Jeff Wilhoit - VP, IR Chuck Jeannes - President and CEO and Director George Burns - COO and EVP Lindsay Hall - CFO and EVP

Patrick Chidley - HSBC Josh Wilson - Dundee Capital Markets John Tumasoz - John Tumasoz Very Independent Research Jorge Beristain - Deutsche Bank Andrew Quail - Goldman Sachs Tony Lesiak - Canaccord Carey MacRury - TD Securities Tanya Jakusconek - Scotiabank

Good day, ladies and gentlemen. Welcome to the Goldcorp Inc. Q1 2015 Results Conference Call for Thursday, April 30. Please be advised that this call is being recorded. I would now like to turn the meeting over to Mr. Jeff Wilhoit, Vice President, Investor Relations of Goldcorp. Please go ahead, Mr. Wilhoit.

Thank you, Melanie, and welcome to the Goldcorp first quarter conference call. Among the senior management in the room with me today are Chuck Jeannes, President and Chief Executive Officer; Lindsay Hall, Chief Financial Officer; George Burns, Chief Operating Officer; and Russell Ball, Executive Vice President, Corporate Development and Capital Project. For those who'll be participating on the webcast, we have included a number of slides to support this afternoon’s discussion. These slides are available on our website at www.goldcorp.com. As a reminder, we will be discussing forward-looking information that involves unique risks concerning the business, operations and financial performance and condition of Goldcorp. Forward-looking statements include, that are not limited to, statements with respect to future metal prices, the estimation of mineral reserves and resources, the timing and amount of estimated future production, costs of production, capital expenditures, and costs and timing of the development of new deposits. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking statements. Accordingly, you should not place undue reliance on forward-looking statements. With that, I will now turn the call over to Chuck Jeannes, President and Chief Executive Officer.

Thanks, Jeff. And thanks, everyone, for joining us today. We're coming to you from Toronto where we will be holding our Annual General Meeting this afternoon. I can't think of a more exciting time during my 10-year at Goldcorp and I look forward engaging with our shareholders on some of the things we're working on to sustain that excitement further into the future. On that bane I'm pleased to report that Goldcorp had a solid start to the year with record quarterly gold sales of 827,500 ounces generating very strong adjusted operating cash flow of $366 million. Gold production for the first quarter was approximately 725,000 ounces which as planned will be our lowest quarterly production for this year. Even with the slow starting point, we achieved lower than expected all-in sustaining costs of $885 per ounce. Adjusted revenues were $1.27 billion with adjusted net earnings of $12 million. These earnings do not reflect the strong cash flow generation in the quarter which managed the $366 million and Lindsay will walk you through that. Both Cerro Negro and Argentina and Éléonore in Canada have now declared commercial production. I'm particularly pleased with the start-up and performance during the quarter at Cerro Negro and it looks to be on track to meet all of our forecasts for the year. At Éléonore we worked through a few start-up challenges and the mine is now focused on resuming its ramp up. Peñasquito is on track for one of the strongest years of its mine life and the rest of the mine portfolio is operating as expected. During the quarter, we also continued to proactively manage the mine portfolio. We completed the acquisition of probe mines and its high quality Borden gold project near Porcupine which will allow us to leverage our strong team and infrastructure in the area. We are already ramping up the drilling and work at Borden and we look forward to updating you on the progress throughout the year. We also completed the divestiture of the Wharf Mine and we're in the process of divesting our interests in the South Arturo Project in Nevada. This work is consistent with our long standing strategy of adding value creating new assets while divesting non-core assets along the way. We continue to focus on driving down our costs, the decrease in the first quarter all-in sustaining costs was driven by foreign exchange and lower sustaining capital as well as productivity and efficiency enhancements through our operating for excellence program. We expect to continue to see cost savings throughout 2015 and beyond. As we have discussed many times, sustaining capital tends to be lumpy quarter-to-quarter based on the timing of sustaining capital expenditures. We are pleased to reconfirm gold production guidance this morning of between 3.3 million and 3.6 million ounces for the year. The first quarter production was expected to be low as the new mines Cerro Negro and Éléonore ramp up through the year and we mined higher grades at Peñasquito. For these reasons I'll advise again that our production was strongly weighted towards the second half of the year. We're also reconfirming our all-in sustaining cost guidance which is expected to be between $875 and $950 per ounce and capital spending between $1.2 billion and 1.4 billion. DD&A remains at $390 per ounce and we now expect our annual effective tax rate to be 45% for the year, up from our previous guidance of 35% and Lindsay will discuss those details. Turning to our five year production guidance, the priority remains on maximizing cash flow and our portfolio was positioned to generate free cash in each of the next five years at current metal prices. With our current suite of mine construction projects essentially complete, there's been growing curiosity about what comes next. Our each project included on this slide has the potential to be included in the next phase of Goldcorp's growth, but significant work remains to be done. Some are already close to fruition including the new hybrid gold production from Cochenour at Red Lake, as well as the important additions of the Hollinger and the Hoyle deep projects at Porcupine. Two other projects that we recently discussed deserve special mention is each has the potential to significantly enhance the profiles of two of our largest mines, Peñasquito with the metallurgical enhancement project and Red Lake with the HG Young discovery and George will speak to about both of those in a moment. Now we've tried here to provide some context around how organic opportunities may ultimately contribute to Goldcorp's future. This slide is not a forecast of what we expect to do, but simply characterizes the many different opportunities in front of us. All of these projects will be studied and prioritized and only those that meet our capital return requirements will go forward. And we'll also analyze external opportunities along the way and allocate capital where it generates the highest returns. So as I said it's a very exciting time, as we turn from inaugurating the new Éléonore and Cerro Negro mine to looking forward to the next stage in the long history of success at Red Lake with the completion of Cochenour, to the next generation of organic growth projects, we all remain very focused on delivering on our forecasts and meeting or exceeding newer expectations. And with that I will turn it over to George.

