FORM 6-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the month of August 2006

Goldcorp Inc.
(Translation of registrant’s name into English)

Suite 1560, 200 Burrard Street
Vancouver, British Columbia V6C 3L6 Canada
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:

Form 20-F o           Form 40-F þ

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):   o

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

Yes o           No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-____________

Second Quarter Report — 2006

(in United States dollars, tabular amounts in thousands, except where noted — Unaudited)

Management’s Discussion and Analysis
of Financial Condition and Results of Operations
Three and Six Months Ended June 30, 2006

This Management’s Discussion and Analysis should be read in conjunction with Goldcorp’s unaudited interim consolidated financial statements for the three and six months ended June 30, 2006, and related notes thereto which have been prepared in accordance with Canadian generally accepted accounting principles. In addition, the following should be read in conjunction with the 2005 audited consolidated financial statements, the related annual Management’s Discussion and Analysis, and Annual Information Form/40-F on file with the US Securities and Exchange Commission and Canadian provincial securities regulatory authorities. This Management’s Discussion and Analysis contains “forward-looking” statements that are subject to risk factors set out in the cautionary note contained herein. This Management’s Discussion and Analysis has been prepared as of August 10, 2006.

SECOND QUARTER HIGHLIGHTS

	•		Net earnings nearly doubled to $190.4 million ($0.50 per share), compared with $98.0 million ($0.30 per share) in 2005. Adjusted for certain non-cash items (1), net earnings amounted to $136.9 million ($0.36 per share) for the quarter.
	•		Operating cash flows increased 46% to $240.1 million ($0.63 per share), compared with $163.9 million ($0.50 per share) in 2005.
	•		On May 12, 2006, Goldcorp closed on the agreement with Barrick Gold Corporation (“Barrick”) to acquire Placer Dome Inc’s (“Placer Dome’s”) Canadian operations and other assets for cash of approximately $1.6 billion. These operations are included in Goldcorp’s operating results for the period from May 12, 2006 to June 30, 2006.
	•		Gold production increased 35% to 378,500 ounces, compared with 281,000 ounces in 2005.
	•		Gold sales were 398,700 ounces, compared with 267,400 ounces in 2005, excluding second quarter 2005 gold sales of 275,700 ounces of gold bullion inventory.
	•		Total cash costs were minus $123 per ounce (net of by-product copper and silver credits) (2005: $52 per ounce) (2) .
	•		Dividends paid during the quarter of $17.4 million.
	•		On June 9, 2006, Goldcorp closed on the early warrant exercise transaction. Proceeds received during the quarter were approximately $455 million, which were subsequently used to repay credit facilities drawn down to fund the acquisition of Placer Dome assets.

(1)				Non-cash items include $61 million related to the dilution gain realized on the Silver Wheaton C$200 million public offering to non-controlling interests and $7.6 million, net of tax, non-hedge derivative loss.
(2)				The Company has included a non-GAAP performance measure, total cash cost 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 prescribed by GAAP, and is a non-GAAP measure. The Company follows the recommendations of the Gold Institute 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.

goldcorp     |  1

Management’s Discussion and Analysis

(in United States dollars, tabular amounts in thousands, except where noted — Unaudited)

OVERVIEW

Goldcorp is a leading gold producer engaged in gold mining and related activities including exploration, extraction, processing and reclamation. The Company’s assets are comprised of the Red Lake, Porcupine (51% interest) and Musselwhite (68% interest) gold mines in Canada, the Alumbrera gold/copper mine (37.5% interest) in Argentina, the Luismin gold/silver mines in Mexico, the Amapari gold mine in Brazil, the La Coipa gold/silver mine (50% interest) in Chile, the Peak gold mine in Australia and the Wharf gold mine in the United States. Significant development projects include the expansion of the existing Red Lake mine, the Los Filos gold project in Mexico, the Éléonore gold project in Canada, and the Pueblo Viejo (40% interest) in the Dominican Republic. Goldcorp also owns a 57% interest in Silver Wheaton Corp. (“Silver Wheaton”), a publicly traded silver mining company.

Goldcorp is listed on the New York Stock Exchange (symbol: GG) and the Toronto Stock Exchange (symbol: G). In addition, the Company has share purchase warrants which trade on the Toronto Stock Exchange and on the New York Stock Exchange.

Goldcorp’s strategy is to provide its shareholders with superior returns from high quality assets. Goldcorp has a strong and liquid balance sheet, and has not hedged or sold forward any of its future gold production.

Goldcorp is one of the world’s lowest cost and fastest growing multi-million ounce gold producers with operations throughout the Americas and Australia. Gold production in 2006 is expected to approximate 1.8 million ounces on an annualized basis, at a total cash cost of less than $100 per ounce. In the second half of 2006, production is expected to be 950,000 ounces.

ACQUISITION OF CERTAIN PLACER DOME MINING ASSETS

On October 30, 2005, Goldcorp entered into an agreement with Barrick to acquire certain of Placer Dome’s Canadian and other mining assets and interests upon Barrick’s successful acquisition of Placer Dome. On March 15, 2006, Barrick acquired 100% of the outstanding shares of Placer Dome for approximately $10 billion in shares and cash. On May 12, 2006, Goldcorp completed the agreement with Barrick for cash of approximately $1.6 billion. The acquisition was funded with a $250 million advance payment paid in January 2006 from cash on hand. The remainder was paid upon closing by drawing down on credit facilities in the amount of $1.3 billion and cash on hand. On June 9, 2006, Goldcorp closed on the early warrant exercise transaction. Proceeds received during the quarter were approximately $455 million, which were subsequently used to repay credit facilities drawn down to fund the acquisition of Placer Dome assets. Goldcorp has acquired interests in the Campbell (100%), Porcupine (51%) and Musselwhite (68%) gold mines in Canada, and the La Coipa (50%) gold/silver mine in Chile. Goldcorp also acquired a 40% interest in the Pueblo Viejo gold development project in the Dominican Republic, together with Placer Dome’s interest in its Canadian exploration properties, including the Mount Milligan copper/gold deposit in British Columbia. On July 24, 2006, Goldcorp completed the previously announced sale of Mount Milligan and certain other Canadian exploration interests to Terrane Metals Corp. (“Terrane”, formerly Atlas Cromwell Ltd.) for 240 million convertible preferred shares of Terrane at a deemed price of C$0.50 per share. The preferred shares are convertible into common shares of Terrane at the option of Goldcorp at any time without any further consideration. On an as-converted basis, Goldcorp would own an approximate 81% equity interest in Terrane’s issued and outstanding shares and an approximate 75% on a fully diluted basis.

