##### 



Exhibit 99.3
 Managements Responsibility for Financial Reporting
   -s- Kevin McArthur
    

-s- Lindsay HallKevin McArthur
    
    Lindsay HallPresident and Chief Executive Officer
    
    Executive Vice President andChief Financial Officer
 
 Report of Independent Registered Chartered Accountants
       Internal ControlIntegrated Framework
 
 36




---



##### 



Managements Report on Internal Control over Financial Reporting
  i.
    
    pertain to the maintenance of records that accurately and fairly reflect, in reasonable
detail, the transactions related to and dispositions of Goldcorps assets;ii.
    
    provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting
principles, and that Goldcorp receipts and expenditures are made only in accordance with
authorizations of management and Goldcorps directors; andiii.
    
    provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use, or disposition of Goldcorp assets that could have a material effect on
Goldcorps financial statements.
   Internal Control  Integrated Framework
  -s- Kevin McArthur
    

-s- Lindsay HallKevin McArthur
    
    Lindsay HallPresident and Chief Executive Officer
    
    Executive Vice President andChief Financial Officer
 
 37




---



##### 



Report of Independent Registered Chartered Accountants
  Internal
ControlIntegrated Framework
    Internal Control
 Integrated Framework
  
 38




---



##### 



Consolidated Statements of Earnings  Years Ended December 31
 Note
    
    
    2007
    
    
    2006
    
    
    2005Revenues
    
    
    
    
    
    $
    2,206.8
    
    
    $
    1,649.4
    
    
    $
    896.4Operating expenses
    
    
    
    
    
    
    953.8
    
    
    
    613.1
    
    
    
    304.0Depreciation and depletion
    
    
    
    
    
    
    465.1
    
    
    
    304.3
    
    
    
    135.3Earnings from mine operations
    
    
    
    
    
    
    787.9
    
    
    
    732.0
    
    
    
    457.1Corporate administration1
    
    
    
    
    
    
    132.9
    
    
    
    83.0
    
    
    
    43.9Exploration
    
    
    
    
    
    
    42.7
    
    
    
    27.6
    
    
    
    8.0Write-down of mining interests
    
    
    4(b)
    
    
    
    
    
    
    
    174.7
    
    
    
    Earnings from operations
    
    
    
    
    
    
    612.3
    
    
    
    446.7
    
    
    
    405.2Other income (expense)Interest and other income
    
    
    
    
    
    
    20.5
    
    
    
    17.9
    
    
    
    5.6Interest expense and finance fees
    
    
    
    
    
    
    (44.7
    )
    
    
    (44.8
    )
    
    
    0.1Share of income of equity investee
    
    
    
    
    
    
    0.1
    
    
    
    
    
    
    
    (Loss) gain on foreign exchange
    
    
    
    
    
    
    (49.4
    )
    
    
    5.3
    
    
    
    0.5Non-hedge derivative loss
    
    
    15
    
    
    
    (23.5
    )
    
    
    (4.1
    )
    
    
    Gain (loss) on securities, net
    
    
    
    
    
    
    5.5
    
    
    
    (5.0
    )
    
    
    10.2Gain on sale of mining interests
    
    
    4(a) &(b)
    
    
    
    51.0
    
    
    
    
    
    
    
    Gain on sale of shares in subsidiary
    
    
    18(a)
    
    
    
    
    
    
    
    109.8
    
    
    
    Dilution gains
    
    
    18(a) & (b)
    
    
    
    10.0
    
    
    
    63.8
    
    
    
    18.7(30.5
    )
    
    
    142.9
    
    
    
    35.1Earnings from continuing operations before taxes and non-controlling interests
    
    
    
    
    
    
    581.8
    
    
    
    589.6
    
    
    
    440.3Income and mining taxes
    
    
    13
    
    
    
    (160.3
    )
    
    
    (153.2
    )
    
    
    (142.4
    )Non-controlling interests
    
    
    18
    
    
    
    (46.1
    )
    
    
    (35.8
    )
    
    
    (12.2
    )Net earnings from continuing operations
    
    
    
    
    
    
    375.4
    
    
    
    400.6
    
    
    
    285.7Net earnings from discontinued operations
    
    
    6
    
    
    
    84.7
    
    
    
    7.7
    
    
    
    Net earnings
    
    
    
    
    
    $
    460.1
    
    
    $
    408.3
    
    
    $
    285.71Stock option expense (a non-cash item) included in Corporate administration
    
    
    19(b) & (c)
    
    
    $
    41.2
    
    
    $
    22.7
    
    
    $
    13.9Earnings per share from continuing operationsBasic
    
    
    
    
    
    $
    0.53
    
    
    $
    0.92
    
    
    $
    0.91Diluted
    
    
    19(e)
    
    
    
    0.53
    
    
    
    0.91
    
    
    
    0.83Earnings per shareBasic
    
    
    
    
    
    $
    0.65
    
    
    $
    0.94
    
    
    $
    0.91Diluted
    
    
    19(e)
    
    
    
    0.65
    
    
    
    0.93
    
    
    
    0.83Weighted-average number of shares outstanding(in thousands)Basic
    
    
    
    
    
    
    704,868
    
    
    
    435,189
    
    
    
    314,292Diluted
    
    
    19(e)
    
    
    
    708,720
    
    
    
    441,264
    
    
    
    345,394
  39




---



##### 



Consolidated Balance Sheets  At December 31
 Note
    
    
    2007
    
    
    2006AssetsCash and cash equivalents
    
    
    20
    
    
    $
    510.8
    
    
    $
    526.3Restricted cash
    
    
    7
    
    
    
    
    
    
    
    65.0Marketable securities
    
    
    8
    
    
    
    25.8
    
    
    
    14.9Accounts receivable
    
    
    
    
    
    
    154.5
    
    
    
    65.0Income and mining taxes receivable
    
    
    
    
    
    
    43.3
    
    
    
    Future income and mining taxes
    
    
    13
    
    
    
    10.7
    
    
    
    18.0Inventories and stockpiled ore
    
    
    9
    
    
    
    191.4
    
    
    
    137.7Other
    
    
    
    
    
    
    15.3
    
    
    
    13.7Current assets of discontinued operations
    
    
    6
    
    
    
    
    
    
    
    42.8Current assets
    
    
    
    
    
    
    951.8
    
    
    
    883.4Mining interests
    
    
    10
    
    
    
    16,452.8
    
    
    
    15,022.3Goodwill
    
    
    10
    
    
    
    815.6
    
    
    
    1,340.2Silver interests
    
    
    11
    
    
    
    385.3
    
    
    
    346.5Stockpiled ore
    
    
    9
    
    
    
    76.2
    
    
    
    75.7Investments
    
    
    8
    
    
    
    228.0
    
    
    
    134.0Other
    
    
    12
    
    
    
    42.5
    
    
    
    56.3Non-current assets of discontinued operations
    
    
    6
    
    
    
    
    
    
    
    107.5$
    18,952.2
    
    
    $
    17,965.9LiabilitiesAccounts payable and accrued liabilities
    
    
    
    
    
    $
    277.3
    
    
    $
    212.3Income and mining taxes payable
    
    
    
    
    
    
    
    
    
    
    100.1Current portion of long-term debt
    
    
    14
    
    
    
    28.6
    
    
    
    135.0Current derivative instrument liability
    
    
    15
    
    
    
    15.5
    
    
    
    Current liabilities of discontinued operations
    
    
    6
    
    
    
    
    
    
    
    18.2Current liabilities
    
    
    
    
    
    
    321.4
    
    
    
    465.6Derivative instrument liability
    
    
    15
    
    
    
    
    
    
    
    6.1Income and mining taxes payable
    
    
    
    
    
    
    33.5
    
    
    
    19.6Future income and mining taxes
    
    
    13
    
    
    
    3,858.3
    
    
    
    3,576.5Long-term debt
    
    
    14
    
    
    
    1,036.3
    
    
    
    790.0Reclamation and closure cost obligations
    
    
    16
    
    
    
    261.3
    
    
    
    214.0Other
    
    
    
    
    
    
    13.2
    
    
    
    13.1Non-current liabilities of discontinued operations
    
    
    6
    
    
    
    
    
    
    
    51.55,524.0
    
    
    
    5,136.4Non-controlling interests
    
    
    18
    
    
    
    449.6
    
    
    
    354.5Shareholders EquityCommon shares, share purchase warrants, and stock options
    
    
    19
    
    
    
    11,930.4
    
    
    
    11,825.8Retained earnings
    
    
    
    
    
    
    890.1
    
    
    
    547.3Accumulated other comprehensive income
    
    
    
    
    
    
    158.1
    
    
    
    101.91,048.2
    
    
    
    649.212,978.6
    
    
    
    12,475.0$
    18,952.2
    
    
    $
    17,965.9
 (note 23), (note 26)
 -s- Kevin McArthur
    

-s- Ian TelferKevin McArthur, Director
    
    Ian Telfer, DirectorThe accompanying notes form an integral part of these consolidated financial statements.
 40




---



##### 



Consolidated Statements of Cash Flows  Years Ended December 31
  Note
    
    
    2007
    
    
    2006
    
    
    2005Operating ActivitiesNet earnings from continuing operations
    
    
    
    
    
    $
    375.4
    
    
    $
    400.6
    
    
    $
    285.7Reclamation expenditures
    
    
    16
    
    
    
    (12.0
    )
    
    
    (6.4
    )
    
    
    (3.6
    )Items not affecting cashDepreciation and depletion
    
    
    
    
    
    
    465.1
    
    
    
    304.3
    
    
    
    135.3Non-hedge derivative loss
    
    
    15
    
    
    
    3.6
    
    
    
    4.1
    
    
    
    (Gain) loss on securities, net
    
    
    
    
    
    
    (5.5
    )
    
    
    5.0
    
    
    
    (10.2
    )Share of income of equity investee
    
    
    
    
    
    
    (0.1
    )
    
    
    
    
    
    
    Future income and mining taxes
    
    
    13
    
    
    
    (43.3
    )
    
    
    (62.7
    )
    
    
    7.1Stock option expense
    
    
    19(b) & (c)
    
    
    
    41.2
    
    
    
    22.7
    
    
    
    13.9Non-controlling interests
    
    
    18
    
    
    
    46.1
    
    
    
    35.8
    
    
    
    12.2Dilution gains
    
    
    18(a) & (b)
    
    
    
    (10.0
    )
    
    
    (63.8
    )
    
    
    (18.7
    )Write-down of mining interests
    
    
    4(b)
    
    
    
    
    
    
    
    174.7
    
    
    
    Gain on sale of shares in subsidiary
    
    
    18(a)
    
    
    
    
    
    
    
    (109.8
    )
    
    
    Gain on sale of mining interests
    
    
    4(a) &(b)
    
    
    
    (51.0
    )
    
    
    
    
    
    
    Unrealized foreign exchange loss and other
    
    
    
    
    
    
    55.2
    
    
    
    2.6
    
    
    
    (2.9
    )Change in non-cash working capital
    
    
    20
    
    
    
    (214.0
    )
    
    
    56.6
    
    
    
    47.0Cash provided by operating activities of continuing operations
    
    
    
    
    
    
    650.7
    
    
    
    763.7
    
    
    
    465.8Cash provided by (used in) operating activities of discontinued operations
    
    
    6
    
    
    
    73.2
    
    
    
    (2.7
    )
    
    
    Investing ActivitiesAcquisitions, net of cash acquired
    
    
    4(a), 20
    
    
    
    (204.9
    )
    
    
    (1,549.2
    )
    
    
    62.4Mining interests
    
    
    
    
    
    
    (871.4
    )
    
    
    (472.2
    )
    
    
    (277.5
    )Silver interests
    
    
    11
    
    
    
    (57.7
    )
    
    
    (285.4
    )
    
    
    Proceeds from sale of investments
    
    
    
    
    
    
    42.5
    
    
    
    7.8
    
    
    
    36.0Proceeds from disposition of mining interests/sale of shares in subsidiary
    
    
    4(b), 18(a)
    
    
    
    216.9
    
    
    
    189.0
    
    
    
    Purchase of securities
    
    
    
    
    
    
    (49.8
    )
    
    
    (98.9
    )
    
    
    (41.8
    )Decrease (increase) in restricted cash
    
    
    7
    
    
    
    65.0
    
    
    
    (65.0
    )
    
    
    Other
    
    
    
    
    
    
    1.8
    
    
    
    (0.7
    )
    
    
    Cash used in investing activities of continuing operations
    
    
    
    
    
    
    (857.6
    )
    
    
    (2,274.6
    )
    
    
    (220.9
    )Cash used in investing activities of discontinued operations
    
    
    6
    
    
    
    (5.2
    )
    
    
    (0.9
    )
    
    
    Financing ActivitiesLong-term debt borrowings
    
    
    
    
    
    
    1,406.0
    
    
    
    1,465.0
    
    
    
    Long-term debt repayments
    
    
    
    
    
    
    (1,266.1
    )
    
    
    (620.0
    )
    
    
    Common shares issued, net
    
    
    
    
    
    
    70.0
    
    
    
    527.5
    
    
    
    44.0Dividends paid to common shareholders
    
    
    
    
    
    
    (126.9
    )
    
    
    (79.1
    )
    
    
    (151.0
    )Shares issued by subsidiaries to non-controlling interests
    
    
    
    
    
    
    39.4
    
    
    
    185.0
    
    
    
    86.7Other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1.2
    )Cash provided by (used in) financing activities
    
    
    
    
    
    
    122.4
    
    
    
    1,478.4
    
    
    
    (21.5
    )Effect of exchange rate changes on cash and cash equivalents
    
    
    
    
    
    
    1.0
    
    
    
    0.2
    
    
    
    5.4(Decrease) increase in cash and cash equivalents
    
    
    
    
    
    
    (15.5
    )
    
    
    (35.9
    )
    
    
    228.8Cash and cash equivalents, beginning of year
    
    
    
    
    
    
    526.3
    
    
    
    562.2
    
    
    
    333.4Cash and cash equivalents, end of year
    
    
    
    
    
    $
    510.8
    
    
    $
    526.3
    
    
    $
    562.2
 (note 20)
  41




---



##### 



Consolidated Statements of Shareholders Equity
  AccumulatedOtherShare
    
    
    
    
    
    
    
    
    
    
    Compre-Common Shares
    
    
    Purchase
    
    
    Stock
    
    
    Retained
    
    
    hensiveShares
    
    
    Amount
    
    
    Warrants
    
    
    Options
    
    
    Earnings
    
    
    Income
    
    
    TotalAt January 1, 2005
    
    
    189,980
    
    
    $
    363.3
    
    
    $
    16.1
    
    
    $
    7.3
    
    
    $
    83.4
    
    
    $
    107.7
    
    
    $
    577.8Issued pursuant to Wheaton acquisition
(note 5(d))
    
    
    143,771
    
    
    
    1,887.4
    
    
    
    290.8
    
    
    
    30.8
    
    
    
    
    
    
    
    
    
    
    
    2,209.0Stock options exercised and restricted
share units issued/cancelled
    
    
    2,556
    
    
    
    32.2
    
    
    
    
    
    
    
    (7.6
    )
    
    
    
    
    
    
    
    
    
    
    24.6Share purchase warrants exercised
    
    
    3,335
    
    
    
    39.8
    
    
    
    (20.1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    19.7Fair value of stock options issued and
vested, and restricted share units
vested
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14.0
    
    
    
    
    
    
    
    
    
    
    
    14.0Share issue costs
    
    
    
    
    
    
    (0.2
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.2
    )Dividends declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (151.0
    )
    
    
    
    
    
    
    (151.0
    )Unrealized loss on translation of
non-US dollar denominated operations
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5.8
    )
    
    
    (5.8
    )Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    285.7
    
    
    
    
    
    
    
    285.7At December 31, 2005
    
    
    339,642
    
    
    
    2,322.5
    
    
    
    286.8
    
    
    
    44.5
    
    
    
    218.1
    
    
    
    101.9
    
    
    
    2,973.8Issued pursuant to acquisition of
Glamis Gold Ltd (note 5(a))
    
    
    283,578
    
    
    
    8,140.4
    
    
    
    
    
    
    
    82.1
    
    
    
    
    
    
    
    
    
    
    
    8,222.5Issued pursuant to acquisition of
Virginia Gold Mines Inc (note 5(c))
    
    
    19,310
    
    
    
    398.3
    
    
    
    3.6
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    401.9Stock options exercised/cancelled and
restricted share units issued
    
    
    6,523
    
    
    
    96.4
    
    
    
    
    
    
    
    (24.9
    )
    
    
    
    
    
    
    
    
    
    
    71.5Share purchase warrants exercised
    
    
    54,472
    
    
    
    748.5
    
    
    
    (287.2
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    461.3Fair value of new warrants issued
    
    
    
    
    
    
    (38.9
    )
    
    
    38.9
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Fair value of stock options and
restricted share units issued and
vested
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    18.5
    
    
    
    
    
    
    
    
    
    
    
    18.5Share issue costs
    
    
    
    
    
    
    (3.7
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3.7
    )Dividends declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (79.1
    )
    
    
    
    
    
    
    (79.1
    )Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    408.3
    
    
    
    
    
    
    
    408.3At December 31, 2006
    
    
    703,525
    
    
    
    11,663.5
    
    
    
    42.1
    
    
    
    120.2
    
    
    
    547.3
    
    
    
    101.9
    
    
    
    12,475.0Changes in accounting policies (note 3)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9.6
    
    
    
    42.2
    
    
    
    51.8At January 1, 2007 as adjusted
    
    
    703,525
    
    
    
    11,663.5
    
    
    
    42.1
    
    
    
    120.2
    
    
    
    556.9
    
    
    
    144.1
    
    
    
    12,526.8Stock options exercised and restricted
share units issued
    
    
    4,812
    
    
    
    109.1
    
    
    
    
    
    
    
    (36.0
    )
    
    
    
    
    
    
    
    
    
    
    73.1Share purchase warrants exercised
    
    
    14
    
    
    
    0.2
    
    
    
    (0.1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.1Fair value of stock options and
restricted share units issued and
vested
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    31.4
    
    
    
    
    
    
    
    
    
    
    
    31.4Dividends declared
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (126.9
    )
    
    
    
    
    
    
    (126.9
    )Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    460.1
    
    
    
    
    
    
    
    460.1Other comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14.0
    
    
    
    14.0At December 31, 2007
    
    
    708,351
    
    
    $
    11,772.8
    
    
    $
    42.0
    
    
    $
    115.6
    
    
    $
    890.1
    
    
    $
    158.1
    
    
    $
    12,978.6
 (note 19)
  42




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##### 



Consolidated Statement of Comprehensive Income
 2007Net earnings
    
    $
    460.1Other comprehensive income:Gain on available-for-sale securities, net of tax recovery of $7.8 million (note 8)
    
    
    36.4Reclassification adjustment for gains and losses included in net earnings, net of tax of $1.2 million (note 8)
    
    
    (21.1
    )Non-controlling interests
    
    
    (1.3
    )Other comprehensive income
    
    
    14.0Comprehensive income
    
    $
    474.1
 Consolidated Statements of Accumulated Other Comprehensive Income
 2007
    
    
    2006
    
    
    2005Accumulated other comprehensive income at January 1Unrealized foreign exchange translation adjustment (note 3)
    
    $
    101.9
    
    
    $
    101.9
    
    
    $
    107.7Change in accounting policy:Changes in fair value of available for sale marketable securities and investments, net of
tax of $12.5 million (note 8)
    
    
    58.1
    
    
    
    
    
    
    
    Non-controlling interests (note 3)
    
    
    (15.9
    )
    
    
    
    
    
    
    At January 1, as adjusted
    
    
    144.1
    
    
    
    101.9
    
    
    
    107.7Other comprehensive income (loss) for the period
    
    
    14.0
    
    
    
    
    
    
    
    (5.8
    )Accumulated other comprehensive income at December 31Unrealized foreign exchange translation adjustment
    
    
    101.9
    
    
    
    101.9
    
    
    
    101.9Available for sale marketable securities and investments, net of tax of $3.5 million (note 8)
    
    
    73.4
    
    
    
    
    
    
    
    Non-controlling interests (note 8)
    
    
    (17.2
    )
    
    
    
    
    
    
    $
    158.1
    
    
    $
    101.9
    
    
    $
    101.9
  43




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##### 



Notes to the Consolidated Financial Statements  Years Ended December 31, 2007, 2006 and 2005
 1.
    
    DESCRIPTION OF BUSINESS AND NATURE OF OPERATIONSGoldcorp Inc (Goldcorp or the Company) is a gold producer engaged in gold mining and related
activities including exploration, extraction, processing and reclamation.The Companys assets are comprised of the Red Lake, Porcupine and Musselwhite gold mines in
Canada, the Alumbrera gold/copper mine (37.5% interest) in Argentina, the El Sauzal gold mine
and Luismin gold/silver mines in Mexico, the Marlin gold/silver mine in Guatemala, the San
Martin gold mine in Honduras, and the Marigold (67% interest) and Wharf gold mines in the United
States. Significant development projects include the expansion of the existing Red Lake mine,
the Peñasquito gold/silver/zinc project and the Los Filos gold project in Mexico (which
commenced commercial production on January 1, 2008), the Éléonore gold project in Canada, the
Cerro Blanco gold project in Guatemala, and the Pueblo Viejo gold project (40% interest) in the
Dominican Republic. At December 31, 2007, Goldcorp also owned a 48% interest in Silver Wheaton
Corp. (Silver Wheaton), a publicly traded silver mining company, a 68% interest in Terrane
Metals Corp (Terrane), a publicly traded exploration company, and a 21% interest in Peak Gold
Ltd. (Peak Gold), a publicly traded gold mining company.The Peak gold mine in Australia and the Amapari gold mine in Brazil were sold to Peak Gold in
the second quarter of 2007 (note 4(b)). On December 21, 2007, Goldcorp acquired Kinross Gold
Corporations 49% interest in the Porcupine gold mines in northeastern Ontario and its 32%
interest in the Musselwhite gold mine in northwestern Ontario in exchange for Goldcorps 50%
interest in the La Coipa silver-gold mine in Chile and $200 million in cash (note4(a)).On February 14, 2008, Goldcorp disposed of its remaining interest in Silver Wheaton (note 26).
 44




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##### 



2.
    
    SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThese consolidated financial statements have been prepared by the Company in accordance with
Canadian generally accepted accounting principles (Canadian GAAP) using the following
significant accounting policies.
 (a)
    
    Basis of presentation and principles of consolidationThese consolidated financial statements include the accounts of the Company and all of its
subsidiaries and investments. The principal mining properties of Goldcorp and their
geographic locations at December 31, 2007, are listed below:
 Ownership

    
    Operations andMining properties
    
    Location
    
    interest

    
    Status
    
    development projects ownedRed Lake Gold Mines (Red Lake)(1)
    
    Canada
    
    
    100
    %
    
    Consolidated
    
    Red Lake and Campbell complexesPorcupine Mine (Porcupine) (1)(9)
    
    Canada
    
    
    100
    %
    
    Consolidated
    
    Porcupine mine, Hollinger projectMusselwhite Mine (Musselwhite) (1)(9)
    
    Canada
    
    
    100
    %
    
    Consolidated
    
    Musselwhite mineLes Mines Opinaca Ltée (Éléonore)(2)
    
    Canada
    
    
    100
    %
    
    Consolidated
    
    Éléonore gold projectSilver Wheaton Corp. (Silver Wheaton)(3)(4)
    
    Canada
    
    
    48
    %
    
    Consolidated
    
    Silver contracts in Mexico, Sweden, Greece and PeruTerrane Metals Corp. (Terrane)(5)
    
    Canada
    
    
    68
    %
    
    Consolidated
    
    Mt Milligan and certain other Canadian exploration interestsWharf Gold Mine (Wharf)
    
    United States
    
    
    100
    %
    
    Consolidated
    
    Wharf mineMarigold Mining Company (Marigold)(6)
    
    United States
    
    
    66.7
    %
    
    Proportionately
    
    Marigold mine, unincorporated joint ventureconsolidatedLuismin SA de CV (Luismin)(3)
    
    Mexico
    
    
    100
    %
    
    Consolidated, except for El Limón which is an equity investment
    
    San Dimas, San Martin and Nukay mines, Los Filos and El Limón gold projectsMinas de la Alta Pimeria SA de CV (El Sauzal)(6)
    
    Mexico
    
    
    100
    %
    
    Consolidated
    
    El Sauzal mineMinera Peñasquito SA de CV (Peñasquito) (6)
    
    Mexico
    
    
    100
    %
    
    Consolidated
    
    Peñasquito projectMinera Alumbrera Ltd (Alumbrera)(3)
    
    Argentina
    
    
    37.5
    %
    
    Proportionately
    
    Alumbrera mine, incorporated joint ventureconsolidatedMontana Exploradora de Guatemala SA (Marlin)(6)
    
    Guatemala
    
    
    100
    %
    
    Consolidated
    
    Marlin mineEntre Mares de Guatemala SA (Cerro Blanco)(6)
    
    Guatemala
    
    
    100
    %
    
    Consolidated
    
    Cerro Blanco projectMinerales Entre Mares de Honduras SA (San Martin)(6)
    
    Honduras
    
    
    100
    %
    
    Consolidated
    
    San Martin mineCompañia Minera Mantos de Oro (La Coipa) (1)(8)
    
    Chile
    
    
    
    
    
    Discontinued Operation
    
    La Coipa mine, unincorporated joint venturePueblo Viejo Dominicana Corporation (Pueblo Viejo) (1)
    
    Dominican Republic
    
    
    40
    %
    
    Equity investment
    
    Pueblo Viejo gold projectPeak Gold Ltd. (Peak Gold)(7)
    
    Canada
    
    
    21
    %
    
    Equity investment
    
    Peak and Amapari mines
 
 (1)
    
    The results of Goldcorp include the Placer Dome assets acquired
from Barrick from May 12, 2006 onward (note 5(b)).(2)
    
    The results of Goldcorp include Éléonore from March 31, 2006, the
date of acquisition, onward (note 5(c)).(3)
    
    The results of Goldcorp include an 82% interest in the
subsidiaries and investments of Wheaton from February 15 to April 15, 2005
and 100% thereafter (note 5(d)).(4)
    
    Goldcorps interest in Silver Wheaton was diluted to 48% upon the
issuance of equity by Silver Wheaton to non-controlling interests and the
sale of Silver Wheaton common shares on December 8, 2006 (note 18(a)).
Goldcorp disposed of its remaining interest in Silver Wheaton (note 26) on
February 14, 2008.(5)
    
    The results of Terrane have been consolidated from July 24, 2006,
the date of acquisition (18(b)).(6)
    
    The results of Goldcorp include Glamis Gold Ltd. from November 4,
2006, the date of acquisition, onward (note 5(a)).(7)
    
    Goldcorps interest in Peak Gold arose from the share
consideration received in the disposition of the Peak and Amapari mines (note
4(b)).(8)
    
    Reclassified as discontinued operations (note 6). Completed sale
on December 21, 2007(9)
    
    Proportionately consolidated to December 21, 2007, consolidated
thereafter (note 4(a)).   45




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##### 



(b)
    
    Use of estimatesThe preparation of consolidated financial statements in conformity with Canadian GAAP
requires that the Companys management make estimates and assumptions about future events
that affect the amounts reported in the consolidated financial statements and related notes
to the financial statements. Actual results may differ from those estimates.Significant estimates used in the preparation of these consolidated financial statements
include, but are not limited to, the recoverability of accounts receivable and investments,
the quantities of material on leach pads and in circuit, the proven and probable ore reserves
and resources and the related depletion and amortization, the estimated tonnes of waste
material to be mined and the estimated recoverable tonnes of ore from each mine area, the
estimated net realizable value of inventories, the accounting for stock-based compensation,
the provision for income and mining taxes and composition of future income and mining tax
assets and liabilities, the expected economic lives of and estimated future operating results
and net cash flows from mining interests, the anticipated costs of reclamation and closure
cost obligations, and the fair value of assets and liabilities acquired in business
combinations.(c)
    
    Revenue recognitionRevenue from the sale of metals is recognized in the accounts when persuasive evidence of an
arrangement exists, title and risk passes to the buyer, collection is reasonably assured and
the price is reasonably determinable. Revenue from the sale of metals in concentrate may be
subject to adjustment upon final settlement of estimated metal prices, weights and assays.
Adjustments to revenue for metal prices are recorded monthly and other adjustments are
recorded on final settlement. Refining and treatment charges are netted against revenue for
sales of metal concentrate.(d)
    
    Investment in joint venturesThe Company conducts a portion of its business through joint ventures under which the joint
venture participants are bound by contractual agreements establishing joint control over the
venturers. The Company records its proportionate share of assets, liabilities, revenue and
operating costs of the joint ventures.(e)
    
    Cash and cash equivalentsCash and cash equivalents include cash, and those short-term money market instruments that
are readily convertible to cash with an original term of less than 90 days.(f)
    
    Marketable securitiesMarketable securities are classified as available-for-sale current assets because the Company
does not hold these securities for the purpose of trading. Marketable securities are valued
at market value, using quoted market prices, and unrealized holding gains and losses are
excluded from net income and are included in other comprehensive income until such gains or
losses are realized or an other than temporary impairment is determined to have occurred.(g)
    
    Inventories and stockpiled oreFinished goods, work-in-process, heap leach ore and stockpiled ore are valued at the lower of
average production cost or net realizable value. Production costs include the cost of raw
materials, direct labor, mine-site overhead expenses and depreciation and depletion of mining
interests. Supplies are valued at the lower of average cost or replacement cost.The recovery of gold from certain oxide ores is achieved through the heap leaching process
used at certain of the Companys mines. Under this method, ore is placed on leach pads where
it is treated with a chemical solution which dissolves the gold
 46




---



##### 



contained in the ore. The resulting pregnant solution is further processed in a plant where
the gold is recovered. For accounting purposes, costs are added to ore on leach pads based on
current mining and leaching costs, including applicable depreciation, depletion and
amortization relating to mining interests. Costs are removed from ore on leach pads as ounces
of gold are recovered based on the average cost per recoverable ounce of gold on the leach
pad.Estimates of recoverable gold on the leach pads are calculated from the quantities of ore
placed on the leach pads (measured tonnes added to the leach pads), the grade of ore placed
on the leach pads (based on assay data), and a recovery percentage (based on ore type).(h)
    
    Mining interestsMining interests represent capitalized expenditures related to the development of mining
properties, related plant and equipment and expenditures related to exploration arising from
property acquisitions. Capitalized costs are depreciated and depleted using either a
unit-of-sale method over the estimated economic life of the mine to which they relate, or for
plant and equipment, using the straight-line method over their estimated useful lives.The costs associated with mining properties are separately allocated to reserves, resources
and exploration potential, and include acquired interests in production, development and
exploration stage properties representing the fair value at the time they were acquired. The
value associated with resources and exploration potential is the value beyond proven and
probable reserves assigned through acquisition. The value allocated to reserves is
depreciated on a unit-of-sale method over the estimated recoverable proven and probable
reserves at the mine. The reserve value is noted as depletable mining properties in Note 10.
The resource value represents the property interests that are believed to potentially contain
economic mineralized material such as inferred material within pits; measured, indicated, and
inferred resources with insufficient drill spacing to qualify as proven and probable
reserves; and inferred resources in close proximity to proven and probable reserves.
Exploration potential represents the estimated mineralized material contained within (i)
areas adjacent to existing reserves and mineralization located within the immediate mine
area; (ii) areas outside of immediate mine areas that are not part of measured, indicated, or
inferred resources; and (iii) greenfields exploration potential that is not associated with
any other production, development, or exploration stage property, as described above.
Resource value and exploration potential value is noted as non-depletable mining properties
in Note 10. At least annually or when otherwise appropriate, and subsequent to its review and
evaluation for impairment, value from the non-depletable category is transferred to the
depletable category as a result of an analysis of the conversion of resources or exploration
potential into reserves.Costs related to property acquisitions are capitalized until the viability of the mineral
property is determined. When it is determined that a property is not economically viable, the
capitalized costs are written-off.Drilling and related costs incurred on sites without an existing mine and on areas outside
the boundary of a known mineral deposit which contains proven and probable reserves are
exploration expenditures and are expensed as incurred to the date of establishing that
property costs are economically recoverable. Further development expenditures, subsequent to
the establishment of economic recoverability, are capitalized to the property.Drilling and related costs incurred to define and delineate a mineral deposit that has not
been classified as proven and probable reserves at a development stage or production stage
mine are capitalized as part of the mineral deposit, in the accounting period when the
expenditure is made, when management determines that there is sufficient evidence that the
expenditure will result in a future economic benefit to the company. Management evaluates the
following criteria in its assessment:
 
    
    Geology: whether or not there is sufficient geologic and economic certainty of
being able to convert a residual mineral deposit into a proven and probable reserve at
a development stage or production stage mine, based on the known
 47




---



##### 



geologic and metallurgy. A history of conversion of resources to reserves at operating
mines to support the likelihood of conversion.
    
    Scoping: there is a scoping study or preliminary feasibility study that
demonstrates the additional resources will generate a positive commercial outcome.
Known metallurgy provides a basis for concluding there is a significant likelihood of
being able to recoup the incremental costs of extraction and production.
    
    Accessible facilities: mineral property can be processed economically at accessible
mining and processing facilities where applicable.
    
    Life of Mine Plans: an overall life of mine plan and economic model to support the
mine and the economic extraction of resources/reserves exists. A long-term life of
mine plan, and supporting geological model identifies the drilling and related
development work required to expand or further define the existing ore-body.
    
    Authorizations: operating permits and feasible environmental programs exist or are
obtainable.
  
    
    There is a probable future benefit that will contribute to future cash inflows;
    
    The Company can obtain the benefit and control access to it; and
    
    The transaction or event giving rise to the benefit has already occurred.
  (i)
    
    A significant portion of plant/mill capacity is achieved;(ii)
    
    A significant portion of available funding is directed towards
operating activities;(iii)
    
    A pre-determined, reasonable period of time has passed; or(iv)
    
    A development project significant to the primary business
objective of the enterprise has been completed as to significant milestones
being achieved.
    48




---



##### 



(i)
    
    GoodwillAcquisitions are accounted for using the purchase method whereby assets and liabilities
acquired are recorded at their fair values as of the date of acquisition and any excess of
the purchase price over such fair value is recorded as goodwill. Goodwill is identified and
allocated to reporting units by preparing estimates of the fair value of each reporting unit
and comparing this amount to the fair value of assets and liabilities in the reporting unit.
Goodwill is not amortized.The Company evaluates, on an annual basis, the carrying amount of goodwill to determine
whether current events and circumstances indicate that the carrying amount may no longer be
recoverable. To accomplish this evaluation, the Company estimates the fair value of its
reporting units that include goodwill and compares those fair values to the reporting units
carrying amounts. If the carrying value of a reporting unit exceeds its fair value, the
Company compares the implied fair value of the reporting units goodwill to its carrying
amount, and any excess of the carrying value over the fair value is charged to operations.
Assumptions underlying fair value estimates are subject to significant risks and
uncertainties.(j)
    
    Silver interestsContracts for which settlement is called for in silver, the amount of which is based on
production at the mines, are recorded at cost. The cost of this asset is separately allocated
to reserves, resources and exploration potential. The value allocated to reserves is
depreciated on a unit-of-sale basis over the estimated recoverable reserves at the mine
corresponding to the specific contract.Evaluations of the carrying value of each contract are undertaken in each reporting period to
determine if estimated undiscounted future net cash flows are less than the carrying value.
Estimated undiscounted future net cash flows are calculated using estimated production, sales
prices and purchase costs. If it is determined that the undiscounted future net cash flows
from an operation are less than the carrying value then a write-down is recorded with a
charge to operations.(k)
    
    InvestmentsInvestments in equity securities are classified as available-for-sale because the Company
does not hold these securities for the purpose of trading for a profit and intends to hold
the investments for more than one year. Unrealized holding gains and losses related to
available-for-sale investments are excluded from net income and are included in other
comprehensive income until such gains or losses are realized or an other than temporary
impairment is determined to have occurred.Warrants held by the Company are for long-term investment purposes, however, due to their
nature meet the definition of a derivative and are classified as held-for-trading and
marked-to-market on a quarterly basis. Mark-to-market gains and losses relating to the
warrants are included in net income in the period they occur.The Company estimates the fair value of financial instruments at the balance sheet date using
quoted market prices for available-for-sale securities and a Black-Scholes option pricing
model for warrants held.(l)
    
    Income and mining taxesThe Company uses the liability method of accounting for income and mining taxes. Under the
liability method, future tax assets and liabilities are recognized for the future tax
consequences attributable to differences between the financial statement carrying amounts of
existing assets and liabilities and their respective tax bases and for tax losses and other
deductions carried forward. Upon business acquisitions, the liability method results in a
gross up of mining interests to reflect the recognition of the future tax liabilities for the
tax effect of such differences.Future tax assets and liabilities are measured using enacted or substantively enacted tax
rates expected to apply when the asset is realized or the liability settled. A reduction in
respect of the benefit of a future tax asset (a valuation allowance) is recorded against any
future tax asset if it is not more likely than not to be realized. The effect on future tax
assets and liabilities of a change in tax rates is recognized in income in the period in
which the change is substantively enacted.
 49




---



##### 



(m)
    
    Reclamation and closure cost obligationsThe Companys mining and exploration activities are subject to various governmental laws and
regulations relating to the protection of the environment. These environmental regulations
are continually changing and are generally becoming more restrictive. The Company has made,
and intends to make in the future, expenditures to comply with such laws and regulations. The
Company has recorded a liability and corresponding asset for the estimated future cost of
reclamation and closure, including site rehabilitation and long-term treatment and monitoring
costs, discounted to net present value. However, these estimates are subject to change based
on changes in circumstances and any new information that becomes available.(n)
    
    Employee pension plansThe Company has various defined contribution and defined benefit pension plans that provide
pension benefits to most of its salaried and hourly employees. The Company does not provide
other post-employment benefits such as health care or life insurance.Pension costs associated with the Companys required contributions under its defined
contribution pension plans are based on a percentage of employees salaries and are charged
to earnings in the year incurred.The Company accrues the costs and related obligations associated with its defined benefit
pension plans based on actuarial computations using the projected benefit obligation method
and managements best estimates of expected plan investment performance, salary escalation,
and other relevant factors. For the purpose of calculating the expected return on plan
assets, those assets are valued at fair value. Cumulative gains or losses in excess of 10% of
the greater of the accrued benefit obligation and the market-related value of plan assets are
deferred and amortized over the expected average remaining service life of the plan
participants (EARSL), which ranges from 4 to 20 years depending on the plan. Past service
costs arising from plan amendments are deferred and amortized on a straight-line basis over
EARSL.(o)
    
    Non-controlling interestsNon-controlling interests exist in less than wholly-owned subsidiaries of the Company and
represent the outside interests share of the carrying values of the subsidiaries. When the
subsidiary company issues its own shares to outside interests, a dilution gain or loss arises
as a result of the difference between the Companys share of the proceeds and the carrying
value of the underlying equity.(p)
    
    Foreign currency translationPrior to April 1, 2005, the Canadian dollar was determined to be the measurement currency of
the Companys Canadian operations and these operations were translated into United States
dollars until this date using the current rate method as follows: all assets and liabilities
were translated into United States dollars at the exchange rate prevailing at the balance
sheet date; all revenue and expense items were translated at the average rate of exchange for
the period; and the resulting translation adjustment was recorded as a foreign exchange
translation adjustment (FETA), a separate component of Accumulated Other Comprehensive
Income. Subsequent to the change in measurement currency described below, the FETA balance
will remain the same until the reporting units that gave rise to the FETA balance are
disposed of or retired.Due to the Wheaton acquisition in 2005 (note5(d))and related changes, including holding a
greater proportion of the Companys cash in United States dollars, it was determined that the
Unites States dollar would be the reporting and measurement currency of the Companys
Canadian operations as of April 1, 2005, and therefore these operations have been translated
using the temporal method from that date onward. All operations outside of Canada apply the
United States dollar as their reporting and measurement currency and therefore translate
their operating results using the temporal method. Under this method, foreign currency
monetary assets and liabilities are translated into United States dollars at the exchange
rates prevailing at the balance sheet date; non-monetary assets denominated in foreign
currencies are translated using the rate of exchange at the transaction date; and foreign
exchange gains and losses are included in the determination of earnings. In
 50




---



##### 



addition, unrealized gains and losses due to movements in exchange rates on cash balances
held in foreign currencies are shown separately on the Consolidated Statements of Cash Flows.(q)
    
    Earnings per shareEarnings per share calculations are based on the weighted average number of common shares and
common share equivalents issued and outstanding during the year. Diluted earnings per share
are calculated using the treasury stock method, in which the assumed proceeds from the
potential exercise of those stock options, warrants and restricted share units whose average
market price exceeds their average exercise price are used to
purchase the Companys common shares at their average market price for the year.(r)
    
    Stock-based compensationThe Company applies the fair value method of accounting for all stock option awards. Under
this method, the Company recognizes a compensation expense for all stock options awarded to
employees since January 1, 2003 based on the fair value of the options on the date of grant,
which is determined by using an option pricing model. The fair value of the options is
expensed over the vesting period of the options. Stock options issued to employees before
January 1, 2003 were accounted for using the settlement method and accordingly, no
compensation expense was recorded for those options.(s)
    
    Financial instrumentsThe Companys financial instruments comprise primarily cash and cash equivalents, restricted
cash, accounts receivable, accounts payable. The fair value of these financial instruments
approximates their carrying values, due primarily to their immediate or short-term maturity.
Fair values of other financial instruments have been estimated by reference to quoted market
prices for actual or similar instruments where available.Goldcorp uses copper forward contracts to mitigate the risk of copper price changes on copper
sales at Alumbrera. These contracts do not meet the criteria for hedge accounting and
consequently changes in the fair values of these contracts are recorded in earnings in each
period.The Company employs interest rate and Canadian dollar forward and option contracts, from time
to time, to manage exposure to fluctuations in interest rates and foreign currency exchange
rates. No contracts were outstanding at the end of the current or comparative period.
 3.
    