Thanks Chuck. Goldcorp's mines delivered safe first quarter gold production of approximately 725,000 ounces at an all-in sustaining cost of $885 per ounce. It’s a big ramp up here of our two new mines Cerro Negro and Éléonore and I continue to see our future taking shape. It’s an exciting time where we're seeing the strong foundation of existing mines intersect with the use and potential of our newer mines. I see innovation and technology making the difference, not just with these new mines but also revitalizing older operations. Our people have been energized by the opportunities before them and I look forward to nurturing these successes going forward. Beginning with our newest assets the Éléonore team overcame some startup challenges to position the mine for a strong ramp up over the remainder of 2015. The tailings filter press issue that impacted the fourth quarter in January of 2015 has been resolved. We shut down the process plant in March for 13 days to ensure compliance with water effluent standards due to upset conditions from equipment damage by ice. This impacted production during the quarter; however the mill was well positioned to ramp up throughout the year. During this time mine development activities continued as planned and comfortable with our annual guidance at Éléonore. At Cerro Negro the promise of this high grade ore body is now becoming a reality. The team turned in another strong operational quarter as we focused on line ramp up, which featured the successful mining in the first production [stopes] from the new high grade Mariana Central mine. Moving to Peñasquito we had a very strong quarter as mining progresses in the higher grade portions of the pit. At Cochenour successful integration into Red Lake continues, with no feed expected from the [port stopes] in the third quarter of this year. Turning to Éléonore with more detail, the first quarter production of total 332,500 ounces. Mining of ore took place from the first two main production horizons with the ore stock pile on surface increasing to 335,000 tons at the end of the first quarter. Production was lower than expected as discussed earlier. We are on track underground to bring two additional main production horizons online during the balance of the year. Our strong operating team and exceptional infrastructure continue to support the ramp up required to achieve guidance. Underground production shaft reached a depth of 1,140 meters below surface and sinking is expected to be completed in the second half of this year, with a shaft fully commission in the second half of 2016. The exploration ramp reached a depth of 887 meters. At Éléonore original plan left 110 meter crown pillar, only part of which would have been mine entering into the mine line. And we're now looking at alternative to accelerate mining to take out the entire crown pillar in the mine line. A pre-feasibility study is underway through evaluate that economics in this opportunity and expect to be completed by the end of this year. At Cerro Negro production for the first quarter total 93,600 ounces at all-in-sustaining cost of $704 per ounce. Commercial production was declared on January 1st and permanent power from the national grid on February 2nd. Sales during the quarter totaled the 160,500 ounces, which included 115,200 ounces from production in 2014. But that gain continued at the Eureka mine and commenced at the higher grade Mariana Central mine with the first two productions stopes mined during the quarter. Production was supplemented by the Eureka ore stockpile which is expected to be depleted by the middle of the year, not all of the ore will come directly from Eureka and Mariana Central mines. With the arrival of the additional underground mobile equipment and more miners continue training programs. Production rates are increasing as expected. The mill is performing well and during March we average throughput of 3,560 tons per day. The coverage have been outstanding particularly for slow growth as we've improved the circuit with the addition of lead nitrate Cerro Negro continues to exhibit potential