Goldcorp Inc.: Golden 4th Quarter And Year-End Results

    News Editors

    TORONTO--(BUSINESS WIRE)--Feb. 21, 2005--(All Dollar amounts in US$ unless otherwise stated)

    GOLDCORP INC. (TSX:G)(NYSE:GG) announced today its' financial and operating results for the 4th quarter and full year ended, December 31, 2004. In 2004, Goldcorp only sold two-thirds (2/3) of its Gold production and withheld from sale 200,429 ounces of fine gold! The impact of deferring the sale of one-third (1/3) of its production has the effect of significantly reducing Goldcorp's reported Revenues, Cash Flow, Earnings, Assets and Return on Invested Capital while increasing our reported Cost Per Ounce of Production.

    In order to provide our shareholders and investors with a better understanding of our financial performance we also use non-GAAP (Generally Accepted Accounting Principles) terms such as Bullion Adjusted Earnings and Bullion Adjusted Cash Flow to show what our earnings and cash flow would have been had we sold all the gold produced during the period.

    SIGNIFICANT EVENTS in 2004

    FRIENDLY TAKEOVER BID MADE IN Q4 FOR WHEATON RIVER MINERALS A SUCCESS!

    - Goldcorp shareholders overwhelmingly approved the purchase and Wheaton River shareholders overwhelmingly accepted the offer to combine and create the world's lowest cost, million ounce gold producer, possessing a powerful treasury, strong organic growth, no debt, no hedge and a Board and management team with proven entrepreneurial and operational skills. Goldcorp will begin consolidating Wheaton's operating results as of February 17, 2005.

    RECORD PRODUCTION

    - For year end 2004, Goldcorp produced 628,005 ounces of gold and the Red Lake Mine produced 551,886 ounces, exceeding forecasts for the 4th consecutive year!

    TOTAL LIQUID ASSETS CONTINUE TO GROW (cash and short-term investments, marketable securities, gold bullion)

    - Goldcorp now has $461 million in liquid assets which represents an increase of $51 million over 2003, despite paying out $53 million in dividends and $56 million in capital expenditures;

    - The strengthening Canadian Dollar increased Goldcorp's cash holdings during the year by $24 million. While this is not reflected in earnings, it is shown as a separate item on our consolidated statement of cash flows.

    GOLD INVENTORY REACHES 221,220 OUNCES

    - With 200,429 ounces, approximately one-third (1/3) of production being withheld in 2004 Goldcorp's gold inventory has a market value over $96 million and a cost of $34 million.

    FINANCIAL RESULTS

    4th Quarter Ended December 31, 2004

    During the fourth quarter Goldcorp withheld from sale 52,497 ounces. By withholding production we defer our earnings and cash flow to a later date and reduce our immediate financial performance.

    Fourth quarter revenues and earnings decreased to $51.9 million and $15.0 million or $0.08 per share from $110.6 million and $43.3 million, or $0.23 per share for the same period in 2003. The decrease is mainly attributed to the Company holding back 32% (52,497ounces) of production during the quarter versus selling additional ounces from inventory, which had been accumulated during the previous three years (113,757 ounces were sold in the 4th quarter 2004, versus 280,411 ounces for the same period, 2003). This strategy of withholding gold for higher prices enabled the Company to generate an additional $72 per ounce on the gold that was withheld from sale, from 2001 to 2003.

    The reduction in earnings due to less ounces being sold was partially offset by the higher realized price of gold. The realized price during the quarter was $432 per ounce, which represents an increase of 11%, or $44 per ounce, over 2003.

    Bullion Adjusted Earnings (If all the gold produced during the period was sold) for the 4th quarter, 2004, would have been $24.6 million or $0.13 per share, which is an increase from the Bullion Adjusted Earnings of $23.2 million, or $0.13 per share, for the same period in 2003.

    Cash flow from operations during the quarter was $22.4 million, or $0.12 per share, compared with $69.8 million, or $0.38 per share, for the 4th quarter, 2003. Cash flow was lower as a result of gold production being withheld from sale and being placed into inventory, versus additional ounces being sold from inventory, which occurred during the same period in 2003.