Upon Barrick gaining control of Placer Dome on January 19, 2006, Goldcorp initiated its integration plan which includes the combination of the Red Lake and Campbell complexes. The integration process of the Placer Dome mines is well underway which will allow the Company to maximize on synergies and create significant shareholder value.

This business combination has been accounted for as a purchase transaction, with Goldcorp being identified as the acquirer. The results of operations of the acquired assets are included in the consolidated financial statements of Goldcorp from the date of acquisition, May 12, 2006.

The purchase consideration has been allocated on a preliminary basis to the fair value of assets acquired and liabilities assumed, with goodwill assigned to a specific reporting unit, based on management’s best estimates and taking into account all available information at the time these interim consolidated financial statements were

2  |     goldcorp

Second Quarter Report — 2006

(in United States dollars, tabular amounts in thousands, except where noted — Unaudited)

prepared. Goldcorp will continue to review information and perform further analysis with respect to each of the Placer Dome assets, including an independent valuation, prior to finalizing the allocation of the purchase price. This process will be performed in accordance with the recent accounting pronouncement relating to “Mining Assets – Impairment and Business Combination” (Emerging Issue Committee Abstract 152). Although the results of this review are presently unknown, it is anticipated that it may result in a change to the amount assigned to goodwill and a change to the value attributable to tangible assets.

ACQUISITION OF VIRGINIA GOLD MINES

In December 2005, the Company announced that it had entered into an agreement with Virginia Gold Mines Inc. (“Virginia”) to acquire Virginia’s Éléonore gold project in Quebec, Canada pursuant to a plan of arrangement involving Virginia. Under the agreement, shareholders of Virginia received 0.4 of a Goldcorp common share and 0.5 of a share in a new public exploration company (“New Virginia”) for each issued and outstanding Virginia share. On March 31, 2006, Goldcorp completed the acquisition of Virginia and retained the Éléonore gold project. New Virginia holds all other assets of Virginia, including net working capital, cash received prior to closing on the exercise of Virginia options and warrants, its non-Éléonore assets and a sliding scale 2% net smelter return royalty on the Éléonore project. On March 31, 2006, Goldcorp issued 19.3 million common shares, and warrants, pursuant to the transaction valued at total consideration of $406 million.

ACQUISITION OF WHEATON RIVER MINERALS LTD.

In December 2004, Goldcorp and Wheaton announced a take-over bid by Goldcorp for Wheaton on the basis of one Goldcorp share for every four Wheaton shares. On February 14, 2005, the minimum two-thirds bid requirement under the terms of the Goldcorp offer was satisfied. With conditions met, a special $0.50 per share cash dividend, totaling approximately $95 million, was paid to existing Goldcorp shareholders. Goldcorp included, with the exception of net earnings, 100% of Wheaton’s operating results from February 14 to April 15, 2005. Net earnings for this period include 82% of Wheaton’s operating results. On April 15, 2005, Goldcorp acquired the remaining 18% of Wheaton. A non-controlling interest was assigned to the 18% interest in Wheaton that Goldcorp did not own from February 14 to April 15, 2005 upon which date this non-controlling interest was eliminated. Total consideration amounted to $2,235 million, including acquisition costs, satisfied by the issuance of 143.8 million Goldcorp shares.

goldcorp     |  3

Management’s Discussion and Analysis

(in United States dollars, tabular amounts in thousands, except where noted — Unaudited)

SUMMARIZED FINANCIAL RESULTS

		Three Months Ended
		June 30								March 31								December 31								September 30
		2006				2005				2006				2005				2005				2004				2005				2004
		(note 1)												(note 2)
Revenues		$	491,500			$	301,600			$	286,300			$	122,800			$	268,300			$	51,800			$	203,700			$	50,400
Gold produced (ounces)			378,500				281,000				295,100				275,400				296,200				166,300				283,700				163,800
Gold sold (ounces)			398,700				543,100				288,400				217,500				307,300				113,800				276,700				112,800
Average realized gold price (per ounce)		$	620			$	432			$	560			$	430			$	492			$	432			$	444			$	399
Average London spot gold price (per ounce)		$	627			$	427			$	554			$	427			$	484			$	434			$	440			$	401
Earnings from operations		$	225,300			$	162,400			$	143,900			$	53,700			$	116,000			$	20,100			$	87,000			$	22,800
Net earnings		$	190,400			$	98,000			$	92,400			$	29,500			$	101,700			$	14,900			$	56,500			$	9,900
Earnings per share
Basic		$	0.50			$	0.30			$	0.27			$	0.12			$	0.30			$	0.08			$	0.17			$	0.05
Diluted		$	0.49			$	0.28			$	0.24			$	0.11			$	0.27			$	0.08			$	0.15			$	0.05
Cash flow from operating activities		$	240,100			$	163,900			$	74,400			$	80,200			$	136,900			$	22,400			$	84,800			$	22,300
Total cash costs * (per gold ounce) (note 3)		$	(123	)		$	52			$	(88	)		$	94			$	(73	)		$	127			$	9			$	121
Dividends paid		$	17,400			$	15,200			$	15,300			$	105,300			$	15,300			$	8,500			$	15,200			$	8,500
Cash and cash equivalents		$	264,600			$	420,800			$	169,600			$	339,000			$	562,200			$	333,400			$	420,900			$	315,600
Total assets		$	6,969,500			$	3,756,000			$	5,054,900			$	3,309,200			$	4,066,000			$	701,500			$	3,839,200			$	648,900

Review of Financial Results:

Goldcorp was transformed during February, 2005 by the acquisition of Wheaton, which resulted in a substantial increase in revenues, gold production and gold sales, earnings, cash flows and assets. Also, as a result of the acquisition of certain Placer Dome operations, effective May 12, 2006, Goldcorp further increased revenues, gold production and gold sales, earnings, cash flows and assets. The second quarter 2006 financial results increased compared to the corresponding period from the prior year as a result of the acquisition of Placer Dome operations, combined with the higher realized metal prices and lower cash costs.

During the second quarter of 2005 Goldcorp discontinued the Company’s previous policy of holding back from sale approximately one third of mine gold production. The gold bullion on hand at March 31, 2005 of 275,700 ounces was sold in the second quarter of 2005.

