OREANDA-NEWS. GOLDCORP INC. (TSX: G, NYSE: GG) reported record fourth quarter gold production of 700,400 ounces compared to gold production of 687,900 ounces in the fourth quarter of 2011.  Reported net earnings in the quarter were USD 504 million, or USD 0.62 per share compared to USD 405 million, or USD 0.50 per share in the same period a year ago.  Adjusted net earnings1 were USD 465 million, or USD 0.57 per share compared to USD 531 million, or USD 0.66 per share in the same period a year ago. Operating cashflows before working capital changes2 totaled USD 721 million compared to USD 831 million in the fourth quarter of 2011. 

Fourth Quarter 2012 Highlights
Revenues totaled USD 1.4 billion on gold sales of 645,100 ounces.
Operating cash flows before working capital changes totaled USD 721 million or USD 0.89 per share.
Adjusted net earnings totaled USD 465 million, or USD 0.57 per share.
All-in sustaining cash costs totaled USD 910 per ounce, USD 360 per ounce on a by-product cash cost4 basis, and USD 621 per ounce on a co-product cash cost4 basis.
Dividends paid amounted to USD 110 million.  Annual dividend increased 11% to USD 0.60 per share.

Full-Year 2012 Highlights
Revenues increased to a record USD 5.4 billion on gold sales of 2.3 million ounces.
Operating cash flows before working capital changes totaled USD 2.4 billion or USD 2.97 per share.
Adjusted net earnings totaled USD 1.6 billion, or USD 2.03 per share.
All-in sustaining cash costs totaled USD 874 per ounce, USD 300 per ounce on a by-product cash cost basis, and USD 638 per ounce on a co-product cash cost basis.
Dividends paid amounted to USD 438 million.
Proven and probable gold mineral reserves increased 4% to 67.1 million ounces or 3.5% on a per share basis5.

"Excellent quarterly performances at our two largest mines resulted in a strong finish to 2012 and position Goldcorp for a much improved 2013," said Chuck Jeannes, Goldcorp President and Chief Executive Officer.  "Red Lake in Canada benefited from full access to higher grade gold zones while Peсasquito in Mexico performed well despite commencing mining in a new, lower-grade phase of the pit during the quarter.  A full year of gold production at Pueblo Viejo in the Dominican Republic, coupled with production stability throughout our portfolio will enable a renewed focus on productivity and efficiency at our mines in the year ahead.  Goldcorp's "Operating for Excellence" initiative is aimed at identifying and implementing best practices to unlock the full cash flow potential within our asset base.

"Another key priority in 2013 is the timely advancement of our three gold growth projects currently under construction that are expected to drive forecast 70% production growth in the next five years.  Cerro Negro in Argentina remains on track for initial gold production at the end of this year amid successful achievement of key milestones and growing ore stockpiles.  Eleonore  in Quebec continues to benefit from a development plan focused on capital efficiency and building a solid production platform beyond expected first production in late 2014.  Development of Cochenour in Red Lake is expected to accelerate, bringing a stronger production profile to the Red Lake complex following the start of production in 2015.

"Goldcorp's consistent strategy is centered on realizing strong shareholder value in a challenging industry through growing, low-cost production.  We have always focused on strengthening our overall portfolio through the addition of high quality gold projects, divestiture of non-core assets and successful exploration investments that have driven a ninth consecutive year of growth in gold reserves.  We also enter 2013 with an outstanding balance sheet with the flexibility to pursue new opportunities while maintaining an active dividend policy to return value to shareholders."

Ninth Consecutive Year of Reserve and Resource Growth

Goldcorp also announced today that proven and probable gold mineral reserves increased by 4% to 67.1 million ounces, the ninth consecutive year that Goldcorp has increased gold reserves.    Proven and probable silver mineral reserves totaled 1.2 billion ounces, representing one of the largest silver reserves in the industry. 

