Gold: Do they Pan Out?

Placer Dome Inc.

The Company

The Corporation was established on August 13, 1987 by the amalgamation of Placer Development Limited of Vancouver (incorporated in 1926), Dome Mines Limited (incorporated in 1910) and Campbell Red Lake Mines Limited (incorporated in 1944), both of Toronto. Placer Dome has interests in 18 mines, 13 are gold mines: located in Australia, Canada, Chile, Papua New Guinea and the United States. Two new mines have already started up in 1997 and a third, in Venezuela, starts in 1998. By the end of 1996, the Corporation employed 8,300 people (1995- 8,000).

Latest Financials

Placer Dome Inc said on Tuesday that its gold output rose in the first quarter, while its production cost fell, and that its quarterly earnings would improve. Chief Executive John Willson told the annual meeting that a preliminary tally put first-quarter gold production at 530,000 ounces, up from 476,000 ounces in the fourth quarter. Placer's cash production cost dropped to US$225 an ounce from US$238 in the fourth quarter. Willson said the quarterly production rate would rise through the year, and the company repeated its 1997 production forecast of 2.3 million ounces. Asked about the outlook for first-quarter results, Willson told reporters, "...our earnings will obviously improve." "On the other hand, we've seen the price of gold go down. Happily we are substantially hedged against that. But nonetheless our realized price will drop considerably with gold dropping." Placer is due to release its first quarter results on April 23.

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