A higher gold price and increased investment income helped to boost net earnings in the first half of 1994, Placer Dome (TSE) says.
Earnings of US$61 million were recorded for the 6-month period, a significant improvement over net earnings of US$32 million in the first half of 1993.
Placer Dome’s share of gold production for the 1994 first half was 891,000 oz., compared with 903,000 oz. in the 1993 period. The average cash production cost was US$194 per oz., compared with US$191 a year earlier. The company has mine construction or expansion projects in progress at each of its four operating units. Placer Pacific, a 75.5% subsidiary, is constructing a US$115-million mine at the Osborne project in Australia. Production is expected to begin in mid-1995 and to contribute an average of 29,000 oz. gold and 48 million lb. copper per year to Placer Dome’s account. Open-pit and underground techniques will be used.
The 50% owned Zaldivar copper mine in Chile is in the startup phase, with cathode copper production to begin in mid-1995.
And the Dome mine expansion in Canada is progressing on schedule, within the US$117-million budget. Once the expansion is completed in March, 1995, the combined open-pit and underground operations are expected to produce 315,000 oz. gold per year.
In the U.S., preproduction activities are taking place on the 60% owned Cortez joint venture in Nevada. The Crescent pit south of the Pipeline deposit is expected to produce a total of 217,000 oz. gold during an approximate 3-year period. Evaluation is continuing at the 60% owned South Pipeline gold deposit, and an exploration program is testing other targets in the region.
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