Goldcorp Corporate Update - September 2013

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INVESTOR PRESENTATION September 2013 STRATEGY. DISCIPLINE. EXECUTION.

Transcript of Goldcorp Corporate Update - September 2013

Page 1: Goldcorp Corporate Update - September 2013

INVESTOR PRESENTATION September 2013

STRATEGY. DISCIPLINE. EXECUTION.

Page 2: Goldcorp Corporate Update - September 2013

FORWARD LOOKING STATEMENTS

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This presentation contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of Goldcorp Inc. (“Goldcorp”). Forward-looking statements include, but are not limited to, statements with respect to the future price of gold, silver, copper, lead and zinc, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, hedging practices, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, timing and possible outcome of pending litigation, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Goldcorp to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the integration of acquisitions; risks related to international operations; risks related to joint venture operations; actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold, silver, copper, lead and zinc; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes; delays in obtaining governmental approvals or financing or in the completion of development or construction activities and other risks of the mining industry, as well as those factors discussed in the section entitled “Description of the Business – Risk Factors” in Goldcorp’s annual information form for the year ended December 31, 2012 available at www.sedar.com. Although Goldcorp has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Goldcorp does not undertake to update any forward-looking statements that are included in this document, except in accordance with applicable securities laws.

All amounts are in U.S. dollars, unless otherwise stated.

Page 3: Goldcorp Corporate Update - September 2013

KEY PRIORITIES

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Financial Discipline

• Enhanced focus on core value – only SAFE production

• Mine planning and budgets – focus on high margin ounces

• Operating for Excellence – achieving operating cost reductions

• Capital Management – disciplined review and investment

Page 4: Goldcorp Corporate Update - September 2013

OPERATING FOR EXCELLENCE

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Valuation Creation Projects

Mine Name of Project Initiative 2013 FCF Impact (US$ MM)

Peñasquito Mine through mill - Ultra high-intensity blasting to improve ore fragmentation - Positive impact on shovel, truck and crusher productivity

$20.0

Éléonore Ramp unit cost reduction

- Replacement of contractor with Goldcorp employees & changing from electronic to pyrotechnic detonators

- Decrease unit cost for 2013 development by $500/meter (-7%). $4.6

Porcupine Energy optimization

- Improved load shedding and compressed air efficiencies for optimal energy usage, includes government rebate

$4.2

Marlin Au & Ag recovery - Gravimetric circuit was designed and commissioned to improve

the Au & Ag recovery from the slag $1.2

Los Filos Crusher plant throughput

- Reduced stacker relocation time with improved maintenance program has resulted in increased throughput by 8.1% vs. budget. Crusher expansion (under construction) to improve recovery from 57% (ROM) to 72% (Crusher).

$2.4

Page 5: Goldcorp Corporate Update - September 2013

CONSISTENT STRATEGIC FOCUS

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Peer-Leading Balance Sheet

Responsible Mining

Practices

Low Political

Risk

TOGETHER CREATING

SUSTAINABLE VALUE

Quality Growth

Cost Management

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PEER-LEADING BALANCE SHEET

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Financial Flexibility

$3.4B L I Q U I D I T Y

$1.4B

$2.0B

CASH & EQUIVALENTS

(US$) as at Jun. 30, 2013

AVAILABLE DEBT FACILITY -

UNDRAWN

STRONG INVESTMENT GRADE BALANCE SHEET1

1 Moody’s: Baa2; S&P: BBB+; Fitch: BBB.

E XC E L L E N T L I Q U I D I T Y

Page 7: Goldcorp Corporate Update - September 2013

MANAGING IN VOLATILE GOLD MARKET

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P R I C E VO L AT I L I T Y

+ $1500 Continue strategy; focus on financial discipline

$1400 Continue funding growth projects Reduce exploration, G&A

C O N T I N G E N C Y P L A N N I N G

Defer capital projects at mines Slow spending at growth projects

Reconfiguration/shutdown of higher cost mines

Our Response Gold Price

<$1200

Page 8: Goldcorp Corporate Update - September 2013

SECOND QUARTER 2013 HIGHLIGHTS

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Strong Results in a Challenging Market

