. (All amounts in $US unless stated otherwise)
VANCOUVER, July 30, 2015 /CNW/ - GOLDCORP INC. (TSX: G, NYSE: GG) today reported record second quarter gold production1 of 908,000 ounces, compared to gold production of 648,700 ounces for the second quarter of 2014. Adjusted quarterly revenues1 were $1.3 billion, generating adjusted net earnings1,2 of $65 million, or $0.08 per share, compared to adjusted net earnings of $164 million, or $0.20 per share, for the second quarter of 2014. Adjusted operating cash flow1,3 was $358 million, compared to $376 million for the second quarter of 2014. Reported net earnings attributable to shareholders of Goldcorp for the quarter were $392 million, or $0.47 per share, compared to net earnings of $181 million, or $0.22 per share, for the second quarter of 2014.

Second Quarter 2015 Highlights
•Gold sales1 of 903,000 ounces; gold production of 908,000 ounces.
•2015 gold production expected toward the high end of guidance range; cost guidance narrowed and improved.
•Free cash flow4 of $174 million before dividends; $50 million after dividends.
•Adjusted revenues of $1.3 billion.
•All-in sustaining costs1,5 of $846 per ounce.
•Adjusted net earnings of $65 million, or $0.08 per share.
•Adjusted operating cash flow of $358 million.
•Declared commercial production at Éléonore on April 1, 2015.
•Increased the credit facility from $2 billion to $3 billion and extended facility for 5 years.
•Completed secondary offering of Tahoe Resources shares for net proceeds of $768 million.
•Dividend per share reduced 60% to $0.02 per month effective August 1, 2015.
•Named one of Canada's 50 Most Socially Responsible Corporations by Sustainalytics.



"Goldcorp's excellent second quarter results underscore the growing strength and quality of our mine portfolio," said Chuck Jeannes, Goldcorp President and Chief Executive Officer. "Higher gold grades at Peñasquito and a continued strong ramp-up at Cerro Negro drove record quarterly gold production and more than offset the slower-than-planned ramp-up at Éléonore. In addition, a continued focus on cost efficiency and productivity enhancements along with favorable currency effects continued to push costs lower. Our expectation is for this strong operating performance to continue and for 2015 production guidance to trend toward the high end of the current range of between 3.3 and 3.6 million ounces of gold. In addition, we have improved our all-in sustaining cost guidance to between $850 and $900 per gold ounce.

"After several years of investment in our new mines, we were very pleased to generate positive free cash flow after dividends of $50 million during the quarter. We have also taken timely actions to fortify Goldcorp's strong financial liquidity position. The recent sale of our 26% interest in Tahoe Resources, the $1 billion expansion of our credit facility and the dividend reduction ensure the Company has the financial flexibility to succeed in a volatile gold market."

Financial Review

Second quarter gold sales were 903,000 ounces on production of 908,000 ounces, compared to sales of 639,500 ounces on production of 648,700 ounces in the second quarter of 2014. Silver production totaled 10.4 million ounces compared to 9.0 million ounces in the prior year's second quarter. All-in sustaining costs were $846 per ounce of gold in the second quarter of 2015 compared to $852 per ounce in the second quarter of 2014.

Adjusted revenues for the second quarter totaled $1.3 billion and the reported net earnings attributable to shareholders of Goldcorp for the second quarter were $392 million, or $0.47 per share, compared to net earnings of $181 million, or $0.22 per share, for the second quarter of 2014. Adjusted net earnings for the second quarter totaled $65 million, or $0.08 per share, compared to $164 million, or $0.20 per share, for the second quarter of 2014. The decrease in adjusted net earnings was a result of lower realized margin6 on gold and by-product metal sales due to lower realized prices, higher production costs resulting from the slower ramp-up at Éléonore and higher depreciation and depletion expense.

Adjusted net earnings for the second quarter of 2015 primarily exclude the non-cash dilution gain ($95 million, net of tax or $0.12 per share), realized gain on the sale of the Tahoe Resources shares ($252 million, net of tax or $0.30 per share), realized gain on the sale of the Arturo mine project ($11 million, net of tax or $0.01 per share), unrealized losses from the foreign exchange translation of deferred income tax assets and liabilities ($22 million, or $0.03 per share), unrealized gains on derivatives ($16 million, net of tax or $0.02 per share) and the Company's share of impairment losses related to certain power assets at Pueblo Viejo ($15 million, net of tax or $0.02 per share). Adjusted net earnings include the impact of non-cash stock-based compensation expenses which amounted to approximately $14 million, or $0.02 per share, for the quarter. Adjusted operating cash flow for the second quarter was $358 million, compared to $376 million for the second quarter of 2014.

