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Goldcorp First Quarter Earnings Increase 84%
Monday May 5, 8:30 am ET


VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--May 5, 2008 -- All Amounts in $US unless stated otherwise
GOLDCORP INC. (Toronto:G.TO - News)(NYSE:GG - News) today reported net earnings of $229.5 million, or $0.32 per share, for the quarter ended March 31, 2008, an increase of 84% over net earnings in the first quarter of 2007. Adjusted net earnings(1) doubled to $164.7 million, or $0.23 per share, compared to $82.8 million, or $0.12 per share, in the same period a year ago.

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First Quarter 2008 Highlights:

- Revenues increased 32% to $626.7 million on gold production of 521,900 ounces.

- Total cash costs of $240 per gold ounce(2), net of by-product copper and silver credits.

- Cash margin growth of 60% outpaced a 43% increase in realized gold price of $932 per ounce.

- Operating cash flow increased 35% to $239.1 million, before changes in working capital(3).

- Paid $31.9 million in dividends.

- Completed sale of Silver Wheaton shares for $1.6 billion.

"Goldcorp's Latin American assets were our strongest performers against a backdrop of record-high realized gold prices in the first quarter," said Kevin McArthur, President and Chief Executive Officer. "The results of Los Filos mine were particularly encouraging in its first full quarter of commercial production, contributing to Goldcorp's status as the largest gold producer in Mexico. Marlin mine also exceeded expectations in the quarter, continuing the trend of quarterly production growth. This performance combined with low cash costs for the quarter of $240 per ounce, resulted in a 60% growth in cash margins, providing our shareholders with excellent exposure to gold price increases.

"At Penasquito, we saw excellent progress in the construction of our largest asset. With over $920 million already invested and committed in the project, we remain confident in our total capital expenditure estimate of $1.5 billion. Heap leaching is now underway and the project remains on schedule for the first gold pour from oxide ore in 2008.

"The Canadian mines experienced a slow start to the year. Looking to the balance of 2008, our plan calls for increased production quarter-over-quarter, reflecting our overall growth profile. With seasonal issues and operational challenges at some of our Canadian mines largely behind us, higher production is anticipated in the later portion of the year."

http://biz.yahoo.com/iw/080505/0393465.html