Q2 2013

G O L D P R O D U C T I O N ( m o z ) 646,000

C A S H C O S T S (1) $ / o z A L L - I N S U S TA I N I N G B Y - P R O D U C T C O - P R O D U C T

$1,279 $646 $713

A D J U S T E D N E T E A R N I N G S (3) $117M

A D J U S T E D O P E R AT I N G C A S H F L O W S (2) $388M

A D J U S T E D E P S (3) $0.14

A D J U S T E D C A S H F L O W P E R S H A R E (2) $0.48

(1) (2) (3) See endnotes

Page 9: Goldcorp Corporate Update - September 2013

2013 GUIDANCE

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Financial Discipline Drives Cost Improvements

2013

Updated Guidance1

G O L D P R O D U C T I O N ( m o z ) 2.55 - 2.80

C A S H C O S T S $ / o z A L L - I N S U S T A I N I N G B Y - P R O D U C T C O - P R O D U C T

$1,000 - $1,100

$525 - $575 $700 - $750

C A P I T A L E X P E N D I T U R E S $2.6B

E X P L O R A T I O N E X P E N D I T U R E S $200M

C O R P O R A T E A D M I N I S T R A T I O N $164M

D E P R E C I A T I O N / o z $335

T A X R A T E 29%

1 2013 updated price assumptions: Au=$1319/oz, Ag=$22.27/oz, Cu=$3.07/lb, Zn=$0.89/lb, Pb=$0.93/lb

Page 10: Goldcorp Corporate Update - September 2013

STRONG DIVIDEND TRACK RECORD

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Dividend Remains Intact

0% 5%

24% 25% 27%

0% 5%

21% 21% 24%

KGC ABX NEM AUY GG2013E 2014E

Dividend as % of Operating Cash Flow1

0%

1 Source: Bloomberg consensus (as of Sept. 9, 2013)

H I G H E S T % O F O P E R AT I N G C A S H F LOW R E T U R N E D

Page 11: Goldcorp Corporate Update - September 2013

CASH FLOW ALLOCATION PRIORITIES

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Fund existing 70% growth

profile

Invest in high return organic

growth

Flexibility for selective

M&A

Regular dividend growth

CREATING SHAREHOLDER VALUE

Page 12: Goldcorp Corporate Update - September 2013

PRODUCTION GUIDANCE & CFPS GROWTH

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Well Positioned for High Quality, Long Term Growth

2012A 2013E 2014E 2015E 2016E 2017E

Gold Production (Moz)

2.4

2.55 - 2.8

3.2 - 3.5

3.5 - 3.8

3.8 - 4.0

4.0 - 4.2

$2.28

$2.70

$3.48

2013E 2014E 2015E

Cash Flow / Share1

1 Source: Bloomberg cash flow per share estimates 2013E – 2015E (as of Sept. 9, 2013)

Page 13: Goldcorp Corporate Update - September 2013

FOCUS IN LOW-RISK JURISDICTIONS

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Canada 38%

US 6%

Mexico 30%

Argentina 5%

Dominican Republic 14%

Guatemala 7%

2013E GOLD

PRODUCTION

ARGENTINA

DOMINICAN REPUBLIC

GUATEMALA

CHILE

Operating Mines Development Projects

MEXICO

USA

CANADA

Page 14: Goldcorp Corporate Update - September 2013

RED LAKE, CANADA

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Cornerstone Asset

• Gold production

2013E: 475,000 – 510,000 oz

• Stable, low cost gold production

• Singe de-stress slot for late-2013 at the 46/47 level

• Positive exploration results

NXT Zone – test and extend

Focus on newly discovered structure off of 4699 ramp at the High Grade Zone

Page 15: Goldcorp Corporate Update - September 2013

PEÑASQUITO, MEXICO

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Optimizing Mexico’s Largest Gold Producer

• Gold production

2013E: 360,000 – 400,000 oz

• Water source identified; further studies on tailings efficiency and potential to source effluent water

