Placer’s output almost 1.7 million oz.

New ore discovered at nine operating mines are reported to have more than offset the 1.68 million oz. gold produced to the account of Placer Dome (TSE) in 1991.

The Vancouver-based major said gold reserves stood at 16.8 million oz. at the end of 1991, compared with 16.5 million oz. at the end of 1990. And advanced exploration properties controlled by the company are reported to contain more than nine million ounces gold not yet definable as reserves. Placer Dome said the most significant additions to its reserve base occurred at the Bald Mountain, Golden Sunlight and Cortez mines in the U.S., and at the Dome and Detour Lake mines in Canada. The company also noted that an updated ore reserve estimate is expected in mid-1992 for its Porgera mine in Papua New Guinea, following the completion of a drilling program. Last year’s production results include 276,200 oz. gold from the first full calendar year’s operation at Porgera, and 32,000 oz. gold from the new facilities at La Coipa, Chile, which started commercial production last October.

Porgera is turning out gold at a cash production cost of US$77 per oz., and La Coipa at US$133 per oz. The favorable impact of these mines are cited as the primary reason why the company’s average cash production cost declined to US$223 per oz. from US$232 per oz. in 1990. Placer Dome’s average total production cost was US$305 per oz. gold produced.

Because gold prices were lower in 1991 than in 1990, Placer Dome’s gold earnings (before non-recurring items) were US$62.8 million, US$29 million lower than in 1990. Gold sales totalled US$819.7 million at an average realized price of US$399 per oz., taking into account forward sales. Earnings from other metals declined to US$3 million from US$21.9 million in 1990, because of lower metal prices.

Placer Dome reported a loss of US$236.2 million in 1991, which includes net non-recurring charges of US$294.7 million. These charges involve writedowns of mining interests and investments, which include writedowns for the Mount Milligan and Eskay Creek projects in British Columbia, and the Paymaster, Dona Lake and Sigma mines in Eastern Canada.

Consolidated net earnings in 1990 were US$164.6 million, which included net non-recurring gains of US$61.1 million.