Exhibit 99.2
  Managements Discussion and Analysis  of Financial Condition and Results of Operations  For the Year Ended December 31, 2010
 This Managements Discussion and Analysis should be read in conjunction with the audited
consolidated financial statements of Goldcorp Inc. (Goldcorp or the Company) for the year ended
December 31, 2010 and related notes thereto which have been prepared in accordance with Canadian
generally accepted accounting principles (GAAP or Canadian GAAP). This Managements Discussion
and Analysis contains forward-looking statements that are subject to risk factors set out in a
cautionary note contained herein. All figures are in United States dollars unless otherwise noted.
References to C$ are to Canadian dollars. This Managements Discussion and Analysis has been
prepared as of February 24, 2011.
 2010 HIGHLIGHTS
 
    
    Gold production of 689,600 ounces for the fourth quarter and a record 2,520,300 ounces
for 2010, compared to 601,300 ounces and 2,421,300 ounces, respectively, in 2009.
    
    Total cash costs (net of by-product copper, silver, lead and zinc credits) decreased to
$164 per ounce for the fourth quarter, compared to $289 per ounce in 2009, and $274 per
ounce for 2010, compared to $295 per ounce in 2009. On a co-product basis, cash costs were
$461 and $443 per gold ounce for the fourth quarter and 2010, respectively, compared to
$422 and $391 per gold ounce, respectively, in 2009.(1)
    
    Net earnings attributable to shareholders of Goldcorp increased to $331.8 million for
the fourth quarter ($0.45 per share) and $1,574.3 million ($2.14 per share) for 2010,
compared to net earnings of $66.7 million ($0.09 per share) and $240.2 million ($0.33 per
share), respectively, in 2009. Adjusted net earnings amounted to $417.1 million ($0.57 per
share) for the fourth quarter and $1,010.5 million ($1.37 per share) for 2010, compared to
$182.7 million ($0.25 per share) and $588.2 million ($0.80 per share), respectively, in
2009.(2)
    
    Operating cash flows from continuing operations increased to $676.8 million for the
fourth quarter and $1,787.3 million for 2010, compared to $368.8 million and $1,275.1
million, respectively, in 2009. Operating cash flows before working capital changes
increased to $646.1 million for the fourth quarter and $1,718.4 million for 2010, compared
to $308.6 million and $1,184.3 million, respectively, in 2009.(3)
    
    Dividends paid increased to $154.4 million in 2010, compared to $131.7 million in 2009.
    
    On February 4, 2010, the Company completed its transaction with Canplats Resources
Corporation to acquire a 100% interest in the Camino Rojo gold/silver project in Mexico.
    
    On February 16, 2010, the Company acquired a 70% interest in the El Morro gold/copper
project in Chile.
    
    In April 2010, the Company and Barrick Gold Corporation, the project operator of the
Pueblo Viejo gold project, finalized the terms of a $1.035 billion project financing. At
year-end, $781.5 million has been drawn under the facility ($312.6 million  Goldcorps
share).
    
    During 2010, the Company divested of non-core assets, while maintaining a continuing
equity interest as follows:
 
    
    On June 8, 2010, the Company completed the sale of its Escobal silver project to
Tahoe Resources Inc. for cash and share consideration totalling $495.5 million.
Goldcorp received 47.8 million common shares, representing a 41.2% equity interest
in Tahoe Resources Inc.




---



##### 




    
    On August 6, 2010, the Company completed the sale of the assets and certain
liabilities of the San Dimas gold/silver mines and associated agreement to sell
silver produced at San Dimas to Primero Mining Corp, for cash, share and other
consideration totalling $401.0 million. Goldcorp received 31.2 million common
shares, representing a 36% equity interest in Primero Mining Corp.
 
    
    On September 1, 2010, Peñasquito completed commissioning and achieved commercial
production.
    
    On October 20, 2010, the Company completed the sale of its remaining 58.1% interest in
Terrane Metals Corp. to Thompson Creek Metals Inc. for cash and share consideration
totalling $390.5 million. Goldcorp received 13.9 million common shares, representing an
approximate 8% equity interest in Thompson Creek Metals Inc.
    
    On December 29, 2010, the Company acquired all of the outstanding shares of Andean
Resources Limited.
 (1)
    
    The Company has included non-GAAP performance measures, total cash costs,
by-product and co-product, per gold ounce, throughout this document. The
Company reports total cash costs on a sales basis. In the gold mining
industry, this is a common performance measure but does not have any
standardized meaning. The Company follows the recommendations of the Gold
Institute Production Cost Standard. The Company believes that, in addition to
conventional measures prepared in accordance with GAAP, certain investors use
this information to evaluate the Companys performance and ability to
generate cash flow. Accordingly, it is intended to provide additional
information and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with GAAP. Total cash costs on
a by-product basis are calculated by deducting by-product copper, silver,
lead and zinc sales revenues from operating cash costs. Total cash costs on a
co-product basis are calculated by allocating operating cash costs separately
to metals using a ratio of revenues from metals as a proportion of total
revenues. Total cash costs have been presented excluding San Martin, which
commenced reclamation activities in October 2007. Refer to page 44 for a
reconciliation of total cash costs to reported operating expenses.(2)
    
    Adjusted net earnings and adjusted net earnings per share are
non-GAAP performance measures. The Company believes that, in addition to
conventional measures prepared in accordance with GAAP, the Company
and certain investors use this information to evaluate the Companys
performance. Accordingly, it is intended to provide additional information
and should not be considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. Refer to page 45 for a
reconciliation of adjusted net earnings to reported net earnings attributable
to shareholders of Goldcorp.(3)
    
    Operating cash flows before working capital changes is a non-GAAP
measure which the Company believes provides a better indicator of the
Companys ability to generate cash flows from its mining operations.




---



##### 



OVERVIEW




---



##### 



CORPORATE DEVELOPMENT ACTIVITIES  ACQUISITIONS, DIVESTITURES, FINANCINGS
 Disposition of interest in Osisko Mining Corporation (Osisko)
   During the year ended December 31, 2010, the Company completed the following significant
transactions:
 Acquisition of Andean Resources Limited (Andean)
   Disposition of interest in Terrane Metals Corp. (Terrane)
    Disposition of San Dimas mines and the associated silver purchase agreement with Silver Wheaton
Corp. (Silver Wheaton)




---



##### 



Disposition of Escobal silver project
  Completion of project financing for Pueblo Viejo




---



##### 



Acquisition of 70% interest in the El Morro project
   Acquisition of Canplats Resources Corporation




---



##### 



SUMMARIZED ANNUAL FINANCIAL RESULTS (1) (2) (3) (4)
 2010(2)
    
    2009
    
    2008 (3)Revenues
    
    $
    3,799.8
    
    
    $
    2,723.6
    
    
    $
    2,419.6Gold produced(ounces)
    
    
    2,520,300
    
    
    
    2,421,300
    
    
    
    2,324,300Gold sold(ounces)(4)
    
    
    2,413,800
    
    
    
    2,347,300
    
    
    
    2,304,700Average realized gold price(per ounce)
    
    $
    1,240
    
    
    $
    978
    
    
    $
    868Average London spot gold price(per ounce)
    
    $
    1,225
    
    
    $
    972
    
    
    $
    872Earnings from operations
    
    $
    1,469.5
    
    
    $
    821.2
    
    
    $
    512.5Earnings from continuing operations
    
    $
    1,380.6
    
    
    $
    244.1
    
    
    $
    1,481.1Earnings (loss) from discontinued operations, net of tax(1)
    
    $
    185.5
    
    
    $
    (5.9
    )
    
    $
    2.2Net earnings
    
    $
    1,566.1
    
    
    $
    238.2
    
    
    $
    1,483.3Net earnings attributable to shareholders of Goldcorp
    
    $
    1,574.3
    
    
    $
    240.2
    
    
    $
    1,475.6Earnings from continuing operations per share Basic
    
    $
    1.88
    
    
    $
    0.33
    
    
    $
    2.07 Diluted
    
    $
    1.87
    
    
    $
    0.33
    
    
    $
    2.06Net Earnings per share Basic
    
    $
    2.14
    
    
    $
    0.33
    
    
    $
    2.07 Diluted
    
    $
    2.13
    
    
    $
    0.33
    
    
    $
    2.06Cash flows from operating activities of continuing operations
    
    $
    1,787.3
    
    
    $
    1,275.1
    
    
    $
    871.1Total
cash costs  by-product(per gold ounce) (5)(6)
    
    $
    274
    
    
    $
    295
    
    
    $
    305Total
cash costs  co-product(per gold ounce) (5)(7)
    
    $
    443
    
    
    $
    391
    
    
    $
    391Dividends paid
    
    $
    154.4
    
    
    $
    131.7
    
    
    $
    128.7Cash and cash equivalents
    
    $
    556.2
    
    
    $
    874.6
    
    
    $
    262.3Total assets
    
    $
    28,809.1
    
    
    $
    20,948.7
    
    
    $
    19,008.8
 
 (1)
    
    The results of Terrane, which was disposed of on October 20, 2010 and previously
reported as a separate operating segment, have been reclassified as a discontinued
operation for both the current and prior periods.(2)
    
    Includes the results of San Dimas to August 6, 2010, the date of disposition.(3)
    
    Includes the results of Silver Wheaton to February 14, 2008, the date of
disposition.(4)
    
    Excludes commissioning sales ounces from Peñasquito, up to September 1, 2010, as
these were credited against capitalized project costs, and silver ounces from San
Dimas sold to Primero in exchange for a working capital adjustment as part of the
disposition of San Dimas on August 6, 2010.(5)
    
    The San Martin mine ended its mining process in October 2007 and commenced
reclamation activities at that time. Total cash costs for 2008 and beyond have been
presented excluding San Martin for information purposes only.(6)
    
    Total cash costs per gold ounce on a by-product basis is calculated net of
by-product sales revenues (by-product copper revenues for Alumbrera; by-product
silver revenues for Marlin at market silver prices; by-product lead, zinc and 75% of
the silver for Peñasquito at market silver prices and 25% of the silver for
Peñasquito at $3.90 per silver ounce sold to Silver Wheaton; and by-product silver
revenues for San Dimas at $4.04 per silver ounce to August 6, 2010 ($4.02 prior to
November 2009; $3.95 prior to November 2008) sold to Silver Wheaton).(7)
    
    Total cash costs per gold ounce on a co-product basis is calculated by
allocating operating cash costs separately to metals using a ratio of revenues from
metals as a proportion of total revenues for Alumbrera (includes copper revenues);
Marlin and San Dimas until August 6, 2010 (includes silver revenues); and Peñasquito
(includes silver, lead and zinc revenues).




---



##### 



Review of Annual Financial Results
  
    
    Revenues increased by $1,076.2 million, or 40%, primarily due to the following: a $700.2
million increase in gold revenues resulting from a 27%, or $262 per ounce, increase in
average realized gold price and a 3% increase in gold sales volume; a $211.9 million
increase in silver revenues resulting from a 67% or 6.1 million ounce increase in silver
sales volume primarily due to the commissioning of Peñasquito on September 1, 2010 and a
$10.09 per ounce, or 114%, increase in average realized silver price; a $60.5 million
increase in copper revenues resulting from a 20% higher average realized copper price
offset by a 3% decrease in copper sales volume, and $100.8 million in lead and zinc
revenues net of treatment and refining charges from Peñasquito;
    
    Operating expenses increased by $291.1 million, or 25%, primarily as result of the
expensing of operating costs at Peñasquito upon completion of commissioning effective
September 1, 2010 of $175.3 million, and higher gold, silver, lead, and zinc sales volumes,
higher YMAD net proceeds payments paid in Alumbrera ($64.0 million in 2010 compared to
$39.0 million in 2009), higher employee costs and consumption of consumables/reagents, and
the unfavourable impact of the strengthening of the Canadian dollar and Mexican peso by 10%
and 7%, respectively. Export retention taxes paid in Alumbrera were similar year over year
($53 million in 2010 compared to $52 million in 2009). The strengthening of the Canadian
dollar and Mexican peso negatively impacted the earnings of the Canadian and Mexican
operations by approximately $58 million and $8 million, respectively;
    
    Depreciation and depletion increased by $96.8 million, or 18%, mainly due to the
commissioning of Peñasquito on September 1, 2010;
    
    A $25.9 million increase in corporate administration, excluding stock based compensation
expense, mainly due to the Companys growth and associated increase in corporate
activities, employee costs, corporate social responsibility and community contributions;
    
    A $20.0 million increase in exploration costs due to a renewed focus on drilling
programs. The economic downturn in the first quarter of 2009 resulted in the Company
temporarily deferring exploration at certain longer-term growth projects;
    
    Interest income and other expenses increased by $27.1 million primarily due to
transaction costs relating to the acquisitions of the Camino Rojo, El Morro, and Cerro
Negro projects;
    
    A $66.0 million net loss on the Companys derivative contract to sell 1.5 million ounces
of silver to Silver Wheaton at a fixed price over each of the four years ending August 5,
2014 and a $1.2 million unrealized loss on the conversion feature of the Primero
convertible note, offset by a $5.4 million gain on non-hedge derivative foreign currency,
heating oil, copper, lead and zinc contracts; compared to a $3.6 million gain on non-hedge
derivative foreign currency, heating oil and copper contracts in 2009;
    
    A $780.5 million net gain on dispositions of mining interests before tax ($835.9 million
after tax) as the Company divested of a number of non-core assets, including: the sale of
the San Dimas Assets ($373.2 million gain before tax; $407.9 million after tax), the
Escobal silver project ($484.1 million gain before tax; $480.6 million after tax), an
exploration property in Mexico ($63.7 million loss before tax; $48.1 million after tax),
certain land at Wharf ($5.6 million gain before tax; $3.7 million after tax) and El Limón
($18.7 million loss before tax; $8.2 million after tax), compared to a $20.1 million net
gain before tax ($15.1 million after tax) in 2009;




---



##### 




    
    A $362.6 million net loss on translation of future income tax liabilities relating to
mining interests primarily arising from the acquisitions of Placer Dome Inc.s assets and
Glamis in 2006, Gold Eagle Mines Ltd. in 2008, and the Camino Rojo project in 2010, due to
the 5% strengthening of the Canadian dollar and Mexican peso during the year ended December
31, 2010, compared to a $324.3 million loss in 2009 due to the 15% and 6% strengthening of
the Canadian dollar and Mexican peso during the year ended December 31, 2009;
    
    A lower effective tax rate for the year ended December 31, 2010, excluding the impact of
the foreign exchange loss on the translation of future income tax liabilities, compared to
the year ended December 31, 2009, primarily due to the gains on disposition of Escobal and
San Dimas being subject to a lower effective tax rate.
 (1)
 
 (1)
    
    Adjusted net earnings and adjusted net earnings per share are non-GAAP
performance measures. The Company believes that, in addition to conventional
measures prepared in accordance with GAAP, the Company and certain investors
use this information to evaluate the Companys performance. Accordingly, it is
intended to provide additional information and should not be considered in isolation
or as a substitute for measures of performance prepared in accordance with GAAP.
Refer to page 45 for a reconciliation of adjusted net earnings to reported net
earnings attributable to shareholders of Goldcorp.