    Bullion Adjusted Cash Flow (If all the gold produced during the quarter had been sold) for the fourth quarter 2004, would have been $38.9 million, or $0.20 per share. Bullion Adjusted Cash Flow for the same period 2003 was $36.8 million, or $0.20 per share.

    During the 4th quarter, Goldcorp continued to generate some of the highest margins within the industry: 62.8% Gross Operating Margin and 28.9% Net Profit Margin. ROIC (Return on invested Capital) was 10.7%. On a Bullion Adjusted basis the margins were even stronger: Gross Operating Margin was 68.4%, Net Profit Margin was 32.8% and ROIC was 16.8%.

    Goldcorp continues to have one of the strongest balance sheets in the industry with No Debt and liquid assets totaling $461 million at market value! As of December 31, 2004 the treasury consisted of $333 million in cash and short-term investments, $31 million in marketable securities and $96 million in gold bullion. This total represents an increase of $51 million over 2003. This occurred despite paying out $53 million in dividends and making capital expenditures of $56 million in 2004. The increase is the result of operating cash flows of $52 million, the impact of the appreciation of the Canadian dollar on Goldcorp's short-term investments of $24 million and the Company's growing bullion inventory.

    Twelve Months Ended December 31, 2004

    Earnings totaled $51.3 million, or $0.27 per share, on revenues of $191.0 million, versus earnings of $98.8 million, or $0.54 per share, on revenues of $262.6 million for the twelve months ended December 31, 2003. The reduction in earnings is the result of the Company holding back one-third of annual production in 2004, versus selling additional ounces from inventory for 2003.

    Bullion Adjusted Earnings for the twelve months ended, 2004, would have been $84.2 million, or $0.44 per share, which is the Bullion Adjusted Earnings of $85.7 million, or $0.47 per share, for the same period in 2003. This decrease is due to a net loss of $9.0 million in marketable securities in 2004 versus a net gain of $10.2 million in 2003.

    Cash flow for the twelve months ended December 31, 2004 was $53.1 million or $0.28 per share, versus $95.2 million or $0.52 per share, for the same period in 2003. Once again, cash flow was affected by the Company's policy of withholding one-third of production in 2004 versus selling additional ounces from inventory in 2003.

    Bullion Adjusted Cash Flow for the twelve months ended, December 31, 2004, was $114.0 million, or $0.60 per share. Bullion Adjusted Cash Flow for the same period in 2003 was $74.0 million, or $0.40 per share in 2003.

    GOLD INVENTORY - 6.9 tonnes (221,220 ounces)

    At December 31, 2004, Goldcorp's gold inventory had grown to 6.9 tonnes, or 221,220 ounces and had a market value of $96 million and a cost of $34 million. GOLDCORP IS THE ONLY GOLD COMPANY IN THE WORLD TO STRATEGICALLY WITHHOLD GOLD FROM SALE IN ANTICIPATION OF HIGHER PRICES! In 2004, one-third of Goldcorp's production was withheld, some 200,429 ounces of gold.

    Goldcorp now holds more gold than the governments of Ireland, Mexico, Norway, and Canada. Goldcorp's gold inventory is now larger than 45 of the 111 countries that report gold holdings! Gold is Money and we believe it to be the ultimate form of currency!

    OPERATING RESULTS

    4th Quarter Ended December, 2004: Record Quarterly Production!

    Gold production was 166,254 ounces at a cash cost of $127 per ounce sold, compared with 158,289 ounces at a cash cost of $95 per ounce sold during the same period in 2003.

    The Red Lake Mine had record quarterly production, contributing 151,073 ounces of gold during the quarter, at a cash cost of $105 per ounce sold, compared with 140,930 ounces at a cash cost of $87 per ounce sold during the 4th quarter, 2003. The year-over-year increase in production was largely the result of a higher average grade of ore processed at the Red Lake Mine. The grade (concentration of gold) was 2.50 ounces of gold per ton (opt), or 85.7 grams per tonne (gpt), compared with a grade of 2.26 opt (77.5 gpt) processed during the 4th quarter, 2003. Recovery rate of 90.9% was up slightly compared with 89.4% during the corresponding period in 2003. The Red Lake Mine is forecasted to produce 550,000 ounces in 2005 and 600,000 ounces in 2006.