4  |     goldcorp

Second Quarter Report — 2006

(in United States dollars, tabular amounts in thousands, except where noted — Unaudited)

RESULTS OF OPERATIONS

																		Average
										Gold								realized gold				Earnings				Total cash
For the three months ended										produced				Gold sold				price				(loss) from				costs
June 30, 2006 and 2005						Revenues				(ounces)				(ounces)				(per ounce)				operations				(per ounce)
Red Lake (note 1)			2006			$	93,800				143,700				150,100			$	623			$	53,500			$	180
			2005				177,000				142,800				408,500				33				129,200				81
Porcupine (note 1)			2006				15,300				23,500				25,300				610				3,400				344
			2005				—				—				—				—				—				—
Musselwhite (note 1)			2006				15,100				21,700				24,400				617				1,900				361
			2005				—				—				—				—				—				—
Alumbrera (note 2)			2006				230,000				68,500				74,000				608				143,500				(1,661	)
			2005				65,600				48,900				47,700				422				26,300				(442	)
Luismin (note 3)			2006				44,100				53,600				54,900				629				13,300				109
			2005				25,600				41,800				44,000				427				3,300				115
Peak (note 4)			2006				22,900				25,500				26,300				631				7,100				193
			2005				12,300				31,100				27,200				442				2,100				246
Amapari			2006				12,300				18,900				19,700				630				(6,700	)			572
			2005				—				—				—				—				—				—
La Coipa (notes 1, 5)			2006				10,400				7,600				9,200				612				(1,500	)			197
			2005				—				—				—				—				—				—
Wharf			2006				9,700				15,500				14,800				618				1,800				343
			2005				7,000				16,400				15,700				429				600				291
Silver Wheaton			2006				47,400				—				—				—				24,400				—
			2005				19,200				—				—				—				6,600				—
Corporate and Eliminations (note 1)			2006				(9,500	)			—				—				—				(15,400	)			—
			2005				(5,100	)			—				—				—				(5,700	)			—
Total			2006			$	491,500				378,500				398,700			$	620			$	225,300			$	(123	)
			2005				301,600				281,000				543,100				432				162,400				52

goldcorp     |  5

Management’s Discussion and Analysis

(in United States dollars, tabular amounts in thousands, except where noted — Unaudited)

																		Average
										Gold								realized gold				Earnings				Total cash
For the six months ended										produced				Gold sold				price				(loss) from				costs
June 30, 2006 and 2005						Revenues				(ounces)				(ounces)				(per ounce)				operations				(per ounce)
Red Lake (note 1)			2006			$	161,200				265,000				270,800			$	594			$	97,800			$	157
			2005				232,900				341,300				535,900				432				168,300				81
Porcupine (note 1)			2006				15,300				23,500				25,300				610				3,400				344
			2005				—				—				—				—				—				—
Musselwhite (note 1)			2006				15,100				21,700				24,400				617				1,900				361
			2005				—				—				—				—				—				—
Alumbrera (notes 2, 3)			2006				354,900				130,800				125,500				595				221,900				(1,517	)
			2005				86,800				72,600				62,900				429				35,300				(431	)
Luismin (notes 2, 4)			2006				78,300				101,400				101,400				595				22,300				113
			2005				39,400				62,200				67,300				428				6,700				103
Peak (notes 2, 5)			2006				45,500				58,900				61,600				589				14,200				192
			2005				20,400				46,200				44,500				435				3,800				256
Amapari			2006				24,900				39,300				42,300				590				(9,700	)			514
			2005				—				—				—				—				—				—
La Coipa (notes 1, 6)			2006				10,400				7,600				9,200				612				(1,500	)			197
			2005				—				—				—				—				—				—
Wharf			2006				17,000				25,400				26,600				592				3,800				331
			2005				22,000				34,100				50,000				430				2,700				284
Silver Wheaton (note 2)			2006				73,100				—				—				—				35,700				—
			2005				30,100				—				—				—				10,500				—
Corporate and Eliminations (notes 1, 2)			2006				(18,000	)			—				—				—				(20,500	)			—
			2005				(7,100	)			—				—				—				(11,200	)			—
Total			2006			$	777,700				673,600				687,100			$	595			$	369,300			$	(108	)
			2005				424,500				556,400				760,600				431				216,100				64

6  |     goldcorp

Second Quarter Report — 2006

(in United States dollars, tabular amounts in thousands, except where noted — Unaudited)

OPERATIONAL REVIEW

Red Lake

		Three Months Ended
		June 30				June 30				Mar 31				Dec 31				Sep 30				June 30
Operating Data (note 2)		2006				2006				2006				2005				2005				2005
		(six weeks)				(full quarter)
		(note 1)
Tonnes of ore milled			137,100				191,900				184,700				173,800				159,000				165,600
Average mill head grade (grams/tonne)			34				29				29				32				36				40
Average recovery rate (%)			96	%			97	%			97	%			97	%			97	%			97	%
Gold produced (ounces)			143,700				167,600				170,100				170,600				197,000				200,000
Gold sold (ounces)			150,100				172,400				168,900				180,000				187,900				473,700
Average realized gold price (per ounce)		$	623			$	625			$	560			$	489			$	445			$	433
Total cash costs (per ounce)		$	180			$	183			$	181			$	193			$	154			$	107
Financial Data
Revenues		$	93,800			$	107,800			$	94,600			$	88,100			$	83,700			$	205,000
Earnings from operations		$	53,500			$	52,100			$	36,700			$	39,600			$	33,300			$	123,000

The Red Lake mines produced 167,600 ounces of gold for the quarter consisting of 114,600 ounces from the Red Lake mine and 53,000 ounces from the Campbell mine. The production level reflects lower ore grades at Red Lake and re-alignment of the overall mining plan and sequence. This was done in order to allow significant new development at depth in support of the shaft and to accommodate the integration of the Red Lake and Campbell operations. The Canadian dollar was approximately 11% stronger relative to the United States dollar, compared to the second quarter of 2005, which negatively impacted total cash costs per ounce. All these factors resulted in combined cash costs of $180 per ounce in the second quarter of 2006. Previously, the Company had adopted a policy of holding back from sale approximately one-third of mine production. This practice was discontinued effective April 1, 2005 and the gold bullion on hand (275,700 ounces) at that date was sold during the second quarter of 2005.

The expansion project progressed well during the quarter as development work required to connect the new shaft to the existing mine moved ahead. The shaft sinking was successfully deepened by 109 metres during the quarter, bringing the depth to 1,672 metres as at June 30, 2006. The sink rate was above expectations. The expanded mill is expected to be ready for operation in mid-2007 and the expansion project including the shaft is on track for completion in late 2007.