---



##### 



QUARTERLY FINANCIAL REVIEW
 2010(1) (2) (3)Q1
    
    
    Q2
    
    
    Q3
    
    
    Q4
    
    
    TotalRevenues
    
    $
    750.3
    
    
    $
    844.3
    
    
    $
    885.8
    
    
    $
    1,319.4
    
    
    $
    3,799.8Gold produced(ounces)
    
    
    625,000
    
    
    
    609,500
    
    
    
    596,200
    
    
    
    689,600
    
    
    
    2,520,300Gold sold(ounces)(3)
    
    
    569,100
    
    
    
    598,000
    
    
    
    568,100
    
    
    
    678,600
    
    
    
    2,413,800Average realized gold price(per ounce)
    
    $
    1,110
    
    
    $
    1,208
    
    
    $
    1,239
    
    
    $
    1,378
    
    
    $
    1,240Average London spot gold price(per ounce)
    
    $
    1,109
    
    
    $
    1,197
    
    
    $
    1,227
    
    
    $
    1,367
    
    
    $
    1,225Earnings from operations
    
    $
    266.1
    
    
    $
    305.1
    
    
    $
    342.2
    
    
    $
    556.1
    
    
    $
    1,469.5Earnings (loss) from continuing operations
    
    $
    (51.5
    )
    
    $
    830.5
    
    
    $
    484.0
    
    
    $
    117.6
    
    
    $
    1,380.6Earnings (loss) from discontinued operations, net of tax(1)
    
    $
    (1.2
    )
    
    $
    (3.8
    )
    
    $
    (19.6
    )
    
    $
    210.1
    
    
    $
    185.5Net earnings (loss)
    
    $
    (52.7
    )
    
    $
    826.7
    
    
    $
    464.4
    
    
    $
    327.7
    
    
    $
    1,566.1Net earnings (loss) attributable to shareholders of Goldcorp
    
    $
    (52.3
    )
    
    $
    828.3
    
    
    $
    466.5
    
    
    $
    331.8
    
    
    $
    1,574.3Earnings (loss) from continuing operations per share(4) Basic
    
    $
    (0.07
    )
    
    $
    1.13
    
    
    $
    0.66
    
    
    $
    0.16
    
    
    $
    1.88 Diluted
    
    $
    (0.07
    )
    
    $
    1.10
    
    
    $
    0.65
    
    
    $
    0.16
    
    
    $
    1.87Net earnings (loss) per share(4) Basic
    
    $
    (0.07
    )
    
    $
    1.13
    
    
    $
    0.63
    
    
    $
    0.45
    
    
    $
    2.14 Diluted
    
    $
    (0.07
    )
    
    $
    1.11
    
    
    $
    0.63
    
    
    $
    0.45
    
    
    $
    2.13Cash flows from operating activities of continuing operations
    
    $
    314.8
    
    
    $
    387.1
    
    
    $
    408.6
    
    
    $
    676.8
    
    
    $
    1,787.3Total
cash costs  by-product(per gold ounce) (5)
    
    $
    325
    
    
    $
    363
    
    
    $
    260
    
    
    $
    164
    
    
    $
    274Total
cash costs  co-product(per gold ounce) (6)
    
    $
    433
    
    
    $
    448
    
    
    $
    429
    
    
    $
    461
    
    
    $
    443Dividends paid
    
    $
    33.0
    
    
    $
    33.0
    
    
    $
    33.2
    
    
    $
    55.2
    
    
    $
    154.4Cash and cash equivalents
    
    $
    392.6
    
    
    $
    497.2
    
    
    $
    732.0
    
    
    $
    556.2
    
    
    $
    556.2
 
 (1)
    
    The results of Terrane, which was disposed of on October 20, 2010 and previously
reported as a separate operating segment, have been reclassified as a discontinued
operation for both the current and prior periods.(2)
    
    Includes the results of San Dimas to August 6, 2010, the date of disposition.(3)
    
    Excludes commissioning sales ounces from Peñasquito, up to September 1, 2010, as
these were credited against capitalized project costs, and silver ounces from San
Dimas sold to Primero in exchange for a working capital adjustment as part of the
disposition of San Dimas on August 6, 2010.(4)
    
    Sum of quarterly earnings per share may not equal the total for the year as each
quarterly amount is calculated independently of each other.(5)
    
    Total cash costs per gold ounce on a by-product basis is calculated net of
by-product sales revenues (by-product copper revenues for Alumbrera; by-product
silver revenues for Marlin at market silver prices; by-product lead, zinc and 75% of
the silver for Peñasquito at market silver prices and 25% of the silver for
Peñasquito at $3.90 per silver ounce sold to Silver Wheaton; and by-product silver
revenues for San Dimas at $4.04 per silver ounce to August 6, 2010 ($4.02 prior to
November 2009; $3.95 prior to November 2008) sold to Silver Wheaton).(6)
    
    Total cash costs per gold ounce on a co-product basis is calculated by
allocating operating cash costs separately to metals using a ratio of revenues from
metals as a proportion of total revenues for Alumbrera (includes copper revenues);
Marlin and San Dimas until August 6, 2010 (includes silver revenues); and Peñasquito
(includes silver, lead and zinc revenues).




---



##### 



2009 (1) (2)Q1
    
    
    Q2
    
    
    Q3
    
    
    Q4
    
    
    TotalRevenues
    
    $
    624.8
    
    
    $
    628.6
    
    
    $
    691.9
    
    
    $
    778.3
    
    
    $
    2,723.6Gold produced (ounces)
    
    
    616,500
    
    
    
    582,400
    
    
    
    621,100
    
    
    
    601,300
    
    
    
    2,421,300Gold sold (ounces)(2)
    
    
    607,900
    
    
    
    564,800
    
    
    
    601,500
    
    
    
    573,100
    
    
    
    2,347,300Average realized gold price (per ounce)
    
    $
    912
    
    
    $
    927
    
    
    $
    968
    
    
    $
    1,107
    
    
    $
    978Average London spot gold price (per ounce)
    
    $
    908
    
    
    $
    922
    
    
    $
    960
    
    
    $
    1,100
    
    
    $
    972Earnings from operations
    
    $
    202.8
    
    
    $
    156.4
    
    
    $
    219.0
    
    
    $
    243.0
    
    
    $
    821.2Earnings (loss) from continuing operations
    
    $
    290.9
    
    
    $
    (230.1
    )
    
    $
    115.5
    
    
    $
    67.8
    
    
    $
    244.1Earnings (loss) from discontinued operations, net of tax (1)
    
    $
    0.2
    
    
    $
    (2.3
    )
    
    $
    (1.9
    )
    
    $
    (1.9
    )
    
    $
    (5.9
    )Net earnings (loss)
    
    $
    291.1
    
    
    $
    (232.4
    )
    
    $
    113.6
    
    
    $
    65.9
    
    
    $
    238.2Net earnings (loss) attributable to shareholders of Goldcorp
    
    $
    290.9
    
    
    $
    (231.6
    )
    
    $
    114.2
    
    
    $
    66.7
    
    
    $
    240.2Earnings (loss) from continuing operations per share (3) Basic
    
    $
    0.40
    
    
    $
    (0.31
    )
    
    $
    0.16
    
    
    $
    0.09
    
    
    $
    0.33 Diluted
    
    $
    0.40
    
    
    $
    (0.31
    )
    
    $
    0.16
    
    
    $
    0.09
    
    
    $
    0.33Net earnings (loss) per share(3) Basic
    
    $
    0.40
    
    
    $
    (0.32
    )
    
    $
    0.16
    
    
    $
    0.09
    
    
    $
    0.33 Diluted
    
    $
    0.40
    
    
    $
    (0.32
    )
    
    $
    0.16
    
    
    $
    0.09
    
    
    $
    0.33Cash flows from operating activities of continuing
operations
    
    $
    298.8
    
    
    $
    264.4
    
    
    $
    343.1
    
    
    $
    368.8
    
    
    $
    1,275.1Total cash costs  by-product (per gold ounce) (4)(5)
    
    $
    288
    
    
    $
    310
    
    
    $
    295
    
    
    $
    289
    
    
    $
    295Total cash
costs  co-product (per gold ounce) (4)(6)
    
    $
    353
    
    
    $
    402
    
    
    $
    384
    
    
    $
    422
    
    
    $
    391Dividends paid
    
    $
    32.9
    
    
    $
    32.9
    
    
    $
    32.9
    
    
    $
    33.0
    
    
    $
    131.7Cash and cash equivalents
    
    $
    260.8
    
    
    $
    866.0
    
    
    $
    785.3
    
    
    $
    874.6
    
    
    $
    874.6
 
 (1)
    
    The results of Terrane, which was disposed of on October 20, 2010 and previously
reported as a separate operating segment, have been reclassified as a discontinued
operation for both the current and prior periods.(2)
    
    Excludes commissioning sales ounces from Peñasquito as these were credited
against capitalized project costs up to September 1, 2010.(3)
    
    Sum of quarterly earnings per share may not equal the total for the year as each
quarterly amount is calculated independently of each other.(4)
    
    The San Martin mine ended its mining process in October 2007 and commenced
reclamation activities at that time. Total cash costs for 2008 and beyond have been
presented excluding San Martin for information purposes only.(5)
    
    Total cash costs per gold ounce on a by-product basis is calculated net of
by-product sales revenues (by-product copper revenues for Alumbrera; by-product
silver revenues for Marlin at market silver prices; and by-product silver revenues
for San Dimas at $4.04 per silver ounce to August 6, 2010 ($4.02 prior to November
2009; $3.95 prior to November 2008) sold to Silver Wheaton).(6)
    
    Total cash costs per gold ounce on a co-product basis is calculated by
allocating operating cash costs separately to metals using a ratio of revenues from
metals as a proportion of total revenues for Alumbrera (includes copper revenues);
Marlin and San Dimas until August 6, 2010 (includes silver revenues).




---



##### 



Review of Quarterly Financial Results  Three months ended December 31, 2010 compared to the
three months ended September 30, 2010
  
    
    Revenues increased by $433.6 million, or 49%, primarily due to a $231.7 million increase
in gold revenues resulting from a $139 per ounce increase in the average realized gold
price and a 19% increase in gold sales volume, a $109.9 million increase in silver revenues
resulting from a 122% or 3.9 million ounces increase in silver sales volume primarily due
to a full quarter of operation at Peñasquito and a $4.77 per ounce increase in the average
realized silver price, a $37.6 million increase in zinc revenues net of treatment and
refining charges resulting from a 339% increase in zinc sales volume and a $0.04 per pound
increase in the average realized zinc price, a $27.9 million increase in lead revenues net
of treatment and refining charges resulting from a 348% increase in lead sales volume and a
$0.05 per pound increase in the average realized lead price, and a $28.5 million increase
in copper revenues resulting from a $0.63 per pound increase in the average realized copper
price and a 17% increase in copper sales volume;
    
    Operating expenses increased by $163.1 million, or 49%, primarily due to the expensing
of operating costs at Peñasquito for a full quarter ($138.7 million) compared to one month
in the third quarter ($36.6 million), the unfavourable impact of the strengthening of the
Canadian dollar and Mexican peso by 3%, higher gold, silver, zinc, lead and copper sales
volumes, $8.2 million higher YMAD net proceeds payments and $4.3 million higher export
retention taxes paid in Alumbrera. The strengthening of the Canadian dollar and Mexican
peso negatively impacted the earnings of the Canadian and Mexican operations by
approximately $2.5 million and $1.0 million, respectively;
    
    Depreciation and depletion increased by $48.9 million, or 32%, mainly due to the
commissioning of Peñasquito on September 1, 2010;
    
    A $48.5 million net loss on the Companys derivative contract to sell 1.5 million ounces
of silver to Silver Wheaton at a fixed price over each of the four years ending August 5,
2014, a $3.0 million unrealized loss on the conversion feature of the Primero convertible
note and a $9.4 million net loss on derivative foreign currency, heating oil, copper, lead
and zinc contracts in the fourth quarter; compared to a $18.0 million net loss on the
Companys derivative contract to sell 1.5 million ounces of silver to Silver Wheaton at a
fixed price over each of the four years ending August 5, 2014, a $1.7 million unrealized
gain on the conversion feature of the Primero convertible note and $1.3 million net loss on
non-hedge derivative foreign currency, heating oil, copper, lead and zinc contracts, in the
third quarter of 2010.
    
    A $259.1 million gain on the disposition of Terrane before tax ($205.3 million after
tax, including $14.4 million of tax recognized in the third quarter of 2010) in the fourth
quarter of 2010;
    
    A $373.2 million gain on the disposition of the San Dimas Assets before tax ($407.9
million after tax, including a future income tax recovery of $180.3 million and current
income tax expense of $145.6 million) in the third quarter of 2010;
    
    A $219.9 million loss on translation of future income tax liabilities relating to mining
interests arising from acquisitions, compared to a $126.4 million loss in the prior
quarter, due to the strengthening of the Canadian dollar and Mexican peso when compared to
the prior period end and finalization of the El Morro purchase price allocation;
    
    A higher effective tax rate in the fourth quarter of 2010, excluding the impact of
foreign exchange loss on future income tax liabilities, compared to the third quarter of
2010, primarily due to the gain on disposition of San Dimas in the third quarter




---



##### 



(1)
 (1)
    
    Adjusted net earnings and adjusted net earnings per share are non-GAAP
performance measures. The Company believes that, in addition to conventional
measures prepared in accordance with GAAP, the Company and certain investors
use this information to evaluate the Companys performance. Accordingly, it is
intended to provide additional information and should not be considered in isolation
or as a substitute for measures of performance prepared in accordance with GAAP.
Refer to page 45 for a reconciliation of adjusted net earnings to reported net
earnings attributable to shareholders of Goldcorp.




---



##### 



RESULTS OF OPERATIONS
 YEARS ENDED DECEMBER 31
 Average
    
    
    Earnings
    
    
    Total cashGold
    
    
    
    
    
    
    realized
    
    
    (loss) from
    
    
    costsproduced
    
    
    Gold sold
    
    
    gold price
    
    
    Operations
    
    
    (per goldRevenues
    
    
    (ounces)
    
    
    (ounces)(4)
    
    
    (per ounce)
    
    
    (5)
    
    
    ounce)(1)Red Lake
    
    
    2010
    
    
    $
    866.2
    
    
    
    703,300
    
    
    
    701,000
    
    
    $
    1,233
    
    
    $
    527.7
    
    
    $
    2972009
    
    
    $
    624.8
    
    
    
    622,700
    
    
    
    635,300
    
    
    $
    982
    
    
    $
    329.2
    
    
    $
    288Porcupine
    
    
    2010
    
    
    
    328.8
    
    
    
    265,900
    
    
    
    265,900
    
    
    
    1,234
    
    
    
    76.3
    
    
    
    5952009
    
    
    
    310.2
    
    
    
    318,300
    
    
    
    318,600
    
    
    
    973
    
    
    
    88.7
    
    
    
    447Musselwhite
    
    
    2010
    
    
    
    318.9
    
    
    
    258,700
    
    
    
    257,200
    
    
    
    1,239
    
    
    
    111.3
    
    
    
    6252009
    
    
    
    225.5
    
    
    
    232,600
    
    
    
    231,200
    
    
    
    975
    
    
    
    52.1
    
    
    
    585Peñasquito(1)(2)
    
    
    2010
    
    
    
    357.1
    
    
    
    168,200
    
    
    
    82,000
    
    
    
    1,355
    
    
    
    109.5
    
    
    
    (863
    )2009
    
    
    
    
    
    
    
    90,300
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Los Filos
    
    
    2010
    
    
    
    379.4
    
    
    
    306,100
    
    
    
    304,200
    
    
    
    1,237
    
    
    
    188.3
    
    
    
    4232009
    
    
    
    236.2
    
    
    
    239,300
    
    
    
    238,900
    
    
    
    975
    
    
    
    72.9
    
    
    
    469El Sauzal
    
    
    2010
    
    
    
    188.6
    
    
    
    152,100
    
    
    
    152,200
    
    
    
    1,234
    
    
    
    72.1
    
    
    
    3012009
    
    
    
    198.7
    
    
    
    203,800
    
    
    
    206,500
    
    
    
    958
    
    
    
    66.1
    
    
    
    201Marlin(1)
    
    
    2010
    
    
    
    500.6
    
    
    
    296,100
    
    
    
    296,000
    
    
    
    1,241
    
    
    
    268.6
    
    
    
    (19
    )2009
    
    
    
    331.8
    
    
    
    274,900
    
    
    
    274,600
    
    
    
    982
    
    
    
    136.9
    
    
    
    192Alumbrera(1)
    
    
    2010
    
    
    
    596.3
    
    
    
    152,000
    
    
    
    146,800
    
    
    
    1,270
    
    
    
    220.5
    
    
    
    (619
    )2009
    
    
    
    495.5
    
    
    
    158,200
    
    
    
    157,800
    
    
    
    988
    
    
    
    158.9
    
    
    
    (722
    )Marigold
    
    
    2010
    
    
    
    111.7
    
    
    
    91,200
    
    
    
    91,200
    
    
    
    1,224
    
    
    
    29.0
    
    
    
    6782009
    
    
    
    99.0
    
    
    
    97,900
    
    
    
    99,500
    
    
    
    994
    
    
    
    22.0
    
    
    
    596Wharf
    
    
    2010
    
    
    
    91.2
    
    
    
    73,300
    
    
    
    71,300
    
    
    
    1,233
    
    
    
    34.6
    
    
    
    6452009
    
    
    
    70.9
    
    
    
    67,700
    
    
    
    69,300
    
    
    
    974
    
    
    
    12.2
    
    
    
    686Other(1)(3)(4)
    
    
    2010
    
    
    
    61.0
    
    
    
    53,400
    
    
    
    46,000
    
    
    
    1,154
    
    
    
    (168.4
    )
    
    
    4092009
    
    
    
    131.0
    
    
    
    115,600
    
    
    
    115,600
    
    
    
    979
    
    
    
    (117.8
    )
    
    
    287Total
    
    
    2010
    
    
    $
    3,799.8
    
    
    
    2,520,300
    
    
    
    2,413,800
    
    
    $
    1,240
    
    
    $
    1,469.5
    
    
    $
    2742009
    
    
    $
    2,723.6
    
    
    
    2,421,300
    
    
    
    2,347,300
    
    
    $
    978
    
    
    $
    821.2
    
    
    $
    295
 (1)
    
    Total cash costs per gold ounce on a by-product basis is calculated net
of by-product sales revenues (by-product copper sales revenues for Alumbrera;
by-product silver sales revenues for Marlin at market silver prices; by-product
silver sales revenues for San Dimas at $4.04 per silver ounce to August 6, 2010
($4.02 prior to November 2009) sold to Silver Wheaton); and by-product lead,
zinc, 75% of silver sales revenues for Peñasquito at market silver prices, and
25% of silver sales revenues for Peñasquito at $3.90 per silver ounce sold to
Silver Wheaton effective September 1, 2010. The San Martin mine ended its mining
process in October 2007 and commenced reclamation activities at that time. Total
cash costs have been presented excluding San Martin for information purposes
only.(2)
    
    Operating results exclude commissioning sales ounces from Peñasquito up
to September 1, 2010, as these were credited against capitalized project costs.(3)
    
    Includes corporate activities and the results of San Martin, El Limón
until February 24, 2010, the date of disposition, and San Dimas until August 6,
2010, the date of disposition.(4)
    
    Excludes silver ounces sold to Primero in exchange for a working capital
adjustment as part of the disposition of San Dimas on August 6, 2010.(5)
    
    Excludes discontinued operations. As a result of the disposition of
Terrane on October 20, 2010, the results of that development project, which were
previously reported as a separate operating segment, have been reclassified as a
discontinued operation for both the current and prior periods. Including
discontinued operations, earnings from operations amounted to $1,453.6 million
in 2010 (2009  $816.0 million).