    CHANGES IN ACCOUNTING POLICIESAccounting Policies Implemented Effective January 1, 2007On January 1, 2007, the Company adopted the Canadian Institute of Chartered Accountants (CICA)s
new Handbook Sections 1530, Comprehensive Income, 3251, Equity, 3855, Financial Instruments 
Recognition and Measurement, 3861, Financial Instruments  Disclosure and Presentation, and
3865, Hedges, which address the classification, recognition and measurement of financial
instruments in the financial statements, the inclusion of other comprehensive income (OCI),
and establish the standards for hedge accounting. As a result of adopting these new standards,
the Company recorded a non-cash increase of $12.3 million to opening marketable securities, a
non-cash increase of $58.3 million to opening investments, a non-cash increase of $12.5 million
to future income tax liability, a non-cash increase of $15.9 million to non-controlling
interest, a non-cash pre-tax increase of $54.7 million in accumulated OCI ($42.2 million net of
tax) for the change in accounting for financial assets classified as available-for-sale and
measured at fair value instead of cost, and the retroactive reclassification to accumulated OCI
of $101.9 million in cumulative unrealized foreign exchange translation adjustments.Under Section 3855, share purchase warrants held by the Company are classified as derivatives
and marked-to-market each reporting period. As a result, the Company realized a non-cash
increase of $12.2 million to opening investments, a non-cash
 51




---



##### 



decrease of $1.4 million to future income tax liability, a non-cash increase of $2.5 million to
non-controlling interests and a non-cash increase of $11.1 million to retained earnings as a one
time cumulative effect of a change in accounting policy.In addition, the Company adopted a policy to expense debt financing costs when they are
incurred, unless they are directly attributable to the acquisition or construction of qualifying
assets, which are assets that necessarily take a substantial period of preparation for their
intended use or sale, in which case they are added to the cost of those assets until such time
as the assets are substantially ready for their intended use or sale. As a result, the Company
recorded a non-cash adjustment to decrease opening retained earnings by $1.5 million to
eliminate the opening balance of debt financing fees that were capitalized and amortized under
the Companys previous accounting policy.The adoption of Section 3865 did not have a material effect on the Companys consolidated
financial position and results of operations.Handbook Section 1506, Accounting Changes, which replaces the former Section 1506, also became
effective on January 1, 2007. Section 1506 prescribes the criteria for changing accounting
policies and the accounting treatment and disclosure of changes in accounting policies, changes
in accounting estimates and corrections of errors. The adoption of Section 1506 did not have a
material effect on the Company.In March 2006, the Emerging Issues Committee issued Abstract 160, Stripping Costs Incurred in
the Production Phase of a Mining Operation (EIC-160). EIC-160 discusses the treatment of costs
associated with the activity of removing overburden and other mine waste minerals in the
production phase of a mining operation and concludes that such stripping costs should be
accounted for according to the benefit received by the entity and recorded as either a component
of inventory or a betterment to the mineral property, depending on the benefit received. The
implementation of EIC-160, effective January 1, 2007, did not have a material effect on the
Companys consolidated financial position and results of operations.Accounting Policies to be Implemented Effective January 1, 2008Two new Handbook sections, 3862, Financial Instruments  Disclosure and 3863, Financial
Instruments  Presentation, will replace Section 3861, Financial Instruments  Disclosure and
Presentation. These new sections incorporate many of the disclosure requirements in the existing
section, but place an increased emphasis on disclosure about risk, including both qualitative
and quantitative information about the risk exposures arising from financial instruments.Section 1535, Capital Disclosures establishes disclosure requirements about the Companys
objectives, policies and processes for managing capital, as well as quantitative information
about capital.Section 3031, Inventories, which replaces the existing Section 3030, establishes standards for
the measurement and disclosure of inventories. The new standard provides more extensive guidance
on the determination of cost, including allocation of overhead, requires impairment testing and
expands the disclosure requirements. The adoption of Section 3031 did not have a material impact
on the Companys consolidated financial position and results of operations.Accounting Policies to be Implemented Effective January 1, 2009In February 2008, the CICA issued Section 3064, Goodwill and Intangible Assets, which replaces
Section 3062, Goodwill and Other Intangible Assets and Section 3450, Research and Development
Costs. Various changes have been made to other sections of the CICA Handbook for consistency
purposes. Section 3064 establishes standards for the recognition, measurement, presentation and
disclosure of goodwill subsequent to its initial recognition and of intangible assets. Standards
concerning goodwill are unchanged from the standards included in the previous Section 3062. The
new Section will be applicable to the Companys financial statements for its fiscal year
beginning January 1, 2009. The Company is currently evaluating the impact of the adoption of
this new Section on its consolidated financial statements.
 52




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##### 



4.
    
    ACQUISITION AND DISPOSITION OF MINING INTERESTS
 (a)
    
    Acquisition of 100% Interest in Porcupine and Musselwhite and Disposition of Interest
in La CoipaOn December 21, 2007, Goldcorp acquired Kinross Gold Corporations 49% interest in the
Porcupine gold mine in northeastern Ontario and its 32% interest in the Musselwhite gold mine
in northwestern Ontario in exchange for Goldcorps 50% interest in the La Coipa silver-gold
mine in Chile and $200 million in cash plus closing adjustments.The La Coipa operations have been reclassified as discontinued operations in these
consolidated financial statements (Note 6), with restatement from May 12, 2006, the date of
acquisition (note5(b)). A gain of $46.4 million was recognized on the disposition.Goldcorps interests in Porcupine and Musselwhite are included in these consolidated
financial statements at 51% and 68%, respectively, from May 12, 2006 to December 21, 2007 and
at 100% subsequent to December 21, 2007.The acquisition of the remaining interests in Porcupine and Musselwhite was accounted for as
a step purchase transaction, with the cost of the acquisition allocated on a preliminary
basis as follows:
 Purchase price:Cash
    
    $
    206.550% interest in La Coipa
    
    
    100.0Transaction costs
    
    
    6.4$
    312.9Net assets acquired:Cash and cash equivalents
    
    $
    1.7Non-cash operating working capital
    
    
    7.6Mining interests
    
    
    348.4Other assets
    
    
    11.8Future income tax liabilities
    
    
    (9.5
    )Reclamation and closure cost obligations
    
    
    (46.1
    )Other liabilities
    
    
    (1.0
    )$
    312.9
 Prior to the closing of the above transaction, the Porcupine Joint Venture disposed of a
property consisting of a decommissioned mine and mill in Timmins, Ontario. Goldcorp
recognized a gain of $10.8 million from the sale of this property. For the purposes of these
consolidated statements, the purchase consideration has been allocated on a preliminary basis
to the fair value of assets acquired and liabilities assumed, based on managements best
estimates and taking into account all available information at the time of the transaction,
as well as applicable information at the time these consolidated financial statements were
prepared. Goldcorp will continue to review information and perform further analysis with
respect to these assets, including an independent valuation, prior to finalizing the
allocation of the purchase price in 2008. This process will be performed in accordance with
Emerging Issues Committee Abstract 152. Although the results of this review are presently
unknown, it may result in a change to the value attributable to tangible assets and future
income tax liabilities.(b)
    
    Disposition of Amapari and Peak MinesDuring April 2007, Goldcorp closed its transaction to sell the Amapari and Peak mines to Peak
Gold in exchange for $200 million in cash and $100 million in share considerations, resulting
in a pre-tax gain of $40.2 million ($6.5 million, net of tax). Goldcorp owned approximately
22% of Peak Gold on close of the transaction. The Amapari and Peak mines were not classified
as discontinued operations in 2007 as Goldcorp continues to have a significant influence
through its equity interest in Peak Gold.
 53




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##### 



Summary of assets and liabilities sold:
 Net assets sold:Cash and cash equivalents
    
    $
    6.1Non-cash operating working capital
    
    
    16.9Mining interests
    
    
    284.1Other
    
    
    7.3Future income and mining taxes
    
    
    (35.5
    )Reclamation and closure cost obligations
    
    
    (18.2
    )Other
    
    
    (1.9
    )$
    258.8Net proceeds:Cash
    
    $
    200.0Common shares of Peak Gold
    
    
    100.0Selling costs
    
    
    (1.0
    )$
    299.0
 The Company recorded a $174.7 million impairment charge in 2006 against its investment in
Amapari as a result of a revision downward of its proven and probable reserves to 485,000
ounces of gold as at December 31, 2006.(c)
    
    On February 1, 2007, a wholly owned subsidiary of Goldcorp completed the sale of other
mining interests for cash of $24 million and $2 million in common shares of an investment
which had been classified as available for sale. The proceeds received approximated the net
book value of the mining interests.(d)
    
    Bermejal Gold DepositOn March 31, 2005, Goldcorp completed the acquisition of the Bermejal gold deposit in Mexico
for cash consideration of $70 million from a joint venture of Industrias Peñoles SA de CV and
Newmont Mining Corporation. The Bermejal gold deposit is located two kilometers south of
Goldcorps Los Filos gold deposit. The Company is developing the two deposits as a single
project, the Los Filos project, and a detailed engineering study for the combined project was
completed in April, 2006. The Los Filos mine commenced commercial production in January 2008.
 5.
    
    BUSINESS COMBINATIONS
 (a)
    
    Glamis Gold LtdOn August 31, 2006, Goldcorp and Glamis Gold Ltd (Glamis) announced that their respective
boards of directors had agreed to combine Goldcorp and Glamis. The transaction was approved
by Glamis shareholders on October 26, 2006 and closed on November 4, 2006. Each Glamis common
share was exchanged for 1.69 Goldcorp common shares and C$0.0001 in cash. All outstanding
Glamis stock appreciation rights (SARs) were exercised by the holders into Glamis shares
such that holders of the SARs received Goldcorp shares and cash at the same share exchange
ratio. Each Glamis stock option, which previously gave the holder the right to acquire shares
in the common stock of Glamis when presented for execution, was exchanged for a stock option
which gives the holder the right to acquire shares in the common stock of Goldcorp on the
same basis as the exchange of Glamis common shares for Goldcorp common shares.The business combination was accounted for as a purchase transaction, with Goldcorp being
identified as the acquirer and Glamis as the acquiree. These consolidated financial
statements include the operating results of Glamis since November 4, 2006.
 54




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##### 



The cost of the acquisition includes the fair value of the Goldcorp shares issued and is
based on the deemed issuance of 283.2 million Goldcorp common shares at $28.71 per common
share, plus SARs of Glamis exercised for 0.4 million common shares of Goldcorp at $28.71 per
common share, plus 2.8 million stock options of Glamis exchanged for 4.7 million stock
options of Goldcorp with a fair value of $82.1 million, plus Goldcorps transaction costs of
$20.0 million, equaling a total purchase price of $8.2 billion. The price of the Goldcorp
common shares was calculated as the average share price of Goldcorp two days before, the day
of, and two days after the date of announcement. The stock options were valued using the
Black-Scholes option pricing model.The allocation of the purchase price was finalized in the fourth quarter of 2007, which
resulted in an $837.9 million increase in the amount initially recorded for mining interests,
a $524.6 million decrease to goodwill, a $354.7 million increase in future income tax
liabilities and a net increase in other balances of $41.4 million.The final allocation is as follows:
 Purchase price:283.2 million common shares of Goldcorp and cash
    
    $
    8,129.00.4 million common shares of Goldcorp on exercise of Glamis SARs
    
    
    11.4Stock options Goldcorp issued in exchange for those of Glamis
    
    
    82.1Acquisition costs
    
    
    20.0$
    8,242.5Net assets acquired:Cash and cash equivalents
    
    $
    73.4Current assets
    
    
    71.3Mining interests
    
    
    10,624.1Other assets
    
    
    29.0Current liabilities
    
    
    (63.8
    )Long-term debt
    
    
    (80.0
    )Future income tax liabilities, net
    
    
    (2,659.7
    )Reclamation and closure cost obligations
    
    
    (34.9
    )Goodwill
    
    
    283.1$
    8,242.5
 For the purposes of these consolidated financial statements, the purchase consideration has
been allocated to the fair value of assets acquired and liabilities assumed, with goodwill
assigned to a specific reporting unit, based on managements best estimates, and also taking
into account all available information at the time of acquisition as well as applicable
information at the time these consolidated financial statements were prepared. This process
was performed in accordance with Emerging Issues Committee Abstract 152. The amount allocated
to goodwill is not deductible for tax purposes.An independent valuation of the significant assets acquired was completed in the fourth
quarter of 2007, supporting managements allocation of the purchase consideration.(b)
    
    Placer Dome Inc Mining AssetsOn October 30, 2005, Goldcorp entered into an agreement with Barrick Gold Corporation
(Barrick) to acquire certain of Placer Dome Incs (Placer Dome) Canadian and other mining
assets and interests upon Barricks successful acquisition of Placer Dome. On March 15, 2006,
Barrick acquired 100% of the outstanding shares of Placer Dome for approximately $10.0
billion in shares and cash. On May 12, 2006, Goldcorp completed the agreement with Barrick
for cash of approximately $1.6 billion. The acquisition was funded with a $250 million
advance payment paid in January 2006 from cash on hand. The remainder was paid upon closing
by drawing down on credit facilities (note14(a)and (b))in the amount of $1.3 billion and
 55




---



##### 



cash on hand. Goldcorp acquired Placer Domes interests in the Campbell (100%), Porcupine
(51%) and Musselwhite (68%) gold mines in Canada, and the La Coipa (50%) silver-gold mine in
Chile. Goldcorp also acquired a 40% interest in the Pueblo Viejo gold development project in
the Dominican Republic, together with Placer Domes interests in its Canadian exploration
properties, including the Mount Milligan copper/gold deposit in British Columbia. On July 24,
2006, Goldcorp sold certain of these Canadian exploration interests to Terrane (note18(b)).
On December 21, 2007, Goldcorp acquired the remaining 49% and 32% interests in the Porcupine
and Musselwhite gold mines and disposed of its interest in the La Coipa silver-gold mine
(note4(a)).This business combination was accounted for as a purchase transaction, with Goldcorp
identified as the acquirer and the Placer Dome operations as the acquiree. These consolidated
financial statements include the Placer Dome operations from May 12, 2006.The allocation of the purchase price of the Placer Dome operations is summarized in the
following table:
 Purchase price:Cash
    
    $
    1,593.4Acquisition costs
    
    
    10.0$
    1,603.4Net assets acquired:Current assets
    
    $
    69.8Mining interests
    
    
    1,653.7Other assets
    
    
    16.1Current liabilities
    
    
    (51.7
    )Future income tax liabilities
    
    
    (353.3
    )Reclamation and closure cost obligations
    
    
    (129.2
    )Other liabilities
    
    
    (6.4
    )Goodwill
    
    
    404.4$
    1,603.4
 For the purpose of these consolidated financial statements, the purchase consideration was
allocated to the fair value of assets acquired and liabilities assumed, with goodwill
assigned to a specific reporting unit, based on managements best estimates and taking into
account all available information at the time of acquisition as well as applicable
information at the time these consolidated financial statements were prepared. This process
was performed in accordance with Emerging Issues Committee Abstract 152. The amount allocated
to goodwill was not deductible for tax purposes.An independent valuation of the significant assets acquired was completed in February 2007,
supporting managements allocation of the purchase consideration.(c)
    
    Virginia Gold Mines IncOn March 31, 2006, the Company completed the acquisition of Virginia Gold Mines Inc
(Virginia). Goldcorp issued 19.3 million common shares at a price of $20.63 per share. This
issue price is the five-day average share price of Goldcorp common shares at December 5,
2005, the date of announcement.Under the agreement, shareholders of Virginia received 0.4 of a Goldcorp common share and 0.5
of a share in a new public exploration company (Virginia Mines Inc, New Virginia) for each
issued and outstanding Virginia share.This acquisition was accounted for under the purchase method as a business combination with
Goldcorp identified as the acquirer and Virginia as the acquiree. The allocation of the
purchase price of Virginia is summarized in the following table:
 56




---



##### 



Purchase price:Common shares of Goldcorp issued to acquire 100% of Virginia (19.3 million shares)
    
    $
    398.3Share purchase warrants of Virginia exercisable into Goldcorp shares at conversion of 0.4 shares per warrant
    
    
    3.6Acquisition costs
    
    
    4.0$
    405.9Net assets acquired:Current assets
    
    $
    1.2Mining interest
    
    
    692.0Current liabilities
    
    
    (0.9
    )Future income tax liabilities
    
    
    (286.4
    )$
    405.9
 (d)
    
    Wheaton River Minerals LtdIn December 2004, Goldcorp and Wheaton announced a proposed transaction which provided for
Goldcorp to make a take-over bid for Wheaton on the basis of one Goldcorp share for every
four Wheaton shares.On February 8, 2005, Goldcorp announced a special $0.50 per share cash dividend would be
payable to existing Goldcorp shareholders should shareholders approve by majority Goldcorps
take-over bid for Wheaton and Wheaton shareholders tender the minimum two-thirds bid
requirement. The payment of the special dividend also resulted 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 a special meeting, Goldcorp shareholders approved the issuance of
additional Goldcorp common shares to effect the acquisition of Wheaton. As of February 14,
2005, the effective date of acquisition, approximately 70% of the
outstanding Wheaton common shares were tendered to Goldcorps offer, satisfying the minimum two-thirds bid requirement
under the terms of the Goldcorp offer. With conditions met, the special $0.50 per share cash
dividend, totaling approximately $95 million, was paid on February 28, 2005.As of March 31, 2005, Goldcorp held approximately 82% of
the outstanding Wheaton common shares and by April 15, 2005, 100% had been acquired. In addition, each Wheaton warrant or
stock option, which gave the holder the right to acquire common shares of Wheaton, was
exchanged for a warrant or stock option of Goldcorp, giving the holder the right to acquire
common shares of Goldcorp on the same basis as the exchange of Wheaton common shares for
Goldcorp common shares.This business combination was accounted for as a purchase transaction, with Goldcorp
identified as the acquirer and Wheaton as the acquiree. These consolidated financial
statements include 82% of Wheatons operating results for the period February 15 to April 15,
2005, and 100% of the results thereafter. The allocation of the purchase price of the shares
of Wheaton is summarized in the following table:
 Purchase price:Common shares of Goldcorp issued to acquire 100% of Wheaton (143.8 million shares)
    
    $
    1,887.4Share purchase warrants of Goldcorp issued in exchange for those of Wheaton (174.8 million warrants)
    
    
    290.8Stock options of Goldcorp issued in exchange for those of Wheaton (4.9 million options)
    
    
    30.8Acquisition costs
    
    
    26.0$
    2,235.0
 57




---



##### 



Net assets acquired:Cash and cash equivalents
    
    $
    168.7Marketable securities
    
    
    4.3Other non-cash operating working capital
    
    
    0.8Mining interests
    
    
    2,502.1Silver contract
    
    
    77.5Stockpiled ore, non-current
    
    
    55.3Other long-term assets
    
    
    3.8Future income taxes, net
    
    
    (631.8
    )Reclamation and closure cost obligations
    
    
    (24.5
    )Future employee benefits
    
    
    (5.3
    )Other liabilities
    
    
    (10.3
    )Non-controlling interest in Silver Wheaton (35%) (note 18(a))
    
    
    (54.9
    )Goodwill
    
    
    149.3$
    2,235.0
 A total of 143.8 million Goldcorp shares were issued to acquire a 100% interest in the shares
of Wheaton at a price of $13.13 per share. This issue price was the five-day average share
price of Goldcorp common shares at February 8, 2005, reduced by the amount of the special
dividend. Share purchase warrants and stock options were valued using Black-Scholes option
pricing models and market prices for listed share purchase warrants. Cash and cash
equivalents received on the acquisition of Wheaton were net of acquisition costs and other
non-operating liabilities incurred by Wheaton that were directly related to the acquisition.For the purposes of these consolidated financial statements, the purchase consideration was
allocated to the fair value of assets acquired and liabilities assumed, with goodwill
assigned to specific reporting units, based on managements best estimates and taking into
account all available information at the time of acquisition as well as applicable
information at the time these consolidated financial statements were prepared. This process
was performed in accordance with CICA Emerging Issues Committee Abstract 152. The amount
allocated to goodwill was not deductible for tax purposes.An independent valuation of the significant assets acquired was completed in February 2006,
supporting managements allocation of the purchase consideration.
 58




---



##### 



6.
    
    DISCONTINUED OPERATIONS
   2007
    
    
    2006Net earnings from discontinued operationsRevenues
    
    $
    128.8
    
    
    $
    60.6Earnings from discontinued operations
    
    
    56.6
    
    
    
    8.5Interest and other income
    
    
    0.9
    
    
    
    0.3Income tax expense
    
    
    (19.2
    )
    
    
    (1.1
    )38.3
    
    
    
    7.7Gain on disposition (net of tax  $NIL)
    
    
    46.4
    
    
    
    $
    84.7
    
    
    $
    7.7Earnings per share from discontinued operationsBasic
    
    $
    0.12
    
    
    $
    0.02Diluted
    
    $
    0.12
    
    
    $
    0.02Cash flows of discontinued operationsOperating activities
    
    $
    73.2
    
    
    $
    (2.7
    )Investing activities
    
    
    (5.2
    )
    
    
    (0.9
    )$
    68.0
    
    
    $
    (3.6
    )
  2007
    
    
    2006AssetsCash
    
    $
    
    
    
    $
    28.8Accounts receivable and other
    
    
    
    
    
    
    5.1Inventory
    
    
    
    
    
    
    8.9Current assets of discontinued operations
    
    
    
    
    
    
    42.8Mining interests
    
    
    
    
    
    
    106.5Other assets
    
    
    
    
    
    
    1.0Non-current assets of discontinued operations
    
    
    
    
    
    
    107.5Total assets of discontinued operations
    
    
    
    
    
    
    150.3LiabilitiesAccounts payable and accrued liabilities and other
    
    
    
    
    
    
    16.6Income taxes payable
    
    
    
    
    
    
    1.6Current liabilities of discontinued operations
    
    
    
    
    
    
    18.2Future income and mining taxes
    
    
    
    
    
    
    39.3Reclamation and closure cost obligations
    
    
    
    
    
    
    12.2Non-current liabilities of discontinued operations
    
    
    
    
    
    
    51.5Total liabilities of discontinued operations
    
    $
    
    
    
    $
    69.7
 59




---



##### 



7.
    
    RESTRICTED CASH
  8.
    