    Production costs on a per ounce basis increased at the Red Lake Mine compared to the same period in 2003 as a result of a stronger Canadian dollar ($8 per ounce), increased production from higher cost concentrate ($3 per ounce) and higher operating costs ($7 per ounce).

    The Wharf Mine produced 15,181 ounces of gold during the quarter, at a total cash cost of $268 per ounce sold, compared with 17,359 ounces at a cash cost of $245 per ounce sold during the 4th quarter, 2003. The Wharf Mine is forecasted to produce 70,000 ounces of gold in 2005.

    Saskatchewan Minerals revenue and operating profit decreased slightly compared with the corresponding period in 2003 due to lower sales volumes and a stronger Canadian dollar.

    Complete operating statistics for all operations are found starting on page 14 of Goldcorp's 2004 fourth quarter interim MD&A.

    Twelve Months Ended December, 2004: Record Annual Production!

    Gold production for the twelve months ending December 31, 2004 was 628,005 ounces at a cash cost of $115 per ounce sold, compared with 602,845 ounces at a cash cost of $100 per ounce sold during the same period, 2003. This year's gold production was an all time high for Goldcorp!

    The Red Lake Mine had its best year ever, producing 551,886 ounces at a cash cost of $92 per ounce sold versus 532,028 ounces at a cash cost of $80 per ounce. The increase in cost on a per ounce basis is due to a stronger Canadian dollar ($6 per ounce), more gold production from higher cost concentrate ($3 per ounce) and increased operating costs at the mine ($3 per ounce). For the twelve months ending December 31, 2004 the average grade, and recovery rate of ore processed at the mine was 2.25 opt (77.15gpt) and 90.3%, respectively, compared with an average grade and recovery rate of 2.20 opt (75.44 gpt) and 88.6%, respectively, for the ore processed during 2003.

    The Wharf Mine had a strong year in 2004, producing 76,119 ounces of gold at a cash cost of $255 per ounce sold compared with 70,817 ounces at a cash cost of $276 per ounce sold during the same period, 2003. The increased production and lower cost is attributed to better recovery rates and lower mining and processing costs.

    RED LAKE MINE EXPANSION

    Work is progressing on the sinking of the new shaft at the Mine. The shaft is currently at a depth of 2,700 ft (823m). The 16 Level station was completed in December 2004 and the contractor is showing some incremental improvement in the shaft sinking rate. From early January 2005 to early February 2005, the shaft has been progressing at a rate of 10 ft/day. Ground and water conditions continue to be excellent. The shaft depth was at 2,290 ft at year end, 2004. Work is ahead of schedule for expansion related development work at the Red Lake Mine and for the mill expansion with the truck dump and conveyor well advanced.

    Plans for 2005 include further expansion related development work at the existing Red Lake Mine, commencement of the 12 foot diameter return air raise, work on the mill expansion and shaft sinking.

    During the 4th quarter 2004, capital expenditures totaled approximately $9 million and $24 million for the full year, 2004. To date, a total of approximately $60 million has been expended on the project, and total remaining expenditures to complete the expansion is estimated at $50 million (based on a CDN$:US$ exchange rate of 1.25).

    DIVIDENDS: A RECORD YEAR!

    In 2004, Goldcorp paid out a record $53 million or $0.28 per share in dividends. This payment consisted of Goldcorp's annual regular dividend of $0.18 per share which is paid on a monthly basis plus, a special dividend of $0.10 per share. The special dividend was the result of our successful gold holding strategy, which allowed the Company to earn an additional $72 per ounce from the gold that was withheld, rather than if it had been sold when produced.

    To date, Goldcorp has paid out an approximate $120.0 million in dividends to shareholders since dividends commenced in 2001. The total dividend payment anticipated for 2005 is $0.18 per share in addition to the $0.50 per share Special Dividend to be paid on February 28, 2005.

    Wheaton River shareholders must tender their shares by Monday, February 28, 2005 to be eligible for the next regular monthly dividend of $0.015 per share.