• Focus on efficiencies & cost reductions

• Positioned for improved H2’13

• District potential opportunities

Page 16: Goldcorp Corporate Update - September 2013

PUEBLO VIEJO, DOMINICAN REPUBLIC

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Key Driver of Gold Production Growth

• On track for ramp up to full capacity H2’13

2013E: 330,000 – 435,000 oz

• Dual fuel power plant – to be commissioned in Q3’13

• Definitive Agreement reached – expected to be ratified shortly

• Annual output 415,000 to 450,000 ounces per year in first five years

• Life of mine +25 years

Page 17: Goldcorp Corporate Update - September 2013

EXCEPTIONAL DEVELOPMENT PIPELINE

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Growth in High Quality Ounces

CAMINO ROJO

(SULPHIDES)

PEÑASQUITO UG CAMINO ROJO

(OXIDES) (2016)

EL MORRO

AGUA RICA

CERRO NEGRO (2013)

ÉLÉONORE (2014)

COCHENOUR (2015)

PUEBLO VIEJO (2012)

PEÑASQUITO (2010)

LOS FILOS (2008)

MARLIN (2006)

RED LAKE & OTHER

OPERATING MINES*

SCOPING

FEASIBILITY

CONSTRUCTION

PRODUCTION

* PORCUPINE, MUSSELWHITE, EL SAUZAL, ALUMBRERA, MARIGOLD, WHARF

Page 18: Goldcorp Corporate Update - September 2013

CERRO NEGRO

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Developing our Next Cornerstone Mine

• High grade vein systems

• Outstanding reserve growth potential

• Deferral of non-essential capital to 2015

• Status/progress at June 30

Engineering: 93% complete

EPCM: 60% complete

• Development & construction advancing

Ore stockpile of ~90,000 tonnes

Page 19: Goldcorp Corporate Update - September 2013

ÉLÉONORE

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Pure Gold in a Safe Jurisdiction

• On track for first gold late-2014

• Exploration ramp extended over 3,350m

• Production shaft advanced to a depth of 383m

• 4 drills conducting definition and exploration drilling

• Development plan:

Upper/lower mine concept; 7ktpd

600,000 oz Au/annually1

Initial capital expenditure $1.75B 1 Upon ramp-up to full capacity

Page 20: Goldcorp Corporate Update - September 2013

COCHENOUR

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Extending Production in a World Class Camp

• Development plan:

225,000 – 250,000 oz Au / annually

Initial capital expenditure: $540M

First production 1H’15

• Shaft widening advancing

• Haulage drift 76% complete

• Two underground drills exploring from the haulage drift

• Focusing on integrating Cochenour with the existing Red Lake operations

Page 21: Goldcorp Corporate Update - September 2013

WHY GOLD?

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12 Consecutive Years of Gold Price Growth – Gold price

409%

Central bank buying

Flat mine supply

Stable investment

demand

Safe haven/ asset class Inflation

hedge

Currency protection

Growing physical demand

China factor

Continued debasement of international

currencies

increase since 2000

2000 Sept. 9’13

Geopolitical instability

Dec. 31, 2000 – Sept. 9 , 2013

Page 22: Goldcorp Corporate Update - September 2013

GOLDCORP ADVANTAGE

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QUALITY GROWTH

COST MANAGEMENT

PEER-LEADING BALANCE SHEET

RESPONSIBLE MINING PRACTICES

LOW POLITICAL RISK

S U P E R I O R INVESTMENT PROPOSITION

Page 23: Goldcorp Corporate Update - September 2013

APPENDIX A - ALL-IN SUSTAINING CASH COSTS

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Non-GAAP Measures Presented on Goldcorp Share Basis

OTHER

OPERATING COST

$565 SUSTAINING CAPEX (1)

$433

G&A

$111 $22

Q2 2013 TOTAL $1,279 per oz

$13

OPERATING COST

$645 SUSTAINING CAPEX (1)

