Placer Dome outlines plans for 2003

Vancouver In addition to ramping up gold production, Placer Dome (PDG-T) plans to reinvest US$220 million on its existing operations this year as well as spend US$60 million on exploration.

During 2003, Placer expects to produce 3.5 million ounces of gold at cash and total costs of approximately US$194 per oz. and US$256 per oz., respectively. The major also plans to produce 400 million pounds of copper at cash and total costs of US$0.49 per lb. and US$0.64 per lb., respectively.

Last year, the company cranked out 2.8 million oz. of gold at cash an total costs of US$178 per oz. and US$231 per oz., respectively. In addition, 427 million pounds of copper were produced at cash and total costs of US$0.45 per lb. and US$0.58 per lb., respectively.

“With the integration of AurionGold nearly complete, we are set to capitalize on our organic growth opportunities,” said Jay Taylor, President and CEO of Placer Dome. “We had an excellent year in 2002, producing 2.8 million ounces of gold, with record high production in the fourth quarter. More importantly, we recorded net earnings of $116 million – the highest since 1990. We intend to build on that success.”

This year, Placer intends to reinvest US$220 million into its existing operations such as South Deep, Zaldivar, Campbell. The corporation has also earmarked US$60 for exploration in 2003. This is up from US$52 million last year. Of that US$60 million, US$36 million will be spent on exploration around existing operations, including US$8 million for the newly acquired Kalgoorlie district.

“We will continue to optimize the existing assets; we will work to convert our 75 million ounces of measured and indicated mineral resources into reserves; and we will begin to realize the rewards of our ongoing investment in research and technology,” commented Taylor.

On the research and development front, Placer intends to fork over US$10 million to continue work on a number of projects. Recently, Placer and Vehicle Projects of Denver, Colorado, have successfully demonstrated the first fuel-cell powered mining vehicle in an operating underground mine. The next step will be to develop a fuel cell powered load-haul-dump machine for testing. Also, the first prototype of the MiniMole has been built and quarry testing is underway. If successful, this mining device will improve safety by removing workers from the rock face. In addition, it may drastically reduce the amount of development and waste dilution that is experienced with conventional mining methods.The corporation is also testing an alternative to cyanide in the processing of certain carbonaceous ore types.

Last year Placer Dome tabled net earnings of US$116 million, or US$33 per share, on sales revenue of US$1.21 billion. This compares with a loss of US$133 million, or US$0.41 per share, on sales revenue of US$1.22 billion, in 2001.

Cash flow from operations over the year tallied to US$320 million, or US$0.92 per share, while mine operating earnings totalled US$324 million.