Goldcorp Inc.

Goldcorp Inc.

December 18, 2006 20:17 ET

Goldcorp Provides 2007 Production Guidance; Announces Management Appointments

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 18, 2006) - (All figures are in US dollars unless stated otherwise)

GOLDCORP INC. (TSX:G)(NYSE:GG) announced today that it expects to produce approximately 2.8 million ounces of gold in 2007 at an anticipated total cash cost of $150 per ounce. By-product assumptions used to forecast cash costs are silver at $10 per ounce and copper at $3 per pound.

Expected metals production is as follows:

First Half 2007 Second Half 2007 Total 2007
Gold (oz) 1,265,000 1,535,000 2,800,000
Silver (oz) 10,000,000 8,300,000 18,300,000
Copper (lbs) 75,000,000 88,000,000 163,000,000

The ramp-up of production at Los Filos in Mexico and Marlin in Guatemala is expected to drive the increase in gold production in the second half of the year.

Forecast 2007 gold production by mine is as follows:

Gold Ounces Gold Ounces
Red Lake 790,000 San Dimas 155,000
El Sauzal 265,000 Marigold (66.7%) 135,000
Los Filos(i) 260,000 Peak 120,000
Alumbrera (37.5%) 230,000 Amapari 95,000
Marlin 230,000 Wharf 70,000
Porcupine (51%) 175,000 La Coipa 55,000
Musselwhite (68%) 165,000 San Martin 55,000
(i) Los Filos includes Nukay with approximately 30,000 ounces
in gold production.

Capital expenditures for the year are forecast at $750 million, including approximately $315 million at the Penasquito project in Mexico, $110 million at Red Lake mine in Canada and $95 million at Los Filos and San Dimas--the latter of which includes the on-going construction of a hydroelectric power plant. Exploration expense for 2007 is forecast at $55 million, including $23 million in Canada and $22 million in Mexico.

Management Appointments

Goldcorp also announced today the appointment of Steve Reid as the Company's Chief Operating Officer. Mr. Reid previously served as Goldcorp's Executive Vice President in charge of US and Canadian operations. He replaces Russell Barwick, who has served as Goldcorp's Executive Vice President and COO since the Company's merger with Wheaton River in 2005. Also departing is Jim Voorhees, former Chief Operating Officer of Glamis Gold. In addition, current Goldcorp Executive Vice President Chuck Jeannes has been appointed Executive Vice President, Corporate Development. All changes are effective as of January 1, 2007.

"On behalf of the entire board and management team, I wish to thank Mr. Barwick and Mr. Voorhees for the tremendous contributions that each has made to the Company," said Kevin McArthur, President and Chief Executive Officer. "In Steve Reid, I am confident we have the right individual to take the Company through its next phase of growth. He will be supported in this endeavor by one of the most talented teams in the industry. I look forward to working with the entire group to build Goldcorp into the world's premier gold mining company."

Goldcorp is the lowest-cost senior gold producer with the best growth profile in the Americas.

Cautionary Note Regarding Forward-Looking Statements

Safe Harbor Statement under the United States Private Securities Litigation Reform Act of 1995: Except for the statements of historical fact contained herein, the information presented constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including but not limited to those with respect to the price of gold, silver and copper, the timing and amount of estimated future production, costs of production, reserve determination and reserve conversion rates involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievement of Goldcorp to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks related to the integration of acquisitions, risks related to international operations, risks related to joint venture operations, the 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 and copper, as well as those factors discussed in the section entitled "General Development of the Business - Risks of the Business" in Goldcorp's Form 40-F on file with the Securities and Exchange Commission in Washington, D.C. and Goldcorp's Annual Information Form on file with the securities regulatory authorities in Canada. Although Goldcorp has attempted to identify important factors that could cause actual results to differ materially, 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.

Contact Information

  • Goldcorp Inc.
    Melanie Pilon
    Director, Investor Relations
    (604) 696-3024
    (604) 696-3001 (FAX)
    Goldcorp Inc.
    Jeff Wilhoit
    Investor Relations, Reno
    (775) 827-4600
    (775) 827-6992 (FAX)