---



##### 



THREE MONTHS ENDED DECEMBER 31
 Average
    
    
    
    
    
    
    Total cashGold
    
    
    
    
    
    
    realized
    
    
    Earnings
    
    
    costsproduced
    
    
    Gold sold
    
    
    gold price
    
    
    (loss) from
    
    
    (per goldRevenues
    
    
    (ounces)
    
    
    (ounces)
    
    
    (per ounce)
    
    
    Operations(4)
    
    
    ounce)(1)Red Lake
    
    
    2010
    
    
    $
    254.0
    
    
    
    187,000
    
    
    
    184,400
    
    
    $
    1,374
    
    
    $
    159.8
    
    
    $
    3132009
    
    
    $
    181.5
    
    
    
    156,300
    
    
    
    163,100
    
    
    $
    1,111
    
    
    $
    99.7
    
    
    $
    317Porcupine
    
    
    2010
    
    
    
    92.8
    
    
    
    67,900
    
    
    
    67,900
    
    
    
    1,365
    
    
    
    24.5
    
    
    
    6562009
    
    
    
    79.1
    
    
    
    71,700
    
    
    
    71,600
    
    
    
    1,103
    
    
    
    20.0
    
    
    
    509Musselwhite
    
    
    2010
    
    
    
    104.9
    
    
    
    79,900
    
    
    
    76,500
    
    
    
    1,372
    
    
    
    47.8
    
    
    
    5722009
    
    
    
    61.4
    
    
    
    56,300
    
    
    
    55,500
    
    
    
    1,105
    
    
    
    17.2
    
    
    
    605Peñasquito(1)(2)
    
    
    2010
    
    
    
    270.9
    
    
    
    53,900
    
    
    
    55,200
    
    
    
    1,393
    
    
    
    83.4
    
    
    
    (1,002
    )2009
    
    
    
    
    
    
    
    30,400
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Los Filos
    
    
    2010
    
    
    
    116.4
    
    
    
    84,900
    
    
    
    84,200
    
    
    
    1,381
    
    
    
    64.5
    
    
    
    4002009
    
    
    
    66.0
    
    
    
    60,100
    
    
    
    59,700
    
    
    
    1,092
    
    
    
    25.6
    
    
    
    444El Sauzal
    
    
    2010
    
    
    
    53.5
    
    
    
    38,500
    
    
    
    38,600
    
    
    
    1,377
    
    
    
    22.8
    
    
    
    3032009
    
    
    
    38.0
    
    
    
    34,200
    
    
    
    34,200
    
    
    
    1,103
    
    
    
    9.0
    
    
    
    371Marlin(1)
    
    
    2010
    
    
    
    179.1
    
    
    
    92,300
    
    
    
    89,400
    
    
    
    1,376
    
    
    
    111.1
    
    
    
    (224
    )2009
    
    
    
    106.4
    
    
    
    78,600
    
    
    
    75,900
    
    
    
    1,108
    
    
    
    51.3
    
    
    
    129Alumbrera(1)
    
    
    2010
    
    
    
    186.6
    
    
    
    42,200
    
    
    
    38,800
    
    
    
    1,422
    
    
    
    83.9
    
    
    
    (1,002
    )2009
    
    
    
    152.5
    
    
    
    34,600
    
    
    
    32,700
    
    
    
    1,140
    
    
    
    58.4
    
    
    
    (1,333
    )Marigold
    
    
    2010
    
    
    
    35.7
    
    
    
    27,000
    
    
    
    26,000
    
    
    
    1,372
    
    
    
    9.6
    
    
    
    7872009
    
    
    
    35.0
    
    
    
    31,900
    
    
    
    31,400
    
    
    
    1,111
    
    
    
    13.5
    
    
    
    482Wharf
    
    
    2010
    
    
    
    24.8
    
    
    
    16,000
    
    
    
    17,600
    
    
    
    1,372
    
    
    
    9.1
    
    
    
    7882009
    
    
    
    20.8
    
    
    
    16,400
    
    
    
    18,500
    
    
    
    1,094
    
    
    
    3.1
    
    
    
    805Other(1)(3)
    
    
    2010
    
    
    
    0.7
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (60.4
    )
    
    
    2009
    
    
    
    37.6
    
    
    
    30,800
    
    
    
    30,500
    
    
    
    1,104
    
    
    
    (54.8
    )
    
    
    272Total
    
    
    2010
    
    
    $
    1,319.4
    
    
    
    689,600
    
    
    
    678,600
    
    
    $
    1,378
    
    
    $
    556.1
    
    
    $
    1642009
    
    
    $
    778.3
    
    
    
    601,300
    
    
    
    573,100
    
    
    $
    1,107
    
    
    $
    243.0
    
    
    $
    289
 (1)
    
    Total cash costs per gold ounce on a by-product basis is calculated net of
by-product sales revenues (by-product copper sales revenues for Alumbrera;
by-product silver sales revenues for Marlin at market silver prices; by-product
silver sales revenues for San Dimas at $4.04 per silver ounce in 2009 ($4.02
prior to November 2009) sold to Silver Wheaton); and by-product lead, zinc, 75%
of silver sales revenues for Peñasquito at market silver prices, and 25% of
silver sales revenues for Peñasquito at $3.90 per silver ounce sold to Silver
Wheaton effective September 1, 2010. The San Martin mine ended its mining process
in October 2007 and commenced reclamation activities at that time. Total cash
costs have been presented excluding San Martin for information purposes only.(2)
    
    Operating results exclude commissioning sales ounces from Peñasquito up to
September 1, 2010, as these were credited against capitalized project costs.(3)
    
    Includes corporate activities and the results of San Martin, and El Limón
and San Dimas in 2009.(4)
    
    Excludes discontinued operations. As a result of the disposition of Terrane on October 20, 2010,
the results of that development project, which were previously reported as a separate operating
segment, have been reclassified as a discontinued operation for both the current and prior periods.
Including discontinued operations, earnings from operations amounted to $546.1 million for the
fourth quarter of 2010 (2009  $241.0 million).




---



##### 



Red Lake gold mines, Canada
 Total
    
    
    TotalOperating Data
    
    Q1
    
    
    Q2
    
    
    Q3
    
    
    Q4
    
    
    2010
    
    
    2009Tonnes of ore milled
    
    
    211,500
    
    
    
    221,900
    
    
    
    218,500
    
    
    
    224,700
    
    
    
    876,600
    
    
    
    781,700Average mill head grade (grams/tonne)
    
    
    27
    
    
    
    24
    
    
    
    26
    
    
    
    26
    
    
    
    26
    
    
    
    26Average recovery rate
    
    
    97
    %
    
    
    96
    %
    
    
    97
    %
    
    
    96
    %
    
    
    97
    %
    
    
    97
    %Gold (ounces) Produced
    
    
    181,200
    
    
    
    159,000
    
    
    
    176,100
    
    
    
    187,000
    
    
    
    703,300
    
    
    
    622,700 Sold
    
    
    169,400
    
    
    
    171,200
    
    
    
    176,000
    
    
    
    184,400
    
    
    
    701,000
    
    
    
    635,300Average realized gold price (per ounce)
    
    $
    1,112
    
    
    $
    1,203
    
    
    $
    1,232
    
    
    $
    1,374
    
    
    $
    1,233
    
    
    $
    982Total cash costs (per ounce)
    
    $
    298
    
    
    $
    308
    
    
    $
    268
    
    
    $
    313
    
    
    $
    297
    
    
    $
    288Financial DataRevenues
    
    $
    188.7
    
    
    $
    206.1
    
    
    $
    217.4
    
    
    $
    254.0
    
    
    $
    866.2
    
    
    $
    624.8Depreciation and depletion
    
    $
    25.9
    
    
    $
    26.0
    
    
    $
    28.1
    
    
    $
    31.9
    
    
    $
    111.9
    
    
    $
    101.1Earnings from operations
    
    $
    108.7
    
    
    $
    122.7
    
    
    $
    136.5
    
    
    $
    159.8
    
    
    $
    527.7
    
    
    $
    329.2Expenditures on mining interests
    
    $
    38.9
    
    
    $
    46.2
    
    
    $
    53.6
    
    
    $
    65.4
    
    
    $
    204.1
    
    
    $
    109.8




---



##### 



Porcupine mines, Canada
 Total
    
    
    TotalOperating Data
    
    Q1
    
    
    Q2
    
    
    Q3
    
    
    Q4
    
    
    2010
    
    
    2009Hoyle Pond underground (tonnes)
    
    
    77,300
    
    
    
    82,300
    
    
    
    82,900
    
    
    
    84,800
    
    
    
    327,300
    
    
    
    334,100Hoyle Pond underground (grams/tonne)
    
    
    10.41
    
    
    
    11.37
    
    
    
    12.66
    
    
    
    10.48
    
    
    
    11.24
    
    
    
    11.68Dome underground (tonnes)
    
    
    152,200
    
    
    
    159,800
    
    
    
    123,000
    
    
    
    143,500
    
    
    
    578,500
    
    
    
    582,300Dome underground (grams/tonne)
    
    
    3.07
    
    
    
    3.08
    
    
    
    4.11
    
    
    
    3.40
    
    
    
    3.38
    
    
    
    4.14Stockpile (tonnes)
    
    
    790,700
    
    
    
    786,000
    
    
    
    837,600
    
    
    
    809,300
    
    
    
    3,223,600
    
    
    
    3,109,000Stockpile (grams/tonne)
    
    
    0.95
    
    
    
    1.02
    
    
    
    1.02
    
    
    
    0.99
    
    
    
    1.00
    
    
    
    1.47Tonnes of ore milled
    
    
    1,020,200
    
    
    
    1,028,100
    
    
    
    1,043,500
    
    
    
    1,037,600
    
    
    
    4,129,400
    
    
    
    4,025,400Average mill head grade (grams/tonne)
    
    
    1.98
    
    
    
    2.17
    
    
    
    2.31
    
    
    
    2.10
    
    
    
    2.14
    
    
    
    2.70Average recovery rate
    
    
    91
    %
    
    
    92
    %
    
    
    92
    %
    
    
    92
    %
    
    
    92
    %
    
    
    92
    %Gold (ounces) Produced
    
    
    62,100
    
    
    
    67,000
    
    
    
    68,900
    
    
    
    67,900
    
    
    
    265,900
    
    
    
    318,300 Sold
    
    
    62,000
    
    
    
    66,900
    
    
    
    69,100
    
    
    
    67,900
    
    
    
    265,900
    
    
    
    318,600Average realized gold price (per ounce)
    
    $
    1,111
    
    
    $
    1,214
    
    
    $
    1,238
    
    
    $
    1,365
    
    
    $
    1,234
    
    
    $
    973Total cash costs (per ounce)
    
    $
    654
    
    
    $
    548
    
    
    $
    526
    
    
    $
    656
    
    
    $
    595
    
    
    $
    447Financial DataRevenues
    
    $
    68.9
    
    
    $
    81.4
    
    
    $
    85.7
    
    
    $
    92.8
    
    
    $
    328.8
    
    
    $
    310.2Depreciation and depletion
    
    $
    22.4
    
    
    $
    20.7
    
    
    $
    22.2
    
    
    $
    21.5
    
    
    $
    86.8
    
    
    $
    69.9Earnings from operations
    
    $
    4.9
    
    
    $
    22.3
    
    
    $
    24.6
    
    
    $
    24.5
    
    
    $
    76.3
    
    
    $
    88.7Expenditures on mining interests
    
    $
    14.6
    
    
    $
    26.7
    
    
    $
    22.8
    
    
    $
    23.8
    
    
    $
    87.9
    
    
    $
    37.6




---



##### 








---



##### 



Musselwhite mine, Canada
 Total
    
    
    TotalOperating Data
    
    Q1
    
    
    Q2
    
    
    Q3
    
    
    Q4
    
    
    2010
    
    
    2009Tonnes of ore milled
    
    
    334,500
    
    
    
    357,900
    
    
    
    348,700
    
    
    
    405,700
    
    
    
    1,446,800
    
    
    
    1,289,500Average mill head grade (grams/tonne)
    
    
    5.85
    
    
    
    5.39
    
    
    
    5.64
    
    
    
    6.20
    
    
    
    5.78
    
    
    
    5.93Average recovery rate
    
    
    96
    %
    
    
    96
    %
    
    
    96
    %
    
    
    96
    %
    
    
    96
    %
    
    
    95
    %Gold (ounces) Produced
    
    
    61,300
    
    
    
    59,400
    
    
    
    58,100
    
    
    
    79,900
    
    
    
    258,700
    
    
    
    232,600 Sold
    
    
    60,500
    
    
    
    59,900
    
    
    
    60,300
    
    
    
    76,500
    
    
    
    257,200
    
    
    
    231,200Average realized gold price (per ounce)
    
    $
    1,106
    
    
    $
    1,201
    
    
    $
    1,243
    
    
    $
    1,372
    
    
    $
    1,239
    
    
    $
    975Total cash costs (per ounce)
    
    $
    681
    
    
    $
    627
    
    
    $
    632
    
    
    $
    572
    
    
    $
    625
    
    
    $
    585Financial DataRevenues
    
    $
    67.0
    
    
    $
    72.0
    
    
    $
    75.0
    
    
    $
    104.9
    
    
    $
    318.9
    
    
    $
    225.5Depreciation and depletion
    
    $
    7.8
    
    
    $
    8.3
    
    
    $
    9.5
    
    
    $
    11.5
    
    
    $
    37.1
    
    
    $
    30.4Earnings from operations
    
    $
    15.3
    
    
    $
    23.6
    
    
    $
    24.6
    
    
    $
    47.8
    
    
    $
    111.3
    
    
    $
    52.1Expenditures on mining interests
    
    $
    15.2
    
    
    $
    19.7
    
    
    $
    22.3
    
    
    $
    22.2
    
    
    $
    79.4
    
    
    $
    78.9




---



##### 



Peñasquito mine, Mexico
 September 1, 2010 -
    
    
    
    
    
    
    TotalOperating Data
    
    Q1
    
    
    Q2
    
    
    Q3
    
    
    September 30, 2010
    
    
    Q4
    
    
    2010Tonnes of ore mined
    
    
    7,270,500
    
    
    
    6,008,600
    
    
    
    5,752,200
    
    
    
    2,417,600
    
    
    
    12,360,800
    
    
    
    31,392,100Tonnes of waste removed
    
    
    36,808,700
    
    
    
    39,572,100
    
    
    
    40,920,400
    
    
    
    11,934,000
    
    
    
    34,970,900
    
    
    
    152,272,100Ratio of waste to ore
    
    
    5.1
    
    
    
    6.6
    
    
    
    7.1
    
    
    
    4.9
    
    
    
    2.8
    
    
    
    4.9Average head gradeGold (grams/tonne)
    
    
    0.26
    
    
    
    0.24
    
    
    
    0.27
    
    
    
    0.29
    
    
    
    0.30
    
    
    
    0.27Silver (grams/tonne)
    
    
    25.60
    
    
    
    29.70
    
    
    
    29.37
    
    
    
    28.70
    
    
    
    26.14
    
    
    
    27.57Lead
    
    
    0.34
    %
    
    
    0.42
    %
    
    
    0.41
    %
    
    
    0.40
    %
    
    
    0.35
    %
    
    
    0.38
    %Zinc
    
    
    0.53
    %
    
    
    0.70
    %
    
    
    0.73
    %
    
    
    0.70
    %
    
    
    0.56
    %
    
    
    0.63
    %Sulphide OreTonnes of ore milled
    
    
    3,002,300
    
    
    
    4,316,700
    
    
    
    5,683,000
    
    
    
    2,214,200
    
    
    
    7,635,600
    
    
    
    20,637,600Average recovery rateGold
    
    
    50
    %
    
    
    51
    %
    
    
    49
    %
    
    
    52
    %
    
    
    45
    %
    
    
    48
    %Silver
    
    
    61
    %
    
    
    61
    %
    
    
    58
    %
    
    
    55
    %
    
    
    54
    %
    
    
    58
    %Lead
    
    
    59
    %
    
    
    59
    %
    
    
    62
    %
    
    
    65
    %
    
    
    61
    %
    
    
    60
    %Zinc
    
    
    61
    %
    
    
    64
    %
    
    
    63
    %
    
    
    61
    %
    
    
    67
    %
    
    
    65
    %Concentrates
Produced Payable Metal ProducedLead Concentrate (DMT)
    
    
    9,600
    
    
    
    17,500
    
    
    
    24,500
    
    
    
    9,100
    
    
    
    28,200
    
    
    
    79,800Zinc Concentrate (DMT)
    
    
    16,700
    
    
    
    32,000
    
    
    
    44,500
    
    
    
    17,100
    
    
    
    50,500
    
    
    
    143,700Gold (ounces)
    
    
    11,400
    
    
    
    17,000
    
    
    
    25,900
    
    
    
    11,700
    
    
    
    35,500
    
    
    
    89,800Silver (ounces)
    
    
    1,352,900
    
    
    
    2,396,000
    
    
    
    3,294,700
    
    
    