    SUBSEQUENT EVENT

    On December 6, 2004, Goldcorp and Wheaton River Minerals Ltd. issued a joint press release announcing a proposed transaction which provided for Goldcorp to make a friendly take-over bid for Wheaton on the basis of one Goldcorp share for every four Wheaton shares. On December 29, 2004, Goldcorp mailed the Goldcorp Take-over Bid Circular to the Wheaton shareholders.

    On December 16, 2004, Glamis Gold Limited publicly announced its intention to make a hostile take-over bid for Goldcorp. On January 7, 2005, the Glamis Bid Circular was mailed to Goldcorp shareholders.

    On February 8, 2005, Goldcorp announced a special US$0.50 per share cash dividend would be payable to existing Goldcorp shareholders should shareholders approve the Wheaton acquisition or Goldcorp's takeover bid. The payment of a special dividend would result in an adjustment to the exchange ratio of Goldcorp's outstanding warrants - an increase in entitlement from 2.0 to 2.08 Goldcorp shares per warrant.

    On February 10, 2005, at the special meeting of shareholders, approximately 65% of Goldcorp shareholders who voted were in favour of approval of the issuance of additional Goldcorp common shares to effect the acquisition of Wheaton. Following the vote, Glamis publicly stated that they would allow their competing bid for Goldcorp to expire.

    As of February 14, 2005, approximately 70% of the outstanding Wheaton common shares (403,165,952 shares) have been tendered to Goldcorp's offer. This satisfied the minimum two-thirds bid requirement under the terms of the offer to acquire Wheaton. On the same day, Goldcorp extended the offer expiry date to February 28, 2005 to give remaining Wheaton shareholders more time to tender their shares. With conditions met, the special US$0.50 per share dividend, totaling approximately $95 million, is payable to shareholders of record on February 16, 2005 and will be paid on February 28, 2005.

    New Goldcorp is now the world's lowest cost, million ounce gold producer! The acquisition of Wheaton River Minerals Ltd. has increased gold production, reserves and resources and given us one of the fastest growth curves in the industry. It has strengthened our already solid balance sheet and lowered production costs per ounce even further. The Company is in excellent financial condition: has NO DEBT, a LARGE TREASURY, positive Cash Flow and Earnings and pays a DIVIDEND twelve times a year! GOLDCORP is completely UNHEDGED. Goldcorp's shares are listed on the New York and Toronto Stock Exchanges under the trading symbols of GG and G, respectively and its options trade on the American Stock Exchange (AMEX), the Chicago Board of Options Exchange (CBOE) and the Pacific Stock Exchange (PCX) in the United States and on the Montreal Exchange (MX) in Canada.

    FORWARD-LOOKING STATEMENTS

    This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Goldcorp Inc., are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Goldcorp expectations are disclosed under the heading "Risk Factors" and elsewhere in Goldcorp documents filed from time to time with the Toronto Stock Exchange, The United States Securities and Exchange Commission and other regulatory authorities.

    FINANCIAL INFORMATION

    A complete set of our interim Consolidated Financial Statements and Management Discussion and Analysis for the fourth quarter ended December 31, 2004, are available on our website at www.goldcorp.com.

    Gold is Money, Goldcorp is Gold!

Goldcorp Inc. Corporate Office: 145 King Street West Suite 2700 Toronto, Ontario M5H 1J8

    During the year-ended December 31, 2004, Goldcorp only sold two-thirds of the gold it produced and held back from sale approximately one-third of production. Under generally accepted accounting principles ("GAAP"), Goldcorp's Statement of Earnings only reflect those ounces sold, which is lower than if all production during the period was sold. The effect on earnings of having sold all gold in the period it was produced is presented in the Bullion Adjusted data.

