<PAGE> 1
Exhibit 99.1
GOLDCORP INC.
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NEWS RELEASE
Toronto, Canada
November 8, 2000
2000 THIRD QUARTER REPORT
(All amounts in this news release are expressed in United States dollars,
unless otherwise indicated.)
MESSAGE TO SHAREHOLDERS
"It's a Done Deal", was the title of our last press release. The merger (Plan of
Arrangement) of Goldcorp Inc. and its controlling shareholder became effective
on November 1st, 2000.
The new Goldcorp (TSE: G, NYSE: GG), has a simplified share structure, the
multiple voting share has been replaced by a one vote common share structure for
all shareholders. In addition, the number of shares available for trading has
increased by 20% as a result of the merger due to the distribution of CSA
controlling shareholdings.
These developments make a good story even better and I am pleased to say that
the merger (Plan of Arrangement) was overwhelmingly approved by shareholders.
FINANCIAL RESULTS
Our financial liquidity at the end of the third quarter was solid. We have a
good treasury, no debt and our future gold production is not sold forward.
<TABLE>
<CAPTION>
Three months Nine months
ended September 30, ended September 30,
2000 1999 2000 1999
------ ------ ------- -------
(in millions of U.S. dollars, except per share and ounce amounts)
<S> <C> <C> <C> <C>
Revenues $ 17.0 $ 14.4 $ 35.6 $ 39.1
Earnings (loss) from operations (1.1) 1.2 (11.0) 1.7
Earnings (loss) (0.2) 0.8 (5.8) 1.7
EARNINGS (LOSS) PER SHARE (FULLY DILUTED) (0.00) 0.01 (0.07) 0.02
Cash flow (deficiency) from operations (1.4) 4.2 (1.2) 4.0
CASH FLOW (DEFICIENCY) FROM OPERATIONS
PER SHARE (FULLY DILUTED) (0.02) 0.05 (0.02) 0.05
Gold sales (ounces) 50,058 35,100 93,708 83,876
Average realized gold price per ounce $ 278 $ 259 $ 282 $ 271
</TABLE>
<TABLE>
<CAPTION>
As at As at
September 30, December 31,
LIQUIDITY AND CAPITAL RESOURCES 2000 1999
------------ --------------
(in millions of U.S. dollars)
<S> <C> <C>
Cash and short-term investments $ 14.3 $ 46.8
Working capital 19.2 55.8
Gold Hedging nil nil
Debt nil nil
</TABLE>
<PAGE> 2
Goldcorp Inc. -- 2000 Third Quarter Results Page 2
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Operational Highlights
RED LAKE
The Red Lake Development Project continues to be on target for full production
in November 2000.
WHARF MINE
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
2000 1999 2000 1999
------ ------ ------ ------
<S> <C> <C> <C> <C> <C>
Tons of ore mined (000's) 1,224 1,060 3,064 3,175
Tons of waste removed (000's) 1,063 1,740 5,217 6,462
Ratio of waste to ore 0.87:1 1.64:1 1.70:1 2.04:1
Tons of ore processed (000's) 1,226 1,113 3,073
3,172
Average grade of gold processed
(ounces per ton) 0.032 0.040 0.031 0.034
Gold production (ounces) 28,511 32,569 70,649 83,135
Operating cost per ounce
Cash production cost $ 211 $ 165 $ 212 $ 186
Royalties and severance taxes 19 21 16 19
------- ------- ------ ------
TOTAL CASH COST 230 186 228 205
Non-cash costs 17 14 18 16
------- ------- ------ ------
Total operating cost $ 247 $ 200 $ 246 $ 221
======= ======= ====== ======
</TABLE>
SASKATCHEWAN MINERALS
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
2000 1999 2000 1999
------- -------- -------- -------
(in millions of U.S. dollars)
<S> <C> <C> <C> <C>
Revenues $ 3.0 $ 3.2 $ 9.0 $ 9.5
Operating profit 0.2 0.5 1.0 1.7
Operating cash flow 0.4 0.6 1.4 2.1
</TABLE>
Saskatchewan Minerals was named in an anti-dumping petition in the United States
on July 10, 2000. The petition is for the imposition of antidumping duties on
anhydrous sodium sulfate. The International Trade Commission denied the petition
and the action has been resolved in the company's favour.