Integration activities continued at Red Lake during the second quarter, including implementing synergies, modifying the organizational structure, optimizing the existing work forces, reviewing the short and long-term mine plans and advancing underground development. Work also continued on completing a physical surface road connection and establishing a combined IT and communications connection between the two mines. Priority development is being driven from each mine to establish an underground connection between the two mines (for the first time), located at the 34 and 36 levels.

goldcorp     |  7

Management’s Discussion and Analysis

(in United States dollars, tabular amounts in thousands, except where noted — Unaudited)

Porcupine (Goldcorp’s interest 51%)

		Three Months Ended
		June 30								Mar 31				Dec 31				Sep 30				June 30
Operating Data (note 1)		2006				June 30 2006				2006				2005				2005				2005
		(six weeks)				(full quarter)
Tonnes of ore milled			304,900				554,700				508,500				543,200				526,700				557,700
Average mill head grade (grams/tonne)			2.59				2.57				2.17				2.77				2.82				3.12
Average recovery rate (%)			94	%			90	%			90	%			92	%			93	%			94	%
Gold produced (ounces)			23,500				41,300				31,400				42,000				40,300				53,600
Gold sold (ounces)			25,300				42,000				33,400				39,500				47,500				48,700
Average realized gold price (per ounce)		$	610			$	616			$	554			$	486			$	440			$	429
Total cash costs (per ounce)		$	344			$	361			$	434			$	348			$	340			$	232
Financial Data
Revenues		$	15,300			$	26,000			$	18,500			$	19,200			$	20,900			$	20,900
Earnings from operations		$	3,400			$	4,400			$	(800	)		$	(7,400	)		$	(1,100	)		$	3,400

Gold production in second quarter 2006 improved by 32% over the first quarter as result of more selective mining at the Pamour open pit and the ramp up of production from the Dome underground operation. Gold production during the second quarter of 2006 at the Porcupine Joint Venture was 24% lower than 2005 figures due to the transition from the higher grade Dome open pit to the Pamour open pit late in 2005. Budgeted grades from the Pamour were initially negatively impacted by higher than expected mining dilution and local grade variability, although grades improved slightly in the second quarter.

Second quarter 2006 cash costs per ounce improved 17% over first quarter 2006 due to higher production and a lower cost of sales. Cash costs per ounce in comparison to prior year increased due to higher commodity and energy costs as the operation processed a similar number of tonnes compared to the second quarter of 2005, though at lower grades. The increase was also impacted by an 11% increase in value of the Canadian dollar against the United States dollar quarter-over-quarter. Overburden stripping of Stage Two at Pamour is scheduled to begin in the third quarter now that the overlaying public highway has been relocated resulting in access to further ore zones early in 2007.

8  |     goldcorp

Second Quarter Report — 2006

(in United States dollars, tabular amounts in thousands, except where noted — Unaudited)

Musselwhite (Goldcorp’s interest – 68%)

		Three Months Ended
		June 30				June 30				Mar 31				Dec 31				Sep 30				June 30
Operating Data (note 1)		2006				2006				2006				2005				2005				2005
		(six weeks)				(full quarter)
Tonnes of ore milled			118,900				218,900				240,800				263,800				254,900				244,800
Average mill head grade (grams/tonne)			5.87				5.65				4.71				4.78				5.39				5.59
Average recovery rate (%)			97	%			94	%			91	%			94	%			95	%			95	%
Gold produced (ounces)			21,700				37,600				33,200				38,600				44,500				41,400
Gold sold (ounces)			24,400				37,800				33,900				38,500				43,600				41,700
Average realized gold price (per ounce)		$	617			$	618			$	553			$	487			$	440			$	429
Total cash costs (per ounce)		$	361			$	375			$	417			$	370			$	323			$	320
Financial Data
Revenues		$	15,100			$	23,400			$	18,800			$	18,700			$	19,200			$	17,900
Earnings from operations		$	1,900			$	4,500			$	(300	)		$	—			$	500			$	(400	)

In the second quarter of 2006, the grade improved 20% compared with the first quarter of 2006, as a result of accessing higher grade zones. Production for the second quarter was 37,600 ounces and cash costs per ounce of $375 which were lower than the first quarter of 2006 primarily due to higher gold production. Cash costs per ounce are higher than the corresponding period for the previous year due to an 11% appreciation in the Canadian dollar and higher energy and commodity costs.

The mine has incurred higher than anticipated backfill due to rescheduling of the mining sequence. As a result of the increased backfill, the mining ore supply reduced which in turn reduced tonnes milled for the current quarter. Backfill is expected to reduce significantly for the remainder of the year.

Excellent results continue to be returned from the PQ Deeps underground exploration with higher than average grades for the ore-body. Notably, results from the B and C Blocks have exceeded expectations. Drilling also commenced on the North Shore drill site, two kilometres north of the last economic intersection on the PQ Deeps ore-body.

goldcorp     |  9

Management’s Discussion and Analysis

(in United States dollars, tabular amounts in thousands, except where noted — Unaudited)

Alumbrera (Goldcorp’s interest – 37.5%)

		Three Months Ended
		June 30				Mar 31				Dec 31				Sep 30				June 30
Operating Data		2006				2006				2005				2005				2005
Tonnes of ore mined			2,550,200				2,366,600				3,308,900				2,527,400				3,442,900
Tonnes of waste removed			7,363,600				8,059,500				7,667,800				8,188,600				7,535,900
Ratio of waste to ore			2.9				3.4				2.3				3.2				2.2
Tonnes of ore milled			3,472,600				3,308,600				3,591,800				3,255,900				3,450,000
Average mill head grade — Gold (grams/tonne)			0.78				0.76				0.77				0.60				0.58
— Copper (%)			0.61	%			0.63	%			0.65	%			0.57	%			0.56	%
Average recovery rate     — Gold (%)			79	%			77	%			79	%			77	%			77	%
— Copper (%)			89	%			89	%			91	%			89	%			91	%
Gold produced (ounces)			68,500				62,300				71,900				48,100				48,900
Copper produced (thousands of pounds)			41,800				40,800				46,800				36,300				39,000
Gold sold (ounces)			74,000				51,500				69,200				48,200				47,700
Copper sold (thousands of pounds)			46,700				33,500				49,500				38,600				33,900
Average realized price    — Gold (per ounce) (note 2)		$	608			$	577			$	498			$	452			$	422
— Copper (per pound) (note 2)		$	4.44			$	3.25			$	2.28			$	1.85			$	1.59
Total cash costs (per ounce) (note 1)		$	(1,661	)		$	(1,310	)		$	(871	)		$	(594	)		$	(442	)
Total co-product cash costs (per ounce)		$	207			$	162			$	150			$	185			$	169
Financial Data
Revenues		$	230,000			$	125,000			$	130,900			$	81,500			$	65,600
Earnings from operations		$	143,500			$	78,400			$	63,100			$	36,000			$	26,300