Key Financial Statistics (in US dollars) Three months ended Year ended Dec 31, Dec 31, Bullion production and sales 2004 2003 2004 2003 --------------------------------------------------------------------- Gold ounces produced 166,254 158,289 628,005 602,845 Gold ounces sold from inventory (withheld from sale) (52,497) 122,122 (200,429) 75,091 ------------------------------------- Gold ounces sold 113,757 280,411 427,576 677,936 --------------------------------------------------------------------- Financial results (millions) --------------------------------------------------------------------- Total revenues $ 51.9 $110.6 $191.0 $262.6 Bullion adjusted revenues(1) $ 75.0 $ 63.1 $273.7 $230.6 Gold sales $ 48.7 $107.2 $178.3 $249.0 Earnings from operations $ 17.6 $ 61.7 $ 80.9 $134.9 Earnings for the period $ 15.0 $ 43.3 $ 51.3 $ 98.8 Bullion adjusted earnings for the period(1) $ 24.6 $ 23.2 $ 84.2 $ 85.7 Operating cash flow $ 22.4 $ 69.8 $ 53.1 $ 95.2 Per share data (dollars) --------------------------------------------------------------------- Earnings Basic $ 0.08 $ 0.23 $ 0.27 $ 0.54 Diluted $ 0.08 $ 0.22 $ 0.27 $ 0.53 Cash flow Basic $ 0.12 $ 0.38 $ 0.28 $ 0.52 Diluted $ 0.11 $ 0.36 $ 0.27 $ 0.51 --------------------------------------------------------------------- Bullion adjusted per share data (dollars)(1) --------------------------------------------------------------------- Earnings Basic $ 0.13 $ 0.13 $ 0.44 $ 0.47 Diluted $ 0.13 $ 0.12 $ 0.43 $ 0.46 Cash flow Basic $ 0.20 $ 0.20 $ 0.60 $ 0.40 Diluted $ 0.20 $ 0.19 $ 0.59 $ 0.39 --------------------------------------------------------------------- Key financial ratios(2) --------------------------------------------------------------------- Gross operating margin 62.8% 70.0% 63.7% 66.3% Net profit margin 28.9% 39.2% 26.9% 37.6% Return on invested capital 10.7% 36.1% 9.5% 23.1% --------------------------------------------------------------------- Bullion adjusted financial ratios(2) --------------------------------------------------------------------- Gross operating margin 68.4% 61.8% 67.3% 64.3% Net profit margin 32.8% 36.8% 30.8% 36.9% Return on invested capital 16.8% 18.9% 15.1% 19.6% --------------------------------------------------------------------- Weighted average shares outstanding (000's) 189,973 185,428 189,723 183,574 --------------------------------------------------------------------- (1) For an explanation of Bullion Adjusted results, which are non-GAAP performance measures, refer to pages 19-20 of the MD&A. (2) For an explanation of non-GAAP performance measures refer to pages 25-27 of the MD&A.

Financial Position (millions)

As at As at December 30, December 31, 2004 % Change 2003 --------------------------------------------------------------------- Cash and short-term investments $ 333.4 (12.0%) $ 379.0 Gold bullion holdings (valued at market): $ 96.4 1008.0% $ 8.7 Working capital $ 400.0 10.4% $ 362.2 Long-term debt NIL - NIL Shareholders' equity $ 577.8 13.8% $ 507.7 Shares outstanding (000's) 189,980 0.4% 189,274 ---------------------------------------------------------------------

Key Operating Statistics (in US dollars) Three months ended Year ended Dec. 31, Dec. 31, 2004 2003 2004 2003 --------------------------------------------------------------------- Gold produced (ounces) 166,254 158,289 628,005 602,845 Gold sold from inventory (withheld from sale) during the period, net (ounces) (52,497) 122,122 (200,429) 75,091 ---------------------------------------- Gold sold (ounces) 113,757 280,411 427,576 677,936

Per Ounce Data ($/oz) (1),(2),(3) --------------------------------------------------------------------- Average realized gold price $ 432 $ 388 $ 409 $ 367 Average spot gold price $ 434 $ 392 $ 409 $ 364 Production Costs (weighted average) Cash cost $ 127 $ 95 $ 115 $ 100 Non-cash cost 51 34 46 37 ---------------------------------------- Total cost $ 178 $ 129 $ 161 $ 137 ---------------------------------------------------------------------