$495

G&A

$101 $19

Q1 2013 TOTAL $1,144 per oz

$19 EXPLORATION

EXPLORATION

1 See endnote 6

Page 24: Goldcorp Corporate Update - September 2013

APPENDIX B - 2013 MINE-BY-MINE GUIDANCE

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2013 Guidance

2012 Actual

R e d L a k e 475,000 - 510,000 507,700

P e ñ a s q u i t o 360,000 - 400,000 411,300

L o s F i l o s 340,000 - 350,000 340,400

P u e b l o V i e j o ( 4 0 . 0 % ) 330,000 - 435,000 44,700

P o r c u p i n e 270,000 - 280,000 262,800

M u s s e l w h i t e 250,000 - 260,000 239,200

M a r l i n 185,000 - 200,000 207,300

A l u m b r e r a ( 3 7 . 5 % ) 120,000 - 125,000 136,600

M a r i g o l d ( 6 6 . 7 % ) 95,000 - 100,000 96,300

E l S a u z a l 70,000 - 80,000 81,800

W h a r f 55,000 - 60,000 68,100

To t a l 2,550,000 – 2,800,000 2,396,200

Page 25: Goldcorp Corporate Update - September 2013

APPENDIX C - PEÑASQUITO: IMPAIRMENT OF MINING INTERESTS

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Decline in Market Value Per In-Situ Ounce Primarily Driving Impairment Charge

Q2 Impairment Charge

Impairment before tax

2,427

DIT (600)

Impairment, net of tax

1,827

Q2 Carrying values Pre-Impairment Post Impairment

($million)

Peñasquito Less

Exploration Potential and

Goodwill

Exploration Potential

Goodwill

Peñasquito Less

Exploration Potential

Exploration Potential

Goodwill

Net Book Value 5,128 5,590 283 4,113 4,461 -

Deferred Income Tax (DIT)

(2,697) - (2,097) -

8,021 283 6,477 -

Refer to note 6(a) of the financial statements

Page 26: Goldcorp Corporate Update - September 2013

APPENDIX D - 2013 SENSITIVITIES

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Base Price Change

Increments CFPS

($/share)

By Product Cash Costs

($/oz)

FCF ($mm)

Gold Price ($/oz) $1,600 $100 $0.25 $1 $205

Silver Price ($/oz) $30.00 $3.00 $0.06 $27 $52

Copper Price ($/lb) $3.50 $0.50 $0.04 $17 $32

Zinc Price ($/lb) $0.90 $0.10 $0.03 $11 $21

Lead Price ($/lb) $0.90 $0.10 $0.01 $5 $10

Canadian Dollars 1.00 10% $0.05 $19 $152

Mexican Peso 12.75 10% $0.04 $15 $39

Diesel ($/barrel) $100.00 10% $0.02 $9 $16

Electricity ($/kWh) $0.09 10% $0.02 $11 $20

Page 27: Goldcorp Corporate Update - September 2013

APPENDIX E - OPERATING COST BREAKDOWN

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22%

16%

8% 11%

9%

15%

2%

5%

5% 7%

Labour Contractors Fuel Costs Power Maintenance Parts Consumables Tires Explosives Site Costs Others

38%

17% 6%

5%

8%

11%

2% 3%

6% 4%

CANADA / USA MEXICO CSA

13%

18%

10%

11% 10%

18%

3%

6%

4% 7%

17%

9%

8%

18% 12%

15%

2%

4%

4%

11%

CONSOLIDATED

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APPENDIX F - GOLD MINERAL RESERVES

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GOLDCORP MINERAL RESERVES

(as of December 31, 2012) PROVEN PROBABLE PROVEN & PROBABLE

Ownership Tonnage Grade Contained Tonnage Grade Contained Tonnage Grade Contained