Total material mined for the quarter was above expectations with higher mine productivities being achieved overall. Total cash costs decreased in the second quarter to minus $1,661 per ounce of gold, net of by-product copper credits, compared to minus $442 per ounce during the same period last year. This decrease in total cash costs resulted primarily from further improvement in the copper price to an average of $4.44 per pound. Co-product cash costs increased to $207 per ounce of gold in the second quarter of 2006, primarily due to the impact of the royalty of Yacimientos Mineros de Agua de Dionisio, a government owned corporation, which commenced during the second quarter.

Production in the second quarter was 68,500 ounces of gold and 41.8 million pounds of copper and sales were 74,000 ounces of gold and 46.7 million pounds of copper. The difference between production and sales is due to normal timing differences in shipments and delays in the transfer of title which is a requirement for revenue recognition.

The capital expansion of the concentrator to a 40 million tonne per annum milling capacity continues on schedule.

The sustainable development program underway where Alumbrera contributes to the development of community infrastructure is achieving positive results. Alumbrera is presently constructing two technical schools in the Catamarca Province and assisting with the reconstruction of two hospitals in Tucuman Province.

In August 2006, Alumbrera announced an increase of more than 10% in the ore reserves. An on-going ore delineation drilling program in the Alumbrera pit, undertaken both within the existing ore envelope and for extensions at depth, has confirmed 40 million tonnes (Goldcorp’s share – 15 million tonnes) of additional ore reserves. The mine plan was re-optimized based on a new geological model with additional mineralization, and together with improved final pit slope angles. This equates to an additional 265 million pounds (Goldcorp’s share – 99 million pounds) of contained copper and 400,000 ounces of gold (Goldcorp’s share 150,000 ounces) over the life of the mine, which will extend the mine life into at least 2016.

10  |     goldcorp

Second Quarter Report — 2006

(in United States dollars, tabular amounts in thousands, except where noted — Unaudited)

Luismin

		Three Months Ended
		June 30				Mar 31				Dec 31				Sep 30				June 30
Operating Data		2006				2006				2005				2005				2005
Tonnes of ore milled			267,400				255,800				250,600				244,100				218,700
Average mill head grade – Gold (grams/tonne)			6.61				6.18				5.57				5.55				6.23
– Silver (grams/tonne)			358				348				298				332				362
Average recovery rate     – Gold (%)			94	%			94	%			94	%			94	%			95	%
– Silver (%)			89	%			87	%			88	%			88	%			91	%
Gold produced (ounces)			53,600				47,800				42,100				41,000				41,800
Silver produced (ounces)			2,388,400				2,191,900				1,855,700				2,005,700				1,974,400
Gold sold (ounces)			54,900				46,500				42,200				39,100				44,000
Silver sold (ounces)			2,449,100				2,167,900				1,812,300				2,003,800				1,976,400
Average realized price     – Gold (per ounce)		$	629			$	554			$	486			$	440			$	427
– Silver (per ounce)		$	3.90			$	3.90			$	3.90			$	3.90			$	3.90
Total cash costs per ounce (note 1)		$	109			$	117			$	145			$	118			$	115
Financial Data
Revenues		$	44,100			$	34,200			$	27,000			$	24,300			$	25,600
Earnings from operations		$	13,300			$	9,000			$	6,700			$	4,500			$	3,300

(1)		The calculation of total cash costs per ounce of gold is net of by-product silver sales revenue of $3.90 per silver ounce.

Luismin continued to achieve record production levels during the second quarter, due to the increased mill throughput and higher than expected grades at San Dimas. In addition, optimization improvements were made at San Dimas consisting of two new leach tanks to help improve recoveries. A total of 53,600 ounces of gold were produced in the second quarter of 2006, an increase of 28% over the 41,800 ounces of gold for the corresponding period in the prior year. In addition, 2,388,400 ounces of silver were produced, 21% more than 1,974,400 ounces produced in the corresponding period in 2005. As a result, cash costs were $109 per ounce, or 5% lower than the corresponding period in 2005.

Exploration activities continued in the San Dimas district, within the high grade zone area of the Central Block with the deeper level intercepts exhibiting wider and richer mineralization.

Three new exploration drifts were started in the San Dimas district in order to develop more ore resources farther from the current operations. These drifts will provide essential infrastructure for exploration drilling and drifting.

At the Nukay mine adjacent to the Los Filos project, the extensive exploration project continues to achieve positive results with higher grade underground ore being delineated.

goldcorp     |  11

Management’s Discussion and Analysis

(in United States dollars, tabular amounts in thousands, except where noted — Unaudited)

Amapari

		Three Months Ended
		June 30				Mar 31
Operating Data		2006				2006
Tonnes of ore mined			548,100				362,400
Tonnes of waste removed			3,220,900				3,074,600
Ratio of waste to ore			5.9				8.5
Tonnes of ore processed			475,600				302,400
Average grade of gold processed (grams/tonne)			2.00				2.03
Average recovery rate (%) (note 1)			68	%			66	%
Gold produced (ounces) (note 2)			18,900				20,400
Gold sold (ounces)			19,700				22,600
Average realized gold price (per ounce)		$	630			$	556
Total cash costs (per ounce)		$	572			$	464
Financial Data
Revenues		$	12,300			$	12,600
Loss from operations		$	(6,700	)		$	(3,000	)

(1)		Gold recovery is determined when the individual leach pads are reclaimed and production is reconciled.
(2)		Tonnes of ore processed each quarter do not necessarily correlate to ounces produced during the quarter, as there is a time delay between placing tonnes on the leach pad and pouring ounces of gold.

During the second quarter of 2006, the Amapari mine produced 18,900 ounces of gold and sold 19,700 ounces of gold.