<PAGE> 3
Goldcorp Inc. -- 2000 Third Quarter Results Page 3
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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, 2000.
For further information, please contact:
Robert R. McEwen
Chairman and Chief Executive Officer
Telephone: (416) 865-0326
CORPORATE OFFICE: TRANSFER AGENT AND REGISTRAR:
145 King Street West Montreal Trust Company of Canada
Suite 2700 151 Front Street West
Toronto, Ontario Suite 800
Canada M5H 1J8 Toronto, Ontario
Telephone: (416) 865-0326 Canada M5J 2N1
Facsimile: (416) 361-5741 Telephone: (416) 981-9500
General enquires: (800) 813-1412 Facsimile: (416) 981-9800
(Canada and United States) Enquiries regarding shares,
lost certificates, change
of address and other matters:
(800) 663-9097
email: [email protected]
website: www.goldcorp.com
Stock Symbols:
TSE, ME ("G.A"; "G.B")
NYSE ("GG.A"; "GG")
-30-
<PAGE> 4
Goldcorp Inc. -- 2000 Third Quarter Results Page 4
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GOLDCORP INC.
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS
(in thousands of United States dollars)
<TABLE>
<CAPTION>
As at As at
September 30, December 31,
2000 1999
-------------- ---------------
(unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and short-term investments $ 14,345 $ 46,847
Gold bullion inventory 884 601
Accounts receivable 4,903 5,658
Income taxes receivable 1,079
Marketable securities 4,386 4,696
Inventories 8,046 5,432
Future income taxes 758 803
Prepaid expenses 766 843
-------------- -------------
34,088 65,959
MINING INTERESTS, NET 131,348 107,335
DEPOSITS FOR RECLAMATION COSTS 4,034 5,070
FUTURE INCOME TAXES 2,762 2,952
OTHER ASSETS 468 376
-------------- -------------
$ 172,700 $ 181,692
============== =============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 12,016 $ 10,113
Income taxes payable 2,899
-------------- -------------
14,915 10,113
-------------- -------------
PROVISION FOR RECLAMATION COSTS AND
OTHER LIABILITIES 7,843 7,254
-------------- -------------
FUTURE INCOME TAXES (note 2) 13,304 17,429
-------------- -------------
SHAREHOLDERS' EQUITY
Capital stock (note 6) 136,967 133,909
Note receivable for capital stock (note 6) (2,413)
Contributed surplus 5,569 5,569
Cumulative translation adjustment (6,314) (1,175)
Retained earnings (note 2) 2,829 8,593
-------------- -------------
136,638 146,896
-------------- -------------
$ 172,700 $ 181,692
============== =============
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE> 5
Goldcorp Inc. -- 2000 Third Quarter Results Page 5
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CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands of United States dollars, except per share amounts)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
2000 1999 2000 1999
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Revenues
Gold bullion $ 14,010 $ 9,112 $ 26,556 $ 22,835
Industrial minerals 2,997 5,270 9,018 16,258
----------- ----------- ----------- -----------
17,007 14,382 35,574 39,093
----------- ----------- ----------- -----------
Expenses
Operating 14,249 11,271 32,307 31,661
Red Lake strike
settlement expense (note 5) 5,994
Corporate administration 1,385 789 3,476 2,453
Depreciation, depletion and
reclamation 2,051 957 3,973 2,659
Exploration 446 215 870 652
----------- ----------- ----------- -----------
18,131 13,232 46,620 37,425
----------- ----------- ----------- -----------
Earnings (loss) from operations (1,124) 1,150 (11,046) 1,668
----------- ----------- ----------- -----------
Other income (expense)
Interest and other income 424 634 2,305 1,455
Gain on marketable securities 397 397
Increase in provision for decline
in value of marketable securities (34) (853) (34) (364)
----------- ----------- ----------- -----------
787 (219) 2,668 1,091
----------- ----------- ----------- -----------
Earnings (loss) before taxes (337) 931 (8,378) 2,759
Income and mining taxes (recovery)
(notes 2 and 3) (158) 156 (2,614) 1,022
----------- ----------- ----------- -----------
Earnings (loss) for the period $ (179) $ 775 $ (5,764) $ 1,737
=========== =========== =========== ===========
Earnings (loss) per share $ (0.00) $ 0.01 $ (0.07) $ 0.02
=========== =========== =========== ===========
Weighted average number of shares
outstanding (000's) 78,874 77,918 78,593 74,548
=========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE> 6
Goldcorp Inc. -- 2000 Third Quarter Results Page 6