for strong reserve and resource growth in year ahead. During the quarter we continued our resource definitions dwelling program with the focus at Bajo Negro and Vein Zone targets. At Bajo Negro we have now defined a vertical continuity [aboard] that match with Mariana Central. At the Vein Zone which is originally conceived as an open pit, we're seeing some underground grades of debt, the deposit remains open and we're investigating the potential of a concurrent underground beneath the shallow pit. Turning to Peñasquito our flag ship mine began here impressively. Gold production totaled 155,600 ounces at all-in-sustaining costs of $702 per ounce. Higher production was a result of entering the new pit phase and we expect to continue to see higher grades for the balance of the year. Construction of the Northern Well Field is progressing. We anticipate completion in mid-July; however negotiations are ongoing to secure surface rights to complete the final connection of the pipeline and further delays in obtaining access rates and the potential to delay the overall completion of the pipeline. We continue to work for the fair resolution and we are also evaluating other access alternatives. Contingency plans are in place for adequate fresh water supply to Pensaquito until the northern well field is operational. The metallurgical enhancement project is combined with concentrating enrichment process and the private rich project entered feasibility study phase during the quarter and we expect to have it completed in early 2016. These projects continue to demonstrate overall enhanced economics and the potential for extension of mine life at Peñasquito. The results will be included in the new life of mine and it is currently underway. At Camino Rojo ongoing feasibility work is focused on evaluation of Camino Rojo at the supplemental source of transition and sulphide ore to the existing Peñasquito facility. In addition to a small standalone outside reach operation. The completion of the pre-feasibility study is expected in 2016. Turning to Red Lake. Safe gold production totaled 107,400 ounces while all in sustaining cost decreased to $799 per ounce. Production was affected by lower tonnages as we continue to phase out remnant mining in the Campbell Complex during the year. Increased rates during the quarter were a result of improved work control, sequencing and a positive model of consolidation. At Cochenour exploration drilling continued to ramp up with 12 drills on sight and results to date consistent with expectations. Drilling commenced in the upper levels with two drills operating and several more platform ready for new [drills]. Preparations are nearing completion for drilling to commence in the hanging well of deposit to drill the deeper of portion of the deposits. However excitement surrounding Red Lake is on the exploration front with the view HG Young discovery, exploration development to excess HG Young advanced north on the 14 level of the Campbell Complex following completion of rehabilitation of historic drips in the fourth quarter of 2015. The drip provides a new drill platform for follow up drilling on several significant intercepts from the ongoing surface exploration program. This wide space surface drilling program is nearly complete and results will be use to find the footprint commencing over deposit which is looking very positive. Exploration drilling also continued on a number of other underground exploration projects, including the high grade zone. I'm pleased with the progress at Red lake and continue to expect that we will meet our guidance for the year. Overall the company is very focused on growing reserves for the year between the maiden reserve at Cochenour continuing growth at Éléonore and Cerro Negro and potential for the MAP project at Peñasquito we have many opportunities to meet our objectives. In closing a solid start to the year as Chuck said, we are all focused on executing our plans and delivering the performance that we have guided to the market. With that I'll turn the call over to Lindsay for the first quarter financial review.