Ore processing improved significantly (57%) from the previous quarter with productivity improvements to the crushing, and stacking circuits taking affect. Despite the increase in tonnes of ore mined and processed, there is a time delay between placing tonnes on the leach pad and production of gold. Gold production was negatively impacted by the lower than planned gold grades from the Tap AB pit, which is experiencing a negative reconciliation to the reserve model. Geological studies to determine the cause have commenced. Gold recoveries from the leach pads, whilst improving slightly from the previous quarter were lower than expected. Optimization of the ADR plant carbon handling systems and the leach pad irrigation systems are continuing, as well as modifications to reagent use and ore stacking sequences, in order to improve on leach pad gold recovery performance. In particular, further column testing is underway to optimize the agglomeration process to assist leaching. The reclaimer and spent ore conveyor and disposal system are nearing designed operating levels as work programs continue to improve availabilities and efficiencies.

Mining of ore and waste from the Tap AB pit continued above plan during the quarter, with 3.2 million tonnes of waste removed and 548,100 tonnes of ore mined (including 73,000 tonnes of low grade ore placed into low grade stockpiles).

Total cash costs for the quarter were $572 per ounce, negatively impacted by the lower than planned gold head grades and recoveries. Cost reduction programs have been implemented including; a 10% reduction in the total site workforce, the termination and the re-negotiation of numerous service and supply contracts, and a re-optimization of the mine plan.

During the second quarter, heap leach inventory was written down by $2 million to net realizable value.

Exploration work programs were accelerated on a number of projects with 7,000 metres of drilling and 4,000 metres of geophysical surveys completed during the quarter. Diamond drilling has commenced in the untested gap between the Tapereba C and Urucum ore bodies, based on the encouraging results received from the geophysical surveys conducted in the previous quarter. Diamond drilling was concentrated in the Vila do Mejo, Urucu, and Gap areas as these presented better results than the Timbo area where drilling was temporarily suspended due to difficulties in finding available drilling services in Brazil.

12  |     goldcorp

Second Quarter Report — 2006

(in United States dollars, tabular amounts in thousands, except where noted — Unaudited)

La Coipa (Goldcorp’s interest – 50%)

		Three Months Ended
		June 30				June 30				Mar 31				Dec 31				Sep 30				June 30
Operating Data (note 1)		2006				2006				2006				2005				2005				2005
		(six weeks)				(full quarter)
Tonnes of ore milled			383,000				738,000				788,800				845,600				758,000				793,200
Average mill head grade – Gold (grams/tonne)			0.84				0.82				1.19				1.10				1.00				0.95
– Silver (grams/tonne)			61				54				58				43				45				45
Average recovery rate     – Gold (%)			81	%			83	%			83	%			82	%			79	%			80	%
– Silver (%)			62	%			63	%			52	%			55	%			46	%			54	%
Gold produced (ounces)			7,600				16,600				25,100				23,500				19,400				19,300
Silver produced (ounces)			365,100				814,900				769,500				628,900				514,200				659,800
Gold sold (ounces)			9,200				18,300				27,000				22,900				18,900				21,500
Silver sold (ounces)			410,000				762,500				751,700				593,300				589,000				704,300
Average realized price     – Gold (per ounce)		$	612			$	629			$	558			$	489			$	439			$	427
– Silver (per ounce)		$	11.33			$	12.34			$	10.04			$	8.12			$	7.01			$	7.11
Total cash costs per ounce (note 2)		$	197			$	44			$	194			$	262			$	343			$	192
Financial Data
Revenues		$	10,400			$	21,000			$	22,600			$	16,000			$	12,400			$	14,200
Earnings (loss) from operations		$	(1,500	)		$	4,300			$	7,300			$	2,300			$	(300	)		$	3,200

(1)		La Coipa’s operations are included in Goldcorp’s operating results for the period subsequent to May 12, 2006, the date of acquisition of certain Placer assets. Other prior period results are shown for comparative purposes only.
(2)		The calculation of total cash costs per ounce of gold is net of by-product silver sales revenue. If the silver sales were treated as a co-product, average total cash costs at La Coipa for the three months ended June 30, 2006, would be $305 per ounce of gold.

During the second quarter of 2006, La Coipa experienced lower gold grade than in previous quarters, thus producing 16,600 ounces of gold. A total of 814,900 ounces of silver were produced in the second quarter of 2006, an increase of 24% over the 659,800 ounces of silver from the corresponding period in the prior year, due to higher silver grades and increased silver recoveries.

The newly pre-stripped Puren pit began production one month earlier than planned with first ore being fed to the mill in June. Tonnes milled were lower this quarter due to the start of treatment of Puren ore feed. Over the coming period Puren will contribute to higher silver grades to the mill. The Puren pit is contained in a stand alone joint venture with Codelco where the La Coipa mine is the project manager and holding 65% equity in the deposit.

Cash costs per ounce for the full quarter ending June 30, 2006, were lower than the first quarter due to higher silver by-product sales revenue. The cash costs per ounce were higher for the six weeks stub period due to stripping costs related to the advance in production from Puren. Earnings from operations, for the full quarter, were positively impacted by higher realized gold and silver prices, however, earnings for the period May 12, 2006 to June 30, 2006 was negatively impacted due to an inventory adjustment at Puren.

La Coipa continued with strategic exploration on known anomalies within trucking distance of the mill.

goldcorp     |  13

Management’s Discussion and Analysis

(in United States dollars, tabular amounts in thousands, except where noted — Unaudited)

Peak

		Three Months Ended
		June 30				Mar 31				Dec 31				Sep 30				June 30
Operating Data		2006				2006				2005				2005				2005
Tonnes of ore milled			180,700				173,700				176,600				148,700				165,200
Average mill head grade – Gold (grams/tonne)			4.90				6.61				8.26				6.94				6.67
– Copper (%)			0.61	%			0.70	%			0.65	%			0.46	%			0.28	%
Average recovery rate     – Gold (%)			90	%			90	%			93	%			89	%			88	%
– Copper (%)			79	%			80	%			84	%			71	%			60	%
Gold produced (ounces)			25,500				33,400				43,600				29,700				31,100
Copper produced (thousands of pounds)			1,907				2,131				2,111				1,065				579
Gold sold (ounces)			26,300				35,300				50,000				26,200				27,200
Copper sold (thousands of pounds)			2,114				1,915				1,826				734				505
Average realized price     – Gold (per ounce)		$	631			$	558			$	493			$	449			$	442
– Copper (per pound)		$	3.66			$	2.21			$	1.88			$	1.71			$	1.53
Total cash costs (per ounce) (note 1)		$	193			$	192			$	192			$	241			$	246
Financial Data
Revenues		$	22,900			$	22,600			$	27,000			$	11,500			$	12,300
Earnings from operations		$	7,100			$	7,100			$	11,300			$	1,900			$	2,100

(1)		The calculation of total cash costs per ounce of gold is net of by-product copper sales revenue. If the copper sales were treated as a co-product, average total cash costs at Peak for the three months ended June 30, 2006, would be $336 per ounce of gold and $2.48 per pound of copper.