GOLD mt g Au/t m oz mt g Au/t m oz mt g Au/t m oz

Alumbrera 37.5% 78.75 0.36 0.91 2.51 0.23 0.02 81.26 0.36 0.93

Camino Rojo 100.0% - - 66.76 0.76 1.63 66.76 0.76 1.63

Cerro Blanco 100.0% - - - - - -

Cerro Negro 100.0% 0.04 11.08 0.01 18.87 9.43 5.72 18.91 9.43 5.74

Cochenour 100.0% - - - - - -

Dee 40.0% - - 20.42 1.44 0.95 20.42 1.44 0.95

El Morro 70.0% 233.95 0.56 4.24 215.56 0.36 2.49 449.51 0.47 6.73

El Sauzal 100.0% 4.42 1.52 0.22

Eleonore 100.0% - - 12.48 7.56 3.03 12.48 7.56 3.03

Los Filos 100.0% 72.61 0.96 2.25 224.10 0.72 5.18 296.71 0.78 7.43

Marigold 66.7% 23.37 0.68 0.51 173.06 0.50 2.77 196.43 0.52 3.28

Marlin 100.0% 3.52 3.37 0.38 3.91 4.91 0.62 7.44 4.18 1.00

Musselwhite 100.0% 5.26 6.79 1.15 5.97 5.94 1.14 11.23 6.34 2.29

Noche Buena 100.0% - - - - - -

Penasquito Heap Leach 100.0% 32.34 0.15 0.16 87.41 0.13 0.36 119.75 0.13 0.52

Penasquito Mill 100.0% 577.90 0.55 10.27 484.71 0.31 4.90 1,062.60 0.44 15.17

Porcupine 100.0% 27.79 1.57 1.40 80.98 1.13 2.94 108.78 1.24 4.35

Pueblo Viejo 40.0% 13.88 3.49 1.56 96.06 2.74 8.45 109.94 2.83 10.01

Red Lake 100.0% 2.00 11.85 0.76 8.49 9.04 2.47 10.48 9.57 3.23

San Nicolas 21.0% - - - - - -

Wharf 100.0% 10.32 0.81 0.27 11.80 0.82 0.31 22.12 0.82 0.58

Totals 23.87 42.99 67.08

1. Mineral Reserves are estimated using appropriate recovery rates and US$ commodity prices of $1,350 per ounce of gold, $24 per ounce of silver, $3.00 per pound of copper, $0.80 per pound of lead, and $0.85 per pound of zinc, unless otherwise stated below:

1. Alumbrera $1,400/oz gold and $3.20/lb copper 2. Pueblo Viejo, Dee $1,500/oz gold, $28/oz silver, $3.00/lb copper

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ENDNOTES

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1. The Company has included certain non-GAAP performance measures throughout this presentation. The Company believes that, in addition to conventional measures prepared in accordance with

GAAP, the Company and certain investors use this information to evaluate the Company’s operating and economic performance; however, these non-GAAP performance measures do not have any

standardized meaning. Accordingly, these performance measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of

performance prepared in accordance with GAAP.

The Company calculates its non-GAAP performance measures on an attributable basis. Attributable performance measures include the Company’s mining operations and projects, and the Company’s

share from Alumbrera and Pueblo Viejo. The Company believes that disclosing certain performance measures on an attributable basis is a more relevant measurement of the Company’s operating and

economic performance, and reflects the Company’s view of its core mining operations.

By-product cash costs incorporate Goldcorp’s share of all production costs, adjusted for changes in estimates at the Company’s closed mines which are non-cash in nature, and include Goldcorp’s share

of by-product credits, and treatment and refining charges included within revenue. Additionally, cash costs are adjusted for realized gains and losses arising on the Company’s commodity and foreign

currency contracts which the Company enters into to mitigate the Company’s exposure to fluctuations in by-product metal prices, heating oil prices and foreign exchange rates, which may impact the

Company’s operating costs.

In addition to conventional measures, the Company uses total cash costs, by product and co-product, per gold ounce, to monitor its operating cash costs internally and believes these measure provide

investors and analysts with useful information about the Company’s underlying cash costs of operating and the impact of by-product revenues on the Company’s cost structure. The Company reports

total cash costs on a gold ounces sold basis. In the gold mining industry, this is a common performance measure but does not have any standardized meaning. The Company follows the

recommendations of the Gold Institute Production Cost Standard. The Gold Institute, which ceased operations in 2002, was a non-regulatory body and represented a global group of suppliers of gold

and gold products. The production cost standard developed by the Gold Institute remains the generally accepted standard of reporting cash costs of production by gold mining companies.

