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To: pater tenebrarum who wrote (61291)	1/24/2001 3:35:45 PM
From: NOW	Read Replies (1) \| Respond to of 436258

"People still think if you buy good companies, over time they'll do OK. That's a crock" thestreet.com

To: pater tenebrarum who wrote (61291)	1/24/2001 3:50:34 PM
From: re3	Read Replies (2) \| Respond to of 436258

Placer Dome sees no hope of higher gold price, plans massive asset writedowns TORONTO (CP) -- Seeing no prospect of a significant rise in the price of gold, Placer Dome Inc. (PDG:TSE) is reducing the accounting value of its gold reserves to $300 US an ounce from $325. The world's fifth-largest gold miner also cut its estimate of its proved and probable gold reserves by almost 30 per cent. On the brighter side, Vancouver-based Placer Dome said Tuesday that it has produced more than three million ounces of gold for the third straight year and contained costs. "While we were expecting the gold price to move higher, weakness in demand and other fundamentals has increased the risk that the current gold price environment could prevail for some time," Placer Dome president and chief executive officer Jay Taylor said. On the Toronto stock market Wednesday, Placer Dome shares fell 50 cents to $13.10 by midday. The revised book value of $300 US an ounce was still $13.90 above Tuesday's closing spot price for bullion in New York. In light of the reduced gold-price assumption, Placer Dome's proven and probable reserves decreased to 47 million ounces as of Dec. 31, down from 65.9 million ounces that were considered economically recoverable at the end of 1999. This implies a reduction in the ultimate value of mineable reserves to $14.1 billion US from $21.4 billion. The company said the volume of reserves would be cut by a further five per cent if the long-term price of gold fell to $275 US an ounce as central banks sell more of their gold and demand continues to weaken. Placer Dome's news release late Tuesday followed a 25-ton gold auction by the Bank of England at an average price of $268 US an ounce. Placer Dome will release its financial results for 2000 on Feb. 15. Taylor said the company's mines performed well, revenue increased and the cash position improved, but the balance sheet will be marred by writedowns. "Our financial house is in good order; however we have a number of assets that were capitalized on the balance sheet when price expectations were higher," Taylor said in a statement. "Given the continuing weakness in gold-price fundamentals and uncertainty as to price direction, these adjustments are appropriate." Provisions in 2000 include a $116-million-US charge for the previously announced writeoff of Las Cristinas in Venezuela, a gold property regarded as uneconomic at current prices. Other after-tax charges include $111 million for the Porgera open-pit gold mine in Papua New Guinea, $66 million for the Getchell property in Nevada and $32 million for the Osborne copper-gold mine in northeastern Australia. Placer Dome's copper reserves increased 48 per cent during 1999, thanks in part to exploration success at its Zaldivar mine in Chile. Taylor said he expects gold production will hold steady in 2001. In the meantime, "we are relentlessly pursuing cost-reduction initiatives and other measures in response to the business environment."