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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands of United States dollars)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30, September 30,
2000 1999 2000 1999
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Cash provided by (used in)
Operating activities
Earnings (loss) for the period $ (179) $ 775 $ (5,764) $ 1,737
Items not affecting cash
Depreciation, depletion and
reclamation 2,051 957 3,973 2,659
Gain on marketable securities (397) (397)
Increase in provision for decline in
value of marketable securities 34 853 34 364
Future income taxes (411) (337) (3,413) (115)
Other (186) (565) (399) (1,297)
----------- ----------- ----------- -----------
912 1,683 (5,966) 3,348
Change in non-cash operating
working capital (2,274) 2,514 4,754 693
----------- ----------- ----------- -----------
Net cash provided by (used in)
operating activities (1,362) 4,197 (1,212) 4,041
----------- ----------- ----------- -----------
Investing activities
Mining interests (5,926) (8,074) (31,703) (17,467)
Purchases of marketable securities (460) (681)
Decrease (increase) in deposits for
reclamation costs 1,162 (91) 1,019 (1,045)
Other 173
----------- ----------- ----------- -----------
Net cash used in investing activities (4,764) (8,165) (31,144) (19,020)
----------- ----------- ----------- -----------
Financing activities
Issue of capital stock, net 191 36 645 47,315
----------- ----------- ----------- -----------
Net cash provided by financing activities 191 36 645 47,315
----------- ----------- ----------- -----------
Effect of exchange rate changes on cash (88) (218) (791) (192)
----------- ----------- ----------- -----------
Increase (decrease) in cash and
short-term investments (6,023) (4,150) (32,502) 32,144
Cash and short-term investments
at beginning of period 20,368 45,642 46,847 9,348
----------- ----------- ----------- -----------
Cash and short-term investments
at end of period $ 14,345 $ 41,492 $ 14,345 $ 41,492
=========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
<PAGE> 7
Goldcorp Inc. -- 2000 Third Quarter Results Page 7
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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, 1998. 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. CHANGE IN ACCOUNTING POLICY
In December 1997, the Canadian Institute of Chartered Accountants issued
Handbook Section 3465, "Accounting for Income Taxes". The standard requires
a change from the deferred method of accounting for income taxes to the
asset and liability method of accounting for income taxes. Under the asset
and liability method, future tax assets and liabilities are recognized for
the future tax consequences attributable to differences between the
financial statement carrying amounts of existing assets and liabilities and
their respective tax bases. Future tax assets and liabilities are measured
using enacted or substantially enacted tax rates expected to apply when the
asset is realized or the liability settled. The effect on future tax assets
and liabilities of a change in tax rates is recognized in income in the
period that substantive enactment or enactment occurs.
The company has adopted the asset and liability method for the nine months
ended September 30, 2000, and has retroactively restated the 1999 results.
The retained earnings as at December 31, 1999 have been decreased by
$573,000 as a result of this change. The following summarizes the impact of
applying Section 3465 on net income for the nine months ended September 30,
1999:
<TABLE>
<CAPTION>
September 30,
1999
-------------
(000's)
<S> <C>
Net Income, as previously reported $1,692
Effect of Section 3465 45
-----------
Net Income, as restated $1,737
-----------
</TABLE>
<PAGE> 8
Goldcorp Inc. -- 2000 Third Quarter Results Page 8
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
3. INCOME TAXES
The Company has a net future tax liability. The most recent Ontario budget
included proposed corporate income and mining tax rate reductions, which
reduces this liability. Pursuant to the adoption of the liability method of
accounting for future income taxes, the impact of the rate reduction on
future income taxes is recognized in the period that the rate change is
considered to be substantially enacted. Accordingly, the future income tax
provision for the nine months ending September 30, 2000 includes a
reduction of $344,000 in the future tax liability.