    MARKETABLE SECURITIES AND INVESTMENTS
 2007
    
    
    2006Fair Value
    
    
    Book ValueMarketable securitiesAvailable-for-sale
    
    $
    25.8
    
    
    $
    14.9InvestmentsAvailable-for-sale
    
    $
    224.3
    
    
    $
    132.6Warrants
    
    
    3.7
    
    
    
    1.4$
    228.0
    
    
    $
    134.0
 2007
    
    
    2006Mark-to-MarketGain (Loss)
    
    
    
    
    
    
    
    
    
    
    TransitionalAvailable for sale
    
    Fair Value
    
    
    in OCI
    
    
    Fair Value
    
    
    Book Value
    
    
    AdjustmentMarketable Securities
    
    $
    25.8
    
    
    $
    15.6
    
    
    $
    27.2
    
    
    $
    14.9
    
    
    $
    12.3Investments
    
    
    224.3
    
    
    
    13.0
    
    
    
    190.9
    
    
    
    132.6
    
    
    
    58.3$
    250.1
    
    
    $
    28.6
    
    
    $
    218.1
    
    
    $
    147.5
    
    
    $
    70.6Future tax recovery (expense) in OCI
    
    
    
    
    
    
    7.8
    
    
    
    
    
    
    
    
    
    
    
    (12.5
    )250.1
    
    
    
    36.4
    
    
    
    218.1
    
    
    
    147.5
    
    
    
    58.1Reclassification adjustment for
gains and losses included in net
income, net of tax  $1.2 million
    
    
    
    
    
    
    (21.1
    )
    
    
    
    
    
    
    
    
    
    
    Non-controlling interest in OCI
    
    
    
    
    
    
    (1.3
    )
    
    
    
    
    
    
    
    
    
    
    (15.9
    )$
    250.1
    
    
    $
    14.0
    
    
    $
    218.1
    
    
    $
    147.5
    
    
    $
    42.2
 2007
    
    
    2006Mark-to-MarketGain (Loss)in Net
    
    
    
    
    
    
    
    
    
    
    TransitionalWarrants
    
    Fair Value
    
    
    Income
    
    
    Fair Value
    
    
    Book Value
    
    
    AdjustmentInvestments
    
    $
    3.7
    
    
    $
    (10.0
    )
    
    $
    13.6
    
    
    $
    1.4
    
    
    $
    12.2Future tax recovery
    
    
    
    
    
    
    1.2
    
    
    
    
    
    
    
    
    
    
    
    1.4Non-controlling interest
    
    
    
    
    
    
    1.1
    
    
    
    
    
    
    
    
    
    
    
    (2.5
    )$
    3.7
    
    
    $
    (7.7
    )
    
    $
    13.6
    
    
    $
    1.4
    
    
    $
    11.1
 60




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##### 



(note 15)
 9.
    
    INVENTORIES AND STOCKPILED ORE
 2007
    
    
    2006Supplies
    
    $
    77.4
    
    
    $
    66.5Finished goods
    
    
    20.4
    
    
    
    31.5Work in process
    
    
    51.0
    
    
    
    20.4Heap leach ore
    
    
    43.0
    
    
    
    22.4Stockpiled ore
    
    
    75.8
    
    
    
    72.6267.6
    
    
    
    213.4Less: non-current heap leach inventory and stockpiled ore
    
    
    (76.2
    )
    
    
    (75.7
    )$
    191.4
    
    
    $
    137.7
 Work in process
  Heap leach inventory
 (note 4(b))
 Stockpiled ore
  61




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##### 



10. MINING INTERESTS
 2007
    
    
    2006Accumulated
    
    
    
    
    
    
    
    
    
    
    Accumulateddepreciation
    
    
    
    
    
    
    
    
    
    
    depreciationand
    
    
    
    
    
    
    
    
    
    
    andCost
    
    
    depletion
    
    
    Net
    
    
    Cost
    
    
    depletion
    
    
    NetMining properties
    
    $
    15,564.3
    
    
    $
    532.0
    
    
    $
    15,032.3
    
    
    $
    14,294.0
    
    
    $
    379.8
    
    
    $
    13,914.2Plant and equipment
    
    
    1,790.9
    
    
    
    370.4
    
    
    
    1,420.5
    
    
    
    1,365.2
    
    
    
    257.1
    
    
    
    1,108.1$
    17,355.2
    
    
    $
    902.4
    
    
    $
    16,452.8
    
    
    $
    15,659.2
    
    
    $
    636.9
    
    
    $
    15,022.3
  Mining propertiesNon-
    
    
    
    
    
    
    Plant andDepletable
    
    
    depletable
    
    
    Total
    
    
    equipment
    
    
    2007
    
    
    2006Red Lake(a)
    
    $
    503.2
    
    
    $
    529.3
    
    
    $
    1,032.5
    
    
    $
    138.1
    
    
    $
    1,170.6
    
    
    $
    1,148.7Porcupine(a)
    
    
    172.9
    
    
    
    158.1
    
    
    
    331.0
    
    
    
    181.9
    
    
    
    512.9
    
    
    
    252.4Musselwhite(a)
    
    
    58.6
    
    
    
    153.8
    
    
    
    212.4
    
    
    
    117.2
    
    
    
    329.6
    
    
    
    229.2Éléonore gold project
    
    
    
    
    
    
    728.0
    
    
    
    728.0
    
    
    
    
    
    
    
    728.0
    
    
    
    704.2Canadian exploration properties
(note 18 (b))
    
    
    
    
    
    
    171.7
    
    
    
    171.7
    
    
    
    
    
    
    
    171.7
    
    
    
    157.4Wharf
    
    
    4.1
    
    
    
    
    
    
    
    4.1
    
    
    
    1.3
    
    
    
    5.4
    
    
    
    4.6Marigold (b)
    
    
    52.3
    
    
    
    115.8
    
    
    
    168.1
    
    
    
    34.4
    
    
    
    202.5
    
    
    
    518.6Luismin(c)
    
    
    273.2
    
    
    
    532.4
    
    
    
    805.6
    
    
    
    59.2
    
    
    
    864.8
    
    
    
    866.9Los Filos project
    
    
    212.2
    
    
    
    278.2
    
    
    
    490.4
    
    
    
    164.1
    
    
    
    654.5
    
    
    
    595.7El Sauzal (b)
    
    
    163.6
    
    
    
    154.0
    
    
    
    317.6
    
    
    
    42.0
    
    
    
    359.6
    
    
    
    1,009.8Peñasquito (b) (g)
    
    
    
    
    
    
    9,101.7
    
    
    
    9,101.7
    
    
    
    375.7
    
    
    
    9,477.4
    
    
    
    7,056.5Mexican exploration projects
    
    
    
    
    
    
    166.8
    
    
    
    166.8
    
    
    
    
    
    
    
    166.8
    
    
    
    168.4Alumbrera
    
    
    392.1
    
    
    
    
    
    
    
    392.1
    
    
    
    224.2
    
    
    
    616.3
    
    
    
    660.1Marlin (b)
    
    
    410.4
    
    
    
    344.3
    
    
    
    754.7
    
    
    
    68.3
    
    
    
    823.0
    
    
    
    1,163.6Cerro Blanco (b)
    
    
    
    
    
    
    33.1
    
    
    
    33.1
    
    
    
    2.6
    
    
    
    35.7
    
    
    
    18.6San Martin (b)
    
    
    0.9
    
    
    
    
    
    
    
    0.9
    
    
    
    3.3
    
    
    
    4.2
    
    
    
    3.9Amapari (e)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    100.0Peak (e)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    173.3Corporate and other
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6.2
    
    
    
    6.2
    
    
    
    4.5$
    2,243.5
    
    
    $
    12,467.2
    
    
    $
    14,710.7
    
    
    $
    1,418.5
    
    
    $
    16,129.2
    
    
    $
    14,836.4Equity InvestmentsPueblo Viejo(a) (d)
    
    
    
    
    
    
    133.7
    
    
    
    133.7
    
    
    
    
    
    
    
    133.7
    
    
    
    98.9El Limón project(d)
    
    
    
    
    
    
    87.8
    
    
    
    87.8
    
    
    
    2.0
    
    
    
    89.8
    
    
    
    87.0Peak Gold (e)
    
    
    
    
    
    
    100.1
    
    
    
    100.1
    
    
    
    
    
    
    
    100.1
    
    
    
    321.6
    
    
    
    321.6
    
    
    
    2.0
    
    
    
    323.6
    
    
    
    185.9$
    2,243.5
    
    
    $
    12,788.8
    
    
    $
    15,032.3
    
    
    $
    1,420.5
    
    
    $
    16,452.8
    
    
    $
    15,022.3
 62




---



##### 



Changes in2006
    
    
    estimates
    
    
    2007Red Lake(a)
    
    $
    404.4
    
    
    $
    
    
    
    $
    404.4Peñasquito(b)
    
    
    807.7
    
    
    
    (524.6
    )
    
    
    283.1Los Filos
    
    
    74.3
    
    
    
    
    
    
    
    74.3Silver Wheaton
    
    
    53.8
    
    
    
    
    
    
    
    53.8$
    1,340.2
    
    
    $
    (524.6
    )
    
    $
    815.6
 (a)
    
    The net book values have been allocated according to the fair value of the Placer Dome
mining assets acquired (note 5(b)).(b)
    
    The net book values have been allocated according to the fair value of the Glamis
mining assets acquired (note 5(a)).(c)
    
    Included in the carrying value of the Luismin and Peñasquito mines is the value of
mining properties attributable to the Silver Wheaton silver contract of the following
amounts:
 Mining propertiesNon-
    
    
    
    
    
    
    Plant and
    
    
    Total
    
    
    TotalDepletable
    
    
    depletable
    
    
    Total
    
    
    equipment
    
    
    2007
    
    
    2006Luismin  silver interests
    
    $
    68.4
    
    
    $
    136.4
    
    
    $
    204.8
    
    
    $
    
    
    
    $
    204.8
    
    
    $
    211.7Peñasquito  silver
interests (note 11(b))
    
    $
    
    
    
    $
    504.3
    
    
    $
    504.3
    
    
    $
    
    
    
    $
    504.3
    
    
    $
    
 (d)
    
    The equity investments in these exploration/development stage properties have no
current operations. The recorded value represents the fair value of the property at the
time they were acquired, plus subsequent expenditures which have been invested in property
development.(e)
    
    In April 2007, the Company completed its transaction to dispose of the Amapari and Peak
mines to Peak Gold.(f)
    
    On December 21, 2007, the Company acquired the remaining 49% and 32% interest in
Porcupine and Musselwhite, respectively (note 4(a)), and, as a result, the mining interests
at December 31, 2007 reflect the Companys 100% ownership of those assets.(g)
    
    The Company capitalized $10.9 million of interest related to the Peñasquito project in
2007 (2006  nil).
 11. SILVER INTERESTS
 2007
    
    
    2006Accumulated
    
    
    
    
    
    
    
    
    
    
    AccumulatedCost
    
    
    Depreciation
    
    
    Net
    
    
    Cost
    
    
    Depreciation
    
    
    NetYauliyacu(d)
    
    $
    285.3
    
    
    $
    23.1
    
    
    $
    262.2
    
    
    $
    285.3
    
    
    $
    10.6
    
    
    $
    274.7Zinkgruvan
    
    
    77.9
    
    
    
    9.1
    
    
    
    68.8
    
    
    
    77.9
    
    
    
    6.1
    
    
    
    71.8Stratoni (c)
    
    
    57.7
    
    
    
    3.4
    
    
    
    54.3
    
    
    
    
    
    
    
    
    
    
    
    $
    420.9
    
    
    $
    35.6
    
    
    $
    385.3
    
    
    $
    363.2
    
    
    $
    16.7
    
    
    $
    346.5
  63




---



##### 



2007
    
    
    2006Non-
    
    
    
    
    
    
    
    
    
    
    Non-Depletable
    
    
    Depletable
    
    
    Total
    
    
    Depletable
    
    
    Depletable
    
    
    TotalYauliyacu(d)
    
    $
    21.7
    
    
    $
    240.5
    
    
    $
    262.2
    
    
    $
    34.2
    
    
    $
    240.5
    
    
    $
    274.7Zinkgruvan
    
    
    33.7
    
    
    
    35.1
    
    
    
    68.8
    
    
    
    36.7
    
    
    
    35.1
    
    
    
    71.8Stratoni (c)
    
    
    35.4
    
    
    
    18.9
    
    
    
    54.3
    
    
    
    
    
    
    
    
    
    
    
    $
    90.8
    
    
    $
    294.5
    
    
    $
    385.3
    
    
    $
    70.9
    
    
    $
    275.6
    
    
    $
    346.5
 (a)
    
    On December 20, 2007, Silver Wheaton signed a binding letter agreement to purchase
between 45% and 90% of the life-of-mine silver to be produced by the Rosemont Copper
Project (Rosemont), a 100%-owned property of Augusta Resource Corporation (Augusta).
Augusta must elect the percentage of life-of-mine silver subject to the transaction, which
will be between a minimum of 45% and a maximum of 90%, on or before March 31, 2008. Subject
to the finalization of the structure of the transaction, including tax considerations,
Silver Wheaton will pay an upfront cash payment ranging in value from $135 million to $165
million to acquire 45% of the payable silver, or $240 million to $320 million to acquire
90% of the payable silver, produced for the life-of-mine. The upfront payment will be made
on a drawdown basis to fund construction of the mine as construction milestones are
achieved. Silver Wheaton will not be required to pay any further ongoing per ounce payments
for silver delivered from Rosemont and is not required to fund or contribute to ongoing
capital expenditures. Augusta will provide a completion guarantee with certain minimum
production criteria by a certain date. The transaction is subject to (a) Augusta receiving
all necessary permits to construct and operate a mine in accordance with their August 2007
Rosemont Feasibility Study (the Feasibility Study), (b) Augusta having entered into
committed arrangements for sufficient financing to construct and operate the mine, and (c)
execution by the parties of definitive agreements on or before June 30, 2008 as well as
receipt of any required regulatory approvals and third-party consents.(b)
    
    On July 24, 2007, Silver Wheaton entered into a transaction to acquire 25% of the
silver produced from Goldcorps Peñasquito project located in Mexico for the life of mine,
for an upfront cash payment of $485 million. In addition, a per ounce cash payment of the
lesser of $3.90 and the prevailing market price is due (subject to an inflationary
adjustment commencing in 2011), for silver delivered under the contract.Silver Wheaton is not required to fund any capital expenditures at Peñasquito, including any
expansion scenarios. Goldcorp has provided a completion guarantee to Silver Wheaton that the
Peñasquito mine will be constructed with certain minimum production criteria by certain
dates.(c)
    
    On April 23, 2007, Silver Wheaton entered into an agreement with Hellas Gold S.A., a
subsidiary of European Goldfields Ltd., to acquire all of the silver produced from Hellas
Golds Stratoni mining operations in Greece for the life of mine. Silver Wheaton made an
upfront cash payment of $57.5 million. In addition, a per ounce cash payment of the lesser
of $3.90 and the prevailing market price is due (subject to an inflationary adjustment
commencing in 2010), for silver delivered under the contract.During the term of the contract, Silver Wheaton will have a right of first refusal on any
future sales of silver streams from any other mine owned or operated by European Goldfields
or Hellas Gold.(d)
    
    On March 23, 2006, Silver Wheaton entered into a contract with Glencore International
AGs (Glencore) to purchase 4.75 million ounces of silver per year for a period of 20
years, based on the production from Glencores Yauliyacu mining operations in Peru. The
upfront payment was $285 million, comprised of $245 million in cash and a $40 million
promissory note, which was paid in full on May 31, 2006. In addition, a cash payment of
$3.90 per ounce of silver delivered under the contract is due (subject to an inflationary
adjustment commencing in 2009). In the event that silver produced at Yauliyacu in any year
totals
 64




---



##### 



less than 4.75 million ounces, the amount sold to Silver Wheaton in subsequent years will be
increased to make up for the shortfall, so long as production allows.During the term of the contract, Silver Wheaton has a right of first refusal on any future
sales of silver streams from the Yauliyacu mine and a right of first offer on future sales of
silver streams from any other mine owned by Glencore at the time of the initial transaction.
In addition, Silver Wheaton also has an option to extend the 20 year term of the silver
purchase agreement in five year increments, on substantially the same terms as the existing
agreement, subject to an adjustment related to silver price expectations at the time and
other factors.
 12. OTHER LONG-TERM ASSETS
 2007
    
    
    2006Reclamation deposits
    
    $
    6.6
    
    
    $
    17.2Sales/indirect taxes recoverable
    
    
    18.8
    
    
    
    28.6Other
    
    
    17.1
    
    
    
    10.5$
    42.5
    
    
    $
    56.3
 13. INCOME AND MINING TAXES
 2007
    
    
    2006
    
    
    2005Current income and mining tax expense
    
    $
    203.6
    
    
    $
    215.9
    
    
    $
    135.3Future income and mining tax (recovery) expense
    
    
    (43.3
    )
    
    
    (62.7
    )
    
    
    7.1$
    160.3
    
    
    $
    153.2
    
    
    $
    142.4
  2007
    
    
    2006
    
    
    2005Earnings from continuing operations before income taxes and non-controlling interests
    
    $
    581.8
    
    
    $
    589.6
    
    
    $
    440.3Canadian federal and provincial income tax rates
    
    
    34.12
    %
    
    
    36.12
    %
    
    
    38.47
    %Income tax expense based on above rates
    
    
    198.5
    
    
    
    213.0
    
    
    
    169.4Increase (decrease) due to:Impact of reduction in tax rates on future income taxes
    
    
    (42.7
    )
    
    
    (45.8
    )
    
    
    Provincial mining taxes
    
    
    28.0
    
    
    
    16.0
    
    
    
    20.7Non-deductible expenditures
    
    
    12.4
    
    
    
    3.7
    
    
    
    6.2Resource allowance
    
    
    (8.1
    )
    
    
    (8.4
    )
    
    
    (17.5
    )Lower statutory tax rates on earnings of foreign subsidiaries
    
    
    (63.1
    )
    
    
    (55.9
    )
    
    
    (15.6
    )Dilution gains not subject to tax
    
    
    (3.4
    )
    
    
    (23.0
    )
    
    
    (7.2
    )Foreign exchange and other permanent differences
    
    
    17.1
    
    
    
    (16.0
    )
    
    
    (6.5
    )Mining duties deduction
    
    
    (5.1
    )
    
    
    (3.6
    )
    
    
    (2.3
    )Non-taxable portion of realized capital (gains) losses
    
    
    (1.8
    )
    
    
    (15.6
    )
    
    
    (2.6
    )Change in valuation allowance
    
    
    (8.0
    )
    
    
    (5.7
    )
    
    
    (3.1
    )Non-deductible asset write-down
    
    
    
    
    
    
    63.1
    
    
    
    Capital gains tax on sale of subsidiary shares
    
    
    33.5
    
    
    
    23.8
    
    
    
    Other
    
    
    3.0
    
    
    
    7.6
    
    
    
    0.9$
    160.3
    
    
    $
    153.2
    
    
    $
    142.4
 65




---



##### 



2007
    
    
    2006Future income and mining tax assetsNon-capital losses
    
    $
    94.3
    
    
    $
    121.7Deductible temporary differences and other
    
    
    183.8
    
    
    
    107.1Value of future income tax and mining assets
    
    
    278.1
    
    
    
    228.8Valuation allowance
    
    
    (71.8
    )
    
    
    (115.3
    )206.3
    
    
    
    113.5Future income and mining tax liabilitiesTaxable temporary differences
    
    
    (4,053.9
    )
    
    
    (3,672.0
    )Future income and mining tax liabilities, net
    
    $
    (3,847.6
    )
    
    $
    (3,558.5
    )Presented on the Consolidated Balance Sheets as:Future income and mining tax assets
    
    $
    10.7
    
    
    $
    18.0Future income and mining tax liabilities
    
    
    (3,858.3
    )
    
    
    (3,576.5
    )Future income and mining tax liabilities, net
    
    $
    (3,847.6
    )
    
    $
    (3,558.5
    )
   Tax Loss Carry Forwards
    14. LONG-TERM DEBT
 2007
    
    
    2006$1.5 billion revolving credit facility (a)
    
    $
    645.0
    
    
    $
    $200 million non-revolving term loan (b)
    
    
    192.9
    
    
    
    $300 million revolving term loan (b)
    
    
    227.0
    
    
    
    $500 million revolving credit facility(c)
    
    
    
    
    
    
    500.0$550 million bridge facility(c)
    
    
    
    
    
    
    100.0$350 million revolving credit facility(c)
    
    
    
    
    
    
    290.0$50 million revolving credit facility(d)
    
    
    
    
    
    
    35.01,064.9
    
    
    
    925.0Less: current portion of long-term debt
    
    
    28.6
    
    
    
    135.0$
    1,036.3
    
    
    $
    790.0
 66




---



##### 



Summary of Long-term Debt
 (a)
    
    On May 18, 2007, Goldcorp entered into a $1.5 billion revolving credit facility. The
credit facility is unsecured and amounts drawn are required to be refinanced or repaid by
May 18, 2012. Amounts drawn incur interest at LIBOR plus 0.35% to 0.70% per annum dependent
upon the Companys leverage ratio, increasing by an additional 0.05% per annum if the total
amount drawn under this facility exceeds $750 million. Undrawn amounts are subject to a
0.08% to 0.175% per annum commitment fee dependent on the Companys leverage ratio.
 (b)
    
    On July 24, 2007, Silver Wheaton entered into a credit agreement with Bank of Nova
Scotia and BMO Capital Markets, as co-lead arrangers and administrative agents, to borrow
$200 million under a non-revolving term loan (the Term Loan) and up to $300 million under
a revolving term loan (the Revolving Loan). The Revolving Loan is for a period of seven
years and the Term Loan is to be repaid in equal installments over a period of seven years,
however, prepayments are allowed at any time. Silver Wheaton has committed to pay down the
Revolving Loan, within 61 days after the end of each fiscal quarter, by an amount equal to
90% of the cash flows reported for the quarter. The Revolving Loan can be drawn down at any
time to finance acquisitions or investments. In order to fund the acquisition of the
Peñasquito silver contract from Goldcorp, the Term Loan was drawn in full and the Revolving
Loan was drawn in the amount of $246 million.Amounts drawn incur interest at LIBOR plus 0.875% to 1.75% per annum dependent upon Silver
Wheatons leverage ratio. Undrawn amounts are subject to a 0.2% to 0.45% per annum commitment
fee dependent on Silver Wheatons leverage ratio. Both the Term Loan and the Revolving Loan
are secured against Silver Wheatons assets, including Silver Wheatons silver interests.
Silver Wheaton paid $2.5 million in debt financing costs relating to the credit agreement,
which was capitalized to the cost of the Peñasquito contract. During 2007, Silver Wheaton
repaid $7.1 million and $19.0 million of the balances outstanding on the Term Loan and
Revolving Loan, respectively.
 (c)
    