    1,268,900
    
    
    
    3,902,800
    
    
    
    10,946,400Lead (thousands of pounds)
    
    
    11,800
    
    
    
    22,200
    
    
    
    29,000
    
    
    
    11,300
    
    
    
    34,400
    
    
    
    97,400Zinc (thousands of pounds)
    
    
    17,500
    
    
    
    34,500
    
    
    
    48,300
    
    
    
    18,800
    
    
    
    54,200
    
    
    
    154,500Oxide OreTonnes of ore processed
    
    
    3,000,000
    
    
    
    2,024,200
    
    
    
    1,257,000
    
    
    
    891,000
    
    
    
    4,259,000
    
    
    
    10,540,200ProducedGold (ounces)
    
    
    19,300
    
    
    
    22,100
    
    
    
    18,600
    
    
    
    5,600
    
    
    
    18,400
    
    
    
    78,400Silver (ounces)
    
    
    725,300
    
    
    
    802,800
    
    
    
    773,300
    
    
    
    261,600
    
    
    
    704,800
    
    
    
    3,006,200Sulphide
& Oxide Ores  Payable Metal ProducedGold (ounces)
    
    
    30,700
    
    
    
    39,100
    
    
    
    44,500
    
    
    
    17,300
    
    
    
    53,900
    
    
    
    168,200Silver (ounces)
    
    
    2,078,200
    
    
    
    3,198,800
    
    
    
    4,068,000
    
    
    
    1,530,500
    
    
    
    4,607,600
    
    
    
    13,952,600Lead (thousands of pounds)
    
    
    11,800
    
    
    
    22,200
    
    
    
    29,000
    
    
    
    11,300
    
    
    
    34,400
    
    
    
    97,400Zinc (thousands of pounds)
    
    
    17,500
    
    
    
    34,500
    
    
    
    48,300
    
    
    
    18,800
    
    
    
    54,200
    
    
    
    154,500Sulphide
and Oxide Ores  Payable Metal SoldGold (ounces)
    
    
    28,300
    
    
    
    38,400
    
    
    
    43,400
    
    
    
    26,800
    
    
    
    55,200
    
    
    
    165,300Silver (ounces)
    
    
    1,976,900
    
    
    
    3,293,800
    
    
    
    3,487,900
    
    
    
    1,737,000
    
    
    
    5,101,900
    
    
    
    13,860,500Lead (thousands of pounds)
    
    
    11,100
    
    
    
    23,000
    
    
    
    22,000
    
    
    
    10,700
    
    
    
    38,400
    
    
    
    94,500Zinc (thousands of pounds)
    
    
    14,300
    
    
    
    32,900
    
    
    
    38,600
    
    
    
    13,200
    
    
    
    58,100
    
    
    
    143,900Average realized pricesGold (per ounce)
    
    $
    1,109
    
    
    $
    1,228
    
    
    $
    1,242
    
    
    $
    1,275
    
    
    $
    1,393
    
    
    $
    1,355Silver (per ounce) (1)
    
    $
    14.77
    
    
    $
    15.86
    
    
    $
    17.40
    
    
    $
    19.10
    
    
    $
    22.57
    
    
    $
    21.69Lead (per pound)
    
    $
    0.96
    
    
    $
    0.79
    
    
    $
    1.06
    
    
    $
    1.07
    
    
    $
    1.12
    
    
    $
    1.11Zinc (per pound)
    
    $
    0.96
    
    
    $
    0.80
    
    
    $
    1.01
    
    
    $
    1.05
    
    
    $
    1.09
    
    
    $
    1.08Total Cash Costs (per ounce of gold)(2)(3)
    
    $
    
    
    
    $
    
    
    
    $
    (577
    )
    
    $
    (577
    )
    
    $
    (1,002
    )
    
    $
    (863
    )Financial Data and Key Performance IndicatorsRevenues (1)(2)
    
    $
    
    
    
    $
    
    
    
    $
    86.2
    
    
    $
    86.2
    
    
    $
    270.9
    
    
    $
    357.1Depreciation and depletion
    
    $
    
    
    
    $
    
    
    
    $
    15.3
    
    
    $
    15.3
    
    
    $
    47.8
    
    
    $
    63.1Earnings from operations (1)(2)(4)
    
    $
    
    
    
    $
    
    
    
    $
    32.8
    
    
    $
    34.2
    
    
    $
    83.4
    
    
    $
    109.5Expenditures on mining interests
    
    $
    87.3
    
    
    $
    29.3
    
    
    $
    19.9
    
    
    $
    14.3
    
    
    $
    66.8
    
    
    $
    203.3Sales revenues credited to mining interests, net of
treatment and refining charges on concentrate sales
(2)
    
    $
    89.3
    
    
    $
    149.9
    
    
    $
    86.4
    
    
    $
    
    
    
    $
    
    
    
    $
    325.6Mining cost per tonne
    
    $
    1.07
    
    
    $
    1.13
    
    
    $
    1.08
    
    
    $
    1.19
    
    
    $
    1.17
    
    
    $
    1.12Milling cost per tonne
    
    $
    7.50
    
    
    $
    8.27
    
    
    $
    7.00
    
    
    $
    6.43
    
    
    $
    6.32
    
    
    $
    7.09General and administration cost per tonne milled
    
    $
    3.74
    
    
    $
    2.39
    
    
    $
    2.70
    
    
    $
    2.39
    
    
    $
    1.88
    
    
    $
    2.48Off-site cost per tonne sold (lead)(5)
    
    $
    433
    
    
    $
    439
    
    
    $
    485
    
    
    $
    530
    
    
    $
    426
    
    
    $
    449Off-site cost per tonne sold (zinc)(5)
    
    $
    382
    
    
    $
    352
    
    
    $
    408
    
    
    $
    404
    
    
    $
    378
    
    
    $
    385




---



##### 



(1)
    
    Includes 25% of silver ounces sold to Silver Wheaton at $3.90 per ounce.
The remaining 75% of silver ounces are sold at market rates.(2)
    
    Costs incurred, net of proceeds from sales, during the pre-commissioning
production period were offset against capitalized mining costs and are referred
to as pre-operating expenditures. Effective September 1, 2010, proceeds from
sales of metal concentrates and metals from the ancillary heap leach operation
have been recognized as revenues with expenditures during production recognized
as expenses.(3)
    
    The calculation of total cash costs per ounce of gold is net of by-product
silver, lead and zinc sales revenues. If silver, lead and zinc were treated as
co-products, average total cash costs at Peñasquito for the period from September
1, 2010 to December 31, 2010, would be $611 per ounce of gold, $10.35 per ounce
of silver, $0.74 per pound of lead and $0.74 per pound of zinc.(4)
    
    Sum of quarterly earnings from operations does not equal the total for the
year as earnings from operations for the year include exploration expenditures of
$6.7 million previously allocated to Corporate in the first two quarters of 2010.(5)
    
    Off-site costs consist primarily of transportation, warehousing, and
treatment and refining charges. Completion of Commissioning and Commercial Production
   Operating Performance




---



##### 



Construction
of processing facilities - High-Pressure Grinding Roll
  Optimization and exploration activities to enhance economics at Peñasquito




---



##### 



Los Filos mine, Mexico
 Total
    
    
    TotalOperating Data(1)
    
    Q1
    
    
    Q2
    
    
    Q3
    
    
    Q4
    
    
    2010
    
    
    2009Tonnes of ore mined
    
    
    6,731,200
    
    
    
    6,729,600
    
    
    
    6,734,700
    
    
    
    7,304,200
    
    
    
    27,499,700
    
    
    
    25,093,600Tonnes of waste removed
    
    
    8,241,200
    
    
    
    8,979,200
    
    
    
    6,837,300
    
    
    
    7,587,200
    
    
    
    31,644,900
    
    
    
    28,655,300Ratio of waste to ore
    
    
    1.2
    
    
    
    1.3
    
    
    
    1.0
    
    
    
    1.0
    
    
    
    1.2
    
    
    
    1.1Tonnes of ore processed
    
    
    7,021,300
    
    
    
    6,783,800
    
    
    
    6,846,700
    
    
    
    7,403,500
    
    
    
    28,055,300
    
    
    
    25,424,400Average grade processed (grams/tonne)
    
    
    0.60
    
    
    
    0.71
    
    
    
    0.67
    
    
    
    0.70
    
    
    
    0.67
    
    
    
    0.62Average recovery rate (2)
    
    
    42
    %
    
    
    44
    %
    
    
    45
    %
    
    
    44
    %
    
    
    44
    %
    
    
    42
    %Gold (ounces) Produced
    
    
    72,100
    
    
    
    82,600
    
    
    
    66,500
    
    
    
    84,900
    
    
    
    306,100
    
    
    
    239,300 Sold
    
    
    72,400
    
    
    
    81,400
    
    
    
    66,200
    
    
    
    84,200
    
    
    
    304,200
    
    
    
    238,900Average realized gold price (per ounce)
    
    $
    1,111
    
    
    $
    1,202
    
    
    $
    1,234
    
    
    $
    1,381
    
    
    $
    1,237
    
    
    $
    975Total cash costs (per ounce)
    
    $
    412
    
    
    $
    446
    
    
    $
    438
    
    
    $
    400
    
    
    $
    423
    
    
    $
    469Financial DataRevenues
    
    $
    81.9
    
    
    $
    98.8
    
    
    $
    82.3
    
    
    $
    116.4
    
    
    $
    379.4
    
    
    $
    236.2Depreciation and depletion
    
    $
    11.9
    
    
    $
    13.6
    
    
    $
    11.6
    
    
    $
    13.7
    
    
    $
    50.8
    
    
    $
    45.7Earnings from operations
    
    $
    38.2
    
    
    $
    46.7
    
    
    $
    38.9
    
    
    $
    64.5
    
    
    $
    188.3
    
    
    $
    72.9Expenditures on mining interests
    
    $
    11.4
    
    
    $
    18.5
    
    
    $
    7.0
    
    
    $
    13.1
    
    
    $
    50.0
    
    
    $
    72.8
 (1)
    
    Includes the results of the Los Filos and Bermejal open pits and the
underground operation.(2)
    
    Recovery is reported on a cumulative basis to reflect the cumulative
recovery of ore on the leach pad, and does not reflect the true recovery
expected over time.




---



##### 



El Sauzal mine, Mexico
 Total
    
    
    TotalOperating Data
    
    Q1
    
    
    Q2
    
    
    Q3
    
    
    Q4
    
    
    2010
    
    
    2009Tonnes of ore mined
    
    
    692,600
    
    
    
    618,400
    
    
    
    584,700
    
    
    
    645,200
    
    
    
    2,540,900
    
    
    
    2,480,200Tonnes of waste removed
    
    
    1,613,700
    
    
    
    1,125,300
    
    
    
    842,600
    
    
    
    752,400
    
    
    
    4,334,000
    
    
    
    4,620,400Ratio of waste to ore
    
    
    2.3
    
    
    
    1.8
    
    
    
    1.4
    
    
    
    1.2
    
    
    
    1.7
    
    
    
    1.9Tonnes of ore milled
    
    
    488,600
    
    
    
    510,700
    
    
    
    523,500
    
    
    
    527,500
    
    
    
    2,050,300
    
    
    
    2,106,200Average mill head grade (grams/tonne)
    
    
    2.31
    
    
    
    2.55
    
    
    
    2.55
    
    
    
    2.39
    
    
    
    2.45
    
    
    
    3.17Average recovery rate
    
    
    93
    %
    
    
    94
    %
    
    
    95
    %
    
    
    95
    %
    
    
    94
    %
    
    
    94
    %Gold (ounces) Produced
    
    
    33,700
    
    
    
    39,300
    
    
    
    40,600
    
    
    
    38,500
    
    
    
    152,100
    
    
    
    203,800 Sold
    
    
    33,800
    
    
    
    39,100
    
    
    
    40,700
    
    
    
    38,600
    
    
    
    152,200
    
    
    
    206,500Average realized gold price (per ounce)
    
    $
    1,102
    
    
    $
    1,205
    
    
    $
    1,234
    
    
    $
    1,377
    
    
    $
    1,234
    
    
    $
    958Total cash costs (per ounce)
    
    $
    352
    
    
    $
    299
    
    
    $
    258
    
    
    $
    303
    
    
    $
    301
    
    
    $
    201Financial DataRevenues
    
    $
    37.4
    
    
    $
    47.3
    
    
    $
    50.4
    
    
    $
    53.5
    
    
    $
    188.6
    
    
    $
    198.7Depreciation and depletion
    
    $
    14.5
    
    
    $
    17.0
    
    
    $
    17.7
    
    
    $
    17.1
    
    
    $
    66.3
    
    
    $
    88.5Earnings from operations
    
    $
    10.2
    
    
    $
    17.7
    
    
    $
    21.4
    
    
    $
    22.8
    
    
    $
    72.1
    
    
    $
    66.1Expenditures on mining interests
    
    $
    2.1
    
    
    $
    2.3
    
    
    $
    1.4
    
    
    $
    2.0
    
    
    $
    7.8
    
    
    $
    6.3




---



##### 



Marlin mine, Guatemala
 Total
    
    
    TotalOperating Data
    
    Q1
    
    
    Q2
    
    
    Q3
    
    
    Q4
    
    
    2010
    
    
    2009Tonnes of ore milled
    
    
    470,700
    
    
    
    374,600
    
    
    
    373,900
    
    
    
    380,500
    
    
    
    1,599,700
    
    
    
    2,161,000Average mill head grade (grams/tonne) Gold
    
    
    4.78
    
    
    
    5.94
    
    
    
    5.52
    
    
    
    7.81
    
    
    
    5.94
    
    
    
    4.26 Silver
    
    
    109
    
    
    
    136
    
    
    
    133
    
    
    
    193
    
    
    
    141
    
    
    
    87Average recovery rate Gold
    
    
    95
    %
    
    
    96
    %
    
    
    96
    %
    
    
    97
    %
    
    
    96
    %
    
    
    93
    % Silver
    
    
    78
    %
    
    
    85
    %
    
    
    91
    %
    
    
    90
    %
    
    
    87
    %
    
    
    69
    %Produced (ounces) Gold
    
    
    68,900
    
    
    
    71,500
    
    
    
    63,400
    
    
    
    92,300
    
    
    
    296,100
    
    
    
    274,900 Silver
    
    
    1,254,300
    
    
    
    1,437,700
    
    
    
    1,410,700
    
    
    
    2,156,500
    
    
    
    6,259,200
    
    
    
    4,156,500Sold (ounces) Gold
    
    
    70,500
    
    
    
    72,300
    
    
    
    63,800
    
    
    
    89,400
    
    
    
    296,000
    
    
    
    274,600 Silver
    
    
    1,290,100
    
    
    
    1,424,500
    
    
    
    1,442,000
    
    
    
    2,060,000
    
    
    
    6,216,600
    
    
    
    4,128,800Average realized price (per ounce) Gold
    
    $
    1,113
    
    
    $
    1,206
    
    
    $
    1,236
    
    
    $
    1,376
    
    
    $
    1,241
    
    
    $
    982 Silver
    
    $
    17.24
    
    
    $
    18.54
    
    
    $
    19.63
    
    
    $
    27.26
    
    
    $
    21.41
    
    
    $
    15.07Total cash costs (per ounce) (1)
    
    $
    109
    
    
    $
    48
    
    
    $
    52
    
    
    $
    (224
    )
    
    $
    (19
    )
    
    $
    192Financial DataRevenues
    
    $
    100.7
    
    
    $
    113.6
    
    
    $
    107.2
    
    
    $
    179.1
    
    
    $
    500.6
    
    
    $
    331.8Depreciation and depletion
    
    $
    22.1
    
    
    $
    23.3
    
    
    $
    25.3
    
    
    $
    31.4
    
    
    $
    102.1
    
    
    $
    79.5Earnings from operations
    
    $
    48.0
    
    
    $
    59.8
    
    
    $
    49.7
    
    
    $
    111.1
    
    
    $
    268.6
    
    
    $
    136.9Expenditures on mining interests
    
    $
    9.8
    
    
    $
    21.7
    
    
    $
    21.6
    
    
    $
    23.7
    
    
    $
    76.8
    
    
    $
    41.3
 (1)
    
    The calculation of total cash costs per ounce of gold sold is net of
by-product silver sales revenue. If silver was treated as a co-product, total
cash costs at Marlin for 2010 would be $319 per ounce of gold and $5.35 per
ounce of silver (2009  $341 and $4.98, respectively).