The Company, in conjunction with an initiative undertaken within the gold mining industry, has adopted an all-in sustaining cost performance measure; however, this performance measure has no

standardized meaning. Effective June 30, 2013, the Company has conformed its all-in sustaining definition to the measure as set out in the guidance note released by the World Gold Council on June 27,

2013 and which is expected to be effective from January 1, 2014. The comparative periods have been restated accordingly.

All-in sustaining costs include total production cash costs incurred at the Company’s mining operations, which forms the basis of the Company’s by-product cash costs. Additionally, the Company

includes sustaining capital expenditures, corporate administrative expense, exploration and evaluation costs, and reclamation cost accretion. The Company believes that this measure represents the

total costs of producing gold from current operations, and provides the Company and other stakeholders of the Company with additional information of the Company’s operational performance and

ability to generate cash flows. As the measure seeks to reflect the full cost of gold production from current operations, new project capital is not included. Certain other cash expenditures, including tax

payments, dividends and financing costs are also not included. The Company reports this measure on a gold ounces sold basis.

Production costs in 2013 are allocated to each co-product based on the ratio of actual sales volumes multiplied by budget metals prices of $1,600 per ounce of gold, $30 per ounce of silver, $3.50 per

pound of copper, $0.90 per pound of lead and $0.90 per pound of zinc, rather than realized sales prices.

2. Adjusted operating cash flows and adjusted operating cash flow per share is a non-GAAP measure which the Company believes provides additional information about the Company’s ability to generate

cash flows from its mining operations.

3. Adjusted net earnings and adjusted net earnings per share are non-GAAP performance measures. The Company believes that, in addition to conventional measures prepared in accordance with GAAP,

the Company and certain investors use this information to evaluate the Company’s performance. Accordingly, it is intended to provide additional information and should not be considered in isolation

or as a substitute for measures of performance prepared in accordance with GAAP.

Page 30: Goldcorp Corporate Update - September 2013

ENDNOTES

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4. All Mineral Reserves and Mineral Resources have been estimated as at December 31, 2012 in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and

National Instrument 43-101 (“NI 43-101”), or the AusIMM JORC equivalent. These estimates, as well as all other scientific and technical information relating to Goldcorp’s mineral properties contained

herein, have been prepared by employees of Goldcorp, its joint venture partners or its joint venture operating companies, as applicable, and have been reviewed and approved by Maryse Belanger, P.

Geo., Senior Vice-President, Technical Services of Goldcorp, a “qualified person” for the purposes of NI 43-101. These estimates incorporate current and/or expected mine plans and cost levels at each

property. Varying cut-off grades have been used depending on the mine and type of ore. Goldcorp’s normal data verification procedures have been employed in connection with these estimates.

For a breakdown of Mineral Reserves and Mineral Resources by category and for a more detailed description of the key assumptions, parameters and methods used in calculating Goldcorp’s Mineral

Reserves and Mineral Resources, please refer to Goldcorp’s most recently filed Annual Information Form/ Form 40-F filed with Canadian provincial securities regulatory authorities and the U.S.

Securities and Exchange Commission.

5. Cautionary Note to United States Investors Concerning Estimates of Measured, Indicated and Inferred Resources: United States investors are advised that while such terms are recognized and

required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. “Inferred Mineral Resources” have a great amount of uncertainty as to their

existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules,

estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Goldcorp’s

Measured or Indicated Mineral Resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource

exists, or is economically or legally mineable.

6. Sustaining capital expenditures are defined as those expenditures which do not increase annual gold ounce production at a mine site and excludes all expenditures at the Company’s projects and

certain expenditures at the Company’s operating sites which are deemed expansionary in nature. Refer to page 42 of the Q2 2013 MD&A for a reconciliation of sustaining capital expenditures.