Thanks George. With Cerro Negro declaring commercial production January 1, all sales for the first quarter and now that's a 827,500 ounces compared to sales of 708,000 ounces in the previous quarter. Effective January 1, proceeds from the sale of Cerro Negro metals have been recognized as revenues with expenditures incurred during production recognized as expenses. The excess gold sales over production during the quarter was primarily due to the gold ounces produced at Cerro Negro prior to January 1 which we then sold in the first quarter 2015. Also at Éléonore we declared commercial production April 1 to the 32,500 pre-initiating ounces produced at Éléonore are not reflected in gold sales revenues, more consolidate net earnings but rather the net proceeds are credited to the cost of building the mine. Total byproduct cash cost were $585 per gold ounce consistent with 589 in the prior quarter. We also realized an average full price $1,217 per ounce for the quarter. Adjusted net earnings totaled $12 million or $0.01 per share for the quarter compared to $55 million or $0.07 per share in the previous quarter. The decrease in adjusted net earnings was due primarily to the lower margin on gold that will slow the Cerro Negro in the first quarter but produced during commissioning in 2014. During the quarter we also saw higher depletion in depreciation expense with Cerro Negro and production and a higher effective tax rate due to higher taxes in Mexico. First quarter depreciation was $440 per ounce but it is expected to decline over the remainder of the year to our guided amount of $390 per ounce. Our reported net loss of $87 million or $0.11 per share translates into an adjusted net earnings of $12 million or $0.01 per share primarily due to the add back of foreign exchange losses. Further details reconcile the actual to adjusted net earnings are provided on page 38 of our MD&A. Our effective tax rate on adjusted net earnings for the first quarter is 66%. The increase in the effect of tax rate was a result of non-deductible payments made and for foreign exchange losses incurred. The calculation of the effect of tax rate is up on the webcast to give you some [promise] of our calculation. Excluding impacts of foreign exchange on deferred third tax assets and liability the company now expects an annual effective tax rate of 45% in 2015 on adjusted net earnings, implying a 39% rate for the rest of the year. Turning to provisional pricing, we had a negative $0.4 million provisional pricing impact at Peñasquito and a negative $2 million at Alumbrera. The provisional sales at March 31 at Peñasquito includes 98,900 ounces of gold priced at $1,183 per ounce, 3.3 million ounces of silver at $16.62 per ounce, 53 million pounds of zinc priced at $0.94 per pound, and 24 million pounds of lead priced at $0.82 per pound. While at Alumbrera we have 19,800 ounces of gold priced at $1,188 per ounce and 19,019 million pounds of copper priced at $2.75 per pound. All-in sustaining costs for the first quarter were $885 per ounce compared to $1,035 per ounce in the prior quarter. The decrease is mainly due to higher gold sales volume and lower sustaining capital expenditures in the quarter. The company continued to generate strong adjusted cash flows from operations that amounted to $366 million or $0.45 per share compared to $337 million or $0.41 per share in the prior quarter. The improved adjusted operating cash flow for the quarter primarily resulted from the contributions in Cerro Negro for the first time after declaring commercial production January 1. We also invested $408 million at both our operating mines and projects and paid a $122 million of dividend this quarter. Sustaining capital expenditures were lower this quarter and will increase during the year while expansion capital of first quarter was higher due to economy 2014 capital in 2015. As part of our strategy to focus on full assets within our portfolio during the first quarter of 2015 with dispersive work and receive proceeds of $98 million. We also completed the acquisition of gold mine, which is reflected to be a new source and low cost, high quality gold production supporting plant. Seeking new account of $410 million in cash and approximately $9.9 billion available on revolving credit facility, the company has a required liquidity to meet our future cash needs. With that I'll turn it back to your operator for questions.