---



##### 








---



##### 



Alumbrera mine, Argentina
 Total
    
    
    TotalOperating Data
    
    Q1
    
    
    Q2
    
    
    Q3
    
    
    Q4
    
    
    2010
    
    
    2009Tonnes of ore mined
    
    
    2,260,900
    
    
    
    2,938,400
    
    
    
    2,244,100
    
    
    
    1,940,200
    
    
    
    9,383,600
    
    
    
    10,989,000Tonnes of waste removed
    
    
    5,974,200
    
    
    
    5,340,100
    
    
    
    5,587,800
    
    
    
    5,270,500
    
    
    
    22,172,600
    
    
    
    22,085,900Ratio of waste to ore
    
    
    2.6
    
    
    
    1.8
    
    
    
    2.5
    
    
    
    2.7
    
    
    
    2.4
    
    
    
    2.0Tonnes of ore milled
    
    
    3,514,100
    
    
    
    3,547,600
    
    
    
    3,493,800
    
    
    
    3,479,900
    
    
    
    14,035,400
    
    
    
    14,075,300Average mill head grade Gold (grams/tonne)
    
    
    0.51
    
    
    
    0.43
    
    
    
    0.42
    
    
    
    0.50
    
    
    
    0.46
    
    
    
    0.49 Copper
    
    
    0.54
    %
    
    
    0.44
    %
    
    
    0.40
    %
    
    
    0.45
    %
    
    
    0.46
    %
    
    
    0.46
    %Average recovery rate Gold
    
    
    72
    %
    
    
    70
    %
    
    
    73
    %
    
    
    70
    %
    
    
    71
    %
    
    
    71
    % Copper
    
    
    85
    %
    
    
    81
    %
    
    
    82
    %
    
    
    81
    %
    
    
    83
    %
    
    
    83
    %Produced Gold (ounces)
    
    
    41,300
    
    
    
    34,400
    
    
    
    34,100
    
    
    
    42,200
    
    
    
    152,000
    
    
    
    158,200 Copper (thousands of pounds)
    
    
    35,300
    
    
    
    28,000
    
    
    
    25,000
    
    
    
    27,700
    
    
    
    116,000
    
    
    
    118,300Sold Gold (ounces)
    
    
    30,800
    
    
    
    46,900
    
    
    
    30,300
    
    
    
    38,800
    
    
    
    146,800
    
    
    
    157,800 Copper (thousands of pounds)
    
    
    24,500
    
    
    
    36,500
    
    
    
    23,100
    
    
    
    27,000
    
    
    
    111,100
    
    
    
    114,600Average realized price Gold (per ounce)
    
    $
    1,119
    
    
    $
    1,250
    
    
    $
    1,259
    
    
    $
    1,422
    
    
    $
    1,270
    
    
    $
    988 Copper (per pound)
    
    $
    3.58
    
    
    $
    2.55
    
    
    $
    4.38
    
    
    $
    4.84
    
    
    $
    3.71
    
    
    $
    3.08Total cash costs (per gold ounce)(1)
    
    $
    (961
    )
    
    $
    102
    
    
    $
    (896
    )
    
    $
    (1,002
    )
    
    $
    (619
    )
    
    $
    (722
    )Financial DataRevenues
    
    $
    124.0
    
    
    $
    148.1
    
    
    $
    137.6
    
    
    $
    186.6
    
    
    $
    596.3
    
    
    $
    495.5Depreciation and depletion
    
    $
    15.6
    
    
    $
    20.6
    
    
    $
    15.2
    
    
    $
    15.6
    
    
    $
    67.0
    
    
    $
    70.1Earnings from operations
    
    $
    53.9
    
    
    $
    33.6
    
    
    $
    49.1
    
    
    $
    83.9
    
    
    $
    220.5
    
    
    $
    158.9Expenditures for mining interests
    
    $
    2.5
    
    
    $
    3.1
    
    
    $
    3.0
    
    
    $
    7.5
    
    
    $
    16.1
    
    
    $
    12.6
 (1)
    
    The calculation of total cash costs per ounce of gold is net of
by-product copper sales revenue. If copper was treated as a co-product, cash
costs at Alumbrera for 2010 would be $654 per ounce of gold and $2 per pound of
copper (2009  $434 and $1.54, respectively).




---



##### 








---



##### 



Marigold mine, United States 
 Total
    
    
    TotalOperating Data
    
    Q1
    
    
    Q2
    
    
    Q3
    
    
    Q4
    
    
    2010
    
    
    2009Tonnes of ore mined
    
    
    1,959,800
    
    
    
    661,400
    
    
    
    1,736,300
    
    
    
    1,805,100
    
    
    
    6,162,600
    
    
    
    8,001,100Tonnes of waste removed
    
    
    6,462,900
    
    
    
    8,608,300
    
    
    
    6,678,800
    
    
    
    7,313,300
    
    
    
    29,063,300
    
    
    
    20,269,400Ratio of waste to ore
    
    
    3.3
    
    
    
    13.0
    
    
    
    3.8
    
    
    
    4.0
    
    
    
    4.7
    
    
    
    2.5Tonnes of ore processed
    
    
    1,959,800
    
    
    
    661,400
    
    
    
    1,736,300
    
    
    
    1,805,100
    
    
    
    6,162,600
    
    
    
    8,001,100Average grade processed (grams/tonne)
    
    
    0.65
    
    
    
    0.51
    
    
    
    0.55
    
    
    
    0.66
    
    
    
    0.61
    
    
    
    0.63Average recovery rate
    
    
    73
    %
    
    
    73
    %
    
    
    73
    %
    
    
    73
    %
    
    
    73
    %
    
    
    73
    %Gold (ounces) Produced
    
    
    30,500
    
    
    
    16,900
    
    
    
    16,800
    
    
    
    27,000
    
    
    
    91,200
    
    
    
    97,900 Sold
    
    
    30,700
    
    
    
    17,800
    
    
    
    16,700
    
    
    
    26,000
    
    
    
    91,200
    
    
    
    99,500Average realized gold price (per ounce)
    
    $
    1,110
    
    
    $
    1,195
    
    
    $
    1,236
    
    
    $
    1,372
    
    
    $
    1,224
    
    
    $
    994Total cash costs (per ounce)
    
    $
    507
    
    
    $
    686
    
    
    $
    817
    
    
    $
    787
    
    
    $
    678
    
    
    $
    596Financial DataRevenues
    
    $
    34.0
    
    
    $
    21.4
    
    
    $
    20.6
    
    
    $
    35.7
    
    
    $
    111.7
    
    
    $
    99.0Depreciation and depletion
    
    $
    5.1
    
    
    $
    3.5
    
    
    $
    3.8
    
    
    $
    5.4
    
    
    $
    17.8
    
    
    $
    14.8Earnings from operations
    
    $
    11.9
    
    
    $
    4.3
    
    
    $
    3.2
    
    
    $
    9.6
    
    
    $
    29.0
    
    
    $
    22.0Expenditures for mining interests
    
    $
    3.0
    
    
    $
    5.6
    
    
    $
    4.4
    
    
    $
    6.5
    
    
    $
    19.5
    
    
    $
    29.3




---



##### 



Wharf Mine, United States
 Total
    
    
    TotalOperating Data
    
    Q1
    
    
    Q2
    
    
    Q3
    
    
    Q4
    
    
    2010
    
    
    2009Tonnes of ore mined
    
    
    883,700
    
    
    
    589,000
    
    
    
    991,700
    
    
    
    815,800
    
    
    
    3,280,200
    
    
    
    2,776,600Tonnes of ore processed
    
    
    783,900
    
    
    
    716,000
    
    
    
    876,500
    
    
    
    726,900
    
    
    
    3,103,300
    
    
    
    2,874,500Average grade processed (grams/tonne)
    
    
    0.86
    
    
    
    0.76
    
    
    
    0.62
    
    
    
    0.63
    
    
    
    0.71
    
    
    
    0.82Average recovery rate
    
    
    72
    %
    
    
    77
    %
    
    
    78
    %
    
    
    78
    %
    
    
    76
    %
    
    
    70
    %Gold (ounces) Produced
    
    
    18,300
    
    
    
    19,400
    
    
    
    19,600
    
    
    
    16,000
    
    
    
    73,300
    
    
    
    67,700 Sold
    
    
    14,100
    
    
    
    22,000
    
    
    
    17,600
    
    
    
    17,600
    
    
    
    71,300
    
    
    
    69,300Average realized gold price (per ounce)
    
    $
    1,110
    
    
    $
    1,200
    
    
    $
    1,233
    
    
    $
    1,372
    
    
    $
    1,233
    
    
    $
    974Total cash costs (per ounce)
    
    $
    562
    
    
    $
    556
    
    
    $
    679
    
    
    $
    788
    
    
    $
    645
    
    
    $
    686Financial DataRevenues
    
    $
    16.4
    
    
    $
    27.3
    
    
    $
    22.7
    
    
    $
    24.8
    
    
    $
    91.2
    
    
    $
    70.9Depreciation and depletion
    
    $
    1.6
    
    
    $
    1.9
    
    
    $
    1.8
    
    
    $
    2.0
    
    
    $
    7.3
    
    
    $
    7.6Earnings from operations
    
    $
    5.8
    
    
    $
    11.8
    
    
    $
    7.9
    
    
    $
    9.1
    
    
    $
    34.6
    
    
    $
    12.2Expenditures for mining interests
    
    $
    0.7
    
    
    $
    0.5
    
    
    $
    1.2
    
    
    $
    2.7
    
    
    $
    5.1
    
    
    $
    1.6




---



##### 



PROJECT REVIEW
 Cerro Negro Project, Argentina
 The Cerro Negro gold project is an advanced-stage, high-grade vein system located in the Santa
Cruz province of Argentina. The land position comprises 215 square kilometres with numerous
high-grade gold and silver veins. Goldcorp recently updated the resources at Cerro Negro by
including drilling results obtained during 2010. As of December 31, 2010, proven and probable gold
reserves total 2.1 million ounces of gold and 20.5 million ounces of silver, measured and indicated
resources total 2.7 million ounces of gold and 18.7 million ounces of silver, and inferred
resources total 0.7 million ounces of gold and 4.7 million ounces of silver.
   
    
    The exploration decline into the high-grade Eureka vein, which will be the first
source
of mill feed in 2013, has advanced to more than 750 metres in length,
with a target of 3,982
metres.
    
    Upgrades to the main access road and camp expansion are planned to commence early in the
second quarter of 2011.
    
    Geotechnical work for the mill and associated facilities will commence once optimum
locations are finalized.




---



##### 



Éléonore Project, Canada
 The Éléonore project is located in the north-east corner of the Opinaca Reservoir in the James
Bay region of Québec, Canada. The Éléonore deposit is a major new gold discovery in a relatively
unexplored area of Québec, located in the core of what Goldcorp believes to be a promising new gold
district in North America. As of December 31, 2010, the deposit contains 3.0 million ounces of
proven and probable gold reserves at an average grade of 7.56 grams per tonne, 0.5 million ounces
of measured and indicated gold resources at an average grade of 10.95 grams per tonne and 4.2
million ounces of inferred gold resources at an average grade of 10.60 grams per tonne.
  
    
    The year-end 2010 Reserves and Resource determination,
    
    An update to the previous Pre-Feasibility Study, and
    
    Signing of a Collaboration Agreement with the Cree Nation of Wemindji, the Grand Council
of the Crees (Eeyou Istchee) and the Cree Regional Authority.
      
    
    Power was established to the site from the Québec power grid,
    
    The pre-collar for the Exploration Shaft was completed,
    
    The head-frame and hoist construction on the Exploration Shaft was completed, and
    
    Full-face sinking of the Exploration Shaft commenced during the fourth quarter 2010.




---



##### 



Cochenour Project, Canada
 The Cochenour Project combines the existing workings of Goldcorps historic Cochenour mine with
the Bruce Channel gold discovery. The Cochenour/Bruce Channel deposit is located down-dip from
Goldcorps historic Cochenour mine and is a key component of Goldcorps consolidation plans in the
Red Lake district. In 2010, surface drilling continued in the Gap area as well as drilling from the
2050 level underground at the Cochenour mine. Drilling was focused on extending the mineralization
and infilling the Bruce Channel discovery. In 2009, a surface drilling program identified strong
gold intercepts in the Gap zone between the bottom of the historic Cochenour mine and the top of
the Bruce Channel exploration drilling. The intercepts are the latest results in support of a
contiguous and significant deposit. For budgeting and planning purposes, the Company has estimated
the Cochenour project as a mineable deposit of 5 million gold ounces.




---



##### 



Pueblo Viejo Project, Dominican Republic (Goldcorps interest  40%)
 Pueblo
Viejo contains 23.7 million ounces of proven and probable gold reserves, where Goldcorps
interest represents 9.5 million ounces. The project is a partnership with Barrick Gold Corporation,
the project operator.
 (1)
      
 (1)
    
    Based on gold price and oil price assumptions of $1,100 per ounce and $85 per barrel,
respectively.




---



##### 



El
Morro Project, Chile (Goldcorps interest  70%)
 El Morro is an advanced stage, world-class gold/copper project in northern Chile, one of the
most attractive mining jurisdictions in the world. On a 100% basis, El Morro contains proven and
probable reserves of 8.2 million ounces of gold and 6.1 billion pounds of copper. A 2008
feasibility study estimates sulphide gold production of over 300,ooo ounces per year and copper
production of over 379 million pounds per year (on a 100% basis) over a 14-year mine life at low
cash costs.
 Located in the Atacama region of Chile approximately 80 kilometres east of the city of Vallenar and
at 4,000 metre altitude, El Morro comprises a large, 36-square kilometre land package with
significant potential for organic growth through further exploration. Two principal zones of
gold-copper mineralization have been identified to datethe El Morro and La Fortuna zonesand the
Company has identified several additional targets as part of its regional exploration plan.
Future exploration efforts will also test the potential bulk-mineable gold and copper production
below the bottom of the current pit.
  
    
    advancing the El Morro permitting process,
    
    advancing the engineering and technical aspects of the project,
    
    maintaining on-going discussions with local communities, and
    
    preparing the site for construction activity.




---



##### 



Camino Rojo Project, Mexico
 Located approximately 50 kilometres southeast of Goldcorps Peñasquito mine, Camino Rojos
3,389-square kilometre land position includes the Represa deposit, which has reported measured and
indicated resources of 3.4 million gold ounces and 60.7 million silver ounces. Total inferred
resources are 0.6 million ounces of gold and 7.6 million ounces of silver.
  Noche Buena Project, Mexico
 The Noche Buena project is located approximately 5 kilometres north of the Peñasquito mine.
With reported measured and indicated resources of 1.0 million gold ounces and 32.4 million silver
ounces, the Noche Buena project area totals approximately 24 square kilometres and is immediately
adjacent and contiguous with the northern border of the Peñasquito concession block.




---



##### 



Cerro Blanco Project, Guatemala
 The Cerro Blanco Project is located in southwestern Guatemala and is considered to be a classic
hot springs gold deposit with typical bonanza type gold mineralization. As of December 31, 2010,
the deposit contains 1.3 million ounces of indicated gold resources at an average grade of 15.64
grams per tonne and 0.7 million ounces of inferred gold resources at an average grade of 15.31
grams per tonne.




---



##### 



EXPENSES
 2010
    
    
    2009
    
    
    2008Corporate administration
    
    $
    177.1
    
    
    $
    133.1
    
    
    $
    131.0Exploration
    
    
    51.8
    
    
    
    31.8
    
    
    
    65.7Write-down of mining interests
    
    
    
    
    
    
    24.0
    
    
    
    47.1
    OTHER INCOME (EXPENSES)
 2010
    
    
    2009
    
    
    2008Interest and other income (expenses)
    
    $
    (46.3
    )
    
    $
    (19.2
    )
    
    $
    28.2Interest expense and finance fees
    
    
    (52.3
    )
    
    
    (59.0
    )
    
    
    (7.2
    )Share of earnings (losses) of equity investees
    
    
    (8.1
    )
    
    
    
    
    
    
    3.9Gains (losses) on non-hedge derivatives, net
    
    
    (61.8
    )
    
    
    3.6
    
    
    
    (2.6
    )Gains (losses) on securities, net
    
    
    0.5
    
    
    
    50.2
    
    
    
    (105.9
    )Gains on dispositions of mining interests
    
    
    780.5
    
    
    
    20.1
    
    
    
    2.6Gain on disposition of Silver Wheaton shares
    
    
    
    
    
    
    
    
    
    
    292.5Dilution gains, net
    
    
    
    
    
    
    
    
    
    
    1.7Gains (losses) on foreign exchange, net
    
    
    (355.4
    )
    
    
    (363.7
    )
    
    
    1,059.3$
    257.1
    
    
    $
    (368.0
    )
    
    $
    1,272.5




---



##### 








---



##### 



INCOME AND MINING TAXES




---



##### 








---



##### 



NON-CONTROLLING INTERESTS
  El Morro:
 Terrane:




---



##### 



DISCONTINUED OPERATION
   Total
    
    
    Total
    
    
    TotalFinancial Data
    
    Q1
    
    
    Q2
    
    
    Q3
    
    
    Q4
    
    
    2010
    
    
    2009
    
    
    2008Loss from operations
    
    $
    (1.0
    )
    
    $
    (1.9
    )
    
    $
    (3.0
    )
    
    $
    (10.0
    )
    
    $
    (15.9
    )
    
    $
    (5.2
    )
    
    $
    (6.5
    )




---



##### 



NON-GAAP MEASURE  TOTAL CASH COSTS (BY-PRODUCT) PER GOLD OUNCE CALCULATION
  2010
    
    
    2009
    
    
    2008Cash costs, continuing operations(1)Operating expenses per consolidated financial statements (2)
    
    $
    1,478.4
    
    
    $
    1,187.3
    
    
    $
    1,164.2Treatment and refining charges on concentrate sales
    
    
    53.9
    
    
    
    24.1
    
    
    
    25.5By-product silver, copper, lead, and zinc sales
    
    
    (861.9
    )
    
    
    (454.3
    )
    
    
    (426.0
    )Alumbrera export retention (3)
    
    
    
    
    
    
    (51.7
    )
    
    
    (42.9
    )San Martin operating expenses, in reclamation (4)
    
