Vancouver — The combination of increased production and lower costs to produce an ounce of gold in the second quarter of 2001 propelled Placer Dome (PDG-T) to a first-half profit of US$49 million, or 15 per share.
This compares to a loss of US$42 million, or 13 per share, in the corresponding period last year, when the major took a US$116-million writedown on its now sold Las Cristinas project in Venezuela.
Gold production hit 1.4 million oz. in the first half, roughly in line with the 1.5 million oz tallied in the same period of 2000. Cash and total costs came in at US$156 per oz. and US$231 per oz., respectively. This was a modest increase on the US$156 per oz. and US$225 per oz. recorded in 2000.
Driving the first-half profit were strong gains made in the quarter ended June 30. Placer produced 747,000 oz. during the quarter at a cash and total cost of US$151 and US$219 per oz., respectively. In the second quarter of 2000, the major’s gold production reached 715,000 oz. at cash and total costs of US$163 and US$230 per oz, respectively. Earning for the quarter tallied US$33 million, or 10 per share.
Slightly lower copper production for the first half of the year was offset by lower production costs. Placer produced 200 million lbs. copper at cash and total costs of US44 and US57 per lb. This compares with production of 216 million lbs. in the same period of 2000, when cash and total costs hit US45 and US63, respectively.
Gold production for 2001 is targeted at 2.8 million oz, with cash and total production costs at about US$165 and US$240 per oz, respectively.
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