A strong performance from gold operations enabled Placer Dome (TSE) to report a 45% improvement in earnings for the first nine months of this year over the comparable period in 1991.
Net earnings reached US$68 million for the nine months ended Sept. 30, compared with US$47 million a year earlier. The results include gains on the sale of the company’s interest in the Big Bell mine in Australia (US$4 million) and the Marigold mine in Nevada (US$6 million), as well as non-recurring charges of US$7 million for severance costs at operations and head office.
The company’s share of production for the nine months was 1.4 million oz., 21% higher than in the 1991 period, with third-quarter production of 508,000 oz. exceeding the previous record of 505,000 oz. set in the second quarter. The average cash production cost was US$188 per oz. for the nine months, and US$179 for the third quarter, surpassing the previous record of US$182 per oz. in the 1987 fourth quarter.
About three-fourths of the increase in gold production in 1992, over the 1991 period, came from low-cost mines in Papua New Guinea and Chile which together contributed 40% of 1992 consolidated gold production to date. Current mining plans anticipate a reduction in gold grades at the Papua New Guinea mines, which will lead to a reduction in production volumes at these operations, accompanied by increased production costs.
Placer Dome intends to give high priority to the implementation of cost-control measures throughout the organization, and to search for additional reserves to replenish those depleted through mining. Exploration at some mine sites is already generating success, including the Dome mine in Canada where a feasibility study is expected to be completed in 1993. A previous study identified mineralization estimated to contain about two million ounces gold extending under most of the existing surface facilities.
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