Canada

At Éléonore in Quebec, commercial production was declared on April 1, 2015. Second quarter gold production totaled 43,800 ounces at an all-in sustaining cost of $1,656 per ounce. The increase in production compared to the prior quarter was primarily the result of increased process and filtration plant availability following the successful resolution of previously-reported start-up issues. Following a shut-down in May to remediate a bottleneck on the tailings conveyor, the mill has averaged 5,100 tonnes per day. Further increases in gold production for the balance of 2015 will be driven by increased mill throughput as well as higher gold grades as underground mining expands from two to four horizons. In light of the slower than planned ramp-up, Éléonore gold production in 2015 is now expected to be at or below the low end of the guidance range of between 290,000 and 330,000 ounces.

Work on the Éléonore crown pillar pre-feasibility study continued to advance during the second quarter. Major activities included the progression of the trade-off study between pit/underground mining, determination of the dike location, and permitting and stakeholder engagement efforts. The completion of the pre-feasibility study is expected by the end of 2015.

Gold production at Red Lake in Ontario in the second quarter totaled 90,800 ounces at an all-in sustaining cost of $879 per ounce. Production decreased over the prior quarter as a result of lower grades from fewer tonnes mined in the High Grade Zone due to mine sequencing. A focus on exploration to access the HG Young discovery continued to advance north on the 14 Level at the Campbell Complex. This drift provides a new drill platform for follow-up drilling on several positive intercepts from the ongoing surface exploration program at the HG Young discovery.

At Cochenour, intersected gold grades remain consistent with expectations, however recent drill data and newly discovered mineralized zones indicate a change in orientation of a portion of the veins compared to the Company's existing model. Additional advanced exploration and analysis is required to support final mine planning and infrastructure. Processing of mill feed from the first test stopes is expected in the fourth quarter of 2015.

At Porcupine in Ontario, gold production for the second quarter was 72,400 ounces at an all-in sustaining cost of $1,010 per ounce. Production increased over the prior quarter due to higher mill throughput primarily as a result of improved weather conditions. The Hoyle Deep project, which will enable efficient access to lower portions of the Hoyle Pond deposit when completed, continued to progress successfully toward expected completion in the first quarter of 2016. Pre-stripping activities continued at the Hollinger project with approximately 1.8 million tonnes of material placed on the Environmental Control Berm at the end of the second quarter. Upon planned completion of the berm in the third quarter of 2015, mining operations are expected to commence 24 hours a day.

At the Borden Gold project 160 kilometres west of Porcupine, studies are underway to determine the optimization of a combined Borden-Porcupine operation. Surface diamond drilling continued during the second quarter with six drills on site. The current exploration focus is on in-fill drilling with a target to convert resources into reserves by the end of 2015.

Gold production at Musselwhite in Ontario increased over the prior quarter to 60,900 ounces as a result of higher mill throughput. Musselwhite's all-in sustaining cost was among the lowest within the portfolio at $761 per ounce as the team at site continued to concentrate on productivity and efficiency improvements. The focus of the exploration program during the second quarter was on reserve replacement. Drilling was concentrated on the West Limb zone and the Upper Lynx zone. Four rigs are being utilized to complete the programs and all zones continue to build with positive results.

Latin America

At Peñasquito in Mexico, gold production totaled a record 298,000 ounces for the quarter at an all-in sustaining cost of $416 per ounce. Strong production compared to the prior quarter was primarily driven by higher sulphide grades as a result of positive model reconciliation and as substantial mining took place in the heart of the deposit in Phase 5C. All-in sustaining costs decreased over the prior quarter primarily as a result of increased gold production. In light of the strong performance, production at Peñasquito is expected to be at the high end of 2015 guidance of between 700,000 and 750,000 ounces.