Thank you. [Operator Instructions] First question is from [indiscernible]. Please go ahead.

Not a pleasant question. First, I don't know how many times you've used the term pleased during the conference, but the facts are the facts. Over the last year your stock has fallen 25%. NECO is flat, Newmont is up. Your Company has not generated free cash in four years. You began a large capital spending program at precisely the wrong time. The balance sheet has gone from zero debt to $3.6 billion. Isn't it about time you started exploring options because just throw your hands up and say the shareholders have suffered enough here?

Yes let me address some of those comments, first the free cash flow was found quite knowingly and with full disclosure to the market that we had embarked on spending to build the Cerro Negro and Éléonore projects. These things take three four years to do after a lot of planning and one can't anticipate what the gold price is going to do and you can't just turn these things on and off in the mix of our construction activities. And so we are quite pleased that we continued with those we have the balance sheet to do it, we have a debt level now that is near the lowest of any in our sector and have the only BBB plus rated balance sheet in the business. So certainly the balance sheet is quite strong. When you look at the share price performance we absolutely recognize that we did not meet our guidance for 2014 and that put us in a the penalty box. We said that we would make a certain numbers of ounces and we didn’t. We had problems at our El Sauzal mine and our Los Filos mine and that put us off on our guidance and we have been punished with that in the share price and rightly so. We are absolutely committed to making sure that we meet our forecast this year and we will. So I think that the company is absolutely well suited for success going forward and I had also point out that if you look at that share price over two years, over three years, over five years over 10 years we've outperformed nearly everyone in this space. So I expect to get back to that kind of performances as we deliver on our forecast this year.

The following quarter is from Patrick Chidley from HSBC. Please go ahead.

Hi, Chuck, everybody. Just a quick question on Cerro Negro. In terms of the amount of gold that was brought from Q4 into Q1, what impact would you say that had on costs? Was the production in Q4, for example, a lot higher cost than, say, would have been Q1? And going forward, how would you see the trajectory for costs at Cerro Negro? The question is really aimed at how much is because of the startup issues in terms of why the costs were higher than what we had expected I guess? And also going forward, do you expect that to come down I guess?

As you know that we had something of the order of 115,000 of ounces of inventory at Cerro Negro at the end of 2014 and certainly sold that in the first quarter goes out since that higher the inventory of those ounces have higher cost because of the commissioning period. But we actually obviously sold both during the first quarter. So that to our cost in the first quarter will go away in the remaining quarters as we're adding new production at the new cost rather than inventory being sold that had pre-commissioning cost attached to it.

I would just add that with the end start up, you should expect to see higher costs in the beginning because we got a lot of fixed cost that were amortizing over few number of ounces. And as we build those ounces up over the course of the year you should see that per ounce cost come down. But don't expect to see from the very beginning a cost that would be equivalent to what you expect for the average of the mine once it's up and running at a full speed.

Right of course I was just curious as to what the impact might be for Q4 and where you're really commissioning on Q2 which is nearly up to full production on the mill there.

No not quite and certainly not on the mines George you can talk about the tonnage ramp up both in the mines.

Sure so the mill main phase 4,000 tons a day and we've been feeding low grade stockpile that will be completed by the middle over year and essentially the mine will determine the mill throughput. They are ramping up the mine and will be in that 3,600 ton a day range for the balance of the year.

And then just another question just on working capital move strong I guess you had a lot of payments to working capital in Q1 here. Could you explain what specifically that was all about?

Yes Patrick what it was is that, the concentrate that we're producing and produce at Peñasquito in the fourth quarter 2014 put that on a boat, give it to a smelter in the first quarter and while it's on the boat, I don't get paid so it's just delay in the receipt of the amount of shipments made at the tail end of 2014 to the smelters so, those funds, that was about $150 million all coming in the second quarter as normal.

Thank you, the following question is from Josh Wilson from Dundee Capital Markets, please go ahead.

Hey. A couple questions on some of the cash items. I guess talking about that working capital, in addition to the accounts receivable that I guess increased, accounts payable decrease, should we expect that to stay at this level or is there going to be a reversal as well for that going forward?

Yes, with some of the tax payments probably relate to tax draw -- this is Lindsay speaking. Those bounce around a bit, I think if there's something different it gets lumpy in the working capital that you and I are talking about. It’s really the timing of receipt of the concentrate payments and then it's just overly large shipments made at the tail end of 2014 but it should reverse obviously over the course of the year with the capital.