The Peak mine sold 26,300 ounces of gold for the second quarter compared with 27,200 ounces sold for the corresponding period in the prior year. Copper sales have been increasing steadily on a quarter-by-quarter basis due to higher grades and increased mill throughput. Damage sustained to an underground production drill rig prevented access to the principal production stopes for approximately six weeks and resulted in the lower gold grades being fed to the mill. This drill rig is now back in production and no ore has been lost as a consequence of this rescheduling. Plant capacity has increased as reported previously with the mill throughput, achieving a production record for the Peak mine. Recoveries continue to improve even at the higher throughput; however relative recoveries were impacted in the second quarter by the lower gold grade. The total cash costs of $193 per gold ounce were a result of continued mill improvements and higher by-product copper credits.

Exploration work and delineation drilling continues to focus on New Cobar, Peak Deeps and Perseverance Zone D.

14  |     goldcorp

Second Quarter Report — 2006

(in United States dollars, tabular amounts in thousands, except where noted — Unaudited)

Wharf

		Three Months Ended
		June 30				Mar 31				Dec 31				Sep 30				June 30
Operating Data		2006				2006				2005				2005				2005
Tonnes of ore mined			729,100				701,700				775,600				755,500				584,300
Tonnes of ore processed			715,300				787,900				644,300				773,900				561,100
Average grade of gold processed (grams/tonne)			1.04				1.01				0.95				1.04				0.99
Average recovery rate (%)			75	%			75	%			75	%			75	%			75	%
Gold produced (ounces) (note 1)			15,500				9,900				17,200				11,200				16,400
Gold sold (ounces)			14,800				11,800				15,500				15,300				15,700
Average realized gold price (per ounce)		$	618			$	559			$	497			$	444			$	429
Total cash costs (per ounce)		$	343			$	315			$	366			$	307			$	291
Financial Data
Revenues		$	9,700			$	7,300			$	8,200			$	7,000			$	7,000
Earnings from operations		$	1,800			$	1,900			$	800			$	500			$	600

(1)		Tonnes of ore processed do not correlate directly to ounces produced during the quarter as there is a time delay between placing ore on the leach pad and producing gold.

The Wharf Mine produced 15,500 ounces of gold in the second quarter of 2006 compared with 16,400 ounces of gold in the second quarter of 2005. The lower production is a result of higher silver grades in the ore thus slowing metal recovery from solution in the on- site refinery. Gold production significantly increased as compared to the first quarter of 2006, and there is still considerable gold and silver in circuit waiting to be recovered. This backlog is expected to be produced over the second half of 2006. Total cash costs for the quarter were $343 per ounce, compared to $291 per ounce during the second quarter of 2005, primarily as a result of the lower gold sales and the build up of gold in leach solutions.

goldcorp     |  15

Management’s Discussion and Analysis

(in United States dollars, tabular amounts in thousands, except where noted — Unaudited)

Silver Wheaton Corp (Goldcorp’s interest — 57%)

(100% figures shown)

		Three Months Ended
		June 30				Mar 31				Dec 31				Sep 30				June 30
Operating Data		2006				2006				2005				2005				2005
Ounces of silver sold – Luismin			2,447,500				2,171,000				1,820,100				2,003,800				2,088,000
– Zinkgruvan			482,900				501,000				356,600				531,000				580,400
– Yauliyacu			875,000				—				—				—				—
– Total			3,805,400				2,672,000				2,176,700				2,534,800				2,668,400
Average realized silver price (per ounce)		$	12.46			$	9.62			$	8.03			$	7.13			$	7.22
Total cash costs (per silver ounce)		$	3.90			$	3.90			$	3.90			$	3.90			$	3.90
Financial Data
Revenues		$	47,400			$	25,700			$	17,400			$	18,100			$	19,300
Earnings from operations		$	24,400			$	11,300			$	5,700			$	5,100			$	5,400

As of March 31, 2006, Goldcorp owned 62% of Silver Wheaton, this interest decreased to 57% as a result of Silver Wheaton’s public offering during the second quarter. In April 2006, Silver Wheaton closed a C$200 million public offering of 16.7 million common shares at a price of C$12.00 per share, on a bought deal basis. This dilution of the Company’s interest gave rise to a non-taxable dilution gain of $61.1 million that was recognized in earnings in the three months ending June 30, 2006.

In March 2006, Silver Wheaton entered into an agreement with Glencore International AG, to purchase 4.75 million ounces of silver per year for a period of 20 years, based on production from their Yauliyacu mining operation in Peru. Total upfront consideration paid was $285 million. In addition, a cash payment of $3.90 per ounce of silver delivered is due under the contract, subject to inflationary adjustment. In the second quarter of 2006, Silver Wheaton purchased 875,000 ounces of silver from the Yauliyacu mining operations.

16 |     goldcorp

Second Quarter Report — 2006

(in United States dollars, tabular amounts in thousands, except where noted — Unaudited)

PROJECT DEVELOPMENT REVIEW

Los Filos Project

During the first quarter, the feasibility study was completed of the combined Los Filos and Bermejal deposits as a twin open pit operation with a single heap leach pad facility. The combined deposits will be referred to as the Los Filos Project going forward. The mine reserve and resources total over 5.0 million ounces with 4.51 million ounces in proven and probable reserve status.

The Los Filos and Bermejal deposits will be developed together with two different methods of ore processing. Higher grade ore from within the Los Filos deposit will be crushed to 19mm and agglomerated before being conveyor stacked and heap leached. Lower grade ore from Los Filos and El Bermejal deposits will be hauled from the open pit directly to the leach pad to be bulk heap leached. The recovery solution will be treated to produce a final gold doré product on site.

Project construction has progressed well and remains on schedule to be completed by the end of 2006 with commercial production planned to start in the second quarter of 2007. Commercial production for 2007 is expected to be 200,000 ounces of gold rising to 350,000 ounces in 2008.

