American Barrick moves up but Placer still top gold producer

Moving up the list of top Canadian gold producers is American Barrick Resources (TSE), which Richard Cohen of securities firm BBN James Capel says could occupy the second position in the country by the end of 1992. For the current year, Barrick is expected to be the fifth largest producer. 0502,0106,0304,0000 1990 1992003 Placer Dome 1,330 1,636 Echo Bay 936 923 LAC Minerals 776 856 Corona 715 674 Amer. Barrick 592 1,112 Teck 426 411 Hemlo Gold 391 407 Cambior 231 259 thousands of ounces004 0000,1106 The largest Canadian gold producer in 1989, Placer Dome (TSE), is expected to top the list again in 1990 with total output of 1,330,000 oz. Placer, which first reached the million-ounce mark in 1989, is expected to produce more than 1.6 million oz. of the yellow metal by the end of 1992.

Barrick’s Goldstrike deposit in Nevada continues to grow in production and reserves, Cohen notes, and he suggests that beyond 1995, Barrick’s production rate could exceed that of Placer.

Referring to Placer, Cohen writes “the company’s growth rate will decline in future as it becomes increasingly difficult to find new properties that could significantly add to overall production. Rather, Placer will be spending a lot of effort to replace the reserves it loses every year.”

Placer’s forecast cash cost in 1990, US$220 per oz., is expected to fall slightly to US$207 in 1992, while Barrick’s anticipated cash cost in 1990, US$221, is expected to drop to US$170 in 1992.