<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
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(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]
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GOLDCORP INC.
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Suite 2700, 145 King Street West Telephone (416) 865-0326
Toronto, Ontario M5H 1J8 Canada Facsimile (416) 361-5741
Website: www.goldcorp.com
Email: [email protected]
NEWS RELEASE
Toronto, Canada
May 24, 2000
2000 FIRST QUARTER RESULTS
(ALL AMOUNTS IN THIS NEWS RELEASE ARE EXPRESSED IN UNITED STATES DOLLARS, UNLESS
OTHERWISE INDICATED.)
LIQUIDITY MEASURES -- ABILITY TO DELIVER
<TABLE>
<CAPTION>
As at As at
March 31, December 31,
2000 1999
----------------- -----------
(IN MILLIONS OF U.S. DOLLARS)
<S> <C> <C>
Working capital $ 44.1 $ 55.8
Cash and short-term investments 40.9 46.8
Debt NIL NIL
Gold production sold forward (hedging) NIL NIL
</TABLE>
FINANCIAL RESULTS -- QUANTIFYING EFFORT
<TABLE>
<CAPTION>
Three months ended
March 31,
2000 1999
---------------- ----------------
(IN MILLIONS OF U.S. DOLLARS, EXCEPT PER
SHARE AND PER OUNCE AMOUNTS)
<S> <C> <C>
Cash flow from operations $ 7.2 $ (2.5)
Per share 0.09 (0.04)
Earnings 0.0 0.1
Per share 0.00 0.00
Earnings from operations (0.7) 0.5
Revenues 10.4 11.6
</TABLE>
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Goldcorp Inc. - 2000 First Quarter Results Page 2
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OVERVIEW - YEAR TO DATE
Dear Shareholders:
Our first quarter and subsequently has been full of positive news. Here are the
top seven items.
HIGHER GOLD VALUES
The initial gold assay values from mining the High Grade Zone were 20% better
than expected and 3 times higher than the values used to calculate our gold
reserves, annual gold production and cost to produce an ounce of gold. Please
note, it is much too early to say if these numbers apply to our entire reserve
base, but these preliminary values are nevertheless very encouraging. For full
details, see our March 29th press release.
CONSTRUCTION ON SCHEDULE
The construction of our "NEW" Red Lake Mine is proceeding as planned. We are
scheduling to pour our first gold bar in early August and commercial is forecast
to begin in mid November. There are currently 200 construction workers on site
on a daily basis. The processing plant construction work is now concentrating on
equipment installation and electrical. The main thrust underground is on ramp
access and ore development.
STRIKE OVER, UNION GONE
On April 21st the labour strike was over and surprisingly the union recommended
and approved their own de-certification. That means, our NEW Red Lake Mine is
now a union free environment; which will give us the ability to utilize 21st
Century technologies faster.
INTERNET EXPLORATION
On March 6th, we launched the world's first internet based exploration gold rush
called "The Goldcorp Challenge". Its purpose is to accelerate our exploration
efforts and identify the location(s) of the next 6 million ounces of gold on our
Red Lake Mine property. It has been well received. We have received over 200,000
hits on the Challenge web site and there are 1,100 registrants from 43
countries.
OPERATIONS
Although Earnings from Operations were negative, approximately $0.01 per share,
the Wharf Mine put in a good quarter, more gold at the same cost per ounce. Our
industrial mineral operations were the cause of the loss, Saskatchewan Minerals
had a poor quarter and we no longer have a contribution from Havelock Lime,
which was sold on December 31, 1999.
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Goldcorp Inc. - 2000 First Quarter Results Page 3
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MANAGEMENT ADDITIONS
We strengthened our senior management team with the promotion of John Begeman,
our General Manager of the Wharf Mine to Vice President, Western Operations and
hired Eduardo Montana as our Chief Information and Technology Officer.