Basic support infrastructure works are complete with the main access road and main substation already servicing project activities. The water supply system is also servicing project activities at partial capacity with only minor commissioning details to finalize.

Los Filos pit mine equipment fleet is fully commissioned and operating with the Bermejal pit fleet starting to arrive on site. The training program for Bermejal operators is well underway. Pre-stripping of both pits is progressing according to schedule.

In the process area the heap leach pad is 70% complete; crushing, conveying and agglomeration 11% complete; gold recovery facilities 10% complete, and process ancillary facilities 30% complete.

All permits required for construction and the operation stage at the Los Filos project have been granted with the exception of water usage and the fuel franchise both of which are expected to be approved during the third quarter of 2006.

The environmental studies required for the project under the Environmental Impact Assessment provided the foundation for planning and developing environmental control measures for mining and processing activities. Most of the preventive measures were incorporated into the design of the industrial facilities to protect and maintain the quality of existing environmental elements.

The current construction works have increased job opportunities for the inhabitants of surrounding towns. Food services, lodging, and transportation activities have also increased during the past year and today the Los Filos project is estimated to provide employment for 80% of the local population. In addition to employment opportunities, several community benefit programs such as health and safety enhancement, handicapped support, and secondary school lecture club are being sponsored.

Project capital expenditures cumulative to date amounted to $143 million with $31 million being expended during the three months ended June 30, 2006. Total project capital expenditures are now expected to be $265 million, an increase of $30 million, primarily related to design modifications to the crushing and heap leach facilities and system upgrades.

Pueblo Viejo Project

At the Pueblo Viejo project, Goldcorp finalized a shareholder’s agreement with Barrick as a 40% owner and with Barrick as 60% owner and the project operator. Barrick continued to update the feasibility analysis prepared by Placer Dome and review other work completed on the project. Activities relating to government and community relations and environmental permitting for both the mine and the related power plant are ongoing. In addition, work began on a 3,000-metre, 10-hole diamond drill program to test the extension of mineralization between two ore bodies.

Éléonore Project

The primary focus on the Éléonore project by Goldcorp has been on confirming earlier Virginia exploration work, including the confirmation of the continuity of the Roberto Zone mineralization over closer spaced intervals. The extensive infill drilling program since April 1, 2006, including 76 drill holes for 31 kilometres of drilling has confirmed these two items.

goldcorp     |  17

Management’s Discussion and Analysis

(in United States dollars, tabular amounts in thousands, except where noted — Unaudited)

The priority on the property is to continue the drill program to allow the start of the engineering scoping studies planned for late in 2006. The ongoing exploration and drilling program will primarily concentrate on three themes;

			- continuing with the “confirmatory” drilling already in progress,
			- exploring the strike extent of the ore-body at both ends, and
			- exploring the depth potential of the Roberto Zone.

Drilling to date has been limited to 900 metres vertical in depth. The down-dip continuity to 2,000 metres vertical will be explored with drill rigs with greater capability.

In parallel, the project exploration team will separately carry out district surface mapping and delineation work to determine the strike extent of the mineralization and assist in developing drill-hole targets aimed at extending the lateral extent of the ore body.

During the remaining part of 2006 environmental and engineering programs will continue to expand. The baseline environmental data collection has already commenced and will continue throughout project development. With the present site reliant on winter snowmobile trail or summer lake barging operations for logistical support, studies are being carried out on the design of the permanent airstrip and access road. Construction of the airstrip and access road is expected to take place during 2007 and 2008.

Once the bulk of the infill drilling has been completed, a project scoping study will be carried out to determine the best scale of operation which will likely be a combined open pit and underground operation. It is anticipated that the milling operation will involve conventional gold processing techniques and a suitable tailing dam site will be identified. Regional infrastructure is excellent to support a future mining operation with available power, water and year round highway access near by. These advantages together with the province of Quebec being a regulatory friendly environment further reinforce the quality of this asset.

In line with Goldcorp’s commitment to the importance of sustainable development and social relationships, the project team has embraced the communication process that Virginia had established with the local First Nations group, the Cree Nation of Wemindji. This process is working well with a transparent approach to working with all local stakeholders. Discussions have also commenced with various government departments and Hydro-Québec.

EXPENSES

		Three Months Ended								Six Months Ended
		June 30				June 30				June 30				June 30
		2006				2005				2006				2005
Depreciation and depletion		$	73,161			$	40,313			$	118,928			$	57,892
Corporate administration			10,679				6,784				19,227				10,792
Exploration			6,327				2,493				10,247				4,010

Depreciation and depletion, which relates to mining activities, increased to $73.2 million for the quarter (six months ended June 30, 2006 – $118.9 million), compared to $40.3 million in 2005 (six months ended June 30, 2005 – $57.9 million). The significant increase in depreciation and depletion is due to the acquisition of certain Placer Dome assets effective May 12, 2006, and the resulting fair value allocation to these assets and the depreciation and depletion related to fair value of Wheaton assets from the prior year.

Corporate administration increased to $10.7 million in the second quarter of 2006 (six months ended June 30, 2006 – $19.2 million), compared to $6.8 million the same period in 2005 (six months ended June 30, 2005 – $10.8 million), due primarily to increased corporate activity relating to acquisition growth.

A total of $6.3 million (2005 – $2.5 million) was invested in exploration during the quarter (six months ended June 30, 2006 — 10.2 million; June 30, 2005 — $4.0 million). Part of the increase is due to the fact that the current year amount included operating results of acquired Placer Dome assets from May 12, 2006 onwards.

18  |     goldcorp

Second Quarter Report — 2006

(in United States dollars, tabular amounts in thousands, except where noted — Unaudited)

OTHER INCOME (EXPENSE)

		Three Months Ended								Six Months Ended
		June 30				June 30				June 30				June 30
		2006				2005				2006				2005
Interest and other income		$	6,606			$	2,552			$	9,636			$	5,465
Interest and finance fees			(11,773	)			(61	)			(13,008	)			(108	)
Stock option expense			(5,800	)			(2,156	)			(9,199	)			(7,476	)
Loss on foreign exchange			(1,089	)			(2,150	)			(1,304	)			(3,353	)
Non-hedge derivative loss			(11,780	)			—				(11,780	)			—
Gain on marketable securities, net			(167	)			(1,147	)			2,388				1,444
Dilution gain			61,095				—				61,095				—
Corporate transaction costs			—				(540	)			—				(3,439	)
		$	37,092			$	(3,502	)		$	37,828			$	(7,467	)