    As at December 31, 2006, the Company had a $500 million revolving credit facility,
which was required to be refinanced or repaid by July 29, 2010. As at December 31, 2006,
this facility was fully drawn. In addition, the Company had two credit facilities comprised
of a $550 million bridge facility and a $350 million revolving credit facility. As at
December 31, 2006, $290 million of debt was outstanding on the $350 million credit facility
and $100 million was outstanding on the bridge facility. All of these facilities were
repaid and cancelled on May 18, 2007.
 (d)
    
    The Company assumed a $50.0 million revolving credit facility and a $45.0 million term
loan as a result of the acquisition of Glamis (note 5(a)). As at December 31, 2006, $35
million had been drawn against the revolving facility. The facility was repaid and
cancelled on January 19, 2007. The term loan was repaid on December 29, 2006.
 (e)
    
    Reclamation letters of credit outstanding at the year ended December 31, 2007 totaled
$230.7 million (2006  $135.5 million).
 Scheduled
Long-term Debt repayments
 2008
    
    $
    28.62009
    
    
    28.62010
    
    
    28.62011
    
    
    28.62012
    
    
    673.6Thereafter
    
    
    276.9$
    1,064.9
 Fair Value of Long-term Debt
  67




---



##### 



15. FINANCIAL INSTRUMENTS
 Financial instrument risk exposure
   (a)
    
    Commodity price riskProfitability of the Company depends on metal prices for gold, silver and copper. Gold,
silver and copper prices are affected by numerous factors such as the sale or purchase of
gold and silver by various central banks and financial institutions, interest rates, exchange
rates, inflation or deflation, fluctuations in the value of the US dollar and foreign
currencies, global and regional supply and demand, and the political and economic conditions
of major gold, silver and copper-producing countries throughout the world.The Company has a policy not to hedge gold sales. Goldcorp has entered into copper hedging
instruments to manage its exposure to fluctuations in copper prices.(b)
    
    Foreign exchange riskExchange rate fluctuations may affect the costs that the Company incurs in its operations.
Gold, silver and copper are sold in US dollars and the Companys costs are incurred
principally in US dollars, Canadian dollars, Mexican pesos, Argentine pesos, Guatemalan
quetzals and Honduran lempira. The appreciation of non-US dollar currencies against the US
dollar can increase the cost of gold, silver and copper production and capital expenditure in
US dollar terms. In addition, following the Glamis and Placer acquisitions (Note 5), the
Company recorded $3.1 billion of future income tax liabilities on mineral interests which are
recorded in local currencies. The future income tax liabilities are monetary items, which are
revalued each period end at current exchange rates, with the gain or loss recorded in income
in the period.Goldcorps Risk Management policy includes hedging to reduce the risk associated with
currency fluctuations; however, Goldcorp has not entered into such types of transactions
during the current or comparative periods. The Company has assessed this risk and has not
presently adopted an active currency hedging program given the correlation between metal
prices and the currencies in which the Company operates. In 2007, favourable changes in metal
prices have mitigated the adverse effect of the appreciation of the Canadian dollar against
the US dollar.(c)
    
    Interest rate riskThe Company is exposed to interest rate risk on its outstanding borrowings and short-term
investments. Presently, all of the Companys outstanding borrowings are at floating interest
rates. The Company monitors its exposure to interest rates and is comfortable with its
exposures given the relatively low short-term US dollar rates. The weighted average interest
rate paid by the Company in 2007 on its outstanding borrowings was 5.775%.
 68




---



##### 



(d)
    
    Credit riskThe Companys financial assets comprise, primarily, cash and cash equivalents, accounts
receivable, marketable securities and investments. Credit risk is primarily associated with
trade receivables; however, it also arises on cash equivalents and derivative financial
instruments.To mitigate exposure to credit risk on liquid funds and derivative financial instruments, the
Company has established policies to limit the concentration of credit risk, to ensure
counterparties demonstrate minimum acceptable credit worthiness, and to ensure liquidity of
available funds.The Company closely monitors its financial assets and does not have any significant
concentration of credit risk.(e)
    
    Liquidity riskThe Company has in place a rigorous planning and budgeting process to help determine the
funds required to support the Companys normal operating requirements on an ongoing basis and
its expansionary plans. The Company ensures that there are sufficient committed loan
facilities to meet its short-term business requirements, taking into account its anticipated
cash flows from operations and its holdings of cash and cash equivalents. Goldcorp has in
place a $1.5 billion committed loan facility, of which $855 million was available to be drawn
at December 31, 2007. Additionally, Silver Wheaton has in place a $300 million revolving term
loan and a $200 million non-revolving term loan, of which $73 million and $7.1 million,
respectively, was available to be drawn at December 31, 2007.
 Derivative Instruments
 (a)
    
    Copper forward contractsCommencing in 2006, the Company has entered into copper forward contracts to manage its
exposure to copper price volatility. These contracts do not qualify for hedge accounting, and
are therefore marked to market at the end of each reporting period, as determined by
reference to published copper prices in an active market.At December 31, 2007, the Company had entered into 30 million pounds of copper forward
contracts on its 2008 production at a blended rate of $2.55 per pound. Additionally, the
Company has entered into a zero-cost collar structure whereby puts have been purchased at an
average price of $3.26 on 21.8 million pounds and calls sold at an average price of $3.63 on
19.5 million pounds for 2008 production. These contracts are monthly swaps, cash settled,
based on the average London Metal Exchange Cash Settlement price for the month.
 2007
    
    
    2006Current derivative asset, included in other current assets
    
    $
    7.9
    
    
    $
    2.0Current derivative liability
    
    
    15.5
    
    
    
    Non-current derivative liability
    
    
    
    
    
    
    6.1$
    15.5
    
    
    $
    6.1Realized loss on matured contracts
    
    $
    19.9
    
    
    $
    Unrealized loss on fair value change of outstanding contracts
    
    
    3.6
    
    
    
    4.1Non-hedge derivative loss
    
    $
    23.5
    
    
    $
    4.1
 (b)
    
    Embedded derivativesFinancial instruments and non-financial contracts may contain embedded derivatives, which are
required to be accounted for separately at fair value as derivatives when the risks and
characteristics are not closely related to those of their host contract and the host contract
is not carried at fair value. The Company regularly assesses its financial instruments and
non-financial
 69




---



##### 



contracts to ensure that any embedded derivatives are accounted for in accordance with its
policy. There were no embedded derivatives requiring separate accounting at December 31,
2007.
 16. RECLAMATION AND CLOSURE COST OBLIGATIONS
   2007
    
    
    2006Reclamation and closure cost obligations  January 1
    
    $
    217.3
    
    
    $
    57.7Arising on acquisition of Placer Dome assets (note 5(b))
    
    
    
    
    
    
    111.8Arising on acquisition of Glamis (note 5(a))
    
    
    4.9
    
    
    
    30.0Arising on acquisition of remaining interest in Porcupine and Musselwhite mines (note 4(a)
    
    
    46.1
    
    
    
    Reduction of liability on disposal of mining interests
    
    
    (25.2
    )
    
    
    Reclamation expenditures
    
    
    (12.0
    )
    
    
    (6.4
    )Accretion expense, included in depreciation and depletion
    
    
    10.8
    
    
    
    6.8Revisions in estimates and liabilities incurred
    
    
    25.8
    
    
    
    17.4267.7
    
    
    
    217.3Less: current portion of reclamation and closure cost obligations, included in accounts
payable, accrued liabilities, and other
    
    
    (6.4
    )
    
    
    (3.3
    )$
    261.3
    
    
    $
    214.0
 17. EMPLOYEE PENSION PLANS
  Defined contribution pension plans
  Defined benefit pension plans
 (Note 5(b) )
 70




---



##### 



2007
    
    
    2006Change in benefit obligationBenefit obligation, beginning of year
    
    
    17.5
    
    
    
    5.2Benefit obligations assumed on acquisition of mining interests
    
    
    12.0
    
    
    
    10.2Current service costs
    
    
    1.3
    
    
    
    0.7Past service costs
    
    
    0.6
    
    
    
    Interest costs
    
    
    1.1
    
    
    
    0.8Actuarial loss (gain)
    
    
    (0.7
    )
    
    
    1.0Benefits paid
    
    
    (2.1
    )
    
    
    (0.4
    )Benefit obligation, end of year
    
    
    29.7
    
    
    
    17.5Change in plan assetsFair value of plan assets, beginning of year
    
    
    10.4
    
    
    
    2.2Plan assets assumed on acquisition of Placer Dome assets
    
    
    9.4
    
    
    
    7.8Actual return on plan assets
    
    
    0.4
    
    
    
    0.6Company contributions
    
    
    2.1
    
    
    
    0.2Benefits paid
    
    
    (2.1
    )
    
    
    (0.4
    )Fair value of plan assets, end of year
    
    
    20.2
    
    
    
    10.4Funded status  surplus (deficit)
    
    
    (9.5
    )
    
    
    (7.1
    )Unrecognized net actuarial loss
    
    
    0.5
    
    
    
    1.1Unrecognized prior service cost
    
    
    1.2
    
    
    
    0.3Unrecognized transitional obligation
    
    
    
    
    
    
    0.1Accrued benefit liability (1)
    
    
    (7.8
    )
    
    
    (5.6
    )
 (1)
    
    Included in Other Long-term Liabilities on the Consolidated Balance Sheets.
   2007
    
    
    2006
    
    
    2005Costs arising in the periodCurrent service cost
    
    
    1.3
    
    
    
    0.7
    
    
    
    0.4Interest cost
    
    
    1.1
    
    
    
    0.8
    
    
    
    0.3Return on plans assets
    
    
    (0.4
    )
    
    
    (0.6
    )
    
    
    (0.3
    )Actuarial loss (gain)
    
    
    (0.7
    )
    
    
    0.9
    
    
    
    0.1Prior service cost
    
    
    0.6
    
    
    
    
    
    
    
    Costs arising in the period
    
    
    1.9
    
    
    
    1.8
    
    
    
    0.5Difference between costs arising in the period and
costs recognized in the period in respect of:Return on plan assets
    
    
    (0.3
    )
    
    
    0.1
    
    
    
    0.2Actuarial loss (gain)
    
    
    0.7
    
    
    
    (0.7
    )
    
    
    Prior service cost
    
    
    (0.6
    )
    
    
    (0.2
    )
    
    
    (0.1
    )Net expense recognized in the period (2)
    
    
    1.7
    
    
    
    1.0
    
    
    
    0.6
 (2)
    
    Included in Operating Expenses on the Consolidated Statements of Earnings.
  71




---



##### 



2007
    
    
    2006Discount rate
    
    
    5.5% - 9
    %
    
    
    5.0% - 9
    %Expected long-term rate of return on plan assets
    
    
    7.1% - 9
    %
    
    
    7.1% - 9
    %Rate of compensation increase
    
    
    4% - 6
    %
    
    
    4% - 6
    %
 Plan assets
   2007Equity securities
    
    
    55
    %Debt securities
    
    
    40
    %Cash and other investments
    
    
    5
    %
 Estimated future benefit payments
  2013-2008
    
    
    2009
    
    
    2010
    
    
    2011
    
    
    2012
    
    
    2017Defined benefit plans
    
    
    1.2
    
    
    
    1.1
    
    
    
    1.2
    
    
    
    1.2
    
    
    
    1.2
    
    
    
    8.0
 18. NON-CONTROLLING INTERESTS
 SilverWheaton
    
    
    Terrane
    
    
    TotalAt January 1, 2006
    
    
    108.6
    
    
    
    
    
    
    
    108.6Increase in net assets of Silver Wheaton arising upon contract amendment (a)(i)
    
    
    32.3
    
    
    
    
    
    
    
    32.3Increase in non-controlling interest (a)(ii)
    
    
    98.1
    
    
    
    
    
    
    
    98.1Increase in non-controlling interest (a)(iii)
    
    
    51.9
    
    
    
    
    
    
    
    51.9Arising from transaction with Terrane (b)(i)
    
    
    
    
    
    
    22.0
    
    
    
    22.0Increase in non-controlling interest (b)(ii)
    
    
    
    
    
    
    5.8
    
    
    
    5.8Share of net earnings (loss)
    
    
    36.5
    
    
    
    (0.7
    )
    
    
    35.8At December 31, 2006
    
    $
    327.4
    
    
    $
    27.1
    
    
    $
    354.5Change in accounting policy impact on retained earnings of subsidiary (note 3)
    
    
    2.5
    
    
    
    
    
    
    
    2.5Non-controlling interest in accumulated OCI (note 8)
    
    
    15.9
    
    
    
    
    
    
    
    15.9Non-controlling interest in current OCI (note 8)
    
    
    1.3
    
    
    
    
    
    
    
    1.3Increase in non-controlling interest (b)(iii)
    
    
    9.2
    
    
    
    20.1
    
    
    
    29.3Share of net earnings (loss)
    
    
    47.0
    
    
    
    (0.9
    )
    
    
    46.1At December 31, 2007
    
    $
    403.3
    
    
    $
    46.3
    
    
    $
    449.6
 (a)
    
    Silver WheatonAs a result of the Wheaton acquisition on February 14, 2005, Goldcorp acquired Wheatons 65%
ownership of its subsidiary, Silver Wheaton. This interest decreased to 48% as at December
31, 2007 following the transactions described below.
 (i)
    
    On March 30, 2006, Goldcorp and Silver Wheaton amended the silver purchase
contract, increasing the minimum number of ounces of silver to be delivered over the 25
year period by 100 million ounces, to 220 million ounces, and waiving any capital
expenditure contributions previously required to be paid by Silver Wheaton. In
consideration for these
 72




---



##### 



amendments, Silver Wheaton issued to Goldcorp 18 million common shares, valued at $115.6
million, and a $20.0 million non-interest bearing promissory note due on March 30, 2007.
As a result, at March 30, 2006, Goldcorp owned 62% of Silver Wheatons common shares.
This transaction resulted in an increase to mining interests of $46.6 million, an
increase to future income tax liabilities of $14.3 million, and an increase in
non-controlling interests of $32.3 million.(ii)
    
    On April 20, 2006, Silver Wheaton closed a C$200 million public offering of 16.7
million common shares at a price of C$12.00 per share. This transaction resulted in a
decrease in Goldcorps ownership in Silver Wheaton from 62% to 57%. This dilution of the
Companys interest gave rise to a dilution gain of $61.4 million and an increase in
non-controlling interests of $98.1 million.(iii)
    
    On December 7, 2006, Goldcorp completed the sale of 18 million common shares of
Silver Wheaton at a price of C$12.70 per share for gross proceeds of $199.1 million.
This transaction, which reduced Goldcorps interest in Silver Wheaton to 49%, gave rise
to a gain on sale of $109.8 million which was recognized in operations in 2006 and an
increase in non-controlling interests of $51.9 million.(iv)
    
    Related transactionsGoldcorps interest in Silver Wheaton declined marginally during 2007 (to 48%, from 49%
in the prior year) as a result of additional issuances of common shares by Silver Wheaton
from the exercise of stock options and warrants, which resulted in a dilution gain of
$1.1 million being recognized in income in the current year (2006  dilution gain of
$61.4 million, 2005  $18.7 million) and an increase in non-controlling interests of
$9.2 million. The Company continued to consolidate Silver Wheaton in 2007, as it
maintained control of Silver Wheaton due to the majority influence it exerted on the
board of directors.During the year ended December 31, 2007, the Company sold to Silver Wheaton 6.9 million
ounces (2006  9.0 million ounces, 2005  7.9 million ounces) of silver from a
subsidiary at a price of $3.90 per ounce, for total consideration of approximately $27.0
million (2006  $35.0 million, 2005  $30.8 million). Silver Wheaton also has an
agreement with Goldcorp whereby the Company provides certain management and
administrative services at cost. During the year, total management fees paid to the
Company were $0.2 million (2006  $0.2 million, 2005  $0.4 million). This agreement
allows for cancellation with 30 days notice at any time.During September 2006, in connection with the Companys acquisition of Glamis, Silver
Wheaton agreed to waive its right to acquire an interest in any of Glamis Mexican
projects. In exchange for this waiver, Silver Wheaton received a right of first refusal
on future silver production from the Peñasquito Project in Mexico.
 (b)
    
    Terrane Metals Corp
 (i)
    
    On July 24, 2006, the Company completed the sale of Mt Milligan and certain other
Canadian exploration interests to Terrane. Goldcorp acquired these exploration interests
from Barrick in May 2006 (note5(b)).In consideration for the exploration properties, the Company received 240 million
convertible Series A preferred shares at a price of C$0.50 per share. The preferred
shares are convertible into common shares of Terrane at the option of Goldcorp at any
time without any further consideration. Upon acquisition, on an as-converted basis,
Goldcorp would own an 81% equity interest in Terranes issued and outstanding shares. The
preferred shares are not entitled to dividends, are non-transferable without the prior
written consent of Terrane, are non-redeemable, non-retractable, non-voting and if not
previously converted will be automatically converted into common shares on the 20th
anniversary of their issuance.(ii)
    
    On November 3, 2006, Terrane issued 13.4 million units in a brokered private
placement at a price of C$0.75 per unit for gross proceeds of C$10 million. Each unit
consists of one common share and one half of a common share purchase warrant. As a
result of this transaction, Goldcorps interest in Terrane, on an as-converted basis,
decreased to 77%, resulting in a dilution gain of $2.4 million which has been recognized
in operations for the current year and an increase in non-controlling interests of $5.8
million.
 73




---



##### 



(iii)
    
    On July 23, 2007, Terrane closed a private placement of 5.6 million shares at a
price of C$0.65 per share for gross proceeds of C$3.6 million. On June 21, 2007, Terrane
closed a C$25 million public offering of 30.8 million common shares at a price of C$0.65
per share and 6.25 million flow-through shares at a price of C$0.80 per share. These
transactions resulted in a decrease in Goldcorps ownership in Terrane during the year
from 77% to 68%. This dilution of the Companys interest has given rise to an increase
in non-controlling interest of $20.1 million and a dilution gain of $8.9 million.
 19. SHAREHOLDERS EQUITY
  (a)
    
    Share Purchase WarrantsOn March 21, 2006, the Company proposed the issuance of new common share purchase warrants
(New Warrants) in exchange for the early exercise of the five existing series of warrants
(Existing Warrants). On June 9, 2006, over 92% of Existing Warrant holders had exercised
their warrants during the early exercise period giving rise to net proceeds of $454.9 million
which were subsequently used to pay down credit facilities drawn down to fund the previously
completed acquisition of certain assets of Placer Dome from Barrick (note5(b)). Pursuant to
this transaction, the remaining Existing Warrant holders had their warrants automatically
exchanged, without any further action on the part of the warrant holder (including payment of
any consideration), for (i) a fraction of a common share equivalent in value to the intrinsic
(in-the-money) value of such Existing Warrant calculated with reference to the price of
Goldcorp common shares for the five trading days immediately preceding the expiry of the
early exercise period, and (ii) one half of the fraction of a New Warrant issued to holders
of Existing Warrants who exercised during the early exercise period.Each of the 8.4 million New Warrants issued by the Company entitles the holder to purchase at
any time one common share of Goldcorp at an exercise price of C$45.75 until June 9, 2011. The
New Warrants trade on the Toronto Stock Exchange (TSX) and New York Stock Exchange
(NYSE).All Existing Warrants were de-listed from the TSX and NYSE.As a result of the Virginia acquisition (note5(c)), there were 0.9 million Virginia warrants
convertible into 0.3 million Goldcorp shares at an average exercise price of C$4.81. As at
December 31, 2006, all Virginia warrants were either exercised or have expired.(b)
    
    Stock OptionsThe Company has a 2005 Stock Option Plan which allows for up to 12.5 million stock options,
with a maximum exercise period of ten years, to be granted to employees, officers and
consultants. Of the 14.0 million stock options outstanding at December 31, 2007, 9.7 million
relate to options granted under the 2005 Stock Option Plan.The Company granted 3.9 million stock options during the year ended December 31, 2007 (2006
  3.6 million), which vest over a period of two years, are exercisable at prices ranging
from $23.06 to $23.68 (C$24.40 to C$25.71) per option, expire in 2017, and have a total fair
value of $22.7 million. Stock options, when exercised, result in an increase in the number of
common shares issued by the Company.The fair value of the options granted is calculated on the date of grant using an option
pricing model with the following weighted average valuation assumptions:
 74




---



##### 



Year ended December 31,
    
    2007
    
    
    2006
    
    
    2005Expected life (years)
    
    
    3
    
    
    
    3.5
    
    
    
    4Expected volatility
    
    
    30
    %
    
    
    30
    %
    
    
    30
    %Expected dividend yield
    
    
    <1
    %
    
    
    <1
    %
    
    
    <1
    %Risk-free interest rate
    
    
    4.4
    %
    
    
    4.4
    %
    
    
    3.0
    %Options granted (millions)
    
    
    3.9
    
    
    
    3.6
    
    
    
    5.1Weighted average fair value per option
    
    $
    5.77
    
    
    $
    7.35
    
    
    $
    3.99
    WeightedAverageOptions
    
    
    ExerciseOutstanding
    
    
    Price(000s)
    
