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Placer Dome provides 2005 outlook
All amounts in U.S. dollars
VANCOUVER, Dec. 6 /PRNewswire-FirstCall/ -- Placer Dome Inc. (NYSE, TSX, ASX:
PDG) today announced its operating outlook for 2005.
Gold production is expected to total 3.7 million ounces in 2005, up from 3.6
million ounces forecast in 2004 due to the resumption of milling at the Golden
Sunlight mine in Montana, and increased production at the North Mara mine in
Tanzania and the Granny Smith mine in Australia. These increases will be
partially offset by lower projected production at the Cortez mine in Nevada.
Continued strong currencies against the U.S dollar are expected to result in
higher production costs for 2005 in U.S. dollar terms. Cash costs are forecast
to be between $250 and $260 per ounce, and total costs are expected to be in
the $315 to $325 per ounce range, assuming prevailing foreign exchange rates.
Copper production for 2005 is expected to total 430 million pounds, up from 415
million pounds forecast in 2004 due to higher recoveries at the Zaldivar mine
in Chile and increased throughput at the Osborne mine in Australia. Cash costs
are expected to be in the range of $0.60 to $0.65 per pound, and total costs
are forecast at $0.75 to $0.80 per pound.
"Our production costs will continue to be influenced by currency and input cost
movements," said Peter Tomsett, Placer Dome President and CEO. "However, at
prevailing gold and copper prices our margins remain healthy, which combined
with forecast increased production will maintain financial performance."
Capital expenditures are planned at $250 million in 2005. Deferred stripping
expenditures are expected to total an additional $35 million. Exploration
expenditures are forecast at $90 million, up from $75 million in 2004.
Two-thirds of 2005 exploration spending will be directed toward exploration at
existing mine sites.
"Our investments in mine site exploration are delivering results, which will be
reflected in our year-end reserve estimates," Tomsett said. "Given our recent
successes and the opportunities in our portfolio, the increased budget in 2005
is fully warranted. In addition, we will be making key decisions in 2005 on our
development projects in Nevada, Chile and the Dominican Republic."
Placer Dome employs 13,000 people at 17 mines in seven countries. The
Vancouver-based company's shares trade on the Toronto, New York, Swiss and
Australian stock exchanges and Euronext-Paris under the symbol PDG.
For further information please contact:
Investor/Media Relations: Greg Martin, (604) 661-3795
Meghan Brown, (604) 661-1577
e-mail:
Head Office
Suite 1600, Bentall IV
1055 Dunsmuir Street
(PO Box 49330,
Bentall Postal Station)
Vancouver, British Columbia
Canada V7X 1P1
Tel: (604) 682-7082
Toll-free: 1-800-565-5815
On the internet: http://www.placerdome.com/
CAUTIONARY NOTE
Some of the statements contained in this news release are forward-looking
statements, such as estimates and statements that describe Placer Dome's future
plans, expectations, objectives or goals, including words to the effect that
Placer Dome or management expects a stated condition or result to occur.
Forward-looking statements may be identified by such terms as "believes",
"anticipates", "intends", "expects", "estimates", "may", "could", "would",
"will" or "plan". Such forward-looking statements are made pursuant to the safe
harbour provisions of the United States Private Securities Litigation Reform
Act of 1995. Since forward-looking statements are based on assumptions and
address future events and conditions, by their very nature they involve
inherent risks and uncertainties. Actual results relating to, among other
things, mineral reserves, resources, results of exploration, reclamation and
other post-closure costs, capital costs, mine production costs, taxes, and
Placer Dome's financial condition and prospects, could differ materially from
those currently anticipated in such statements by reason of factors such as the
productivity of Placer Dome's mining properties, the speculative nature of
mining exploration and development activities, changes in general economic
conditions and conditions in the financial markets, including changes to the
interest rate on borrowings, changes in demand and prices for the minerals
Placer Dome produces, changes in the worldwide price of other commodities such
as diesel fuel and electricity, the accuracy of Placer Dome's reserve and
resource estimates and estimates of future production and future cash and total
costs of production, litigation, environmental, legislative and other judicial,
regulatory, political and competitive developments in domestic and foreign
areas in which Placer Dome operates, technological and operational difficulties
encountered in connection with Placer Dome's mining activities, mineral rights
ownership in countries where Placer Dome's mineral deposits are located,
including the effect of the South Africa Mineral and Petroleum Resources
Development Act, labour relations matters, the effects of hedging instruments
to protect against fluctuations in gold and copper prices and the risks of
counterparty defaults, costs and changing foreign exchange rates and other
matters discussed under "Management's Discussion and Analysis" or detailed in
Placer Dome's filings with securities regulatory authorities. This list is not
exhaustive of the factors that may affect any of Placer Dome's forward-looking
statements. These and other factors should be considered carefully and readers
should not place undue reliance on Placer Dome's forward-looking statements.
Further information regarding these and other factors which may cause results
to differ materially from those projected in forward-looking statements are
included in the filings by Placer Dome with the U.S. Securities and Exchange
Commission and Canadian provincial securities regulatory authorities. Placer
Dome does not undertake to update any forward-looking statement that may be
made from time to time by Placer Dome or on its behalf, except in accordance
with applicable securities laws.
DATASOURCE: Placer Dome Inc.
CONTACT: Investor/Media Relations: Greg Martin, (604) 661-3795; Meghan
Brown, (604) 661-1577, e-mail: ; Head
Office: Suite 1600, Bentall IV, 1055 Dunsmuir Street, (PO Box 49330, Bentall
Postal Station), Vancouver, British Columbia, Canada V7X 1P1, Tel:
(604) 682-7082, Toll-free: 1-800-565-5815, On the internet:
http://www.placerdome.com/