CG, With PDG costs of production of $260, it is easy to agree with "Another" that $280 is close to an absolute bottom... "The company expects to produce 2.6 million ounces of gold in 1998 for
its account at a cash production cost of about $185 an ounce and a total production cost of about $260 an ounce."
Also with a dismal report and no change in price PDG should now
move-up sharply on any upside in POG...
NEW YORK -(Dow Jones)- Canadian gold-mining firm Placer Dome Inc.
Thursday reported its fourth-quarter net loss widened sharply on a drop
in revenue and after the company took bigger charges than a year ago for
the writedown of mining interests.
Last month, Placer Dome said it would take various fourth-quarter
writedowns caused by weak gold prices and slashed its annual dividend to
10 cents a share from 30 cents.
The Vancouver, British Columbia-based company (PDG) Thursday posted a
loss of $284 million, or $1.16 a share, including charges of $295
million. The per-share impact wasn't provided. Analysts surveyed by
First Call had expected the company to earn 74 cents a share, excluding
charges.
In the year-ago quarter, the company posted a loss of $57 million, or
24 cents a share, on a charge of $90 million for the writedown of mining
interests. Again, the per-share impact wasn't provided.
Revenue, meanwhile, fell to $305 million from $338 million a year
ago.
Preferred share dividends were $3 million versus $1 million in the
quarter and $13 million versus $1 million in the year.
The company said gold production in its latest fourth quarter rose to
705,000 ounces from 476,000 ounces. For the year, gold production
increased to 2.6 million ounces from 1.9 million ounces a year earlier.
The company's cash flow from operations in 1997 rose to $269 million
from $218 million a year earlier. The averaged realized price for gold
was $358 an ounce compared with $406 an ounce in 1996.
Placer Dome's gold hedging program has 35% of 1998 gold production
sold forward at an average price of $460 an ounce.
Placer Dome said its share of ore reserves rose to 31 million ounces
in 1997. It said the most significant reserve additions came from a 31%
increase at the Las Cristinas property in Venezuela, a 13% increase at
the Porgera mine in Papua New Guinea, inclusion of the Mulatos
development property in Mexico and its greater ownership interest in
Porgera.
Placer Dome's exploration expenses are expected to be about $115
million in 1998 on priority projects which include Aldebaran in Chile,
Donlin Creek in Alaska, Cerro Crucitas in Costa Rica, Samira in Niger
and projects in Peru and Canada.
The company expects to produce 2.6 million ounces of gold in 1998 for
its account at a cash production cost of about $185 an ounce and a total
production cost of about $260 an ounce.
Placer Dome also said its board has approved a shareholder rights
plan to replace the existing plan that expires in 1998. The plan is now
in effect, subject to shareholder approval, and is similar to the
expiring plan.
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