Goldcorp has one of the strongest balance sheets with $365 million of working capital, no debt and over 117,000 ounces of gold in inventory. Goldcorp has so far delineated almost 6 million ounces of reserves and the flagship Red Lake mine expansion in northwestern Ontario is expected to cost over $100 million. Goldcorp has the balance sheet to handle this expansion easily and is expected to spend about $30 million this year. Goldcorp reported earnings of $0.05 of per share with production in the second quarter totaling 138,000 ounces at a cash cost $116 per ounce. Earnings were below estimates due to the retention of 33 percent of Goldcorp's production. Goldcorp is comfortable stockpiling gold believing both gold is money and confidence in the gold price. At Red Lake, Goldcorp is spending more than $50 million but the shaft development is going slow. The shaft is currently at 1250 feet and is expected to reach total depth at 7150 feet by 2006. By then, Goldcorp should be producing over 700,000 ounces. Goldcorp has also taken some of its excess cash flow and made investments in strategic juniors giving it exposure to potentially large exploration plays. For example, Goldcorp has accumulated about 14 percent of White Knight Resources, which is the second largest player surrounding Placer Dome's Cortez Hill discovery (see report: Placer Dome Has A New Discovery With A White Knight In The Wings). We continue to recommend Goldcorp for the Red Lake mine, its astute management and rock solid balance sheet.