Vancouver – It took seven months to gain 100% of AurionGold but Placer Dome (PDG-T) is now looking forward to the improve production profile brought about by the takeover of the Aussie miner.
Placer first made an all share bid for the Australian gold producer on May 26, 2002, and after sweetening the offer with a cash component, the major had gained a controlling interest by the middle of Oct.
Placer believes that it has dealt with its declining gold production through the take over of AurionGold.
For the first nine months of 2002, Placer recorded net earnings of US$113 million or US$0.34 per share, compared to a net loss of US$162 million or US$0.50 per share in the corresponding period of 2001. Cash flow from operations fell to US$280 million, down from US$317 million in the first three quarters of 2001. Mine operating earnings followed suit dropping to US$235 million from US$256 million in the year- earlier period. The shortfall is attributed to lower gold production and lower copper revenue. Sales revenue in the first three quarters fell to US$854 million from US$931 million.
The AurionGold takeover jumps Placer’s interest in its flagship Granny Smith mine in Australia from 60% to 100%, and increases the company’s interest in the Porgera mine in Papua New Guinea from 50% to 75%. The deal also adds three new mines in the Kalgoorlie region of Western Australia and a fourth in Tasmania. The Asia Pacific region is now Placer Dome’s largest producer with expected output of 1.8 million oz per year.
“This region will obviously play a major role in our growth plans for the future,” said Placer’s Chief Executive officer, Jay Taylor.
Placer expects to begin consolidating AurionGold’s results on its financial statements covering the end of Oct. or early Nov. period.
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