Okay. And then two other questions on sort of cash items, like I mentioned. On Pueblo Viejo I think there was discussion this year about dividends expected to be received. We didn't see anything come in the first quarter. Is it just -- I guess what's the reason for that?

Well we did receive 37 million of cash from PV so it is while you call it a dividend its return of interest and a portion of our shareholder loans into the project, but we actually got 37 million during the quarter, I think it was cash obviously.

Okay. I'm looking at Note 12 in the financials that says Pueblo Viejo dividends from associates, zero.

Yes, but we put our monies in two ways, gross to shareholder loans and to capital and what I'm saying I guess that 37 million payment on my interest due on my shareholder loans which is a form of repayment of funds out of PV for the first time, but it's not considered a dividend because we didn't come back on the capital.

Okay. And in terms of where that would be registered on the cash flow statement, is there a different category or --?

I think that in the financial statements it's probably in the accounting for the equity accounting of the associates return on that capital.

And then lastly on sort of the CapEx front there was a pretty significant accrual. You guys paid a lot more capital this quarter out than I guess the site level numbers once again. Is that something you expect to sort of stabilize going forward or are there still payments to be made or payments I guess that will be lower in the future?

No, pure timing over 2014 over to the first quarter 2015, basically to do with this new capital project, Éléonore and Cerro Negro but that's just timing over quarter end so actually we're happy with the guidance and that will pull us way through the rest of the year so they will not continue at that level.

Okay. And then when we look at things like the capital expenditure guidance, is that site level or is that actual cash flow statement items?

That's cash flow.

Thank you, the following question is from John Tumasoz from John Tumasoz Very Independent Research, please go ahead.

Thank you. I had another question on working capital which has been answered.

Thank you, John.

Thank you, the following question is from Jorge Beristain of Deutsche Bank, please go ahead.

Hey, guys. As I flagged in my note earlier, the change in the balance sheet position was concerning to me and while we appreciate you've had a historically a leading dividend policy in the sector, I'm just wondering about the sanctity of that in light of what seems to be a bit of a balance sheet blow of late and if you could just talk to how sustainable you believe the dividend is?

I think Lindsay could talk to the balance sheet and a big part of the need to take down bit more on the revolver, was that working, yes, on the move that he just described and we had a negative 245 million during this quarter and that will reverse, certainly that is with a sustained number. With respect of the larger issue on the dividend as you mentioned we do pay a dividend that is certainly the highest in the sector and as we completed the construction of these sites and you can see it on the balance sheet we've gotten kind of down to the bottom of the barrel in terms of our cash proceeds and so it's been more difficult I would say to continue paying it but we have and we have no intention of changing that in the immediate future but it's one thing that we always say that we look at as a lever to pull as one of the ways that we will look to finance new growth opportunities in the company, so I just have to say, you know watch in the future and see what might happen there.

Chuck, if I could just have maybe a second and obviously I think earlier speaker expressed some concern about the CapEx and kind of what that's led to, but just very rough numbers. It seems like you've deployed about $9 billion of CapEx over the past four years and rough numbers I think about third of that was equity funded and about another two-thirds was funded by the kind of radical change you've seen in your net debt balance sheet over the period, but I was just wondering if you could talk about how you measure the incremental returns on capital that that spending has generated, I guess maybe isolating the gold price, because I'm just not sure how investors would benefit from that kind of CapEx cycle which has been I guess now equivalent to almost half your current market cap. And just wondering how you guys internally measure that you're doing a good job in terms of return on capital?