Gold reserve growth at Cerro Negro, Camino Rojo, Marigold and Porcupine more than offset decreases at Peсasquito, Los Filos and Red Lake, which decreased primarily as a result of the removal of marginally economic gold ounces.  On a per share basis, gold reserves increased 3.5%.
At Cerro Negro, an aggressive exploration program featuring eight surface diamond drills completed 421 holes for a total of 146,112 metres for the year. Proven and probable gold reserves have now increased 177% to 5.7 million ounces from the initial proven and probable gold reserve estimate of 2.1 million ounces (7.14Mt at 9.03 g/t Au) at acquisition in December, 2010. Exploration during 2012 focused on in-fill drilling and expansion of the Mariana Central, Mariana Norte and San Marcos deposits.  These efforts have led to extensions in the strike length of all three veins and demonstrated the emergence of adjacent vein systems.  An exploration program budgeted at USD 36 million for 2013 will focus on further extending the Mariana Central, Mariana Norte and San Marcos veins to the east and drill-testing of other vein targets.

Successful drilling at the Camino Rojo project near Peсasquito contributed 1.6 million ounces to proven and probable gold reserves, based on a positive study for mining of near-surface oxide and transition mineralization and conventional heap leach processing.  The Company is following up on positive exploration results in the sulphide portions of the deposit that will defer development of the heap leach operation.  Work will continue in 2013 on sulphide zone exploration.

Red Lake 2012 proven and probable gold reserves totaled 3.2 million ounces, as drilling during the year focused on resource expansion rather than conversion of existing resources to reserves. This effort was successful with the confirmation of the extension of the High Grade Zone between the 52 and 57 levels, and the discovery of the new NXT Zone to the west of the High Grade Zone.  With a budget of USD 40 million the focus in 2013 will be on in-fill drilling between the 48 and 55 levels in the High Grade Zone to convert resources to reserves, and definition and extension of the NXT Zone above and to the west of the 54 level, with the objective of identifying the up-plunge extents.  Construction is progressing on an exploration drift at the 47 level with expected completion by the end of the first quarter in 2013 that will provide a platform to increase NXT Zone drill density for conversion of resources to reserves.  Additional exploration work in the High Grade Zone will focus on a newly-discovered structure at the bottom of the 4699 ramp.

At Peсasquito, proven and probable gold reserves decreased to 15.7 million ounces, consistent with normal depletion of the deposit.  Exploration is now focused on testing deep mantos and skarn type mineralization related with copper mineralization, beneath and adjacent to the current open pit workings.    Preliminary results show that the sulphide horizons contain copper, lead, zinc, gold and silver.

At Marigold, exploration activity for 2012 focused on development drilling in the GAP and central part of Mackay pit, Herco and Red Dot areas where positive results have increased proven and probable reserves to 3.3 million ounces, an increase of 960,000 ounces over 2011 to Goldcorp's share of the proven and probable gold reserve, extending mine life by an additional five years.

Record Quarterly Production Drives Strong Revenues

Gold sales in the fourth quarter were 645,100 ounces on production of 700,400 ounces.  This compares to sales of 685,000 ounces on production of 687,900 ounces in the fourth quarter of 2011. Reported net earnings in the quarter were USD 504 million compared to USD 405 million in the fourth quarter of 2011. Adjusted net earnings in the fourth quarter totaled USD 465 million, or USD 0.57 per share, compared to USD 531 million or USD 0.66 per share, in the fourth quarter of 2011.  Adjusted net earnings in 2012 exclude the effect of a non-cash foreign exchange loss on translation of deferred income tax assets and liabilities, a non-cash provision related to the revision in estimates on the reclamation and closure costs for the Company's inactive and closed mine sites, net impairment charges and gains on disposition related to certain of its equity investments, and unrealized gains on derivative instruments but include the impact of non-cash stock option expenses, which amounted to approximately USD 10 million or USD 0.01 per share for the quarter.  Operating cash flows before changes in working capital totaled USD 721 million compared to USD 831 million in last year's fourth quarter.

Beginning in 2013, Goldcorp is adopting an all-in sustaining cash cost measure that the Company believes more fully defines the total costs associated with producing gold.  All-in sustaining cash costs include by-product cash costs, sustaining capital, corporate general & administrative expenses, exploration expense and reclamation cost accretion.  As the measure seeks to reflect the full cost of gold production from current operations, new project capital is not included in the calculation.  A full reporting of cash activities will continue to be available in the Company's financial statements and Goldcorp will continue to report cash costs on a by-product and co-product basis in addition to all-in sustaining cash costs. For the fourth quarter 2012 all-in sustaining cash costs were USD 910 per ounce. Total cash costs were USD 360 per ounce on a by-product basis and USD 621 per ounce on a co-product basis.