    
    (C$/option)At January 1, 2005
    
    
    6,144
    
    
    $
    13.98Issued in connection with the acquisition of Wheaton
    
    
    4,917
    
    
    
    9.52Granted
    
    
    5,095
    
    
    
    19.31Exercised
    
    
    (2,545
    )
    
    
    10.11Cancelled
    
    
    (34
    )
    
    
    17.66At December 31, 2005
    
    
    13,577
    
    
    
    15.08Issued in connection with the acquisition of Glamis
    
    
    4,668
    
    
    
    12.90Granted
    
    
    3,560
    
    
    
    31.12Exercised
    
    
    (6,502
    )
    
    
    12.60Cancelled
    
    
    (104
    )
    
    
    24.85At December 31, 2006
    
    
    15,199
    
    
    $
    19.16Granted
    
    
    3,939
    
    
    
    25.65Exercised
    
    
    (4,645
    )
    
    
    15.17Cancelled
    
    
    (468
    )
    
    
    24.44At December 31, 2007
    
    
    14,025
    
    
    $
    22.12
 75




---



##### 



The following table summarizes information about the options outstanding at December 31,
2007:
 Options Outstanding
    
    
    Options ExercisableWeighted
    
    
    
    
    
    
    
    
    
    
    WeightedWeighted
    
    
    Average
    
    
    Options
    
    
    Weighted
    
    
    AverageAverage
    
    
    Remaining
    
    
    Outstanding
    
    
    Average
    
    
    RemainingOptions
    
    
    Exercise
    
    
    Contractual
    
    
    and
    
    
    Exercise
    
    
    ContractualOutstanding
    
    
    Price
    
    
    Life
    
    
    Exercisable
    
    
    Price
    
    
    LifeExercise Prices (C$)
    
    (000s)
    
    
    (C$/option)
    
    
    (years)
    
    
    (000s)
    
    
    (C$/option)
    
    
    (years)$2.05  $4.98
    
    
    207
    
    
    $
    3.28
    
    
    
    1.7
    
    
    
    207
    
    
    $
    3.28
    
    
    
    1.7$6.28  $8.06
    
    
    138
    
    
    
    6.46
    
    
    
    0.6
    
    
    
    137
    
    
    
    6.46
    
    
    
    0.6$10.18  $13.38
    
    
    2,428
    
    
    
    12.37
    
    
    
    1.9
    
    
    
    2,428
    
    
    
    12.37
    
    
    
    1.9$14.80  $17.50
    
    
    822
    
    
    
    17.00
    
    
    
    5.8
    
    
    
    822
    
    
    
    17.00
    
    
    
    5.8$18.50  $21.01
    
    
    3,201
    
    
    
    19.24
    
    
    
    7.2
    
    
    
    2,390
    
    
    
    19.24
    
    
    
    7.1$23.39  $26.76
    
    
    3,996
    
    
    
    25.65
    
    
    
    8.6
    
    
    
    1,405
    
    
    
    25.70
    
    
    
    7.4$28.84  $31.93
    
    
    2,838
    
    
    
    30.74
    
    
    
    8.4
    
    
    
    893
    
    
    
    30.75
    
    
    
    8.4$32.57  $34.39
    
    
    395
    
    
    
    33.82
    
    
    
    8.6
    
    
    
    132
    
    
    
    33.82
    
    
    
    8.614,025
    
    
    $
    22.12
    
    
    
    6.7
    
    
    
    8,414
    
    
    $
    18.96
    
    
    
    5.4
 (c)
    
    Restricted Share UnitsThe Company has a Restricted Share Unit Plan which allows for up to 500,000 restricted share
units (RSUs) to be granted to employees, directors and consultants.A total of 346,500 RSUs were issued to employees and non-executive directors of the Company
during the year ended December 31, 2007 (2006  61,500). These instruments vest over a
period of up to three years from the grant date.The Company will record compensation expense totaling $10.3 million over the vesting periods.
Compensation expense of $6.0 million has been recognized during the year (2006  $1.3
million), which includes $0.2 million (2006  $0.1 million) related to Silver Wheatons RSU
plan.(d)
    
    Employee Share Purchase PlanIn July 2007, the Company introduced an Employee Share Purchase Plan, which allows Goldcorp
employees to purchase the Companys shares through payroll deductions. Employees may
contribute up to 6% of their eligible earnings and the Company will match 50% of the
contribution. The Company recorded compensation expense of $1.1 million with respect to this
plan in 2007.(e)
    
    Diluted Earnings per ShareDiluted earnings per share is calculated based on the following weighted-average number of shares outstanding:
 2007
    
    
    2006
    
    
    2005Basic weighted-average number of shares outstanding(000s)
    
    
    704,868
    
    
    
    435,189
    
    
    
    314,292Effect of dilutive securities:Stock options
    
    
    3,614
    
    
    
    6,016
    
    
    
    3,249Warrants
    
    
    
    
    
    
    
    
    
    
    27,832Restricted share units
    
    
    238
    
    
    
    59
    
    
    
    21Diluted weighted-average number of shares outstanding
    
    
    708,720
    
    
    
    441,264
    
    
    
    345,394
 The following lists the stock options and share purchase warrants excluded from the
computation of diluted earnings per share because the exercise prices exceeded the average
market value of the common shares of C$29.19 for the year:
 2007
    
    
    2006
    
    
    2005Stock options
    
    
    2,958
    
    
    
    515
    
    
    
    108Share purchase warrants
    
    
    8,439
    
    
    
    8,439
    
    
    
    
 76




---



##### 



20. SUPPLEMENTAL CASH FLOW INFORMATION
 Note
    
    
    2007
    
    
    2006
    
    
    2005Change in non-cash operating working capitalAccounts receivable
    
    
    
    
    
    $
    (71.0
    )
    
    $
    21.1
    
    
    $
    (23.7
    )Income and mining taxes receivable
    
    
    
    
    
    
    (1.6
    )
    
    
    2.8
    
    
    
    12.3Inventories and stockpiled ore
    
    
    
    
    
    
    (34.4
    )
    
    
    6.2
    
    
    
    (10.0
    )Accounts payable and accrued liabilities
    
    
    
    
    
    
    43.5
    
    
    
    24.8
    
    
    
    6.2Income and mining taxes payable
    
    
    
    
    
    
    (151.9
    )
    
    
    (5.8
    )
    
    
    37.6Gold bullion
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    33.9Other
    
    
    
    
    
    
    1.4
    
    
    
    7.5
    
    
    
    (9.3
    )$
    (214.0
    )
    
    $
    56.6
    
    
    $
    47.0Acquisitions, net of cash acquiredPorcupine and Musselwhite
    
    
    4
    (a)
    
    $
    (204.9
    )
    
    $
    
    
    
    $
    Glamis
    
    
    5
    (a)
    
    
    
    
    
    
    53.3
    
    
    
    Placer Dome
    
    
    5
    (b)
    
    
    
    
    
    
    (1,603.4
    )
    
    
    Virginia
    
    
    5
    (c)
    
    
    
    
    
    
    (4.0
    )
    
    
    Terrane
    
    
    18
    (b)
    
    
    
    
    
    
    4.9
    
    
    
    Wheaton
    
    
    5
    (d)
    
    
    
    
    
    
    
    
    
    
    132.4Bermejal
    
    
    4
    (d)
    
    
    
    
    
    
    
    
    
    
    (70.0
    )$
    (204.9
    )
    
    $
    (1,549.2
    )
    
    $
    62.4Non-cash financing and investing activitiesDisposition of interest in La Coipa as partial consideration
for acquisition of full ownership interest in Porcupine and
Musselwhite
    
    
    4
    (a)
    
    $
    100.0
    
    
    $
    
    
    
    $
    Donation of marketable securities
    
    
    
    
    
    
    6.4
    
    
    
    
    
    
    
    Shares issued on acquisition of Glamis
    
    
    5
    (a)
    
    
    
    
    
    
    8,129.0
    
    
    
    Shares issued in exchange for Glamis SARs
    
    
    5
    (a)
    
    
    
    
    
    
    11.4
    
    
    
    Stock options issued in exchange for those of Glamis
    
    
    5
    (a)
    
    
    
    
    
    
    82.1
    
    
    
    New Warrants issued on the early exercise of Existing Warrants
    
    
    19
    (a)
    
    
    
    
    
    
    38.9
    
    
    
    Shares and warrants issued on acquisition of Virginia
    
    
    5
    (c)
    
    
    
    
    
    
    401.9
    
    
    
    Silver Wheaton promissory note issued to Glencore
    
    
    11
    (c)
    
    
    
    
    
    
    40.0
    
    
    
    Shares and warrants issued on acquisition of Wheaton
    
    
    5
    (d)
    
    
    
    
    
    
    
    
    
    
    1,887.4Warrants issued in exchange for those of Wheaton
    
    
    5
    (d)
    
    
    
    
    
    
    
    
    
    
    290.8Stock options issued in exchange for those of Wheaton
    
    
    5
    (d)
    
    
    
    
    
    
    
    
    
    
    30.8Operating activities included the following cash paymentsIncome and mining taxes paid
    
    
    
    
    
    $
    286.4
    
    
    $
    225.5
    
    
    $
    89.9Interest paid
    
    
    
    
    
    
    54.4
    
    
    
    35.1
    
    
    
    Cash and cash equivalents is comprised of:Cash
    
    
    
    
    
    $
    116.9
    
    
    $
    149.4
    
    
    $
    17.7Short-term money market investments
    
    
    
    
    
    
    393.9
    
    
    
    376.9
    
    
    
    544.5$
    510.8
    
    
    $
    526.3
    
    
    $
    562.2
 77




---



##### 



21. JOINT VENTURE INTERESTS
 (note 2(a) ) (note 4(a) )
  2007(1)(2)
    
    
    2006(2)
    
    
    2005Proportionate Statements of Joint Venture OperationsRevenues
    
    $
    866.3
    
    
    $
    743.2
    
    
    $
    299.2Operating expenses
    
    
    (474.3
    )
    
    
    (271.8
    )
    
    
    (100.3
    )Depreciation and depletion
    
    
    (128.6
    )
    
    
    (108.8
    )
    
    
    (59.0
    )Exploration expense
    
    
    (4.1
    )
    
    
    (3.8
    )
    
    
    Other income (expense)
    
    
    9.0
    
    
    
    
    
    
    
    (3.7
    )Income taxes
    
    
    (69.6
    )
    
    
    (109.8
    )
    
    
    (43.5
    )Net income
    
    $
    198.7
    
    
    $
    249.0
    
    
    $
    92.7Proportionate Statements of Joint Venture Cash FlowsOperating activities
    
    $
    193.6
    
    
    $
    344.9
    
    
    $
    133.4Investing activities
    
    
    (85.5
    )
    
    
    (42.5
    )
    
    
    (7.4
    )Financing activities
    
    
    (295.4
    )
    
    
    (112.5
    )
    
    
    (99.4
    )(Decrease) increase in cash and cash equivalents during the year
    
    $
    (187.3
    )
    
    $
    189.9
    
    
    $
    26.6Proportionate Joint Venture Balance SheetsCurrent assets
    
    $
    205.1
    
    
    $
    338.3Mining interests
    
    
    821.9
    
    
    
    1,681.4Other assets
    
    
    50.7
    
    
    
    60.8$
    1,077.7
    
    
    $
    2,080.5Current liabilities
    
    $
    87.4
    
    
    $
    446.8Future income and mining taxes
    
    
    211.5
    
    
    
    402.1Reclamation & closure cost obligation
    
    
    29.6
    
    
    
    67.6Goldcorps investment carrying value
    
    
    749.2
    
    
    
    1,164.0$
    1077.7
    
    
    $
    2,080.5
 (1)
    
    Includes the Companys proportionate share of Porcupine and Musselwhites earnings from
operations and cash flows to December 21, 2007.(2)
    
    Excludes La Coipa, which has been reclassified as discontinued operations (note 6).
 78




---



##### 



22. SEGMENTED INFORMATION
  Earnings
    
    
    ExpendituresDepreciation
    
    
    (loss) from
    
    
    for miningRevenues
    
    
    and depletion
    
    
    operations
    
    
    interests
    
    Total assets2007Red Lake(1)
    
    $
    503.4
    
    
    $
    89.2
    
    
    $
    213.1
    
    
    $
    101.2
    
    
    $
    1,617.4Porcupine(1)
    
    
    111.4
    
    
    
    28.7
    
    
    
    4.3
    
    
    
    29.5
    
    
    
    555.4Musselwhite(1)
    
    
    107.4
    
    
    
    18.6
    
    
    
    10.8
    
    
    
    26.0
    
    
    
    351.5Éléonore(1)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    42.6
    
    
    
    749.6Marigold(2)
    
    
    68.8
    
    
    
    9.0
    
    
    
    1.2
    
    
    
    10.5
    
    
    
    232.6Luismin
    
    
    135.3
    
    
    
    38.7
    
    
    
    12.3
    
    
    
    145.9
    
    
    
    1,678.5El Sauzal(2)
    
    
    217.8
    
    
    
    102.2
    
    
    
    73.6
    
    
    
    3.9
    
    
    
    373.9Peñasquito(2)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    403.0
    
    
    
    10,060.8Alumbrera
    
    
    598.3
    
    
    
    76.6
    
    
    
    238.7
    
    
    
    12.8
    
    
    
    835.9Amapari (note 4(b))
    
    
    18.3
    
    
    
    0.4
    
    
    
    2.8
    
    
    
    1.1
    
    
    
    Wharf
    
    
    42.7
    
    
    
    4.5
    
    
    
    14.2
    
    
    
    6.0
    
    
    
    40.4Marlin(2)
    
    
    203.7
    
    
    
    56.4
    
    
    
    72.8
    
    
    
    26.7
    
    
    
    852.5San Martin(2)
    
    
    32.0
    
    
    
    5.3
    
    
    
    4.6
    
    
    
    
    
    
    
    18.0Peak (note 4(b))
    
    
    18.9
    
    
    
    0.1
    
    
    
    7.7
    
    
    
    9.2
    
    
    
    Pueblo Viejo
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    34.8
    
    
    
    133.7Cerro Blanco
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1.0
    
    
    
    32.2Silver Wheaton
    
    
    175.4
    
    
    
    29.4
    
    
    
    84.8
    
    
    
    
    
    
    
    776.8Terrane
    
    
    
    
    
    
    
    
    
    
    (7.4
    )
    
    
    15.0
    
    
    
    192.1Other(4)
    
    
    (26.6
    )
    
    
    6.0
    
    
    
    (121.2
    )
    
    
    2.2
    
    
    
    450.9Total
    
    $
    2,206.8
    
    
    $
    465.1
    
    
    $
    612.3
    
    
    $
    871.4
    
    
    $
    18,952.22006Red Lake(1)
    
    $
    360.8
    
    
    $
    47.3
    
    
    $
    186.1
    
    
    $
    100.3
    
    
    $
    1,591.3Porcupine(1,5)
    
    
    72.9
    
    
    
    12.6
    
    
    
    16.9
    
    
    
    14.5
    
    
    
    272.3Musselwhite(1,5)
    
    
    62.6
    
    
    
    11.6
    
    
    
    3.7
    
    
    
    6.8
    
    
    
    229.0Éléonore(1)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    19.4
    
    
    
    711.9Marigold(2)
    
    
    19.2
    
    
    
    3.3
    
    
    
    6.3
    
    
    
    3.9
    
    
    
    551.0Luismin
    
    
    159.6
    
    
    
    50.6
    
    
    
    37.8
    
    
    
    227.3
    
    
    
    1,635.5El Sauzal(2)
    
    
    45.1
    
    
    
    25.7
    
    
    
    14.3
    
    
    
    0.6
    
    
    
    1,100.4Peñasquito(2)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    16.6
    
    
    
    7,870.9Alumbrera
    
    
    593.1
    
    
    
    82.7
    
    
    
    334.2
    
    
    
    17.4
    
    
    
    1,016.8Amapari
    
    
    51.7
    
    
    
    15.4
    
    
    
    (189.6
    )
    
    
    13.1
    
    
    
    128.5Wharf
    
    
    40.6
    
    
    
    3.8
    
    
    
    12.3
    
    
    
    2.0
    
    
    
    41.3Marlin(2)
    
    
    32.3
    
    
    
    6.6
    
    
    
    16.0
    
    
    
    4.4
    
    
    
    1,283.6San Martin(2)
    
    
    8.3
    
    
    
    0.7
    
    
    
    2.1
    
    
    
    0.1
    
    
    
    14.9Peak
    
    
    79.7
    
    
    
    18.7
    
    
    
    21.4
    
    
    
    25.4
    
    
    
    201.6Pueblo Viejo
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8.6
    
    
    
    98.9Silver Wheaton
    
    
    158.5
    
    
    
    24.1
    
    
    
    75.7
    
    
    
    
    
    
    
    740.5Terrane
    
    
    
    
    
    
    
    
    
    
    (3.1
    )
    
    
    9.2
    
    
    
    167.9Other(4)
    
    
    (35.0
    )
    
    
    1.2
    
    
    
    (87.4
    )
    
    
    2.6
    
    
    
    159.3Total
    
    $
    1,649.4
    
    
    $
    304.3
    
    
    $
    446.7
    
    
    $
    472.2
    
    
    $
    17,815.6
 79




---



##### 



Earnings
    
    
    ExpendituresDepreciation
    
    
    (loss) from
    
    
    for miningRevenues
    
    
    and depletion
    
    
    operations
    
    
    interests
    
    
    Total assets2005Red Lake
    
    $
    362.0
    
    
    $
    36.7
    
    
    $
    242.9
    
    
    $
    57.9
    
    
    $
    297.8Wharf
    
    
    37.1
    
    
    
    7.6
    
    
    
    3.9
    
    
    
    3.3
    
    
    
    41.9Luismin(3)
    
    
    90.7
    
    
    
    16.2
    
    
    
    19.7
    
    
    
    124.8
    
    
    
    1,447.0Alumbrera(3)
    
    
    299.2
    
    
    
    59.0
    
    
    
    134.4
    
    
    
    6.6
    
    
    
    931.3Amapari(3)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    64.1
    
    
    
    288.3Silver Wheaton(3)
    
    
    65.7
    
    
    
    9.5
    
    
    
    19.5
    
    
    
    0.2
    
    
    
    478.9Peak(3)
    
    
    58.8
    
    
    
    8.6
    
    
    
    17.0
    
    
    
    20.2
    
    
    
    146.3Other(4)
    
    
    (17.1
    )
    
    
    (2.3
    )
    
    
    (32.2
    )
    
    
    0.4
    
    
    
    434.5Total
    
    $
    896.4
    
    
    $
    135.3
    
    
    $
    405.2
    
    
    $
    277.5
    
    
    $
    4,066.0
 (1)
    
    Includes results of operations for the period subsequent to May 11, 2006,
the date of acquisition of certain Placer Dome assets (note 5(b)).(2)
    
    Includes results of operations for the period from November 4, 2006, the
date of acquisition, onward of Glamis (note 5(a)).(3)
    
    Includes results of operations for the period subsequent to February 14,
2005, the date of acquisition of Wheaton (note 5(d)).(4)
    
    Includes cost of sales from silver sales in Luismin and Corporate
activities.(5)
    
    On December 21, 2007, the Company acquired the remaining 49% and 32%
interest in Porcupine and Musselwhite, respectively (note 4(a)), and, as a
result, the figures above reflect Goldcorps 100% ownership subsequent to
December 21, 2007.(6)
    
    In April 2007, the Company sold its Amapari and Peak mines to Peak Gold
(note 4(b)).
 23. COMMITMENTS AND CONTINGENCIES
 (a)
    
    Commitments exist for capital expenditures of approximately $530.8 million, of which
$420.6 million relates to Peñasquito. The Company rents premises and leases equipment under
operating leases that expire over the next five years. The operating lease expense in 2007
was $2.4 million (2006  $6.2 million; 2005  $7.6 million). The following is a schedule
of future minimum rental and lease payments required:
 2008
    
    $
    8.62009
    
    
    5.62010
    
    
    2.62011
    
    
    1.32012
    
    
    1.419.5Thereafter
    
    
    Total future minimum payments required
    
    $
    19.5
 (b)
    
    Due to the size, complexity and nature of the Companys operations, various legal and
tax matters are outstanding from time to time. In the opinion of management, these matters
will not have a material effect on the Companys consolidated financial position or results
of operations.
 24. RELATED PARTY TRANSACTIONS
  80




---



##### 



25. RECONCILIATION TO UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
  
 2007OtherCanadian
    
    
    Equity
    
    
    US GAAP
    
    
    USGAAP
    
    
    adjustments (a)
    
    
    Adjustments
    
    
    GAAPRevenues
    
    $
    2,206.8
    
    
    $
    (598.3
    )
    
    $
    30.8
    (c)
    
    $
    1,639.3Operating expenses, exclusive of
depreciation and depletion
    
    
    953.8
    
    
    
    (283.0
    )
    
    
    24.3
    (c)
    
    
    695.1Depreciation and depletion
    
    
    465.1
    
    
    
    (76.6
    )
    
    
    6.2
    (c)
    
    
    394.7Corporate administration
    
    
    132.9
    
    
    
    
    
    
    
    10.0
    (j)
    
    
    142.9Exploration
    
    
    42.7
    
    
    
    
    
    
    
    79.0
    (b)
    
    
    121.7Earnings from operations
    
    
    612.3
    
    
    
    (238.7
    )
    
    
    (88.7
    )
    
    
    284.9Other income (expense)Interest and other income
    
    
    20.5
    
    
    
    (4.4
    )
    
    
    
    
    
    
    16.1Interest expense and finance fees
    
    
    (44.7
    )
    
    
    4.5
    
    
    
    
    
    
    
    (40.2
    )Loss on foreign exchange
    
    
    (49.4
    )
    