Well its great question [Jorge] and the key to what you just said is isolating for the gold price. I mean certainly when you starting building at Éléonore and at Cerro Negro at a much higher price environment you have an expectation of stronger returns. And you know very well what happened down in Argentina in terms of the financial situation down there which ended up running the capital expenditures up much higher than planned and so we had a strategic decision to make partway through the construction of Cerro Negro as to whether to continue doing that or to try to mothball and put it on care maintenance and wait for better times. And we decided that it is a very long term asset with a lot of opportunity for extended mine life and growth and so that we will kind of model through the current financial situation and get to a point where I think overtime that would be a great return to our shareholders. But if you go back and as you said not sure how you isolate the gold price because you have to go back and say while we wouldn’t have made decisions we did because the gold prices are at a different level and the Argentine Peso was a different level and if you correct for those things and we've only made investment decisions that provided returns well in excess of our cost of capital. So at this point we just spend that money the job now is to apply all of our efforts through operating excellence and the other programs that we have to try to enhance the returns as the best we can. And we think that Éléonore, Cerro Negro and Cochenour are going to be fantastic assets for a long time. So Lindsay wants to talk a bit just for the balance sheet. So let me pass it.

Yes Jorge, you will admit that we're pretty comfortable with our balance sheet after drilling those mines and are very comfortable with the balance sheet and if you look at the result of drilling those mines. We also have an increasing production profile and a platform price so rather would been from a CFO point of view I rather be at that position today than not building those mines and completing building the mines which we have done today.

The following question is from Andrew Quail of Goldman Sachs. Please go ahead.

Afternoon, guys. Thanks for taking my question. I've got an easy one and just another one that is triggered by all the talk previously. One is on Eleonore. Do we sort of see -- this is in regards to grade as we head into sort of the second half of 2015. Do we get up to reserve grade by the end of the year?

So the Éléonore grade is going to increase throughout the year in kind of [gen grade]. In terms of grade Éléonore or body is higher graded debt as you know we're mining in a horizon two and three. And the fourth quarter we'll be mining at horizon four where we have higher grades and that will be pushing up our average rates for the year. We are going to be nearing 7,000 per ton in the fourth quarter to give you an idea how grades M&A.

Thanks, George. That's what I was looking for. To follow up on the previous questions. I don't really agree with what they were saying, but as you guys go into a different part of your life, I suppose, and you are over the CapEx hump and you have been I'd say proactive on divesting some other assets like Mariana, Wharf, Chuck do you think there's other assets in the portfolio as we've seen other guys large cap gold companies around the world do, do you see there's sort of other opportunities to optimize the portfolio in 2015?

Well let me say one thing on a more general basis is that I think there is a big difference selling assets because you need to pay down debt versus selling assets as a regular part of ongoing year after year portfolio management so that we upgrade the overall file of our portfolio by adding fresh new young long life mines and disposing off non-core assets along the way. So this has been something that we've been doing from many, many years back to the disposal of the peak [indiscernible] mines San Dimas and Marigold and Wharf that's certainly nothing new is not the flavor of the month for us. And then on a more specific basis, I never talk about disposal of assets because we think tend to be opportunistic, we've been very active in this regard while and I don't see any need to certainly look for disposing of anything and all I can tell you is that we'll continue to actively manage our portfolio going forward but -- I wouldn't look for anything imminent there.

Thank you. The following is from Tony Lesiak of Canaccord. Please go ahead.

Question for George. We haven't seen the favorable currency impacts on unit cost in the Canadian ops. I guess some of it should be short lived, you had some ground issues. Maybe you can give us a sense of how we should see the unit costs move in Q2 and maybe over the remainder of the year.

You're talking specifically in the Canadian region?

Yes, I mean just looking at Red Lake, Musselwhite, Porcupine and the unit costs seem to be trending higher.

Yes, I mean, I think if you look at our overall production in the first quarter it's low relative to the average for the year and so yes we're going to see those unit costs come down as the production -- consolidated production for the region ramps up.

Okay. Can you give me a sense of how quickly and how much?

I mean, we don't guide by mine by quarter. I can tell you, I'm comfortable if we're going to get an overall guidance on all-in-sustaining cost for the year and even if you're improving cost and it's maybe quarter over quarter.

And for Lindsay, maybe I missed it, the answer to Patrick's question on the cost associated with the inventory.

No, we didn't Tony. We just had, obviously the inventory at December 31, 2014 were higher and that went through the P&L in the first quarter but -- we certainly have sold that inventory and the new inventory that's being produced will be sold at a lower cost.

Okay. Was there margin on that -- on those sales?

