,159
-------- -------- -------- --------
16,305 15,912 29,812 30,048
-------- -------- -------- --------
Expenses
Operating 12,142 12,693 24,229 24,236
Corporate administration 718 922 1,618 1,861
Depreciation and depletion 828 2,552 1,482 4,863
Exploration 90 38 182 87
-------- -------- -------- --------
13,778 16,205 27,511 31,047
-------- -------- -------- --------
Earnings (loss) from operations 2,527 (293) 2,301 (999)
-------- -------- -------- --------
Other income (expense)
Interest and other income 482 533 1,408 1,158
Gain (loss) on marketable securities (889) 358 (2,334) 4,122
Increase in provision for decline
in marketable securities (2,168) (4,618) (2,685) (4,618)
Interest expense
Long-term debt (76) (151)
Other (4) (8)
-------- -------- -------- --------
(2,575) (3,807) (3,611) 503
-------- -------- -------- --------
Loss before taxes (48) (4,100) (1,310) (496)
Income and mining taxes (recovery) (36) 780 (402) 2,905
-------- -------- -------- --------
Loss for the period $(12) $(4,880) $(908) $(3,401)
-------- -------- -------- --------
Loss per share
Basic $ nil $(0.07) $(0.01) $(0.05)
-------- -------- -------- --------
Fully diluted $ nil $(0.07) $(0.01) $(0.05)
-------- -------- -------- --------
Weighted average number of shares
outstanding (000s)
Basic 68,917 68,334 68,817 68,339
-------- -------- -------- --------
Fully diluted 75,245 73,110 74,960 73,115
-------- -------- -------- --------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL
STATEMENTS.
<PAGE>
Goldcorp Inc. - 1998 Second Quarter Results Page 8
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CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS OF UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
1998 1997 1998 1997
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Cash provided by (used in)
Operating activities
Loss for the period $(12) $(4,880) $(908) $(3,401)
Items not affecting cash
Depreciation, depletion and amortization 828 2,445 1,482 5,141
Loss (gain) on marketable securities,
net of tax provision 494 (198) 1,294 (2,283)
Increase in provision for
decline in marketable securities 2,168 4,618 2,685 4,618
Deferred income taxes 315 838 801 1,621
Other (454) (38) (984) (75)
-------- -------- -------- --------
3,339 2,785 4,370 5,621
Change in non-cash operating
working capital (481) (921) (1,380) (8,816)
-------- -------- -------- --------
Net cash provided by (used in)
operating activities 2,858 1,864 2,990 (3,195)
-------- -------- -------- --------
Investing activities
Mining interests (4,097) (4,555) (8,669) (8,281)
Purchases of marketable securities 9 (2,110) (1,551) (5,104)
Proceeds from sale of marketable
securities 2,222 1,905 3,674 19,629
Purchases of other assets (29)
Acquisition of remaining Wilanour
Resources Limited shares outstanding (2,636)
Taxes paid on sale of marketable
securities, prior year 22 (2,150)
Decrease (increase) in deposits for
reclamation costs (1,163) (13) 1,092 (23)
-------- -------- -------- --------
Net cash provided by (used in)
investing activities (3,029) (4,751) (8,090) 4,042
-------- -------- -------- --------
Financing activities
Repayment of long-term debt (1,605) (5,658)
Shares issued to acquire remaining
Wilanour Resources Limited
shares outstanding 2,636
Issue of capital stock, net 84 (103) 96 146
-------- -------- -------- --------
Net cash provided by (used in)
financing activities 84 (1,708) 2,732 (5,512)
-------- -------- -------- --------
Effect of exchange rate changes on cash (13) 92 (41) (68)
-------- -------- -------- --------
Decrease in cash and
short-term investments (100) (4,503) (2,409) (4,733)
Cash and short-term investments
at beginning of period 10,164 29,777 12,473 30,007
-------- -------- -------- --------
Cash and short-term investments
at end of period $10,064 $25,274 $10,064 $25,274
-------- -------- -------- --------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL
STATEMENTS.
<PAGE>
Goldcorp Inc. - 1998 Second Quarter Results Page 9
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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>
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 and Legal
Secretary
(Duly Authorized Officer)
Date: August 19, 1998