For the twelve months ended December 31, 2012, revenues totaled USD 5.4 billion. Net earnings for 2012 were USD 1.7 billion or USD 2.16 per share, compared to net earnings of USD 1.9 billion or USD 2.34 per share in 2011.  Adjusted net earnings totaled USD 1.6 billion, or USD 2.03 per share, compared to USD 1.8 billion or USD 2.22 per share, in 2011.  Cash flow from operations before changes in working capital totaled USD 2.4 billion compared to USD 2.7 billion in the twelve months ended December 31, 2011. For 2012, all-in sustaining cash costs were USD 874 per ounce.  Total cash costs were USD 300 per ounce on a by-product basis and USD 638 per ounce on a co-product basis.

Mexico

At Peсasquito throughput averaged 98,800 tonnes per day during the fourth quarter resulting in gold production of 112,900 ounces.  Gold production decreased from the third quarter as mining commenced in a lower grade portion of the pit.  Strong by-product silver, lead and zinc credits contributed to by-product cash costs during the quarter of USD 17 per ounce of gold and negative USD 457 per ounce of gold for the year. Grades continue to reconcile well with reserves. Following the first quarter, Peсasquito grades are expected to increase significantly throughout the year.  Mill throughput in 2013 is forecast at 105,000 tonnes per day as the Company continues to bring additional water wells into production within the Cedros Basin in addition to new dewatering wells within the Chile Colorado pit.  A water and tailings study is expected to be completed in the first half of 2013 to develop a comprehensive long-term water strategy for the Peсasquito district.  Full year 2013 gold production is expected to be between 360,000 to 400,000 ounces.

Gold production at Los Filos increased 16% over the prior quarter to 92,800 ounces and contributed to a record year of gold production of 340,400 ounces.  The construction of the next expansion phase of the Los Filos heap leach pad facility began during the fourth quarter of 2012 and is expected to be completed in the second quarter of 2013. Gold production during 2013 is expected to be between 340,000 to 350,000 ounces. During 2013, the Company will investigate the potential for an expansion at Los Filos.

Canada

Gold production at Red Lake increased 39% from the prior quarter to 168,300 ounces at a total cash cost of USD 403 per ounce. Following the completion of the de-stressing program in the third quarter, increased flexibility in the High Grade Zone was achieved which increased the number of high grade mine headings available.  For 2012, gold production totaled 507,700 ounces at total cash costs of USD 494 per ounce.  Production in 2013 is expected between 475,000 to 510,000 ounces.  One de-stress slot is planned for late 2013 at the 46/47 level.

At Porcupine in Ontario, higher grade and higher tonnage from increased mill utilization led to fourth quarter gold production of 74,100 ounces at a total cash cost of USD 750 per ounce.  For 2012, gold production totaled 262,800 ounces at a total cash cost of USD 772 per ounce.  The Hoyle Pond Deep project continued to progress, which will access deeper discovered zones of gold mineralization and enhance operational flexibility and efficiencies throughout the Hoyle Pond underground complex.  By the end of 2012, full face shaft sinking had advanced to within 20 metres of the 720 metre level skip dump excavation.  Pending receipt of permits the initial production from the Hollinger open pit project is expected in the first half of 2013.  For 2013, total gold production at Porcupine is expected at between 270,000 and 280,000 ounces.

Central America

At Pueblo Viejo, Goldcorp's 40% share of gold production totaled 43,700 ounces for the fourth quarter and 44,700 ounces for the year.  Modifications to one of the four autoclaves was carried out in December 2012 to implement design improvements and allow for higher throughputs.  These modifications are being made to the remaining three autoclaves during the first half of 2013.  Pueblo Viejo achieved commercial production in January 2013.  Ramp-up to full capacity is expected to occur in the second half of 2013 with production forecast between 330,000 to 435,000 ounces to Goldcorp's account.  Forecast annual average production is expected to be between 415,000 to 450,000 ounces of gold to Goldcorp's account in the first five years of full production at cash costs of less than USD 350 per ounce6.  As part of a longer-term, optimized power solution for Pueblo Viejo, a plan is underway to build a dual-fuel power plant and is expected to commence operations in 2013.

