Goldcorp's project pipeline, acquisitions to yield even more gold ounces in 2010

Goldcorp says 2009 operating cash flow exceeded $1.2 billion, thanks to record gold production.

RENO, NV - 

Goldcorp CEO Chuck Jeannes said record gold production, low cash costs, and acquisitions aimed at increasing gold reserves "made a very successful year for Goldcorp."

The company's revenues increased 13% last year to $2.7 billion on gold sales of 2.3 million ounces.

In financial results released Thursday, Goldcorp said a recently completed pre-feasibility study for the Élénore gold project in Quebec "confirmed management's expectation for a long-lived underground gold mine with strong, sustained production at low cash costs."

"Over a 16-year mine life expected to commence in 2015, annual gold production is expected to average approximately 330,000 ounces at cash costs below $400 per ounce," the company said, adding the initial capital expenditure for Élénore is expected to be $800 million.

Meanwhile, plans are progressing toward development of what Goldcorp called a "world class resource" at the Escobar silver discovery in western Guatemala. Measured and indicated resources as of December 31, 2009, totaled 130.1 million ounces of silver.

The company's flagship Red Lake mine remains on track to increase its annual gold production from 622,000 ounces last year to 675,000 ounces this year. Meanwhile total expenditures for the Cochenour project at Red Lake is expected to be $71 million this year.

The Los Filos mine in Mexico is expected to increase its production from 239,000 gold ounces last year to 300,000 ounces this year. The Marlin mine in Guatemala is expected to exceed 2009 gold production of 274,900 ounces to 290,000 ounces of gold this year.

Meanwhile commercial production at the world class Peñasquito mine in Mexico is expected to commence in the third quarter of this year.

Goldcorp hopes to invest $485 million in the Pueblo Viejo joint venture project with Barrick in the Dominican Republic this year.

Goldcorp reported 2.42 million ounces of gold production last year, up from 2.32 million ounces of gold mined in 2008.

FINANCIALS

Goldcorp reported net earnings of $240.2 million or 33-cents per share in 2009, down from $1.47 billion or $2.07 per share reported in 2008.

Net earnings for the fourth quarter of 2009 were reported to be $66.7 million or 9-cents per share, compared to net earnings of $958.1 million or $1.31/sh for the fourth-quarter 2008.

Exploration costs decreased $34 million last year or 51% due to the focus on development projects.

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