    
    
    
    
    
    (0.1
    )
    
    
    (19.6
    )Realized gains on currency, heating oil and copper contracts
    
    
    (9.4
    )
    
    
    (6.9
    )
    
    
    Non-cash and other adjustments
    
    
    (0.1
    )
    
    
    (6.2
    )
    
    
    (0.1
    )Total cash costs (by-product)
    
    $
    660.9
    
    
    $
    692.2
    
    
    $
    701.1Divided by ounces of gold sold (4)
    
    
    2,413,800
    
    
    
    2,344,700
    
    
    
    2,293,200Total cash costs (by-product) per ounce of gold(1)(4)(5)
    
    $
    274
    
    
    $
    295
    
    
    $
    305
 (1)
    
    As a result of the disposition of Terrane on October 20, 2010, the results of
that development project, which were previously reported as a separate operating
segment, have been reclassified as a discontinued operation for both the current
and prior periods. As Terrane was a development project at the date of disposal,
cash costs from continuing operations are equal to cash costs, including
discontinued operations for each of the periods presented. Accordingly, a
separate table setting out cash costs including discontinued operations has not
been presented.(2)
    
    $109.7 million in royalties are included in operating expenses per the
consolidated financial statements (2009  $69.4 million, 2008  $67.2 million).(3)
    
    Export retention taxes paid by Alumbrera have been included in cash costs
effective January 1, 2010.(4)
    
    San Martin mine ended its mining process in October 2007, and is therefore
excluded from the figures above.(5)
    
    If silver, lead and zinc for Peñasquito, silver for Marlin and copper for
Alumbrera were treated as co-products, total cash costs would be $443 per ounce
(2009  $391 per ounce, 2008  $391 per ounce)




---



##### 



NON-GAAP MEASURE  ADJUSTED NET EARNINGS
  Year ended December 31
    
    2010
    
    
    2009
    
    
    2008Net earnings attributable to shareholders of Goldcorp per consolidated financial statements
    
    $
    1,574.3
    
    
    $
    240.2
    
    
    $
    1,475.6Unrealized foreign exchange loss (gain) on translation of future income tax liabilities
    
    
    362.6
    
    
    
    324.3
    
    
    
    (1,070.9
    )Unrealized
foreign exchange loss on translation of current taxes payable on disposition of
Silver Wheaton shares
    
    
    
    
    
    
    21.8
    
    
    
    Loss on non-financial derivative contract to sell silver to Silver Wheaton
    
    
    66.0
    
    
    
    
    
    
    
    Losses (gains) on securities, net of tax
    
    
    
    
    
    
    (49.7
    )
    
    
    105.9Gains on dispositions of mining interests, net of tax
    
    
    (835.9
    )
    
    
    (15.1
    )
    
    
    (0.5
    )Gain on disposition of mining interests and net of loss included in discontinued operation, net of tax
    
    
    (193.5
    )
    
    
    
    
    
    
    Gain on disposition of Silver Wheaton shares, net of tax
    
    
    
    
    
    
    
    
    
    
    (136.5
    )Share of loss in Tahoe and Primero
    
    
    8.1
    
    
    
    
    
    
    
    Write-down of mining interests, net of tax
    
    
    
    
    
    
    17.3
    
    
    
    30.9Non-recurring withholding taxes accrual
    
    
    8.0
    
    
    
    27.9
    
    
    
    Transaction costs expensed relating to issuance of convertible senior notes, net of tax
    
    
    
    
    
    
    12.6
    
    
    
    Transaction costs related to the acquisition of Andean, Camino Rojo and El Morro projects, net of tax
    
    
    21.3
    
    
    
    
    
    
    
    Write-off of Alumbrera export retention tax overpayment receivable, net of tax
    
    
    
    
    
    
    6.3
    
    
    
    Other adjustments
    
    
    (0.4
    )
    
    
    2.6
    
    
    
    (7.5
    )Total adjusted net earnings
    
    $
    1,010.5
    
    
    $
    588.2
    
    
    $
    397.0Weighted average shares outstanding (000s)
    
    
    735,337
    
    
    
    731,306
    
    
    
    711,862Adjusted net earnings per share
    
    $
    1.37
    
    
    $
    0.80
    
    
    $
    0.56December 31
    
    
    September 30
    
    
    December 31Three months ended
    
    2010
    
    
    2010
    
    
    2009Net earnings attributable to shareholders of Goldcorp per consolidated financial statements
    
    $
    331.8
    
    
    $
    466.5
    
    
    $
    66.7Unrealized foreign exchange loss on translation of future income tax liabilities
    
    
    219.9
    
    
    
    126.4
    
    
    
    122.6Unrealized foreign exchange loss on translation of current taxes payable on disposition of Silver
Wheaton shares
    
    
    
    
    
    
    
    
    
    
    3.6Loss on non-financial derivative contract to sell silver to Silver Wheaton
    
    
    48.5
    
    
    
    17.5
    
    
    
    Gains on securities, net of tax
    
    
    (0.8
    )
    
    
    (0.2
    )
    
    
    (44.1
    )Gains on dispositions of mining interests, net of tax
    
    
    
    
    
    
    (407.9
    )
    
    
    (15.1
    )Write-down of mining interests, net of tax
    
    
    
    
    
    
    
    
    
    
    17.3Non-recurring withholding taxes accrual
    
    
    1.3
    
    
    
    6.7
    
    
    
    27.9Gain on disposition of mining interests and net of loss included in discontinued operation, net of tax
    
    
    (214.0
    )
    
    
    19.6
    
    
    
    Transaction costs related to the acquisition of Andean and El Morro projects, net of tax
    
    
    13.5
    
    
    
    1.4
    
    
    
    Shares of loss in Tahoe and Primero
    
    
    5.1
    
    
    
    3.0
    
    
    
    Other adjustments
    
    
    11.8
    
    
    
    (1.5
    )
    
    
    3.8Total adjusted net earnings
    
    $
    417.1
    
    
    $
    231.5
    
    
    $
    182.7Weighted average shares outstanding (000s)
    
    
    736,620
    
    
    
    736,136
    
    
    
    733,079Adjusted net earnings per share
    
    $
    0.57
    
    
    $
    0.31
    
    
    $
    0.25




---



##### 



COMMITMENTS
  2010
    
    
    2009Within 1
    
    
    2 to 3
    
    
    4 to 5
    
    
    Over 5year
    
    
    years
    
    
    years
    
    
    years
    
    
    Total
    
    
    TotalAccounts
payable and accrued liabilities (1)
    
    $
    556.6
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    556.6
    
    
    $
    382.0Current derivative liabilities
    
    
    51.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    51.1
    
    
    
    11.4Principal payments on convertible senior notes
    
    
    
    
    
    
    
    
    
    
    862.5
    
    
    
    
    
    
    
    862.5
    
    
    
    879.2Interest payments on convertible senior notes
    
    
    17.3
    
    
    
    34.5
    
    
    
    17.2
    
    
    
    
    
    
    
    69.0
    
    
    
    88.9Non-financial derivative contract to sell silver to Silver Wheaton
    
    
    39.4
    
    
    
    78.7
    
    
    
    27.7
    
    
    
    
    
    
    
    145.8
    
    
    
    Reclamation and closure cost obligations
    
    
    22.7
    
    
    
    43.1
    
    
    
    19.7
    
    
    
    426.2
    
    
    
    511.7
    
    
    
    523.5Capital expenditure commitments
    
    
    51.0
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    51.0
    
    
    
    172.3Minimum rental and lease payments
    
    
    2.3
    
    
    
    3.3
    
    
    
    3.4
    
    
    
    1.4
    
    
    
    10.4
    
    
    
    11.5$
    740.4
    
    
    $
    159.6
    
    
    $
    930.5
    
    
    $
    427.6
    
    
    $
    2,258.1
    
    
    $
    2,068.8
 (1)
    
    Excludes accrued interest on convertible senior notes and current portion of
reclamation and closure cost obligations which are disclosed separately in the
above table.
  Producing mining properties:Peñasquito
    
    2% of NSRMarlin
    
    1% of NSRAlumbrera
    
    3% of modified NSR plus 20%YMAD royaltyMarigold
    
    5% of NSRDevelopment projects:Éléonore
    
    2  3% of NSRCerro Blanco
    
    1% of NSRCerro Negro
    
    3% of modified NSRand 1% of net earningsEl Morro
    
    2% of NSRPueblo Viejo
    
    3% of NSR; 0  25% NPI




---



##### 



FINANCIAL INSTRUMENTS AND RELATED RISKS
   Credit risk
   2010
    
    
    2009Cash and cash equivalents
    
    $
    556.2
    
    
    $
    874.6Accounts receivable
    
    
    443.8
    
    
    
    278.8Current derivative assets
    
    
    8.5
    
    
    
    8.1Current notes receivable
    
    
    64.1
    
    
    
    Accrued interest receivable
    
    
    1.9
    
    
    
    Non-current notes receivable
    
    
    47.5
    
    
    
    $
    1,122.0
    
    
    $
    1,161.5
  Liquidity risk




---



##### 



Market Risk
 (i) Currency risk




---



##### 



Accountsreceivableand other
    
    
    
    
    
    
    Accounts
    
    
    
    
    
    
    Futurecurrent and
    
    
    Income and
    
    
    payable and
    
    
    
    
    
    
    income taxCash and cash
    
    
    long-term
    
    
    mining taxes
    
    
    accrued
    
    
    Current
    
    
    assets2010
    
    equivalents
    
    
    assets
    
    
    payable
    
    
    liabilities
    
    
    debt
    
    
    (liabilities)Canadian dollar
    
    $
    69.8
    
    
    $
    92.3
    
    
    $
    (71.6
    )
    
    $
    (216.0
    )
    
    $
    
    
    
    $
    (1,928.0
    )Mexican peso
    
    
    33.9
    
    
    
    86.9
    
    
    
    (184.8
    )
    
    
    (181.3
    )
    
    
    
    
    
    
    (2,022.8
    )Argentinean peso
    
    
    1.5
    
    
    
    33.1
    
    
    
    (46.6
    )
    
    
    (94.6
    )
    
    
    
    
    
    
    (1,830.0
    )Guatemalan quetzal
    
    
    4.9
    
    
    
    1.1
    
    
    
    (4.8
    )
    
    
    (29.2
    )
    
    
    
    
    
    
    25.3Chilean peso
    
    
    
    
    
    
    0.8
    
    
    
    (0.2
    )
    
    
    (5.4
    )
    
    
    
    
    
    
    $
    110.1
    
    
    $
    214.2
    
    
    $
    (308.0
    )
    
    $
    (526.5
    )
    
    $
    
    
    
    $
    (5,755.5
    )
 Accountsreceivable and
    
    
    Income and
    
    
    Accountsother current
    
    
    mining taxes
    
    
    payable and
    
    
    
    
    
    
    FutureCash and cash
    
    
    and long-term
    
    
    receivable
    
    
    accrued
    
    
    Current
    
    
    income tax2009
    
    equivalents
    
    
    assets
    
    
    (payable)
    
    
    liabilities
    
    
    debt
    
    
    liabilitiesCanadian dollar
    
    $
    4.0
    
    
    $
    10.8
    
    
    $
    (167.5
    )
    
    $
    (152.0
    )
    
    $
    (16.7
    )
    
    $
    (1,216.9
    )Mexican peso
    
    
    9.5
    
    
    
    86.1
    
    
    
    3.2
    
    
    
    (128.9
    )
    
    
    
    
    
    
    (2,371.7
    )Argentinean peso
    
    
    1.0
    
    
    
    17.8
    
    
    
    (49.8
    )
    
    
    (55.5
    )
    
    
    
    
    
    
    (107.5
    )Guatemalan quetzal
    
    
    3.5
    
    
    
    12.1
    
    
    
    
    
    
    
    (23.3
    )
    
    
    
    
    
    
    (12.3
    )$
    18.0
    
    
    $
    126.8
    
    
    $
    (214.1
    )
    
    $
    (359.7
    )
    
    $
    (16.7
    )
    
    $
    (3,708.4
    )
   (ii) Interest rate risk




---



##### 



(iii) Price risk
   CAPITAL RESOURCES
  At December 31
    
    2010
    
    
    2009Shareholders equity
    
    $
    20,194.2
    
    
    $
    15,493.2Current and long-term debt
    
    
    747.1
    
    
    
    735.720,941.3
    
    
    
    16,228.9Less: cash and cash equivalents
    
    
    (556.2
    )
    
    
    (874.6
    )$
    20,385.1
    
    
    $
    15,354.3




---



##### 



OTHER RISKS AND UNCERTAINTIES
 Foreign Operations
     Government Regulation
  Environmental Regulation




---



##### 



Other
 Description of the Business  Risk Factors
 CHANGES IN ACCOUNTING POLICIES
 Accounting policies implemented effective January 1, 2010
 Business Combinations Consolidated Financial Statements Non-controlling Interests Business Combinations Consolidated Financial Statements.




---



##### 



Accounting policies implemented during 2009
 Goodwill and Intangible Assets Goodwill and Other Intangible Assets Research and Development Costs
 Credit Risk and the Fair Value of Financial Assets and Financial Liabilities
 Mining Exploration Costs Accounting by Mining Enterprises for Exploration
Costs
 Financial Instruments  Disclosures
 Financial Instruments  Recognition and Measurement
 Accounting policies implemented during 2008
 Financial Instruments  Presentation Financial Instruments 
Disclosure and Presentation




---



##### 



Capital Disclosures
 Inventories Inventories
 Income Statement Presentation Of A Tax
Loss Carryforward Recognized Following An Unrealized Gain Recorded In Other Comprehensive Income




---



##### 



INTERNATIONAL FINANCIAL REPORTING STANDARDS
 Interim Financial Reporting
 Transition
Plan
  
    
    Phase 1 involved establishing a project steering and technical committee and a project
management team, obtaining organizational support for the transition plan, obtaining
stakeholder support for the project, identifying key areas affected and developing a project
charter, implementation plan and communication strategy. The steering and technical committee
is comprised of members of senior executive management and is responsible for final approval
of project recommendations, including selected IFRS accounting policies, and deliverables to
the audit committee and board of directors. Phase 1 was completed during the first quarter of
2009.
    
    Phase 2 involved the (a) identification of significant differences between the Companys
current accounting policies under Canadian GAAP and those permitted under IFRS, (b) selection
of accounting policies, methods of implementing accounting policy changes and transitional
exemptions in accordance with IFRS, (c) estimation of quantified financial statement impacts,
(d) preparation of shell financial statements and (e) identification and analysis of business
processes and information technology and data systems impacted. Phase 2 was completed during
the fourth quarter of 2009.
    
    The first stage of phase 3, the design of business and reporting processes and systems to
support the preparation of consolidated IFRS financial statements and required disclosures for
the opening consolidated IFRS balance sheet as at January 1, 2010, fiscal 2010 and thereafter
was completed in March 2010. The implementation and testing of changes to the reporting
processes and systems to support the preparation of consolidated IFRS financial statements and
required disclosures was approved and completed during the second quarter of 2010. The
preparation of the consolidated opening IFRS balance sheet as at January 1, 2010 and 2010
comparative interim consolidated IFRS financial statements the Company expects to present in
its 2011 interim consolidated IFRS financial statements to be issued during 2011 is
substantially complete as at the date of this document. The Companys condensed preliminary
opening consolidated IFRS balance sheet and comparative interim consolidated IFRS statements
of earnings are presented below. The second stage of phase 3, ongoing training for key
personnel, identification and documentation of impact and required changes to, and ensuring
the effectiveness of, the Companys internal control environment and disclosure controls and
procedures, was conducted throughout 2010. An IFRS technical conference was held in June 2010
for key finance and accounting personnel of each mine site location and the corporate office.
In addition, technical training modules have been completed by the key individuals. On-going training continues as new finance and
accounting personnel are hired and to




---



##### 



serve as refresher training for key individuals. The key
incremental controls resulting from the conversion to IFRS relate to (a) the assessment and
quantification of the impact of converting to IFRS on the Companys consolidated opening IFRS
balance sheet as at January 1, 2010, and comparative IFRS information for the periods ended
March 31, 2010, June 30, 2010 and September 30, 2010 and the year ended December 31, 2010, (b)
the assessment and identification of the impact of converting to IFRS on the Companys financial
reporting, systems and processes, and (c) the design, implementation and testing of changes to
the Companys financial reporting systems and processes to support the preparation of
consolidated IFRS financial statements for the consolidated opening IFRS balance sheet as at
January 1, 2010, fiscal 2010 and thereafter.
    