INDUSTRY AWARDS
On February 24th, Goldcorp marketing efforts were recognized by Investor
Relations Magazine. This international publication selects winners of its
prestigious annual Canada Awards for excellence in investor relations, based on
the input from institutional investors and research analysts. Goldcorp was the
category winner for the Best Investment Community Meetings for companies of
under $1 billion market capitalization.
OUTSTANDING SERVICE
Special mention is needed to acknowledge the tremendous effort, patience, and
diplomacy shown by our Red Lake Mine manager, Dennis Brown during the 46 month
long strike. In addition, all of our Red Lake staff deserve our appreciation for
pushing our mine towards production during this difficult period.
I encourage all shareholders attending our upcoming Annual Meeting, on June 1st,
to give Dennis a rousing round of applause when he is introduced.
Sincerely,
Robert R. McEwen
Chairman and Chief Executive Officer
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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.
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Goldcorp Inc. - 2000 First Quarter Results Page 4
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OPERATIONAL SUMMARY
GOLD - WHARF MINE
Cash production cost per ounce and ounces produced are on target to meet budget.
Production revenue is unhedged. The projected 2000 production from the Wharf
Mine is 110,000 ounces at a cash production cost, including royalties and
severance taxes, of $212 per ounces.
<TABLE>
<CAPTION>
Three months ended
March 31,
2000 1999
----------- -----------
<S> <C> <C>
Tons of ore mined (000S) 1,139 979
Tons of waste removed (000S) 2,654 2,145
Ratio of waste to ore 2.33:1 2.19:1
Tons of ore processed (000S) 947 1,062
Average grade of gold processed (OUNCES PER TON) 0.030 0.030
Gold production (OUNCES) 23,801 22,224
Operating cost per ounce
Cash production cost $ 199 $ 199
Royalties and severance taxes 17 18
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Total cash costs 216 217
Non-cash costs 18 17
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Total operating cost $ 234 $ 234
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</TABLE>
INDUSTRIAL MINERALS OPERATION - SASKATCHEWAN MINERALS
<TABLE>
<CAPTION>
Three months ended
March 31,
2000 1999
----------- -----------
(IN MILLIONS OF U.S. DOLLARS)
<S> <C> <C>
Revenues $ 3.1 $ 3.2
Operating profit 0.3 0.8
Operating cash flow 0.4 1.0
</TABLE>
The decline in operating results was due to lower product prices adversely
impacting profit margins. The lower prices are the result of a sodium sulphate
market that continues to be oversupplied.
FINANCIAL INFORMATION
Attached are the Consolidated Financial Statements of Goldcorp Inc. for the
three months ended March 31, 2000.
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Goldcorp Inc. - 2000 First Quarter Results Page 5
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GOLDCORP INC.
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS OF UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
As at As at
March 31, December 31,
2000 1999
---------------- ---------------
(UNAUDITED)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and short-term investments $ 40,866 $ 46,847
Gold bullion inventory 316 601
Accounts receivable 5,644 5,658
Income taxes receivable 1,079
Marketable securities 4,890 4,696
Inventories 5,588 5,432
Future income taxes 797 803
Prepaid expenses 767 843
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58,868 69,959
MINING INTERESTS, NET 118,584 107,335
DEPOSITS FOR RECLAMATION COSTS 5,218 5,070
OTHER ASSETS 374 376
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$ 183,044 $ 178,740
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 11,003 $ 10,113
Taxes payable 3,726
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14,729 10,113
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PROVISION FOR RECLAMATION COSTS
AND OTHER LIABILITIES 7,522 7,254
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FUTURE INCOME TAXES (note 2) 14,484 14,477
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SHAREHOLDERS' EQUITY
Capital stock (note 4) 134,234 133,909
Contributed surplus 5,569 5,569
Cumulative translation adjustment (2,099) (1,175)
Retained earnings (note 2) 8,605 8,593
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146,309 146,896
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$ 183,044 $ 178,740
================ ===============
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL
STATEMENTS.
