TORONTO (CP) -- Goldcorp Inc. [TSX:G; NYSE:GG] is on the prowl for more acquisitions to boost its bottom line and, with US$1.3 billion in cash in the bank, it has the resources to achieve its expansion goals, CEO Kevin McArthur told the company's annual meeting Tuesday.

“We're focused on building new mines ... (and) increasing output by 50% over the next five years,” he told shareholders of the Vancouver-based international gold miner, which also digs out silver and copper.

With “$1.3 billion in cash in the bank, zero debt and $1 billion in cash flow ... as well as our operations being in low risk areas of the world ... we expect great growth throughout this year,” he told the event in Toronto attended by about 200 shareholders.

Already, he said, “we've grown our reserves by 9% this year.”

But not all was rosy at the annual meeting as McArthur faced a barrage of questions from protesters angry over the use of cyanide leaching to extract gold from rock in Guatemala, Honduras and Mexico.

Carlos Amador, of the Siria Valley Environmental Defence Committee, told shareholders that communities near the San Martin mine in Honduras have “received no response” from Goldcorp to alleged health problems stemming from the use of the chemical at the mine.

McArthur countered that Goldcorp is “working extremely hard on health issues and with communities” in both countries to resolve these issues, including alleged “complete” water depletion and heavy metal contamination of water sources.

Earlier this month, the company booked an 84% rise in first-quarter profits, boosted by high gold prices, strong Latin American operations, and the sale of its stake in Silver Wheaton.

Goldcorp, which reports in U.S. dollars, earned US$229.5 million, or 32 cents per share, as revenue grew 32% on realized gold price of $932 per ounce.

Revenue was $626.7 million, up from $474.2 million, on production of 521,900 ounces of gold. Production volume was off from 527,000 ounces a year ago as the company's Canadian mines had a slow start to the year.

The profit compared with $124.9 million or 17 cents per share in the first quarter of 2007.

On the price of gold, McArthur predicted Tuesday that it's “going up ... that's why we're in the business.”

He said “we're likely to see four digit prices” for the precious metal again later this year. Gold traded above US$1,000 an ounce for the first time in early March but has fallen since then, closing Tuesday at US$919.50 in New York.

On the health and water issues surrounding the open pit mines in Central America, Amador alleged that tests have shown high levels of mercury, cyanide and arsenic in villagers' blood.

Amador also alleged that Goldcorp's heavy use of water for its gold extraction process has led to complete water depletion in the mining areas and the use of explosives to blast rock has released heavy metals into the air and water.

But, said McArthur, the company's tests have shown “a lot (of the allegations) not to be true,” and that a river continues to flow through the Siria Valley.

Goldcorp's vice-president for corporate development told reporters that the company plans to keep its properties in Central America, despite the controversy.

“Guatemala and Honduras, particularly Guatemala, is a very good place to do business. You have to manage issues like these but we think we've done an outstanding job there,” Charles Jeannes said after the annual meeting.

Turning to corporate activities during the first quarter, Goldcorp sold its remaining 48% stake in Silver Wheaton [TSX:SLW; NYSE:SLW] in a secondary offering of 108 million shares worth C$1.57 billion or C$14.50 per share.

Adjusted for one-time items including a US$136.5-million gain on the sale of Silver Wheaton shares, earnings doubled to US$164.7 million or 23 cents per share, besting the Thomson Financial analyst consensus expectation by two cents a share.

Goldcorp said its US$240-an-ounce cash cost was up from US$181 a year earlier “due to a strengthening Canadian dollar, increased labour and higher consumable costs, partially offset by higher realized copper prices.”

Goldcorp shares closed up C$1.39, or more than 3%, at C$42.70 with more than 3.2 million traded on the Toronto Stock Exchange.

© The Canadian Press 2008