    Phase 4 involves the maintenance of sustainable IFRS compliant financial data and processes
for fiscal 2011 and beyond. Phase 4 will be carried out throughout 2011. Management does not
anticipate any significant issues with completing phase 4 of its transition plan.
  IFRS opening consolidated balance sheet
  Canadian
    
    
    Income
    
    
    
    
    
    
    ConvertibleJanuary 1, 2010 ($ millions)
    
    GAAP
    
    
    taxes(1)
    
    
    Warrants(2)
    
    
    Note(3)
    
    
    Other(5)
    
    
    IFRSCurrent assets
    
    $
    1,601.5
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    53.2
    
    
    $
    1,654.7Non-current assets
    
    
    19,347.2
    
    
    
    (461.0
    )
    
    
    (173.2
    )
    
    
    
    
    
    
    (52.2
    )
    
    
    18,660.8Total assets
    
    $
    20,948.7
    
    
    $
    (461.0
    )
    
    $
    (173.2
    )
    
    $
    
    
    
    $
    1.0
    
    
    $
    20,315.5Current liabilities
    
    $
    735.0
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    (100.8
    )
    
    $
    634.2Non-current liabilities
    
    
    4,669.4
    
    
    
    241.7
    
    
    
    71.9
    
    
    
    173.0
    
    
    
    104.8
    
    
    
    5,260.8Total liabilities
    
    
    5,404.4
    
    
    
    241.7
    
    
    
    71.9
    
    
    
    173.0
    
    
    
    4.0
    
    
    
    5,895.0Shareholders equity
    
    
    15,493.2
    
    
    
    (702.7
    )
    
    
    (245.1
    )
    
    
    (173.0
    )
    
    
    (3.0
    )
    
    
    14,369.4Non-controlling interests
    
    
    51.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    51.115,544.3
    
    
    
    (702.7
    )
    
    
    (245.1
    )
    
    
    (173.0
    )
    
    
    (3.0
    )
    
    
    14,420.5Total liabilities and shareholders equity
    
    $
    20,948.7
    
    
    $
    (461.0
    )
    
    $
    (173.2
    )
    
    $
    
    
    
    $
    1.0
    
    
    $
    20,315.5




---



##### 



Comparison of IFRS to Canadian GAAP
  (1)
    
    Deferred income taxes
 (a)
    
    Foreign non-monetary assets and liabilities
 IAS 12  Income Taxes(IAS 12) requires deferred income taxes to be recognized for temporary
differences arising from the difference between the historical exchange rate and the current
exchange rate translations of the costs of non-monetary assets and liabilities denominated in
currencies other than the Companys functional currency (foreign currencies), the US dollar
(foreign non-monetary assets and liabilities). Under Canadian GAAP, these temporary
differences are not accounted for.The Company owns significant mining interests with costs denominated in foreign currencies. In
accordance with IAS 12, a weakening in foreign currencies, primarily the Mexican peso,
Argentinean peso and Canadian dollar, would result in additional deferred income tax liabilities
recognized by the Company. For the purpose of its opening consolidated IFRS balance sheet as at
January 1, 2010, the Company recorded an adjustment to increase deferred income tax liabilities
and decrease opening retained earnings by $675.9 million.The net foreign exchange gains or losses relating to deferred income taxes as determined under
IFRS represents the impact of movements in foreign exchange rates on local currency tax bases of
foreign non-monetary assets and liabilities. The Company expects its foreign exchange gains or
losses relating to deferred income taxes as determined under IFRS to be less volatile. For
Canadian GAAP purposes, the Company recorded a net foreign exchange loss on translation of
deferred income taxes of $210.6 million, net foreign exchange gain of $194.0 million and net
foreign exchange loss of $126.4 million for the three months ended March 31, 2010, June 30, 2010
and September 30, 2010, respectively. For IFRS purposes, the Companys foreign exchange gains
and losses relating to deferred income taxes amount to a net foreign exchange gain of $26.1
million, net foreign exchange loss of $4.6 million and net foreign exchange gain of $17.8
million for the three months ended March 31, 2010, June 30, 2010 and September 30, 2010,
respectively.Foreign exchange gains and losses from translation of deferred income taxes are included in
income taxes under IFRS, as compared to other income and expense under Canadian GAAP.
 (b)
    
    Asset acquisitions
 In accordance with IAS 12, deferred income taxes are not recognized for temporary differences
that arise from differences between the fair values and tax bases of assets acquired in a
transaction other than a business combination. Under Canadian GAAP, deferred income taxes are
recognized for such temporary differences. For the purpose of its opening consolidated IFRS
balance sheet as at January 1, 2010, the Company has reversed the deferred income tax liability
recognized on acquisition of the Gold Eagle assets in September 2008. The net impact of this
adjustment was to decrease the Gold Eagle mining assets, which are included in the Red Lake
mining property carrying amount, by $461.0 million, decrease deferred income tax liabilities by
$434.2 million and decrease opening retained earnings by $26.8 million.Based on the definition of a
business under IFRS 3  Business Combinations,the Company
anticipates that future acquisitions will likely be accounted for using the principles of IFRS 3
and does not expect this accounting policy difference to have any significant impact to its
consolidated financial statements for future periods.
 (2)
    
    Share purchase warrants with C$ exercise pricesIn accordance with IAS 39
 Financial Instruments: Recognition and Measurement, share purchase
warrants issued with exercise prices denominated in foreign currencies are classified and
presented as derivative liabilities and measured at fair value. Under




---



##### 



Canadian GAAP, all warrants are presented as equity. At January 1, 2010, the Company had 9.2
million share purchase warrants outstanding with C$ exercise prices included in equity with a carrying amount of $50.0 million. For the purpose of the Companys opening consolidated IFRS
balance sheet as at January 1, 2010, the carrying amount of these warrants were removed from
equity, re-measured at fair value with the difference between the fair value and amount removed
from equity being recognized as an adjustment to opening retained earnings. An opening retained
earnings adjustment was recorded for warrants previously exercised, calculated as the difference
between the fair values of the warrants on the dates of exercise and the amounts recorded in
share capital. The accounting for share purchase warrants with C$ exercise prices owned by
Silver Wheaton prior to the disposition of the Companys interest in Silver Wheaton in February
2008 as derivative liabilities measured at fair value resulted in a $275.0 million increase to
the excess consideration received on the disposition which has been accounted for partially as
additional gain on disposition of Silver Wheaton shares in February 2008 ($101.8 million) and as
a reduction in the carrying amount of certain mining interests ($173.2 million). The net impact
of the opening IFRS balance sheet adjustments relating to share purchase warrants was to
decrease mining interests by $173.2 million, increase non-current derivative liabilities by
$71.9 million, reduce share purchase warrants included in equity by $50.0 million, increase
share capital by $761.6 million and reduce opening retained earnings by $956.7 million.An increase or decrease in the fair values of share purchase warrants outstanding will result in
losses or gains recognized in earnings, respectively, until the warrants expire. Of the 9.2
million share purchase warrants outstanding on January 1, 2010, 8.4 million expire on June 9,
2011. The remaining 0.8 million share purchase warrants outstanding expire on June 26, 2011. For
the purpose of its 2010 comparative interim consolidated IFRS statements of earnings, the
Company recorded adjustments to increase gains on non-hedge derivatives by $25.8 million,
decrease by $19.0 million and increase by $13.8 million for the three months ended March 31,
2010, June 30, 2010 and September 30, 2010, respectively.
 (3)
    
    Convertible notesIn accordance with IAS 32
 Financial Instruments: Presentation, an issuers option to settle
in cash upon conversion results in the conversion feature of convertible debt being accounted
for as an embedded derivative which must be separately accounted for at fair value on initial
recognition. The carrying amount of the debt component, on initial recognition, is calculated as
the difference between the proceeds of the convertible debt as a whole and the fair value of the
conversion feature. Transaction costs are allocated to the debt and derivative components in
proportion to the allocation of the proceeds on initial recognition. Transaction costs allocated
to the derivative component are expensed, while costs allocated to the debt component are
included in the carrying amount of the liability and in the determination of the effective
interest rate. Subsequent to initial recognition, the derivative component is re-measured at
fair value at each balance sheet date while the debt component is accreted to the face value of
the debt using the effective interest method.The Company has the option to settle in cash upon conversion of the convertible senior notes
issued on June 5, 2009. Accordingly, the conversion feature of the notes meets the definition of
a derivative which must be accounted for separately from the host debt component. For the
purpose of its opening consolidated IFRS balance sheet as at January 1, 2010, the Company has
recorded adjustments to (a) reclassify the conversion feature of the notes from equity to
non-current derivative liabilities, (b) re-measure the proceed amounts allocated to the debt and
derivative components on initial recognition, (c) expense the transaction costs allocated to the
derivative component, (d) capitalize the transaction costs allocated to the debt component
against the carrying amount of the liability and (e) re-measure the derivative component at fair
value as at January 1, 2010. The net impact of the above adjustments was to increase non-current
derivative liabilities by $231.4 million, decrease long-term debt by $62.7 million, increase
deferred income tax liabilities by $4.3 million, decrease equity by $155.9 million and decrease
opening retained earnings by $17.1 million.An increase or decrease in the fair value of the conversion feature will result in losses or
gains recognized in earnings, respectively, until the notes mature on August 1, 2014 or are
converted by the holders. For the purpose of its 2010 comparative interim consolidated IFRS
statements of earnings, the Company recorded adjustments to increase interest capitalized to
mining interests




---



##### 



for the three months ended March 31, 2010, June 30, 2010 and September 30, 2010 by $2.4 million,
$2.6 million and $2.8 million, respectively, increase gains on non-hedge derivatives by $26.7
million, decrease by $71.7 million and increase by $60.6 million for the three months ended
March 31, 2010, June 30, 2010 and September 30, 2010, respectively, and decrease deferred income
tax expense for the three months ended March 31, 2010 by $0.2 million, and increase deferred
income tax expenses for the three months ended June 30, 2010 and September 30, 2010 by $0.3
million.
 (4)
    
    Discontinued operationsThe criteria under IFRS 5
 Non-current Assets Held for Sale and Discontinued Operations(IFRS
5) for presenting the results of a component of an entity that either has been disposed of, or
is classified as held for sale separately as results of a discontinued operation is similar to
the criteria under Canadian GAAP, with the following two exceptions:
 (a)
    
    IFRS 5 contains an additional requirement that the component (i) represents a separate
major line of business or geographical area of operations, (ii) is part of a single
coordinated plan to dispose of a separate major line of business or geographical area of
operations or (iii) is a subsidiary acquired exclusively with a view to resell.(b)
    
    Conversely, Canadian GAAP requires that the operations and cash flows of the component
have been, or will be, eliminated from the ongoing operations of the entity as a result of
the disposal transaction. It precludes the reporting entity from having any significant
continuing involvement in the operations of the component after the disposal transaction.
IFRS 5 does not contain this same requirement.
 As a result of the 36% equity interest in Primero which the Company received as partial
consideration for the disposition of the San Dimas operation in August 2010, the Company has
presented the results of the San Dimas operation with its continuing operations for Canadian
GAAP purposes for the current and comparative periods.Under IFRS, the Companys equity interest in Primero does not preclude the Company from
reporting the results of the San Dimas operation with its discontinued operations. In addition,
the San Dimas operation, prior to its disposition, was a separate major line of business for the
Company. Accordingly, for the purpose of the Companys 2010 comparative interim consolidated
financial statements, the results of the San Dimas operation are presented separately and
included in the Companys results of discontinued operations.




---



##### 



San DimasThree months ended
    
    Canadian
    
    
    Income
    
    
    Convertible
    
    
    discontinuedMarch 31, 2010 ($ millions)
    
    GAAP
    
    
    taxes(1)
    
    
    notes(3)
    
    
    operation(4)
    
    
    Other(5)
    
    
    IFRSRevenues
    
    $
    750.3
    
    
    $
    
    
    
    $
    
    
    
    $
    (32.4
    )
    
    $
    
    
    
    $
    717.9Production costs
    
    
    (432.7
    )
    
    
    
    
    
    
    
    
    
    
    15.8
    
    
    
    3.7
    
    
    
    (413.2
    )Earnings from mine operations
    
    
    317.6
    
    
    
    
    
    
    
    
    
    
    
    (16.6
    )
    
    
    3.7
    
    
    
    304.7Corporate administration and exploration costs
    
    
    (51.4
    )
    
    
    
    
    
    
    
    
    
    
    0.4
    
    
    
    0.5
    
    
    
    (50.5
    )Earnings from operations
    
    
    266.2
    
    
    
    
    
    
    
    
    
    
    
    (16.2
    )
    
    
    4.2
    
    
    
    254.2Other income (expenses)Gains on non-hedge derivatives, net
    
    
    13.1
    
    
    
    
    
    
    
    26.7
    
    
    
    
    
    
    
    25.8
    
    
    
    65.6Losses on foreign exchange, net
    
    
    (211.7
    )
    
    
    210.6
    
    
    
    
    
    
    
    (8.8
    )
    
    
    9.9
    
    
    
    Other
    
    
    (41.5
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1.8
    )
    
    
    (43.3
    )(240.1
    )
    
    
    210.6
    
    
    
    26.7
    
    
    
    (8.8
    )
    
    
    33.9
    
    
    
    22.3Earnings from continuing operations before
income taxes
    
    
    26.1
    
    
    
    210.6
    
    
    
    26.7
    
    
    
    (25.0
    )
    
    
    38.1
    
    
    
    276.5Income taxes
    
    
    (77.5
    )
    
    
    26.1
    
    
    
    0.2
    
    
    
    11.0
    
    
    
    (4.9
    )
    
    
    (45.1
    )Earnings (loss) from continuing operations
    
    
    (51.4
    )
    
    
    236.7
    
    
    
    26.9
    
    
    
    (14.0
    )
    
    
    33.2
    
    
    
    231.4Earnings (loss) from discontinued operations,
net of tax
    
    
    (1.3
    )
    
    
    
    
    
    
    
    
    
    
    14.0
    
    
    
    
    
    
    
    12.7Net earnings (loss)
    
    $
    (52.7
    )
    
    $
    236.7
    
    
    $
    26.9
    
    
    $
    
    
    
    $
    33.2
    
    
    $
    244.1
 San DimasThree months ended
    
    Canadian
    
    
    Income
    
    
    Convertible
    
    
    discontinuedJune 30, 2010 ($ millions)
    
    GAAP
    
    
    taxes(1)
    
    
    notes(3)
    
    
    operation(4)
    
    
    Other(5)
    
    
    IFRSRevenues
    
    $
    844.3
    
    
    $
    
    
    
    $
    
    
    
    $
    (29.2
    )
    
    $
    
    
    
    $
    815.1Production costs
    
    
    (481.7
    )
    
    
    
    
    
    
    
    
    
    
    14.8
    
    
    
    3.8
    
    
    
    (463.1
    )Earnings from mine operations
    
    
    362.6
    
    
    
    
    
    
    
    
    
    
    
    (14.4
    )
    
    
    3.8
    
    
    
    352.0Corporate administration and exploration costs
    
    
    (57.6
    )
    
    
    
    
    
    
    
    
    
    
    0.3
    
    
    
    (2.4
    )
    
    
    (59.7
    )Earnings from operations
    
    
    305.0
    
    
    
    
    
    
    
    
    
    
    
    (14.1
    )
    
    
    1.4
    
    
    
    292.3Other income (expenses)Gains (losses) on non-hedge derivatives, net
    
    
    3.5
    
    
    
    
    
    
    
    (71.7
    )
    
    
    
    
    
    
    (19.0
    )
    
    
    (87.2
    )Gains on dispositions of mining interests, net
    
    
    426.0
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    426.0Gains on foreign exchange, net
    
    
    195.1
    
    
    
    (194.0
    )
    
    
    
    
    
    
    2.6
    
    
    
    (3.7
    )
    
    
    Other
    
    
    (19.2
    )
    
    
    
    
    
    
    
    
    
    
    0.2
    
    
    
    9.5
    
    
    
    (9.5
    )605.4
    
    
    
    (194.0
    )
    
    
    (71.7
    )
    
    
    2.8
    
    
    
    (13.2
    )
    
    
    329.3Earnings from continuing operations before
income taxes
    
    
    910.4
    
    
    
    (194.0
    )
    
    
    (71.7
    )
    
    
    (11.3
    )
    
    
    (11.8
    )
    
    
    621.6Income taxes
    
    
    (80.0
    )
    
    
    (4.6
    )
    
    
    (0.3
    )
    
    
    (1.1
    )
    
    
    (0.7
    )
    
    
    (86.7
    )Earnings from continuing operations
    
    
    830.4
    
    
    
    (198.6
    )
    
    
    (72.0
    )
    
    
    (12.4
    )
    
    
    (12.5
    )
    
    
    534.9Earnings (loss) from discontinued operations,
net of tax
    
    
    (3.7
    )
    
    
    
    
    
    
    
    
    
    
    12.4
    
    
    
    (0.1
    )
    
    
    8.6Net earnings
    
    $
    826.7
    
    
    $
    (198.6
    )
    
    $
    (72.0
    )
    
    $
    
    
    
    $
    (12.6
    )
    
    $
    543.5




---



##### 



San DimasThree months ended
    
    Canadian
    
    
    Income
    
    
    Convertible
    
    
    discontinuedSeptember 30, 2010 ($ millions)
    
    GAAP
    
    
    taxes(1)
    
    
    notes(3)
    
    
    operation(4)
    
    
    Other(5)
    
    
    IFRSRevenues
    
    $
    885.8
    
    
    $
    
    
    
    $
    
    
    
    $
    (0.7
    )
    
    $
    
    
    
    $
    885.1Production costs
    
    
    (487.5
    )
    
    
    
    
    
    
    
    
    
    
    0.7
    
    
    
    3.7
    
    
    
    (483.1
    )Earnings from mine operations
    
    
    398.3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3.7
    
    
    
    402.0Corporate administration and exploration costs
    
    
    (56.1
    )
    
    
    
    
    
    
    
    
    
    
    (0.7
    )
    
    
    (3.5
    )
    
    
    (60.3
    )Earnings from operations
    
    
    342.2
    
    
    
    
    