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Goldcorp Inc. - 2000 First Quarter Results Page 6
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CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS OF UNITED STATES DOLLARS, EXCEPT PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
Three months ended
March 31,
2000 1999
----------- -----------
<S> <C> <C>
Revenues
Gold bullion $ 7,293 $ 6,623
Industrial minerals 3,073 5,001
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10,366 11,624
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Expenses
Operating 8,890 9,410
Corporate administration 969 788
Depreciation, depletion and reclamation 1,067 787
Exploration 186 145
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11,112 11,130
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Earnings (loss) from operations (746) 494
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Other income (expense)
Interest and other income 1,223 526
Increase in provision for decline in value
of marketable securities (713)
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1,223 (187)
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Earnings before taxes 477 307
Income and mining taxes (note 2) 465 205
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Earnings for the period $ 12 $ 102
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Earnings per share $ 0.00 $ 0.00
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Weighted average number of shares outstanding (000's)
Basic 78,067 70,019
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Fully diluted 84,921 74,843
=========== ===========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL
STATEMENTS.
<PAGE>
Goldcorp Inc. - 2000 First Quarter Results Page 7
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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(IN THOUSANDS OF UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
Three months ended
March 31,
2000 1999
---------- ----------
<S> <C> <C>
Cash provided by (used in)
Operating activities
Earnings for the period $ 12 $ 102
Items not affecting cash
Depreciation, depletion and reclamation 1,067 787
Increase in provision for decline in value
of marketable securities 713
Future income taxes 109 (251)
Other (56) (651)
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1,132 700
Change in non-cash operating working capital 6,024 (3,192)
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Net cash provided by (used in) operating activities 7,156 (2,492)
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Investing activities
Mining interests (12,741) (3,703)
Purchases of marketable securities (328)
Increase in deposits for reclamation costs (132) (502)
Other 171
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Net cash used in investing activities (13,201) (4,034)
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Financing activities
Issue of capital stock, net 325 6,679
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Net cash provided by financing activities 325 6,679
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Effect of exchange rate changes on cash (261) 37
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Increase (decrease) in cash and
short-term investments (5,981) 190
Cash and short-term investments
at beginning of period 46,847 9,348
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Cash and short-term investments
at end of period $ 40,866 $ 9,538
========== ==========
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL
STATEMENTS.
<PAGE>
Goldcorp Inc. - 2000 First Quarter Results Page 8
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GOLDCORP INC.
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, 1999. 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 under
Handbook Section 3470, Corporate Income Taxes, to the asset and liability
method of accounting for income taxes. Under the asset and liability method
of Section 3465, 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 substantively enacted tax rates expected to apply when the asset
is realized or the liability settled. Under Section 3465, 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 Section 3465 for the first quarter ended March 31,
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 and earnings per share for the first quarter
ended March 31, 1999.
<TABLE>
<CAPTION>
March 31,
1999
-------
(000'S)
<S> <C>
Net Income, as previously reported $ 88
Effect of Section 3465 14
-------
Net Income, as restated $ 102
------
</TABLE>
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Goldcorp Inc. - 2000 First Quarter Results Page 9
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3. SUBSEQUENT EVENT
On April 21, 2000, an agreement was reached between the Company and the
Union at the Red Lake Mine to end the 46 month strike. The Union has agreed
it will no longer represent employees at the Company's operations in Red
Lake in return for a severance package for the 186 striking employees
totalling approximately Cdn$9.0 million and job offers to a minimum of 45
former unionized employees when the mine reopens. The Company will record
the cost of the severance package as a charge to income in the second
quarter.
4. CAPITAL STOCK
At April 30, 2000, the Company had a total of 86,161,000 shares outstanding
on a fully diluted basis. Included in this amount is 4,331,000 Class A
stock options and 6,000,0000 one-half share purchase warrants to acquire
3,000,000 Class A shares.
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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 ("G.A"; "G.B")
NYSE ("GG.A"; "GG")
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