Progress on the construction of the Northern Well Field ("NWF") project was limited due to continued social issues with local communities. The remaining NWF work is on hold until a fair resolution of the issues is reached with the communities. The Company continues to pursue an equitable resolution and evaluate mitigation strategies. Contingency plans remain in place for a fresh water supply to Peñasquito until the NWF is fully operational.

The Metallurgical Enhancement Project ("MEP") continues to demonstrate the potential to significantly enhance the overall economics and mine life of Peñasquito. During the quarter, the pilot plant construction was completed and pilot plant testing commenced. MEP permit applications were submitted in May 2015 and the feasibility study remains on track for completion in early 2016.

At the Camino Rojo project located approximately 50 kilometres from Peñasquito, ongoing pre-feasibility study work is focused on the evaluation of Camino Rojo as a supplemental source of transitional and sulphide feed to the existing Peñasquito facility, in addition to a small, stand-alone oxide heap leach facility. This approach has the potential to generate the highest rate of return given the significantly lower capital costs versus building a separate processing facility at Camino Rojo. Updating of the geologic model continued during the second quarter and metallurgical testing of sulphide, transition and oxide zones is ongoing. The pre-feasibility study is on track to be completed in 2016.

Gold production at Los Filos in Mexico in the second quarter of 2015 totaled 67,500 ounces at an all-in sustaining cost of $1,071 per ounce. Increased production over the prior quarter was a result of increased grades and recoveries, resulting from recovery improvement projects which were initiated in the prior quarter. A new life-of-mine plan is progressing with a focus to maximize return on investment and is expected to be completed by the end of 2015. The exploration program continues with the objective to define later phases of the El Bermejal pit and extend the high grade zones for underground mining.

At Cerro Negro in Argentina, second quarter gold production totaled 131,300 ounces at an all-in sustaining cost of $792 per ounce. Mine ramp-up continued during the second quarter as planned with a focus on the higher-grade Mariana Central mine. Additional stopes came on-line during the second quarter, increasing the proportion of tonnes milled from Mariana Central. Recoveries increased during the quarter as the mill continues to be optimized. Total tonnes milled increased following an increase in surface haulage capacity resulting in an average of 3,378 tonnes per day processed for the second quarter of 2015. Exploration in the second quarter continued to focus on resource confirmation drilling. The current drilling program is progressing as planned, expanding resources at the Marianas Complex, Bajo Negro and Vein Zone. The most significant assay results have been received from the Marianas Complex area.

At the Pueblo Viejo joint venture in the Dominican Republic, Goldcorp's share of second quarter gold and silver production totaled 87,200 ounces and 38,100 ounces, respectively, at an all-in sustaining cost of $688 per ounce. Gold production decreased over the prior quarter due to lower than planned gold recoveries, largely related to a higher proportion of carbonaceous ore. Increased all-in sustaining costs were a result of lower silver recoveries associated with a temporary shut-down of the lime boil process during scheduled autoclave maintenance. Recent modifications to the lime boil are showing significantly improved silver recoveries and the first copper concentrate was shipped in the second quarter. Production is expected to be higher and costs lower in the fourth quarter compared to the third quarter on higher expected grades, improved recoveries and better autoclave availability, as maintenance shut-downs were weighted to the first half of 2015.

2015 Guidance Outlook
Driven by strong second quarter results and management's outlook for the second half, the Company expects to be at the high end of 2015 production guidance of between 3.3 and 3.6 million gold ounces. All-in sustaining cost guidance has been reduced to between $850 and $900 per gold ounce compared to prior guidance of between $875 and $950 per gold ounce. Depreciation, depletion, and amortization expense ("DDA") guidance is now expected to be approximately $425 per gold ounce sold from prior guidance of $390 per gold ounce sold. The increase is due primarily to the impact of the delay in obtaining the additional mining license at Marlin and further refinements to the DD&A per gold ounce as Cerro Negro and Éléonore ramp-up to sustained operating levels. Capital spending guidance remains unchanged at between $1.2 billion and $1.4 billion for 2015. Corporate administration expense guidance, excluding share-based compensation, has also been reduced to approximately $170 million in 2015 compared to prior guidance of $185 million. Excluding the impacts of foreign exchange on deferred tax assets and liabilities and excluding the dilution and disposition gain on the sale of Tahoe and the related taxes, the Company continues to expect an annual effective tax rate of 45% in 2015.