    
    
    
    
    
    
    (0.7
    )
    
    
    0.2
    
    
    
    341.7Other income (expenses)Gains (losses) on non-hedge derivatives, net
    
    
    (17.6
    )
    
    
    
    
    
    
    60.6
    
    
    
    
    
    
    
    13.8
    
    
    
    56.8Gains on disposition of mining interest, net
    
    
    373.2
    
    
    
    
    
    
    
    
    
    
    
    (373.2
    )
    
    
    
    
    
    
    Losses on foreign exchange, net
    
    
    (119.2
    )
    
    
    126.4
    
    
    
    
    
    
    
    (1.2
    )
    
    
    (6.0
    )
    
    
    Other
    
    
    (25.5
    )
    
    
    
    
    
    
    
    
    
    
    1.0
    
    
    
    16.6
    
    
    
    (7.9
    )210.9
    
    
    
    126.4
    
    
    
    60.6
    
    
    
    (373.4
    )
    
    
    24.4
    
    
    
    48.9Earnings from continuing operations before
income taxes
    
    
    553.1
    
    
    
    126.4
    
    
    
    60.6
    
    
    
    (374.1
    )
    
    
    24.6
    
    
    
    390.6Income taxes
    
    
    (69.1
    )
    
    
    17.8
    
    
    
    (0.3
    )
    
    
    (34.8
    )
    
    
    (3.6
    )
    
    
    (90.0
    )Earnings from continuing operations
    
    
    484.0
    
    
    
    144.2
    
    
    
    60.3
    
    
    
    (408.9
    )
    
    
    21.0
    
    
    
    300.6Earnings (loss) from discontinued operations,
net of tax
    
    
    (19.6
    )
    
    
    
    
    
    
    
    
    
    
    408.9
    
    
    
    
    
    
    
    389.3Net earnings
    
    $
    464.4
    
    
    $
    144.2
    
    
    $
    60.3
    
    
    $
    
    
    
    $
    21.0
    
    
    $
    689.9
 (5)
    
    In addition to the impacts of key differences between the Companys accounting policies
under IFRS and those under Canadian GAAP as noted above, the Companys condensed preliminary
consolidated opening IFRS balance sheet as at January 1, 2010 and 2010 comparative interim
consolidated IFRS statements of earnings reflect the following other differences:
 (a)
    
    Non-current assets held for saleIFRS 5 requires a non-current asset, the carrying amount of which will be recovered
principally through a sale transaction rather than through continuing use, to be classified
as held for sale when certain criteria are met and presented as a current asset measured at
the lower of its carrying amount and fair value less costs to sell. This standard applies to
all non-current assets including investments accounted for using the equity method.Under Canadian GAAP, investments accounted for using the equity method are scoped out of the
requirement to classify assets as held for sale.The criteria under IFRS 5 for classification of El Limóns assets and liabilities, which were
sold on February 24, 2010, as held for sale were met as at January 1, 2010. Accordingly, for
the purpose of its opening consolidated IFRS balance sheet as at January 1, 2010, the Company
presented the assets and liabilities of El Limón separately as current assets and liabilities
held for sale, respectively. The net effect of this adjustment was to reclassify $56.8
million from mining interests to current assets held for sale and $7.9 million from deferred
income tax liabilities to current liabilities held for sale.




---



##### 



(b)
    
    Deferred income taxesIAS 12 requires all deferred income tax assets and liabilities, called future income tax
assets and liabilities under Canadian GAAP, to be classified as non-current assets and
liabilities, respectively. For the purpose of its opening consolidated IFRS balance sheet as
at January 1, 2010, the Company reclassified all deferred income taxes included in current
assets and liabilities to non-current assets and liabilities, respectively.(c)
    
    Accounting for borrowing costsIAS 23  Borrowing costs(IAS 23) requires borrowing costs incurred that are directly
attributable to the acquisition, construction or production of a qualifying asset to be
capitalized as part of the cost of the asset. When funds are borrowed specifically for the
purpose of obtaining a particular qualifying asset, the borrowing costs that directly relate
to that qualifying asset can be readily identified. When the financing activities of an
entity are centrally coordinated, it may be difficult to identify a direct relationship
between particular borrowings and a qualifying asset. IAS 23 requires that to the extent an
entity borrows funds generally, the entity shall determine the amount of borrowing costs
eligible for capitalization by applying a capitalization rate to expenditures on qualifying
assets. The capitalization rate is the weighted average of the borrowing costs applicable to
general borrowings of the entity that are outstanding during the period, which excludes
specific borrowings.Canadian GAAP is silent on the accounting for borrowing costs incurred on general borrowings.
For Canadian GAAP purposes, the Company has capitalized borrowing costs incurred relating to
funds borrowed specifically for the purpose of obtaining a particular qualifying asset.As permitted by IFRS 1 below, the Company has elected to apply IAS 23 on a prospective basis.
Accordingly, no adjustment has been made for the purpose of its opening consolidated IFRS
balance sheet as at January 1, 2010. The application of IAS 23 will result in higher
capitalized borrowing costs in future periods. For the purpose of its 2010 comparative
interim consolidated IFRS statements of earnings, the Company recorded adjustments to
increase mining interests and decrease interest expense for the three months ended March 31,
2010, June 30, 2010 and September 30, 2010 by $11.0 million, $11.2 million and $11.6 million,
respectively.(d)
    
    Exploration and Evaluation ExpendituresIFRS 6  Exploration for and Evaluation of Mineral Resourcespermits a reporting entity to
choose an accounting policy to expense or capitalize exploration and evaluation expenditures.
This includes expensing certain exploration and evaluation expenditures, while capitalizing
other exploration and evaluation expenditures, as long as the accounting policy is applied
consistently. The Companys exploration and evaluation phase begins with the acquisition of
the legal right to explore a specific mine area and ends with the completion of a technical
feasibility study which demonstrates the commercial viability of extracting a mineral
resource. Costs incurred during this phase include, but are not limited to; costs incurred
relating to the acquisition of rights to explore, the completion of geological studies,
exploration drilling, sampling, developing a life of mine plan and economic model and
obtaining required permits.The Companys accounting policy under Canadian GAAP is to expense exploration and evaluation
expenditures as incurred to the date of establishing that costs incurred are economically
recoverable. Exploration and evaluation expenditures incurred subsequent to establishing
economic recoverability are capitalized and included in the carrying amounts of mining
interests as tangible assets. The Company has chosen to apply the same accounting policy on
conversion to IFRS.(e)
    
    Impairment of mining interests and goodwillIAS 36  Impairment of Assets(IAS 36) assesses the impairment of an asset using a one-step
process which compares the carrying amount to the recoverable amount, calculated as the
greater of the value in use, being the estimated discounted future
expected pre-tax cash flows, and fair value less costs to sell (FVLCS) of the asset being
tested. Upon conversion to IFRS, the




---



##### 



Company will assess impairment of its mining interests,
by site, by comparing the carrying amounts of its mining interests to the values in use for
those sites without significant exploration potential properties. For those sites with
significant exploration potential properties, the Company will assess impairment by comparing
the carrying amounts of the relevant mining interests, net of related deferred income taxes,
to the FVLCS. The FVLCS of the Companys mining interests is estimated as the estimated
discounted future after-tax cash flows of mining properties with reserves and resources plus
an in-situ value for exploration potential mining properties and additional discounted amount
for net cash flows from significant future expansion, less estimated costs to sell. For these
sites, the process for assessing impairment under IFRS is similar to the process under
Canadian GAAP, except that cash flows used under Canadian GAAP are on an undiscounted basis
where goodwill is not applicable. The use of a one-step process to test for impairment under
IFRS as compared to a two-step process under Canadian GAAP may result in more frequent
impairment charges where carrying amounts of mining interests may have been supported under
Canadian GAAP on an undiscounted cash flow basis, but cannot be supported on a discounted
cash flow basis under IFRS.
 Under IFRS, an impairment loss is recorded for the difference between the carrying amount and
the greater of value in use and FVLCS of a mining interest. Where goodwill is applicable, the
carrying amount of goodwill is included in the carrying amount being assessed. The resulting
impairment loss, if any, is allocated first to reduce goodwill to zero, with the remaining
amount allocated to the mining interest. Reversals of impairment losses are recognized in the
periods the reversals occur. When an impairment loss reverses in a subsequent period, the
carrying amount of the related asset is increased to the revised estimate of recoverable
amount to the extent that the increased carrying amount does not exceed the carrying amount
that would have been determined had no impairment loss been recognized for the asset
previously. Reversal of an impairment loss is not permitted under Canadian GAAP. This
accounting policy difference could lead to increased earnings volatility in future periods.The Company has reviewed its mining interests and goodwill for impairment as at December 31,
2009 in accordance with IAS 36 and determined that no impairment losses were required to be
recognized for the purpose of its opening consolidated IFRS balance sheet as at January 1,
2010.(f)
    
    Plant and equipmentUnder Canadian GAAP, costs incurred for plant and equipment on initial recognition are
allocated to significant components when practicable. Costs incurred subsequent to the
initial purchase of plant and equipment are capitalized when they constitute a betterment,
which occurs when the productive capacity or useful life of an existing asset is increased or
when the associated operating costs is decreased. Otherwise, these costs are expensed. IAS 16
requires costs incurred for plant and equipment on initial recognition to be allocated to
significant components, capitalized and depreciated separately over the estimated useful
lives of each component. Practicability of allocating costs to significant components is not
considered under IFRS. Costs incurred subsequent to the initial purchase of plant and
equipment are capitalized when it is probable that future economic benefits will flow to the
Company over a period and the costs can be measured reliably. Upon capitalization, the
carrying amount of components replaced, if any, are derecognized. The Company has completed
an exercise to determine the appropriate net book values of plant and equipment and
applicable components at each of its mine sites as at January 1, 2010. No adjustment for the
purpose of the Companys opening consolidated IFRS balance sheet as at January 1, 2010 is
required. However, the Company has and will componentize its existing and future purchases of
surface mobile equipment, respectively, to a lower level as a result of its findings, which
may increase depreciation expense in future periods.




---



##### 



(g)
    
    IFRS 1  First-time adoption of International Financial Reporting StandardsIFRS 1 governs the first-time adoption of IFRS. In general, accounting policies adopted in
accordance with IFRS are to be applied retrospectively. IFRS 1 requires certain mandatory
exceptions and allows reporting entities to elect to apply certain exemptions from
retrospective application.The mandatory exceptions from retrospective application of IFRS applicable to the Company are
as follows:
 (i)
    
    Estimates used in preparing the Companys opening consolidated IFRS balance sheet
as at January 1, 2010 and restating its 2010 comparative periods under IFRS must be
consistent with estimates previously made for the same date under Canadian GAAP, after
adjustments to reflect any difference in accounting policies, unless there is objective
evidence that those estimates were in error. More specifically, an entity may be in
possession of information about estimates it made under Canadian GAAP that was not
available at the time those estimates were made. IFRS 1 requires the receipt of such
information to be accounted for prospectively.(ii)
    
    Certain requirements of IAS 27  Consolidated and Separate Financial Statements
must be applied prospectively from January 1, 2010, the Companys transition date.
Retrospective application is not permitted. These requirements relate to:
 
    
    The attribution of total comprehensive income to non-controlling interests even
if this results in non-controlling interests having a deficit balance;
    
    The accounting for changes in the parents ownership interest in a subsidiary
that do not result in a loss of control as equity transactions; and
    
    The accounting for loss of control over a subsidiary and the related
requirements of IFRS 5.
 The significant exemptions from retrospective application of IFRS the Company has elected to
apply in preparing its first consolidated IFRS financial statements include:
 (iii)
    
    Not accounting for business combinations that occurred prior to January 1, 2010
using the principles of IFRS 3, which are equivalent to the principles of Section 1582
under Canadian GAAP which the Company adopted effective January 1, 2010 on a prospective
basis;(iv)
    
    Applying the principles of IAS 23 to the accounting for borrowing costs on a
prospective basis commencing January 1, 2010 as discussed above under item 5(c);(v)
    
    Recognizing the cumulative translation adjustment of $101.9 million as at January
1, 2010 which were previously recognized directly in other comprehensive income and
resulted from translation of the Companys Canadian operations which were considered to
have a Canadian dollar functional currency prior to April 1, 2005, in opening retained
earnings as at January 1, 2010.




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CRITICAL ACCOUNTING POLICIES
  Inventories
   Mining Interests




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Goodwill and Impairment Testing
   Reclamation and Closure Cost Obligations
   Future Tax Assets and Liabilities




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Foreign Currency Translation
  OUTLOOK




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CONTROLS AND PROCEDURES
 Disclosure Controls and Procedures
  Internal Control Over Financial Reporting
  
    
    pertain to the maintenance of records that accurately and fairly reflect, in
reasonable detail, the transactions and dispositions of assets of the Company;
    
    provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with GAAP and that the
Companys receipts and expenditures are made only in accordance with authorizations of
management and the Companys Directors; and
    
    provide reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the Companys assets that could have a
material effect on the Companys financial statements.
 Internal Control  Integrated Framework
  Limitations of Controls and Procedures




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Limitation on Scope of Design




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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
 This report contains forward-looking statements, within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation,
concerning the business, operations and financial performance and condition of Goldcorp Inc.
(Goldcorp). Forward-looking statements include, but are not limited to, statements with respect
to the future price of gold, silver, copper, lead and zinc, the estimation of mineral reserves and
resources, the realization of mineral reserve estimates, the timing and amount of estimated future
production, costs of production, capital expenditures, costs and timing of the development of new
deposits, success of exploration activities, permitting time lines, hedging practices, currency
exchange rate fluctuations, requirements for additional capital, government regulation of mining
operations, environmental risks, unanticipated reclamation expenses, timing and possible outcome of
pending litigation, title disputes or claims and limitations on insurance coverage. Generally,
these forward-looking statements can be identified by the use of forward-looking terminology such
as plans, expects, is expected, budget, scheduled, estimates, forecasts, intends,
anticipates, believes or variations of such words and phrases or statements that certain
actions, events or results may, could, would, might or will be taken, occur or be
achieved or the negative connotation thereof.
 Forward-looking statements are made based upon certain assumptions and other important factors
that, if untrue, could cause the actual results, performances or achievements of Goldcorp to be
materially different from future results, performances or achievements expressed or implied by such
statements. Such statements and information are based on numerous assumptions regarding present
and future business strategies and the environment in which Goldcorp will operate in the future,
including the price of gold, anticipated costs and ability to achieve goals. Certain important
factors that could cause actual results, performances or achievements to differ materially from
those in the forward-looking statements include, among others, gold price volatility, discrepancies
between actual and estimated production, mineral reserves and resources and metallurgical
recoveries, mining operational and development risks, litigation risks, regulatory restrictions
(including environmental regulatory restrictions and liability), activities by governmental
authorities (including changes in taxation), currency fluctuations, the speculative nature of gold
exploration, the global economic climate, dilution, share price volatility, competition, loss of
key employees, additional funding requirements and defective title to mineral claims or property.
Although Goldcorp has attempted to identify important factors that could cause actual actions,
events or results to differ materially from those described in forward-looking statements, there
may be other factors that cause actions, events or results not to be as anticipated, estimated or
intended.
 Forward-looking statements are subject to known and unknown risks, uncertainties and other
important factors that may cause the actual results, level of activity, performance or achievements
of Goldcorp to be materially different from those expressed or implied by such forward-looking
statements, including but not limited to: risks related to the integration of acquisitions; risks
related to international operations, including economical and political instability in foreign
jurisdictions in which Goldcorp operates; risks related to current global financial conditions;
risks related to joint venture operations; actual results of current exploration activities;
environmental risks; future prices of gold, silver, copper, lead and zinc; possible variations in
ore reserves, grade or recovery rates; mine development and operating risks; accidents, labour
disputes and other risks of the mining industry; delays in obtaining governmental approvals or
financing or in the completion of development or construction activities; risks related to
indebtedness and the service of such indebtedness, as well as those factors discussed in the
section entitled Description of the Business  Risk Factors in Goldcorps annual information
form for the year ended December 31, 2009 available at www.sedar.com and in Goldcorps annual
information form for the year ended December 31, 2010 to be filed on SEDAR. Although Goldcorp has
attempted to identify important factors that could cause actual results to differ materially from
those contained in forward-looking statements, there may be other factors that cause results not to
be as anticipated, estimated or intended. There can be no assurance that such statements will
prove to be accurate, as actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place undue reliance on
forward-looking statements. Forward-looking statements are made as of the date hereof and
accordingly are subject to change after such date. Except as otherwise indicated by Goldcorp,
these statements do not reflect the potential impact of any non-recurring or other special items or
of any dispositions, monetizations, mergers, acquisitions, other business combinations or other
transactions that may be announced or that may occur after the date hereof. Forward-looking
statements are provided for the purpose of providing information about managements current
expectations and plans and allowing investors and others to get a better understanding of our
operating environment. Goldcorp does not undertake to update any forward-looking statements that
are included in this document, except in accordance with applicable securities laws.
 CAUTIONARY NOTE REGARDING RESERVES AND RESOURCES
 Readers should refer to the annual information form of Goldcorp for the year ended December 31,
2009 available at www.sedar.com and to Goldcorps annual information form for the year ended
December 31, 2010 to be filed on SEDAR, for further information on mineral reserves and resources,
which is subject to the qualifications and notes set forth therein.