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Gold/Mining/Energy : Golden Eagle Int. (MYNG) -- Ignore unavailable to you. Want to Upgrade?

To: larry hart who wrote (22826)	5/1/2001 4:31:36 PM
From: larry hart	Read Replies (1) \| Respond to of 34075

Placer Dome Reports Profitable First Quarter Tuesday, April 24, 2001 Vancouver, Canada - (all dollar amounts in U.S. currency) Placer Dome Inc. is pleased to report strong financial results for the three-month period ended March 31, 2001. Mine operating earnings totalled $93 million during the first quarter, compared to $133 million in 2000. Cash flow from operations amounted to $121 million, or $0.37 per share, up from $112 million, or $0.34 per share in the same period last year. Net earnings totalled $16 million, or $0.05 per share, compared to $29 million or $0.09 per share in the corresponding period of 2000. Placer Dome President and CEO Jay Taylor commented that he was pleased with these results given the continuing fall in the gold price in the first quarter. "Despite a further 9% reduction in the gold price since the first quarter of 2000, we have maintained strong mine operating earnings and cash flow from operations", he said. "Our strategy of maximizing the value of our existing assets while following a prudent program of quality reinvestment is paying off." The first quarter net earnings figure includes the impact of unrealized, non-cash, mark-to-market adjustments on metals options and foreign currency forward and option contracts amounting to $19 million. Excluding these provisions, net earnings before unusual items totalled $35 million ($0.11 per share) in the first quarter of 2001, compared to $49 million ($0.15 per share) in the same period last year. Placer Dome continued to reinvest capital at its existing properties during the first quarter, including ongoing development work at Granny Smith to bring the Wallaby deposit into production. In addition, the company completed the sinking of the world's deepest vent shaft at South Deep on schedule and on budget, setting a new standard for mining in South Africa. Pre-feasibility work at Getchell continues as the company works toward completing a full feasibility study by the end of 2002. Placer Dome's share of gold production during the first quarter of 2001 was 694,000 ounces, compared to 786,000 ounces in the same period last year. The lower production resulted in higher unit cash and total costs of $163 and $244 per ounce, respectively, compared to 2000 first quarter cash and total costs of $151 and $220 per ounce, respectively. In addition to gold, Placer Dome produced 100 million pounds of copper during the first quarter at cash and total costs of $0.44 and $0.58 per pound, respectively. This compares to copper production of 107 million pounds at cash and total costs of $0.45 and $0.64 per pound last year. The year-over-year gold production decline was primarily due to the following: a 44% decrease at Granny Smith related to the transition from Sunrise to the new Wallaby deposit; an expected 42% drop in production at Misima as the mine approaches the end of its life; and adjustments to the stoping sequence at Campbell, where production fell by 41% due to rock mechanics problems and seismic activity experienced in 2000. These production decreases were partially offset by an increase of 21% at South Deep due to higher grades and increases at five other mines. "Production levels at each of our other mines remained strong and stable during the first quarter, holding steady at close to last year's levels," Taylor explained. First quarter sales revenue of $341 million was off 11% or $42 million from the same period last year due to the lower gold price and decreased production. Gold revenue decreased by 13% to $260 million, while copper revenue remained relatively steady at $80 million. Placer Dome's strong and balanced forward sales continued to contribute to the bottom line, contributing $49 million to first quarter earnings. The company's average realized gold sales price was $327 per ounce in the first quarter, $63 per ounce above the average spot price of $264 per ounce. This compared to an average realized gold sales price of $355 per ounce in the same period last year, $65 per ounce above the average spot price of $290 per ounce. At the end of the first quarter of 2001, the mark-to-market value of Placer Dome's precious metals forward sales program was approximately $625 million, based on a spot gold price of $259 per ounce. Looking ahead to the remainder of the year, Taylor commented that these positive first quarter results bode well for the company to meet its planned 2001 cash flow and mine operating earnings targets of $400 million. "Our number one commitment is to operate profitably despite a challenging business environment and to deliver competitive returns within our industry," he said. "We are holding steady to our strategy and are turning today's challenges into tomorrow's opportunities." -end-