Placer Dome cuts costs, may slow Las Cristinas
<< Canadian gold producer Placer Dome Inc (Toronto:PDG.TO - news) said on Tuesday it is cutting back on exploration to offset weak prices and considering delaying development of the Las Cristinas mine in Venezuela.
The company has no plans to sell its stake in the mine, which would be one of Latin America's largest, but with gold priced at its lowest level in two decades it will review ''all its business plans,'' spokesman Hugh Leggatt told Reuters.
''We still like the project, we still like Venezuela, but it's just the gold price we don't like,'' Leggatt said. ''That's the question; in this gold price environment should it be put on hold?''
Placer Dome has a 70 percent stake in the joint venture with a Venezuelan government holding company and serves on the managing partner on the project -- which is expected to take two years to complete at a cost of $575 million. The company is discussing the issue with its partner.
Placer Dome had been planning to spend about $100 million on exploration in 1999, but said on Tuesday it was curbing its exploration efforts, and would hold spending on exploration activities to $56 million.
''We have decided that in this price environment we will spend less on looking for new mines, and consequently we are reducing our exploration and project development staff to a nucleus of key people,'' president John Willson said in a written statement ... more ... >>
biz.yahoo.com
Morning Richard,
I see all someone has to do is mention Ron's name to bring him back to the thread ... He must do a search on his own name every morning.
Sorta like trolling for fish.
LOL
John |