Results for Individual Operations Gold Produced (ounces) Red Lake Mine 151,073 140,930 551,886 532,028 Wharf Mine 15,181 17,359 76,119 70,817 ---------------------------------------- Total 166,254 158,289 628,005 602,845 --------------------------------------------------------------------- Per Ounce Data ($/oz) Red Lake Mine Cash cost $ 105 $ 87 $ 92 $ 80 Non-cash cost 40 31 36 31 ---------------------------------------- Total cost $ 145 $ 118 $ 128 $ 111 --------------------------------------------------------------------- Wharf Mine Cash cost $ 268 $ 245 $ 255 $ 276 Non-cash cost 109 89 104 87 ---------------------------------------- Total cost $ 377 $ 334 $ 359 $ 363 --------------------------------------------------------------------- (1) Production costs are based on ounces of gold sold, which differs from ounces of gold produced. (2) Cash and total costs are calculated in accordance with the Gold Institute standards. (3) For an explanation of non-GAAP performance measures refer to pages 25-27 of the MD&A.

Goldcorp Inc. Consolidated Balance Sheets (in thousands of US dollars) As at As at December 31, December 31, 2004 2003 ------------------------------- (unaudited)

Assets

Current assets Cash and short-term investments $ 333,375 $ 378,954 Gold bullion (market value: $96,363; 2003: $8,675) (note 1) 33,895 3,910 Accounts receivable 7,197 8,872 Income and mining taxes receivable 12,269 - Marketable securities (market value: $31,006; 2003: $22,003) 22,873 12,224 Inventories 15,329 17,527 Prepaid expenses 1,735 1,803 ------------------------------- 426,673 423,290

Mining interests 264,949 207,317 Deposits for reclamation costs 4,924 5,754 Deferred charges (note 5) 2,624 - Other assets 2,348 2,162 ------------------------------- $ 701,518 $ 638,523 ------------------------------- -------------------------------

Liabilities and Shareholders' Equity

Current liabilities Accounts payable $ 6,828 $ 5,606 Accrued liabilities 18,679 17,422 Dividends payable - 21,526 Income and mining taxes payable - 16,516 Future income and mining taxes 1,149 61 ------------------------------- 26,656 61,131 -------------------------------

Reclamation and closure cost obligations 26,403 21,850 ------------------------------- Future income and mining taxes 70,610 47,800 -------------------------------

Shareholders' equity Capital stock (note 3) 379,356 375,827 Contributed surplus 7,347 2,275 Cumulative translation adjustment 107,741 66,282 Retained earnings 83,405 63,358 ------------------------------- 577,849 507,742 ------------------------------- $ 701,518 $ 638,523 ------------------------------- -------------------------------

Subsequent events (note 5)

The accompanying notes are an integral part of these consolidated financial statements.

Goldcorp Inc. Consolidated Statements of Earnings (in thousands of US dollars, except per share amounts)

Three months ended Year ended Dec. 31, Dec. 31, 2004 2003 2004 2003 --------------------------------------------- (unaudited)(unaudited)(unaudited) Revenues Gold (note 1) $ 48,700 $ 107,187 $ 178,319 $ 248,954 Industrial minerals 3,172 3,438 12,697 13,688 --------------------------------------------- 51,872 110,625 191,016 262,642 ---------------------------------------------

Expenses Operating (note 1) 19,310 33,194 69,368 88,527 Corporate administration 5,066 5,261 14,010 12,138 Depreciation and depletion (note 1) 7,274 9,712 20,058 24,101 Exploration 2,659 766 6,701 3,006 --------------------------------------------- 34,309 48,933 110,137 127,772 ---------------------------------------------

Earnings from operations 17,563 61,692 80,879 134,870 ---------------------------------------------

Other income (expense) Interest and other income 2,986 1,709 9,354 7,241 Gain (loss) on foreign currency (32) 128 211 (1,164) Gain on sale of purchased gold bullion - 3,825 - 1,664 Gain (loss) on sale of marketable securities 35 (2,159) 1,391 8,186 Decrease (increase) in provision for decline in value of marketable securities (1,878) 5,234 (10,397) 2,044 --------------------------------------------- 1,111 8,737 559 17,971 ---------------------------------------------

Earnings before taxes 18,674 70,429 81,438 152,841 Income and mining taxes 3,707 27,099 30,091 54,037 ---------------------------------------------

Earnings for the period (note 1) $ 14,967 $ 43,330 $ 51,347 $ 98,804 --------------------------------------------- ---------------------------------------------

Earnings per share (note 3) Basic $ 0.08 $ 0.23 $ 0.27 $ 0.54 --------------------------------------------- --------------------------------------------- Diluted $ 0.08 $ 0.22 $ 0.27 $ 0.53 --------------------------------------------- ---------------------------------------------

The accompanying notes are an integral part of these consolidated financial statements.

