Low-cost mines in Papua New Guinea and operating improvements at several North American mines enabled Placer Dome (TSE) to more than offset last year’s 7% drop in the average gold price to US$344 per oz. from the 1991 average.
The major company’s share of production in 1992 was 1.95 million oz. at an average cash production cost of US$186 per oz., 17% lower than in 1991. Last year’s improved performance was reflected in the company’s net earnings which totalled US$111 million, compared to a loss of US$236 million in 1991. Last year’s net earnings included a tax recovery of US$39 million, while the 1991 loss reflects writedowns of US$299 million.
Proven and probable reserves were estimated to be 18.4 million oz. at the end of 1992 (after producing 1.9 million oz.), an increase from the 16.8 million oz. reserve base reported a year earlier.
Placer Dome also reported changes to its board of directors to become effective at the annual meeting of shareholders scheduled for May 6 in Toronto. Robert Franklin, president of an investment company, will become chairman to replace Fraser Fell, who will not be standing for re-election as a director. Richard Whittall, Anthony Petrina and Peter Crossgrove will not be standing for re-election as directors.
Crossgrove, once considered a leading contender for either chairman or president of Placer Dome, relinquished his duties as vice-chairman on the appointment of John Willson as president and chief executive officer in January.
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