Certain members of the Dominican Republic (DR) congress, including the President of the Chamber of Deputies, have expressed a desire to amend the Special Lease Agreement (SLA) to accelerate and increase the benefits that the DR will derive from the Pueblo Viejo mine.  The SLA, which provides for substantial benefits to the DR, including royalties and taxes, in addition to other benefits such as employment and purchasing of goods and services, was approved by Congress in 2009 and cannot be unilaterally altered.  However, Barrick, as the operator, while reserving its rights under the SLA, has engaged in a dialogue with representatives of the government, with a view to achieving a mutually acceptable outcome.  At this time, the outcome of the dialogue is uncertain, but any amendments to the SLA could impact overall project economics.

Advancing a High-Quality Project Pipeline

To fund Goldcorp's peer-leading growth pipeline, capital expenditures for 2013 are forecast at approximately USD 2.8 billion, of which approximately 60% is allocated to projects and 40% for operations.  Major project capital expenditures in 2013 include approximately USD 775 million at Cerro Negro, USD 650 million at Eleonore, USD 100 million at Cochenour, and USD 50 million at Camino Rojo.

Cerro Negro is advancing on schedule towards first gold at the end of the current year.  Engineering, Procurement and Construction Management activities are steadily progressing with detailed engineering 55% completed by the end of 2012. Progress on plant construction included completing the excavations, large concrete pours for building foundations, base and walls and installing the anchor bolts.  The ball mill is at site and all other major imported mechanical equipment has been secured and is on site or en route.  Construction of the tailings facility commenced with progress ahead of schedule.  Construction of the high voltage power line is pending receipt of government approvals, anticipated to be received in early March 2013.

The Eureka decline, which will access the first ore from Cerro Negro, has advanced to a length of 2,135 metres of a total planned decline length of approximately 3,900 metres.  The Eureka stockpile contains an estimated 40,316 tonnes at a grade of 11.08 g/t gold and 204 g/t silver, and is reconciling well with reserve estimates.    Excavation of the ramps into the Mariana Central and Mariana Norte veins are advancing according to the project development schedule.   Production is expected to average approximately 525,000 ounces of gold in its first five full years of production.

At the Cochenour project, construction of the five-kilometre Cochenour-Red Lake Haulage Drift advanced to 68% of completion at year-end with expected completion by the end of the first quarter of 2014.  Two drills continue to test the exploration potential of this underexplored area.  A study of the overall project was completed in the fourth quarter of 2012 that concluded that the Bruce Channel ore body is lower than previously expected, necessitating the deepening of the Cochenour shaft by 245 metres resulting in first gold deferred to the first half of 2015.  Following ramp-up to full production, forecast life-of-mine gold production is expected to be between 225,000 to 250,000 ounces per year.

At the Eleonore  gold project in Quebec, a milestone was reached in the fourth quarter with the completion of the production shaft hoist room and head frame facilities, allowing shaft sinking activities to commence on schedule.  The exploration ramp excavation has now reached over 2,500 metres in length, which corresponds to a vertical depth of 380 metres below surface.  During 2013, underground exploration drilling from the ramp will accelerate, enabling further definition drilling of the deep portion of the Roberto deposit to proceed.  Currently, four diamond drills are conducting definition and exploration drilling from strategic working platforms in the ramp.  The exploration shaft is now undergoing conversion from sinking mode to designed operating mode. Engineering, Procurement and Construction Management at the end of the 2012 had reached 44% completion.

Following the completion of work with regard to mine planning and initial development capital, the project capital estimate has been confirmed at USD 1.75 billion based on all available information.  Initial production remains on track for late 2014 with average life-of-mine gold production once the mine is at full production of approximately 600,000 ounces.

Cyanide Code Certification

During the fourth quarter, Wharf mine in South Dakota became fully certified under the International Cyanide Management Code for the Manufacture, Transport and Use of Cyanide in the Production of Gold ("the Cyanide Code"), becoming Goldcorp's ninth mine to be certified.