Placer Dome larger, stronger, more profitable

I write in regard to the lead editorial on Placer Dome (“Placer Doomed?” T.N.M., July 1-7/05). Seldom do I correspond with the print media, but this article and its headline are so inconsistent with Placer Dome’s track record and potential that they demand a response.

I assumed leadership of the company in September of 1999 and, after five years, retired on Sept. 14, 2004. During that period the unit share price rose from US$9.88 to US$17.09 — a 73% increase. Concomitantly, the company’s market capitalization escalated from US$3.2 billion to over US$7 billion — a 120% increase. Net earnings were US$35 million in 1999, but by 2004, they had risen eight-fold to a record US$284 million. In the same period, annual gold and copper production grew by 16% and 55%, respectively.

In short, Placer Dome has become larger, stronger, more profitable and internationally diverse than ever before. This track record does not support your comment, and I quote: “of several years of unspectacular management at the top and inconsistent performance on the ground.”

Finally, I want you to know that I have great confidence in the leadership and employees of Placer Dome today. They will continue to deliver value to their shareholders and for that reason I have maintained ownership of my shares.

Jay Kent Taylor

Former president and CEO

Placer Dome