Yes. There is some but very little because they were in the commissioning phase. So the costs were loaded up on those ounces, so very little margin.

The following question is from Carey MacRury of TD Securities. Please go ahead.

Good morning, guys. Just a question on depreciation. I think for the quarter it was something like $445 an ounce versus your guidance which I believe is around $390. So just a question of why it was so high in Q1? And secondly on Cerro Negro specifically, I think it worked out to $650 an ounce for the quarter. Is that a level that we should use in the near future?

Yes, Cerro Negro would be around at that level and I think to be safe same for the first quarter as we saw a lot of -- obviously DD&As on sale so we saw a lot of sales at Cerro Negro in the first quarter and that mix of sales throughout the rest of the year is going to -- when I say mix we're going to have less of a proportion in Cerro Negro sales over the rest of the year and what will happen -- while we're comfortable with our guidance going from what is seemingly a pretty high guidance from the first quarter declining down to our 390 per year, bemuse we see the benefits of Peñasquito Steve, and we also see a couple of things too, small things, it'll be more of that mix in the next three quarters but also we think that Marlin and Alumbrera will come down over the next three quarters as well so that's why we're comfortable but Cerro Negro's kind of at that level, but it was a big mix of sales for the first quarter.

And if I could just add, the benefit of a place like Cerro Negro, I guess the bad part is we start off with a high DD&A per ounce but we also have a lot of opportunity to add reserves there over the years which will bring down that number over time so we've got the drills turning and fully expect to add reserves as we go forward at Cerro Negro.

Thank you, the following question is from Tanya Jakusconek of Scotiabank, please go ahead.

Hi. This is a question for Lindsay. Just, Lindsay, coming back to the balance sheet. Just looking at the cash level and assuming the same gold price or spot gold price today, do you see this as the bottom in your cash position? And as you get the inventory in Q2, the $300 million that you borrowed in the quarter, are we looking to repay that back, so basically what are we looking for the debt to do during this year?

Hi, this is high scoring on the revolver, Tanya you're right as the receivables are on the Peñasquito concentrate of receipt, I expect that revolver to decline throughout the rest of the year and we will pay it back.

What's the target for this year for repayment on the revolver?

Assuming spot prices and assuming a lot of guidance I think certainly I would be hoping that I could bring that $300 million draw that we made in the first quarter down to back to maybe between zero and a 100, so I'd for sure pay back the 200 million, somewhere between a 100 and 0 number might be the result, seeing that we didn’t contemplate necessarily when we closed the probe acquisition we had come with $39 to buy those shares to start the transaction as you know we used the company shares to make the major acquisitions. But there was 39 million of cost outflows so that was some of the things that were -- maybe we didn’t contemplate that right off the start when we budgeted the year but this is the highest scoring part of the quarter obviously or the year of course for this quarter.

You do you have a target then, Lindsay, at year end, your debt target?

Yes well obviously when you look at the balance sheet Tanya, you have very little as we would long term debt 2.5 billion. We also have some new payments obviously on the [indiscernible] debt we pay down and actually pay down. So I think it's our revolver at 1,140 today I would target around 700, 800 by the end of the year and then we have to just look at what that [indiscernible] to actually finance working capital and we're always looking at ways of financing the company, but it have a very low actual debt to cap structure already so we can afford more debt but we choose not to do that actually.

So, I guess the bottom line is any free cash flow that starts to be generated from now Eleonore being commercial and obviously Cerro Negro will still continue to have high depreciation but free cash flow, that will go priority to paying down the revolver?

Yes that’s the case and I don’t think nearly can't forget as going to be just said we're also paying down the Pueblo Viejo debt. That’s not is obvious because it's coming down at the same time.

There are no further questions registered at this time. Please go ahead with your comments.

Okay, thanks very much and thanks everyone for joining us on the call today. We look forward to updating to you on our progress as we continue to execute at the new mines and drive towards that free cash flow that we just talked about as the year progress. We will be starting our AGM webcast 3 PM so please join in or drop by the shares in center hotel here in Toronto. Thank you bye, bye.

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