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Gold/Mining/Energy : Precious and Base Metal Investing

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To: russwinter who started this subject	12/10/2003 12:36:17 PM
From: bmccra	Read Replies (1) of 39344

Goldcorp has liquidated it’s bullion hoard apparently: “we sold our gold inventory during the current quarter. This gold was sold for an average price of $388 per ounce.” TORONTO--(BUSINESS WIRE)--Dec. 10, 2003--Goldcorp Inc. (NYSE:GG - News; TSX:G - News) is pleased to declare a special dividend of US$0.10 per share. Shareholders of record on January 6th, 2004, will be eligible to receive payment of this dividend on January 13th, 2004. GOLD INVENTORY DELIVERING VALUE TO SHAREHOLDERS As a demonstration of our belief that gold was beginning a major new bull market we began to build a gold inventory in the 3rd, quarter (ending September 30) of 2001 by commencing a program of holding back a portion of our gold production from sale. By the end of the 3rd quarter of 2003 Goldcorp had accumulated a total of 142,913 ounces of gold in this way representing 11% of our total production over this period. The goal of this program was to sell this gold for a higher price at a later date and therefore generate increased earnings and the ability to pay higher dividends to our shareholders. This program was complimented in the 2nd quarter (ending June 30) of 2002 as we began to purchase gold and continued to do so on an opportunistic basis whenever the gold price declined to its long-term trend line. By the end of the 3rd quarter of 2003 Goldcorp had purchased a total of 123,817 ounces of gold. Our total gold inventory reached 266,730 ounces (8.3 tonnes) - more than the bank of Canada! We were right about the gold price! When we began to build this inventory the gold price was only $274 per ounce and is currently more than $405 per ounce - an increase of more than $130 per ounce! We believe gold is truly in a bull market! Generally accepted accounting principles (GAAP) do not allow us to record the earnings from this gold until time of sale. However, we wanted to demonstrate the benefits of this program and return the value it has created to our shareholders. To do so, we sold our gold inventory during the current quarter. This gold was sold for an average price of $388 per ounce. This represents an increase of $72 per ounce over the average gold price of $316 per ounce which would have been realized if all gold had been sold at the time of production. It also amounts to an increase of $66 per ounce over the average price at which the gold was purchased. continued... biz.yahoo.com b

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