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Goldcorp Reports Third Quarter Earnings
Friday November 9, 8:00 am ET


VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Nov 9, 2007 -- All Amounts in $US unless stated otherwise.
GOLDCORP INC. (Toronto:G.TO - News)(NYSE:GG - News) today reported adjusted net earnings of $82.3 million(1), or $0.12 per share, for the quarter ended September 30, 2007.

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Third Quarter 2007 Highlights:

- Gold production increases 28% to 556,200 ounces(2)

- Gold sales increase 29% to 537,200 ounces(2)

- Realized gold price of $685 per ounce

- Total cash costs of $140 per gold ounce(2,3), net of by-product credits

- Strong margin growth to $545 per gold ounce on a by-product basis

- Net earnings of $75.8 million or $0.10 per share

- Operating cash flow of $208.6 million (before working capital adjustments)(4)

- Dividends of $31.7 million paid during the quarter

- Agreement to acquire 100% ownership of key Canadian gold mines

- Reaffirms 2007 production guidance of 2.2 to 2.3 million ounces of gold at a total cash cost of $150 per ounce

"During the third quarter, Goldcorp grew gold production at much lower cash costs than industry averages," said Kevin McArthur, President and Chief Executive Officer of Goldcorp. "We enjoy the best gross margin in the senior space, enabling shareholders to participate fully in the continued strong market for gold. Maintaining this margin advantage and growing production by over 50% in the next few years remains our primary focus.

"Our operational and corporate initiatives are bearing fruit in this year of consolidation and transition. We have demonstrated quarter-over-quarter improvements, although these were somewhat diluted in the third quarter by storm-related power outages at Red Lake and a late concentrate shipment at Alumbrera. These effects are not expected in the fourth quarter and beyond. In fact, planned completion of the Red Lake expansion and the start-up at commercial operations at Los Filos in Mexico will lay the groundwork for a strong 2008."

Financial Review

Gold sales in the third quarter increased to 537,200 ounces at a total cash cost of $140 per ounce, compared with 421,400 ounces at a total cash cost of $84 per ounce in 2006. On a co-product basis, total cash costs were $299 per ounce compared to $272 per ounce in 2006. On both a by-product and co-product basis, Goldcorp remains the lowest cost, highest margin senior gold producer in the industry. The average realized price per ounce of gold sold increased to $685 compared to $620 per ounce in the third quarter of 2006.

Adjusted net earnings totalled $82.3 million, or $0.12 per share. At the 37.5% -owned Alumbrera mine, both gold and copper sales were significantly lower than production due to a concentrate shipment being delayed until the second week of October. The Company estimates that the delay reduced third quarter earnings by $0.03 per share. Operating cash flow before non-cash working capital adjustments was $208.6 million compared to $171.9 million in last year's third quarter as higher production and realized metals prices more than offset increases in production costs. Net earnings in the quarter were $75.8 million, prior to adjustments, compared to net earnings of $59.5 million in the third quarter of 2006.

On September 25, 2007, Goldcorp entered into an agreement with Kinross Gold Corporation to acquire Kinross' 49% share of the Porcupine gold mine and its 32% share of the Musselwhite gold mine, both in Ontario, in exchange for Goldcorp's 50% interest in the La Coipa silver-gold mine in Chile and $200 million in cash. The transaction highlights Goldcorp's continuing commitment to simplify its business and to focus on long-lived gold assets within the Company's core operating districts. The transaction is expected to close in the fourth quarter of 2007. La Coipa results have been reclassified as discontinued operations, except for certain operational statistics and other information, where noted.

For the nine months ended September 30, 2007, gold sales increased to 1,614,900 ounces at a total cash cost of $151 per ounce, compared with 1,108,500 ounces at a total cash cost of negative $35 per ounce in 2006. Adjusted for certain non-cash items, net earnings amounted to $260.5 million, or $0.37 per share. Gold production in the nine month period increased 50% to 1,653,700 ounces in 2007 compared with 1,105,400 ounces in the 2006 period.

Operations Review

Canada

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