    
    0.5
    
    
    
    
    
    
    
    (48.9
    )Non-hedge derivative loss
    
    
    (23.5
    )
    
    
    
    
    
    
    
    
    
    
    (23.5
    )Gain on securities, net
    
    
    5.5
    
    
    
    
    
    
    
    1.9
    
    
    
    7.4Gain on sale of mining interests
    
    
    51.0
    
    
    
    
    
    
    
    
    
    
    
    51.0Dilution gains
    
    
    10.0
    
    
    
    
    
    
    
    
    
    
    
    10.0Mark-to-market losses on Cdn $ share
purchase warrants
    
    
    
    
    
    
    
    
    
    
    (178.0
    )(l)
    
    
    (178.0
    )Earnings from continuing operations
before taxes, non-controlling interests
and share of earnings of equity
investees
    
    
    581.7
    
    
    
    (238.1
    )
    
    
    (264.8
    )
    
    
    78.8Income and mining taxes
    
    
    (160.3
    )
    
    
    71.7
    
    
    
    26.0
    (i)(b)(d)
    
    
    (62.6
    )Non-controlling interests
    
    
    (46.1
    )
    
    
    
    
    
    
    110.8
    (l)
    
    
    64.7Gain on sale of equity investment
    
    
    
    
    
    
    46.4
    
    
    
    
    
    
    
    46.4Share of earnings of equity investees
    
    
    0.1
    
    
    
    204.7
    
    
    
    (9.0
    )(k)
    
    
    195.8Net earnings from continuing operations
    
    
    375.4
    
    
    
    84.7
    
    
    
    (137.0
    )
    
    
    323.1Net earnings from discontinued operations
    
    
    84.7
    
    
    
    (84.7
    )
    
    
    
    
    
    
    Net earnings
    
    $
    460.1
    
    
    
    
    
    
    $
    (137.0
    )
    
    $
    323.1Other comprehensive income (loss) (h)Gain on available-for-sale securities,
net of tax recovery of $7.8 million
    
    
    36.4
    
    
    
    
    
    
    
    
    
    
    
    36.4Transfer of securities held as
available-for-sale to held-for-trading
    
    
    
    
    
    
    
    
    
    
    (1.9
    )
    
    
    (1.9
    )Reclassification adjustment for gains
and losses included in net earnings,
net of tax of $1.2 million
    
    
    (21.1
    )
    
    
    
    
    
    
    
    
    
    
    (21.1
    )Defined benefit pension plans
    
    
    
    
    
    
    
    
    
    
    (0.4
    )(n)
    
    
    (0.4
    )Non-controlling interests
    
    
    (1.3
    )
    
    
    
    
    
    
    1.0
    
    
    
    (0.3
    )Comprehensive income
    
    $
    474.1
    
    
    
    
    
    
    $
    (138.3
    )
    
    $
    335.8Earnings per share Basic and diluted
    
    $
    0.65
    
    
    
    
    
    
    
    
    
    
    $
    0.46
 81




---



##### 



2006OtherCanadian
    
    
    Equity
    
    
    US GAAP
    
    
    USGAAP
    
    
    adjustments (a)
    
    
    Adjustments
    
    
    GAAPRevenues
    
    $
    1,649.4
    
    
    $
    (593.1
    )
    
    $
    
    
    
    $
    1,056.3Operating expenses, exclusive of depreciation
and depletion
    
    
    613.1
    
    
    
    (176.1
    )
    
    
    
    
    
    
    437.0Depreciation and depletion
    
    
    304.3
    
    
    
    (82.5
    )
    
    
    
    
    
    
    221.8Corporate administration
    
    
    83.0
    
    
    
    
    
    
    
    8.0
    (j)
    
    
    91.0Exploration
    
    
    27.6
    
    
    
    
    
    
    
    24.9
    (b)
    
    
    52.5Write-down of mineral interests
    
    
    174.7
    
    
    
    
    
    
    
    
    
    
    
    174.7Earnings from operations
    
    
    446.7
    
    
    
    (334.5
    )
    
    
    (32.9
    )
    
    
    79.3Other income (expense)Interest and other income
    
    
    17.9
    
    
    
    (1.1
    )
    
    
    
    
    
    
    16.8Interest expense and finance fees
    
    
    (44.8
    )
    
    
    0.6
    
    
    
    
    
    
    
    (44.2
    )Gain on foreign exchange
    
    
    5.3
    
    
    
    0.4
    
    
    
    
    
    
    
    5.7Non-hedge derivative loss
    
    
    (4.1
    )
    
    
    
    
    
    
    
    
    
    
    (4.1
    )(Loss) gain on securities, net
    
    
    (5.0
    )
    
    
    
    
    
    
    9.8
    (d)
    
    
    4.8Gain on sale of shares in subsidiary
    
    
    109.8
    
    
    
    
    
    
    
    
    
    
    
    109.8Dilution gains
    
    
    63.8
    
    
    
    
    
    
    
    
    
    
    
    63.8Mark-to-market losses on Cdn $ share purchase
warrants
    
    
    
    
    
    
    
    
    
    
    (610.4
    )(l)
    
    
    (610.4
    )Earnings (loss) from continuing operations
before taxes, non-controlling interests and
share of earnings of equity investees
    
    
    589.6
    
    
    
    (334.6
    )
    
    
    (633.5
    )
    
    
    (378.5
    )Income and mining taxes
    
    
    (153.2
    )
    
    
    102.9
    
    
    
    14.1
    (i)(b)(d)
    
    
    (36.2
    )Non-controlling interests
    
    
    (35.8
    )
    
    
    
    
    
    
    68.8
    (l)
    
    
    33.0Share of earnings of equity investees
    
    
    
    
    
    
    239.4
    
    
    
    (4.3
    )(k)
    
    
    235.1Net earnings (loss) from continuing operations
before cumulative effect of change in
accounting policy
    
    
    400.6
    
    
    
    7.7
    
    
    
    (554.9
    )
    
    
    (146.6
    )Net earnings from discontinued operations
    
    
    7.7
    
    
    
    (7.7
    )
    
    
    
    
    
    
    Net earnings (loss) before cumulative effect of
change in accounting policy
    
    
    408.3
    
    
    
    
    
    
    
    (554.9
    )
    
    
    (146.6
    )Cumulative effect of change in accounting policy
    
    
    
    
    
    
    
    
    
    
    (14.9
    )(j)
    
    
    (14.9
    )Net earnings (loss)
    
    $
    408.3
    
    
    $
    
    
    
    $
    (569.8
    )
    
    $
    (161.5
    )Other comprehensive income (h)
    
    
    Unrealized gain on securities, net of
reclassification adjustment
    
    
    
    
    
    
    
    
    
    
    41.1
    (d)
    
    
    41.1Comprehensive income (loss)
    
    $
    408.3
    
    
    $
    
    
    
    $
    (528.7
    )(h)
    
    $
    (120.4
    )Earnings (loss) per shareBefore the
cumulative effect of changes in accounting policy
    
    $
    0.94
    
    
    
    
    
    
    
    
    
    
    $
    (0.34
    )Basic
    
    
    0.94
    
    
    
    
    
    
    
    
    
    
    
    (0.37
    )Diluted
    
    
    0.93
    
    
    
    
    
    
    
    
    
    
    
    (0.37
    )
 82




---



##### 



2005OtherCanadian
    
    
    Equity
    
    
    US GAAP
    
    
    USGAAP
    
    
    adjustments (a)
    
    
    Adjustments
    
    
    GAAPRevenues
    
    $
    896.4
    
    
    $
    (299.2
    )
    
    $
    
    
    
    $
    597.2Operating expenses, exclusive of
depreciation and depletion
    
    
    304.0
    
    
    
    (100.3
    )
    
    
    
    
    
    
    203.7Depreciation and depletion
    
    
    135.3
    
    
    
    (59.0
    )
    
    
    
    
    
    
    76.3Corporate administration
    
    
    43.9
    
    
    
    
    
    
    
    
    
    
    
    43.9Exploration
    
    
    8.0
    
    
    
    
    
    
    
    
    
    
    
    8.0Earnings from operations
    
    
    405.2
    
    
    
    (139.9
    )
    
    
    
    
    
    
    265.3Other income (expense)Interest and other income
    
    
    5.6
    
    
    
    3.7
    
    
    
    
    
    
    
    9.3Interest expense and finance fees
    
    
    0.1
    
    
    
    
    
    
    
    
    
    
    
    0.1Gain on foreign exchange
    
    
    0.5
    
    
    
    
    
    
    
    
    
    
    
    0.5Gain on securities, net
    
    
    10.2
    
    
    
    
    
    
    
    
    
    
    
    10.2Dilution gain
    
    
    18.7
    
    
    
    
    
    
    
    
    
    
    
    18.7Mark-to-market losses on Cdn $ share
purchase warrants
    
    
    
    
    
    
    
    
    
    
    (435.5
    )(l)
    
    
    (435.5
    )Earnings before taxes,
non-controlling interests and share
of earnings of equity investee
    
    
    440.3
    
    
    
    (136.2
    )
    
    
    (435.5
    )
    
    
    (131.4
    )Income and mining taxes
    
    
    (142.4
    )
    
    
    43.5
    
    
    
    (2.3
    )(i)
    
    
    (101.2
    )Non-controlling interests
    
    
    (12.2
    )
    
    
    
    
    
    
    17.2
    (l)
    
    
    5.0Share of earnings of equity investee
    
    
    
    
    
    
    92.7
    
    
    
    
    
    
    
    92.7Net earnings (loss)
    
    $
    285.7
    
    
    $
    
    
    
    $
    (420.6
    )
    
    $
    (134.9
    )Other comprehensive income (loss) (h)Unrealized losses on securities, net
of reclassification adjustment
    
    
    
    
    
    
    
    
    
    
    (2.7
    )(d)
    
    
    (2.7
    )Cumulative translation adjustment
    
    
    
    
    
    
    
    
    
    
    (5.8
    )(g)
    
    
    (5.8
    )Comprehensive income (loss)
    
    $
    285.7
    
    
    $
    
    
    
    $
    (429.1
    )(h)
    
    
    $(143.4
    )Earnings (loss) per shareBasic
    
    $
    0.91
    
    
    
    
    
    
    
    
    
    
    $
    (0.43
    )Diluted
    
    
    0.83
    
    
    
    
    
    
    
    
    
    
    
    (0.43
    )
 83




---



##### 



2007EquityCanadian
    
    
    adjustments
    
    
    Other
    
    
    USGAAP
    
    
    (a)
    
    
    adjustments
    
    
    GAAPCurrent assets
    
    $
    951.8
    
    
    $
    (173.9
    )
    
    $
    25.9
    (c)(d)
    
    $
    803.8Mining interests
    
    
    16,452.8
    
    
    
    (619.8
    )
    
    
    (129.5
    )(b)(c)
    
    
    15,703.5Goodwill
    
    
    815.6
    
    
    
    
    
    
    
    21.5
    (l)
    
    
    837.1Equity adjustments for incorporated joint venture interests
    
    
    
    
    
    
    517.0
    
    
    
    (24.4
    )(k)
    
    
    492.6Other non-current assets
    
    
    732.0
    
    
    
    (50.7
    )
    
    
    
    (c)(d)
    
    
    681.3$
    18,952.2
    
    
    $
    (327.4
    )
    
    $
    (106.5
    )
    
    $
    18,518.3Current liabilities
    
    $
    321.4
    
    
    $
    (140.4
    )
    
    $
    
    
    
    $
    181.0Derivative liability
    
    
    
    
    
    
    
    
    
    
    649.2
    (j) (l)
    
    
    649.2Future income taxes
    
    
    3,858.3
    
    
    
    (167.5
    )
    
    
    (35.3
    )(b)(d)
    
    
    3,655.5Long-term debt
    
    
    1,036.3
    
    
    
    
    
    
    
    
    
    
    
    1,036.3Other non-current liabilities
    
    
    308.0
    
    
    
    (19.5
    )
    
    
    1.7
    (n)
    
    
    290.25,524.0
    
    
    
    (327.4
    )
    
    
    615.6
    
    
    
    5,812.2Non-controlling interests
    
    
    449.6
    
    
    
    
    
    
    
    (227.0
    )(d) (l)
    
    
    222.6Shareholders equity
    
    
    12,978.6
    
    
    
    
    
    
    
    (495.1
    )
    
    
    12,483.5$
    18,952.2
    
    
    $
    (327.4
    )
    
    $
    (106.5
    )
    
    $
    18,518.3
 2006EquityCanadian
    
    
    adjustments
    
    
    Other
    
    
    USGAAP
    
    
    (a)
    
    
    adjustments
    
    
    GAAPCurrent assets
    
    $
    883.4
    
    
    $
    (342.1
    )
    
    $
    12.1
    (d)
    
    $
    553.4Mining interests
    
    
    15,022.3
    
    
    
    (660.4
    )
    
    
    (24.9
    )(b)
    
    
    14,337.0Goodwill
    
    
    1,340.2
    
    
    
    
    
    
    
    21.5
    (l)
    
    
    1,361.7Equity adjustment for incorporated joint venture interests
    
    
    
    
    
    
    808.4
    
    
    
    (15.4
    )(k)
    
    
    793.0Other non-current assets
    
    
    720.0
    
    
    
    (156.0
    )
    
    
    70.5
    (d)
    
    
    634.5$
    17,965.9
    
    
    $
    (350.1
    )
    
    $
    63.8
    
    
    $
    17,679.6Current liabilities
    
    $
    465.6
    
    
    $
    (116.3
    )
    
    $
    
    
    
    $
    349.3Derivative liability
    
    
    6.1
    
    
    
    
    
    
    
    495.8
    (j) (l)
    
    
    501.9Future income taxes
    
    
    3,576.5
    
    
    
    (176.0
    )
    
    
    2.4
    (b)(d)
    
    
    3,402.9Long-term debt
    
    
    790.0
    
    
    
    
    
    
    
    
    
    
    
    790.0Other non-current liabilities
    
    
    298.2
    
    
    
    (57.8
    )
    
    
    
    
    
    
    240.45,136.4
    
    
    
    (350.1
    )
    
    
    498.2
    
    
    
    5,284.5Non-controlling interests
    
    
    354.5
    
    
    
    
    
    
    
    (96.8
    )(d)(l)
    
    
    257.7Shareholders equity
    
    
    12,475.0
    
    
    
    
    
    
    
    (337.6
    )
    
    
    12,137.4$
    17,965.9
    
    
    $
    (350.1
    )
    
    $
    63.8
    
    
    $
    17,679.6
 84




---



##### 



2007
    
    
    2006
    
    
    2005Shareholders equityIn accordance with Canadian GAAP
    
    $
    12,978.6
    
    
    $
    12,475.0
    
    
    $
    2,973.8US GAAP adjustments detailed below
    
    
    (495.1
    )
    
    
    (337.6
    )
    
    
    (722.4
    )In accordance with US GAAP
    
    $
    12,483.5
    
    
    $
    12,137.4
    
    
    $
    2,251.4Common shares and share purchase warrantsIn accordance with Canadian GAAP
    
    $
    11,814.8
    
    
    $
    11,705.6
    
    
    $
    2,609.3Renunciation of tax deductions on flow-through shares(f)
    
    
    1.3
    
    
    
    1.3
    
    
    
    1.3Reclassification of Cdn $ share purchase warrants(l)
    
    
    719.6
    
    
    
    719.6
    
    
    
    (283.0
    )Reclassification of stock options(j)
    
    
    56.9
    
    
    
    18.6
    
    
    
    In accordance with US GAAP
    
    $
    12,592.6
    
    
    $
    12,445.1
    
    
    $
    2,327.6Accumulated other comprehensive income(h)Cumulative translation adjustment:In accordance with Canadian GAAP
    
    $
    101.9
    
    
    $
    101.9
    
    
    $
    101.9Realization of cumulative translation adjustment (g)
    
    
    3.4
    
    
    
    3.4
    
    
    
    3.4In accordance with US GAAP
    
    
    105.3
    
    
    
    105.3
    
    
    
    105.3Unrealized gains on available-for-sale securities:In accordance with Canadian GAAP
    
    
    73.4
    
    
    
    
    
    
    
    Unrealized holding gains arising, net of taxes of $8.5 million (2005  $3.0 million)(d)
    
    
    
    
    
    
    40.9
    
    
    
    12.0Cumulative reclassification adjustments for realized losses (gains) recorded in earnings, net of
taxes of $0.9 million (2005  $2.0 million) (d)
    
    
    
    
    
    
    4.1
    
    
    
    (8.1
    )Transfer of securities held as available-for-sale to held-for-trading
    
    
    (1.9
    )
    
    
    
    
    
    
    In accordance with US GAAP
    
    
    71.5
    
    
    
    45.0
    
    
    
    3.9Defined benefit pension liability in accordance with US GAAP (n)
    
    
    (1.2
    )
    
    
    
    
    
    
    Non-controlling interests in accordance with Canadian GAAP
    
    
    (17.2
    )
    
    
    
    
    
    
    Non-controlling interests on transfer of securities held as available-for-sale to held-for-trading
    
    
    1.0
    
    
    
    
    
    
    
    (16.2
    )
    
    
    
    
    
    
    Total accumulated other comprehensive income
    
    $
    159.4
    
    
    $
    150.3
    
    
    $
    109.2Stock options and additional paid in capitalIn accordance with Canadian GAAP
    
    $
    115.6
    
    
    $
    120.2
    
    
    $
    44.5Elimination of deficit with offsetting reduction to contributed surplus (e)
    
    
    14.3
    
    
    
    14.3
    
    
    
    14.3Reclassification of stock options(j)
    
    
    (100.3
    )
    
    
    (96.6
    )
    
    
    In accordance with US GAAP
    
    $
    29.6
    
    
    $
    37.9
    
    
    $
    58.8Retained earnings (Accumulated deficit)In accordance with Canadian GAAP
    
    $
    890.1
    
    
    $
    547.3
    
    
    $
    218.1Realization of cumulative translation adjustment(g)
    
    
    (3.4
    )
    
    
    (3.4
    )
    
    
    (3.4
    )Changes to contributed surplus (e)
    
    
    (14.3
    )
    
    
    (14.3
    )
    
    
    (14.3
    )Renunciation of tax deductions on flow-through shares(f)
    
    
    (1.3
    )
    
    
    (1.3
    )
    
    
    (1.3
    )Elimination of effect of use of substantively enacted rates on future income taxes (i)
    
    
    
    
    
    
    
    
    
    
    (7.1
    )Mark-to-market loss on share purchase warrants (l)
    
    
    (1,044.0
    )
    
    
    (977.8
    )
    
    
    (436.2
    )Additional stock compensation expense(j)
    
    
    (18.0
    )
    
    
    (8.0
    )
    
    
    Transfer of securities held as available-for-sale to held-for-trading
    
    
    0.9
    
    
    
    
    
    
    
    Unrealized holding gains on securities(d)
    
    
    
    
    
    
    8.0
    
    
    
    Cumulative effect of change in accounting policy(j)
    
    
    (14.9
    )
    
    
    (14.9
    )
    
    
    Elimination of development costs (b)
    
    
    (69.1
    )
    
    
    (16.1
    )
    
    
    Elimination of capitalized deferred stripping (k)
    
    
    (24.4
    )
    
    
    (15.4
    )
    
    
    Commercial production adjustment (c)
    
    
    0.3
    
    
    
    
    
    
    
    In accordance with US GAAP
    
    $
    (298.1
    )
    
    $
    (495.9
    )
    
    $
    (244.2
    )
 85




---



##### 



2007
    
    
    2006
    
    
    2005Operating activitiesOperating activities of continuing operations under Canadian GAAP
    
    $
    650.7
    
    
    $
    763.7
    
    
    $
    465.8Development costs capitalized under Canadian GAAP(b)
    
    
    (79.0
    )
    
    
    (24.9
    )
    
    
    Commercial production adjustment under US GAAP(c)
    
    
    (19.4
    )
    
    
    
    
    
    
    Incorporated joint venture equity adjustment(a)(k)
    
    
    (46.0
    )
    
    
    (304.0
    )
    
    
    (18.3
    )Operating activities under US GAAP
    
    
    506.3
    
    
    
    434.8
    
    
    
    447.5Investing activitiesInvesting activities of continuing operations under Canadian GAAP
    
    
    (857.6
    )
    
    
    (2,274.6
    )
    
    
    (220.9
    )Development costs capitalized under Canadian GAAP(b)
    
    
    79.0
    
    
    
    24.9
    
    
    
    Commercial production adjustment under US GAAP(c)
    
    
    19.4
    
    
    
    
    
    
    
    Incorporated joint venture equity adjustment (a) (k)
    
    
    13.3
    
    
    
    7.0
    
    
    
    6.7Investing activities under US GAAP
    
    
    (745.9
    )
    
    
    (2,242.7
    )
    
    
    (214.2
    )Financing activitiesFinancing activities under Canadian GAAP
    
    
    122.4
    
    
    
    1,478.4
    
    
    
    (21.5
    )Incorporated joint venture equity adjustment (a)
    
    
    295.4
    
    
    
    112.5
    
    
    
    (46.9
    )Financing activities under US GAAP
    
    
    417.8
    
    
    
    1,590.9
    
    
    
    (68.4
    )Effect of exchange rate changes on cash and cash equivalents
    
    
    1.0
    
    
    
    0.2
    
    
    
    5.3Increase (decrease) in cash and cash equivalents under US GAAP
    
    
    179.2
    
    
    
    (216.8
    )
    
    
    170.2Cash and cash equivalents, beginning of year under US GAAP
    
    
    286.8
    
    
    
    503.6
    
    
    
    333.4Cash and cash equivalents, end of year under US GAAP
    
    $
    466.0
    
    
    $
    286.8
    
    
    $
    503.6
 Differences between Canadian and US GAAP as they affect the Companys financial statements are
as follows:
 (a)
    