4. RED LAKE MINE START-UP ACTIVITIES
During the second quarter of 2000 the start-up of production began at the
Red Lake Mine, with the first gold pour taking place on August 1, 2000.
This start-up period will last until commercial production levels are
reached, which is expected in the fourth quarter of 2000. Start-up
activities, which include Goldcorp's revenues and operating costs during
this period, are not capitalized, but recorded in the operations.
5. UNION SETTLEMENT
On April 21, 2000, an agreement was reached between the Company and the
employee's union to end the 46-month long strike. The Union agreed that it
would no longer represent employees at the Company's operations in Red Lake
in return for a severance package for the striking employees totalling
$5,994,000 and job offers to a minimum of 45 former unionized employees
when the mine reopens. Included in the severance package are a total of
219,000 stock options that were granted to the unionized employees to
acquire Class A Goldcorp shares. The stock options were issued in April
after the strike settlement with an exercise price equal to the market
value of Goldcorp common shares at the date the options were issued and
expire May 26, 2003, with 33 1/3% of the options vesting each year over the
next three years. The Company has recorded the cost of the severance
package as a charge to income in the nine months ended September 30, 2000.
6. CAPITAL STOCK
At September 30, 2000, the Company had a total of 86,168,379 shares
outstanding on a fully diluted basis. Included in this amount is 4,282,733
Class A stock options and 6,000,000 one-half share purchase warrants to
acquire 3,000,000 Class A shares.
<PAGE> 9
Goldcorp Inc. -- 2000 Third Quarter Results Page 9
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
On April 3, 2000, an officer of the Company exercised stock options for
700,000 Class A Goldcorp shares. The Company received, as consideration
from the officer, a note secured by the common shares for the total
exercise price of $2,413,000. The term of the note is one year with
interest charged at a rate of prime plus one percent.
7. AMALGAMATION
On September 29, 2000, Goldcorp and CSA announced that their respective
Boards of Directors approved the proposed reorganization (the
"Reorganization") whereby shareholders of Goldcorp and CSA would receive
common shares of the new Goldcorp Inc. ("New Goldcorp"). Goldcorp, CSA and
the New Goldcorp will be amalgamated and all Goldcorp shares held by CSA
will be cancelled. Holders of Goldcorp and CSA shares will exchange shares
on the following basis:
- 1.00 New Goldcorp common share for 1.00 Goldcorp Class A subordinate
voting share;
- 1.25 New Goldcorp common shares for 1.00 Goldcorp Class B share;
- 2.10 New Goldcorp common shares for 1.00 CSA Class A non-voting share;
- 6.00 New Goldcorp common shares for 1.00 CSA Class B share.
Holders of Goldcorp stock options and warrants, and CSA stock options will
receive identical New Goldcorp instruments converted on the same basis as
the underlying shares. Currently there are warrants outstanding to acquire
3,000,000 Goldcorp Class A shares, and stock options outstanding to acquire
4,283,000 Goldcorp Class A shares and 393,000 CSA Class A shares. On
completion of the Reorganization, New Goldcorp will have approximately
81,123,000 common shares outstanding at September 30, 2000, on a proforma
basis, which has been calculated as follows:
<TABLE>
<CAPTION>
Proforma
Total New Goldcorp Shares to be New Goldcorp
shares Exchange shares to cancelled on shares
Share description outstanding ratio be issued amalgamation outstanding
----------------- ----------- --------- --------------- ------------- ----------------
(000's) (000's) (000's) (000's)
<S> <C> <C> <C> <C> <C>
Goldcorp Class A 73,550 1.00 73,550 (8,935) 64,615
Goldcorp Class B 5,333 1.25 6,666 (5,792) 874
CSA Class A 6,039 2.10 12,682 -- 12,682
CSA Class B 492 6.00 2,952 -- 2,952
--------- ------- ----------
95,850 (14,727) 81,123
========= ======== ==========
</TABLE>
On October 30, 2000, the shareholders for both Goldcorp and CSA approved
the proposed reorganization and effective November 1, 2000, the merged
Company, Goldcorp Inc., began trading on the Toronto and New York stock
exchanges.
