Holding gold off the market is a VERY bullish sign:
GOLDCORP INC.
NEWS RELEASE
THIRD QUARTER 2001 FINANCIAL RESULTS ON TARGET . RECORD NINE MONTH PRODUCTION -OF 469,000 OUNCES A T $86/oz
100% INCREASE IN DIVIDEND
WITHHOLDS 28,000 OUNCES OF GOLD FROM MARKET
(All amounts i*lhis news release are expressed in United States dollars, unless otherwise indicatedJ
Toronto, October 22, 2001 -GOLDCORP INC. (G: TSE; GG: NYSE), is pleased to announce its 3rd quarter (ending September 30) 2001 financial and operating results exceeded forecasts for gold production, production costs and cash flow and earnings per share. During the lst nine months of2001, Goldcorp generated $0.89 and $0.50 per share, of cash now and earnings, respectively, versus losses of $0.02 and $0.07 in the same period in 2000. Gold production for the 1 st nine months of 2001 totalled a record 469,000 ounces at a cash production cost of $86/oz. Forecast 2001 gold production from Red Lake has been increased to 500,000 ounces (from 475,000 ounces) at a cash production cost of $65 per ounce. Based on these strong results, the Board of Directors approved a special dividend of $0.10 per share which represents a 100% increase in the annual dividend for 2001 to $0.20 per share.
Goldcorp believes strongly that gold's primary function is as money not jewelry! As such, it is the Company's view that gold remains a valuable asset whose worth is likely to increase. In keeping with this belief; Goldcorp held 28,000 ounces of gold in inventory at the end of the 3rd quarter. Had thi'S gold been sold, earnings per share for the jd quarter and Ist nine months of 2001 would have been $0.02 higher than reported.
FINANCIAL AND OPERATING RESULTS -THIRD QUARTER, 2001
Cash flow from operations was $17.9 million, or $0.22 per share, which compares to a deficit of $1.4 million, or $0.02 per share, in the third quarter of 2000. Earnings for the period were $10.6 million, or $0.13 per share, which compares: with breakeven results in the same period of2000. At the end of the 3rd quarter, the Company held approximately 28,000 ounces of gold as inventory. Had this gold been sold in the 3rd quarter, earnings would have been $0.02 per share higher at $0.15 per share. However, the increase in this inventory is supportive of our view that gold remains an undervalued asset. We believe that in the current economic environment the gold price has the potential to increase significantly. We further believe that our shareholders' interests are best served by maintaining as much exposure as possible to this scenario. Maintaining a portion of our liquid assets as gold bullion is one way to do this. Gold bullion is easily converted into cash should the need Mise or the situation warrant.
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