    Joint venture interestsUnder Canadian GAAP, the Company proportionately consolidates its interest in the
incorporated joint venture of Alumbrera. The Companys interest in the La Coipa incorporated
joint venture was proportionately consolidated in 2006 but has been reclassified as a
discontinued operation in the current period as a result of its sale on December 21, 2007
(Note4(a)). Under US GAAP, the Company is required to equity account for these investments
and records its proportionate share of their net earnings in earnings of equity investees.
Goldcorps share of earnings from Alumbrera amounted to $166.4 million in 2007 (2006 
$231.7 million; 2005  $92.7 million). Goldcorps share of earnings from La Coipa amounted
to $38.3 million in 2007 (2006  $7.7 million).In addition, under Canadian GAAP, the Company proportionately consolidates its interests in
the unincorporated joint ventures of Marigold, and proportionately consolidated its interests
in the Porcupine and Musselwhite unincorporated joint ventures up to December 21, 2007 when a
full ownership interest was acquired (Note4(a)). US GAAP allows interests in unincorporated
joint ventures in the natural resource industry to be accounted for by proportionate
consolidation.(b)
    
    Development expenditures applicable to mining propertiesUnder Canadian GAAP, exploration costs incurred to the date of establishing that a property
is economically recoverable are charged to operations. Further development expenditures are
capitalized to the property. Under US GAAP, exploration costs incurred until the completion
of a final feasibility study on the property are charged to operations. Under US GAAP, $79.0
million of such expenditures would be recorded in operations during the period they were
incurred, which resulted in a $53.0 million (net of tax of $26.0 million) charge to income
during the year ended December 31, 2007 (2006  $16.1 million, net of tax of $8.9 million,
2005  nil) principally arising from mining expenditures incurred on the Éléonore,
Hollinger, Pueblo Viejo, Cerro Blanco and Mt Milligan development projects.
 86




---



##### 



The Company incurred $64.2 million of drilling and related costs during 2007 (2006  $31.2
million; 2005  $50.9 million) to convert mineral resources to reserves or to provide greater
definition of existing reserves at properties that are either in the production or
development stage that were capitalized. The Company acknowledges that there is diversity in
interpretation and application of accounting practice within the mining industry with respect
to the accounting treatment of such costs, in that some companies expense as incurred, the
drilling and related costs incurred to define and delineate residual mineral deposits that
have not been classified as proven and probable reserves at a development stage or production
stage mine.(c)

    Commencement of productionUnder Canadian GAAP, the Company uses specific criteria to assess the point at which an
operation commences commercial production (note 2 (h)). Under US GAAP, the Company determines
commencement of production whereby the production phase of a mine is determined to have begun
when saleable minerals are extracted (produced) from an ore body, regardless of the level of
production. The production phase does not commence with the removal of de minimus saleable
mineral material that occurs in conjunction with the removal of overburden or waste material
for the purpose of obtaining access to an ore body. For the year ended December 31, 2007,
there were two Canadian/US GAAP differences with respect to the determination of production
as follows:
 (i)
    
    Los Filos project
 According to Canadian GAAP, the mine commenced commercial production on January 1, 2008,
while for US GAAP purposes, production commenced and associated production costs were
expensed beginning on March 1, 2007. The impact of this difference was to increase 2007 net
earnings in accordance with US GAAP by $1.7 million and the balance sheet impact was to
increase inventories by $26.0 million, decrease mining interests by $23.5 million, decrease
income and mining taxes receivable by $0.7 million and increase reclamation and closure cost
obligations by $0.1 million as of December 31, 2007.
 (ii)
    
    Red Lake underground expansion project
 An expansion of the underground mine at Red Lake commenced in 2006. The #3 shaft production
hoist and service cage was commissioned during the third quarter of 2007 and waste skipping
and personnel movement commenced. However, due to a change in the project scope and the fact
that the ventilation system is not yet functional, the shaft was not considered to be in
commercial production for purposes of Canadian GAAP. Under US GAAP, once an asset is in
operation it is considered to be in use and should be depreciated. The impact of this
difference was to increase depreciation expense in accordance with US GAAP by $2.1 million,
decrease net earnings by $1.4 million, decrease mining interests by $2.1 million and increase
income and mining taxes receivable by $0.7 million as of December 31, 2007.
 (d)
    Investments in securities
 Prior to the adoption of the new Canadian accounting standards for financial instruments on
January 1, 2007 (Note 3), a US and Canadian GAAP difference existed in the accounting for
investments in securities, which, under US GAAP (SFAS 115), would have been classified as
available-for-sale and trading securities and carried at fair value. The unrealized holding
gains on available-for-sale securities were not recognized under Canadian accounting
principles, but were recognized under United States accounting principles as a component of
comprehensive income and reported as a net amount in a separate component of shareholders
equity until realized. The unrealized gains on trading securities were also not recognized
under Canadian accounting principles, but were recognized under United States accounting
principles in net earnings. At December 31, 2006, for US GAAP purposes, the Companys
marketable securities increased by $12.1 million and long-term investments increased by $70.5
million as a result of valuing them at fair value, with an increase in future income tax
liabilities of $11.2 million. The amounts recorded in comprehensive income in 2006 were net
of tax expense of $8.4 million (2005  tax recovery of $0.6 million). The amounts recorded
in net earnings in 2006 amounted to $8.0 million (net of tax of $1.8 million). The 2006
unrealized holding gain includes $18.4 million related to Silver Wheatons non-controlling
interests.
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(e)
    
    Contributed surplusPrior to 2004, under Canadian GAAP the Company used $70.6 million of contributed surplus to
eliminate a deficit which is not allowed for under US GAAP. Also prior to 2004, for US GAAP
purposes the Company reduced contributed surplus by $56.3 million resulting from the
amalgamation with another company.(f)
    
    Flow through sharesUnder US GAAP, the renunciation of tax deductions to holders of flow-through shares is
allocated between the offering of shares and the sale of tax benefits when the shares are
offered. The allocation is made based on the difference between the quoted price of the
existing shares and the amount the investor pays for the flow through shares rather than as a
cost of issuing equity as required by Canadian GAAP.(g)
    
    Cumulative translation adjustmentThe change in cumulative translation adjustment is recorded in the calculation of
comprehensive income for both Canadian and US GAAP. The Company changed its functional
currency to the United States dollar on April 1, 2005. There was no change in the cumulative
translation adjustment in 2007 (2006  nil; 2005  $5.8 million).Under US GAAP, a proportionate amount of the cumulative translation adjustment account ($3.4
million) is not recognized in earnings when there is a reduction in the Companys net
investment in a subsidiary as a result of dividend distributions.(h)
    
    Comprehensive incomeUnder US GAAP, SFAS 130, Reporting Comprehensive Income establishes rules for the reporting
and display of comprehensive income and its components. Comprehensive income is net income,
plus certain other items that are recorded directly to shareholders equity such as foreign
currency translation adjustments and unrealized gains (losses) on available for sale
securities. A US and Canadian GAAP difference existed prior to the adoption of the new
Canadian accounting standard for Comprehensive Income on January 1, 2007 (Note 3).(i)
    
    Mining taxesCertain changes to income tax legislation affecting mining companies became law in 2003.
However, the enabling regulations which quantify the deduction for mining taxes paid
permitted by this change in legislation (which was considered to be substantively enacted for
Canadian GAAP purposes) did not receive the required approval to be considered enacted for US
GAAP purposes until October 4, 2006. Consequently for US GAAP purposes the 2004 and 2005
results were adjusted to remove the benefit accrued for the deduction for income tax purposes
of actual provincial and other Crown royalties and mining taxes. As these legislative changes
were enacted for US GAAP purposes in 2006, the cumulative adjustment of $7.1 million with
respect to these income tax benefits was taken into net earnings in 2006.(j)
    
    Stock optionsThe Company has a stock-based employee compensation plan (Note19(b)). Effective January 1,
2003, the Company adopted the fair value recognition provisions of SFAS 123, Accounting for
Stock-Based Compensation, prospectively to all employee awards granted, modified, or settled
after January 1, 2003. On January 1, 2006, the Company adopted SFAS 123R, Accounting for
Stock-Based Compensationon a modified prospective basis, and, as a result, prior periods
were not restated. The application of FAS 123R to Restricted Share Units did not result in
any significant change in the method of accounting for these units.Share-based benefits have been valued at fair value using the Black-Scholes option pricing
model for option grants and the grant date fair market value for stock awards. Compensation
amounts have been expensed over the applicable vesting period, with the exception noted
below.
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##### 



Stock options issued to employees of foreign operations, with an exercise price denominated
in a currency other than the Companys functional currency or the local currency of the
foreign operation, are required to be classified and accounted for as financial liabilities
and fair valued each period. The cumulative effect of this change in accounting policy
adjustment was recorded as at January 1, 2006, and resulted in a $14.9 million decrease to
opening retained earnings, a total increase to derivative liabilities of $23.4 million and a
decrease to share capital of $8.5 million. For the year ended December 31, 2007, the net
effect to US GAAP net earnings of reflecting the mark-to-market impacts related to fair
valuation of these stock options, is to reduce net earnings in 2007 by an additional amount
of $10.0 million (2006  $8.0 million) arising from the recognition of a mark-to-market loss
on these stock options. On November 4, 2006, the Company re-issued options to certain Glamis
employees as part of the acquisition which resulted in the liability relating to stock
options increasing by $69.6 million. The liability as at December 31, 2007 relating to stock
options issued to employees of the foreign operations totaled $76.3 million (2006  $100.9
million). Stock options and additional paid in capital was reduced by $3.7 million in 2007
related to the reversal of stock option expense recognized on options issued to foreign
operations under Canadian GAAP and by $96.6 million in 2006 relating to the reclassification
of $69.5 million to liabilities for new options issued to foreign operations, the
reclassification of $18.6 million to common shares on the exercise of options and the
cumulative impact of the change in accounting policy of $8.5 million.The total intrinsic value of stock options outstanding at December 31, 2007, exclusive of
options issued to employees of foreign operations, was $111.1 million and the intrinsic value
of options exercisable was $71.5 million. The total intrinsic value of stock options
exercised in 2007 was $40.0 million. 3.3 million options vested in 2007.As of December 31, 2007 there was $13.6 million of total unrecognized compensation cost
related to unvested stock options. This cost will be recognized through December 2009. The
following summarizes the changes in the Companys non-vested stock options during 2007:
 Number of
    
    
    WeightedStock Options
    
    
    Average GrantGranted
    
    
    Date Fair Value(000s)
    
    
    (US$/option)Unvested stock options at January 1, 2007
    
    
    4,308
    
    
    $
    6.05Granted
    
    
    3,939
    
    
    
    5.77Vested
    
    
    (3,251
    )
    
    
    5.46Forfeited
    
    
    (359
    )
    
    
    5.63Unvested stock options at December 31, 2007
    
    
    4,637
    
    
    $
    6.26
 (k)
    
    Deferred stripping costsOn January 1, 2006, the Company adopted EITF 04-06, Accounting for Stripping Costs Incurred
during Production in the Mining Industry, which differs from the Canadian guidance in
EIC-160, Stripping Costs Incurred in the Production Phase of a Mining Operation. Under US
GAAP capitalized deferred stripping is not permissible, therefore any additions to the
deferred strip balance capitalized under Canadian GAAP is charged to cost of sales for US
GAAP as gold is produced and sold. The Company adjusted for this difference prospectively,
with the cumulative effect of the change in accounting policy being recorded to the opening
balance of retained earnings as at January 1, 2006. The opening retained earnings adjustment,
which impacted Alumbrera only, was $11.1 million (net of a future income tax liability of
$4.8 million). For the year ended December 31, 2007, the net effect of expensing the
stripping costs for US GAAP is $9.0 million (2006  $4.3 million), net of a future income tax
liability recovery of $3.8 million (2006  $1.8 million).
 89




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##### 



(l)
    
    Share purchase warrantsFor Canadian GAAP purposes, all of the Companys outstanding share purchase warrants are
classified and accounted for as equity in the Companys financial statements. In 2006, an
interpretation of US GAAP, in accordance with SFAS 133, Accounting for Derivative Instruments
and Hedging Activities,required that share purchase warrants with an exercise price
denominated in a currency other than the Companys functional currency be classified and
accounted for as a financial liability and fair valued. The net effect to US GAAP net
earnings of reflecting the mark-to-market impacts related to fair valuation of these series
of warrants was to reduce net earnings in 2007 by $66.2 million, net of non-controlling
interests of $111.8 million, arising from the recognition of a mark-to-market loss on the
share purchase warrants (2006 by  $541.6 million mark-to-market loss, net of non-controlling
interests of $68.8 million; 2005  mark-to-market loss of $418.3 million net of
non-controlling interests of $17.2 million). A derivative liability at December 31, 2007 of
$572.9 million (2006  $394.9 million) has been recorded for these warrants. The
non-controlling interest share of the warrant derivative liability is $227.0 million (2006 -
$115.2 million). The $719.6 million reclassification of warrants from derivative liabilities
to common shares and share purchase warrants in 2006 relates to the early exercise of the
five existing series of warrants at the time of announcement in March 2006.In addition, in 2006 the Company restated its Goodwill arising from the purchase of Wheaton
River in 2005 in the amount of $21.5 million due to the impact of this interpretation on the
net asset value of Silver Wheaton, a subsidiary acquired as part of that purchase.(m)
    
    Pro forma information on business combinationsUnder US GAAP, SFAS 141 requires disclosure of certain pro forma information when a business
combination is effected. The following table presents the pro forma results of operations for
informational purposes, assuming that the Company had acquired Glamis (including the full
ownership interest in Porcupine and Musselwhite acquired on December 21, 2007), certain
Placer Dome assets, Virginia and Wheaton at the beginning of 2005.
 2007
    
    
    2006
    
    
    2005Revenues
    
    $
    1,796.9
    
    
    $
    1,578.2
    
    
    $
    1,181.4Net earnings (loss)
    
    
    323.2
    
    
    
    (204.2
    )
    
    
    (210.0
    )Pro forma basic and diluted earnings (loss) per share
    
    
    0.46
    
    
    
    0.29
    
    
    
    0.30 / 0.29
 The pro forma results of operations give effect to certain adjustments including the increase
in depletion, depreciation and amortization resulting from adjustments to asset carrying
values upon acquisition of mine assets. The pro forma basic and diluted loss per share have
been calculated assuming the common shares issued in connection with the acquisition of
Glamis, Virginia and Wheaton were issued at the beginning of each year presented. This
information may not necessarily be indicative of the future combined results of operations of
the Company.(n)
    
    Defined benefit pension plansIn September 2006, the FASB issued SFAS 158, Employers Accounting for Defined Benefit Plans
and Other Post Retirement Benefits, which was effective for the Companys December 31, 2006
consolidated financial statements. SFAS 158 requires an employer to recognize the overfunded
or underfunded status of a defined benefit plan, other than a multi-employer plan, as an
asset or liability, with changes in the funded status recognized through comprehensive
income. An additional requirement, to measure the funded status of a plan as of the year-end
date, is effective for years ending after December 15, 2008.The Company adopted SFAS 158 as at the end of 2006. The adoption of SFAS 158 did not have a
material impact on the Companys Consolidated Financial Statements.
 90




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##### 



(o)
    
    United States accounting pronouncements adopted effective January 1, 2007
 (i)
    
    Accounting for Uncertainty in Income Taxes
 In July 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation
48, Accounting for Uncertainty in Income Taxes  an interpretation of FASB Statement No.
109 (FIN 48). FIN 48 clarifies the accounting for income taxes by prescribing a minimum
recognition threshold that a tax position is required to meet before being recognized in the
financial statements. FIN 48 also provides guidance on derecognition, classification,
interest and penalties, accounting in interim periods, disclosures, and transition.The Company adopted the provisions of FIN 48 on January 1, 2007. The adoption did not result
in any adjustment to opening retained earnings for purposes of US GAAP.A reconciliation of the beginning and ending amount of the unrecognized tax benefits is as
follows:
 Balance at January 1, 2007
    
    $
    134.0Additions based on tax positions related to the current year
    
    
    20.5Additions for tax positions of prior years
    
    
    17.3Reductions for tax positions of prior years
    
    
    (57.9
    )Balance at December 31, 2007
    
    $
    113.9
 As at December 31, 2007, the Company had $113.9 million of unrecognized tax benefits. If
recognized, $113.9 million of these amounts would be recorded as a benefit to income taxes on
the Consolidated Statement of Earnings and, therefore, would impact the reported effective
tax rate.The Company recognizes accrued interest and penalties related to unrecognized tax benefits in
income tax expense. During the year ended December 31, 2007, the Company recognized $5.5
million of interest and penalties (2006  $1.5 million; 2005  $0.7 million). The Company
had $8.4 million for the payment of interest and penalties accrued at December 31, 2007 (2006
  $2.9 million).The Company is subject to taxes in Canada, the United States, Mexico, and various offshore
countries. The tax years which remain subject to examination as of December 31, 2007 are as
follows:
 Canada
    
    
    2000 to 2007United States
    
    
    2000 to 2007Mexico
    
    
    2002 to 2007Honduras
    
    
    2002 to 2007
 (ii)
    
    Accounting for Certain Hybrid Financial Instruments
 In February 2006, the FASB issued SFAS 155, Accounting for Certain Hybrid Financial
Instruments  an amendment of FASB statement 133 and 140 (SFAS 155). This Statement
simplifies accounting for certain hybrid financial statements by permitting fair value
remeasurements for any hybrid financial instrument that contains an embedded derivative that
would otherwise require bifurcation, and eliminates the restriction on the passive derivative
instruments that a qualifying special  purpose entity (SPE) may hold, with any changes in
fair value recognized to earnings. SFAS 155 is effective for all financial instruments
acquired or issued in the first fiscal year beginning after Sept. 15, 2006. The adoption of
SFAS 155 did not have a material impact on the Companys Consolidated Financial Statements.
 91




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##### 



(iii)
    
    Accounting for Planned Major Maintenance Activities
 In September 2006, the FASB issued FSP AUG AIR-1, Accounting for Planned Major Maintenance
Activities, which prohibits the use of the accrue-in-advance method of accounting for
planned major maintenance activities in annual and interim financial statements, for fiscal
years beginning after December 15, 2006. The implementation of FSP AUG AIR-1 did not have a
material impact on the Companys Consolidated Financial Statements.(p)
    
    United States accounting pronouncements effective on or after January 1, 2008In September 2006, the FASB issued SFAS No. 157 Fair Value Measurements (SFAS No. 157),
effective for fiscal periods beginning after November 15, 2007. SFAS defines fair value,
establishes a framework for measuring fair value in generally accepted accounting principles,
and expands disclosures about fair value measurements. In December 2007, the FASB issued
SFAS 157-b, which provided for a one-year deferral of the implementation of SFAS 157 for
non-financial assets and liabilities. However, SFAS 157 is still required to be adopted
effective January 1, 2008 for financial assets and liabilities that are carried at fair
value.In February 2007, the FASB issued SFAS No. 159 The Fair Value Option for Financial Assets
and Financial Liabilities  including an amendment of FASB Statement No. 115 (SFAS No.
159) which permits entities to choose to measure many financial instruments and certain
other items at fair value. This statement is effective for fiscal periods beginning after
November 15, 2007.In December 2007, the FASB issued SFAS 141(R) Business Combinations and SFAS 160
Non-controlling Interests in Consolidated Financial Statements, which are both effective
for fiscal years beginning after December 15, 2008. SFAS 141(R), which will replace FAS 141,
is applicable to business combinations consummated after the effective date of December 15,
2008.The Company is currently evaluating the impact of the adoption of the above noted standards
on its Consolidated Financial Statements.
 26. SUBSEQUENT EVENT
   Current assets
    
    $
    11.7Silver interests
    
    
    385.3Other long-term assets
    
    
    121.8$
    518.8Current liabilities
    
    $
    34.8Long-term debt
    
    
    391.3$
    426.1
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##### 



HEAD OFFICE
    
    
    
    STOCK EXCHANGE LISTINGPark Place
    
    
    
    Toronto Stock Exchange: GSuite 3400  666 Burrard Street Vancouver, BC V6C 2X8
    
    
    
    New York Stock Exchange: GGCanada
    
    
    
    TRANSFER AGENTTelephone:

(604) 696-3000
    
    
    
    CIBC Mellon Trust CompanyFax:
    
    (604) 696-3001
    
    
    
    Suite 1600Website: goldcorp.com
    
    
    
    1066 West Hastings StreetVancouver, BC V6E 3X1TORONTO OFFICE
    
    
    
    CanadaSuite 3201  130 Adelaide Street West
    
    
    
    Toll free in Canada and the US:Toronto, ON M5H 3P5
    
    
    
    (800) 387-0825Canada
    
    
    
    Outside of Canada and the US:Telephone:
    
    (416) 865-0326
    
    
    
    (416) 643-5500Fax:
    
    (416) 359-9787
    
    
    
    Email: inquiries@cibcmellon.comRENO OFFICE
    
    
    
    INVESTOR RELATIONSSuite 310  5190 Neil Road
    
    
    
    Jeff WilhoitReno, NV 89502
    
    
    
    Vice President, Investor RelationsUnited States
    
    
    
    Toll free:      (800) 567-6223Telephone:
    
    (775) 827-4600
    
    
    
    Email:      info@goldcorp.comFax:
    
    (775) 827-5044MEXICO OFFICE
    
    
    
    AUDITORSLuismin SA de CV
    
    
    
    Deloitte & Touche LLPVancouver, BCArquimedes #130  8th Floor, Polanco11560 Mexico, DF MexicoTelephone:
    
    52 (55) 9138-4000Fax: 52
    
    (55) 5280-7636