Goldcorp Inc. Consolidated Statements of Retained Earnings (in thousands of US dollars)

Year ended Dec. 31, 2004 2003 ----------------------------------- (unaudited)

Retained earnings at beginning of period $ 63,358 $ 14,700

Earnings for the period 51,347 98,804

Dividends declared on common shares (31,300) (50,146) -----------------------------------

Retained earnings at end of period $ 83,405 $ 63,358 ----------------------------------- -----------------------------------

The accompanying notes are an integral part of these consolidated financial statements.

Goldcorp Inc. Consolidated Statements of Cash Flows (in thousands of US dollars)

Three months ended Year ended Dec. 31, Dec. 31, 2004 2003 2004 2003 -------- -------- -------- -------- (unaudited)(unaudited)(unaudited)

Cash provided by (used in) Operating activities Earnings for the period $ 14,967 $ 43,330 $ 51,347 $ 98,804 Items not affecting cash Depreciation and depletion 7,274 9,712 20,058 24,101 Accretion on closure cost accrual 318 283 1,329 1,124 Gain on sale of purchased gold bullion - (3,825) - (1,664) (Gain) loss on sale of marketable securities (35) 2,159 (1,391) (8,186) Increase (decrease) in provision for decline in value of marketable securities 1,878 (5,234) 10,397 (2,044) Stock option expense 1,783 1,575 5,081 2,275 Future income taxes 4,185 (764) 18,599 4,123 Reclamation expenditures (32) (78) (744) (346) Other (2,174) (447) (2,881) (544) Change in non-cash operating working capital (note 4) (5,776) 23,138 (48,692) (22,477) -------- -------- -------- -------- Net cash provided by operating activities 22,388 69,849 53,103 95,166 -------- -------- -------- --------

Investing activities Mining interests (12,619) (25,552) (56,125) (74,528) Purchase of gold bullion - (588) - (8,160) Proceeds from sale of purchased gold bullion - 45,112 - 45,112 Purchase of marketable securities (983) (7,903) (22,594) (88,823) Proceeds from sale of marketable securities 812 6,280 4,639 94,134 Decrease (increase) in reclamation deposits 32 (551) 987 (859) -------- -------- -------- -------- Net cash (used in) provided by investing activities (12,758) 16,798 (73,093) (33,124) -------- -------- -------- --------

Financing activities Issue of capital stock 174 23,225 3,520 26,979 Dividends paid to common shareholders (8,548) (10,091) (53,071) (28,375) -------- -------- -------- -------- Net cash (used in) provided by financing activities (8,374) 13,134 (49,551) (1,396) -------- -------- -------- -------- Effect of exchange rate changes on cash 16,477 18,442 23,962 57,475 -------- -------- -------- -------- Increase (decrease) in cash and short-term investments 17,733 118,223 (45,579) 118,121 Cash and short-term investments at beginning of period 315,642 260,731 378,954 260,833 -------- -------- -------- -------- Cash and short-term investments at end of period $ 333,375 $ 378,954 $ 333,375 $ 378,954 -------- -------- -------- -------- -------- -------- -------- --------

The accompanying notes are an integral part of these consolidated financial statements.

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    Goldcorp Inc. (TSX:G) (NYSE:GG)

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CONTACT: Goldcorp Inc. Ian J. Ball Investor Relations (416) 865-0326 or Toll Free: (800) 813-1412 Fax: (416) 361-5741 info@goldcorp.com www.goldcorp.com

KEYWORD: NEW YORK INTERNATIONAL CANADA INDUSTRY KEYWORD: MINING/METALS EARNINGS SOURCE: Goldcorp Inc.

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