Vancouver —
Despite a drop in gold production to 888,000 from 1 million oz. between the two periods, Placer enjoyed significant tax gains in Ontario and Australia. A favourable ruling from the Ontario Court of Appeal enabled the company to post an after-tax gain of US$76 million, and Placer realized a US$37-million non-cash tax gain for unrecorded Australian tax benefits.
Company-wide operating earnings of US$109 million were off slightly from the US$113 million reported in the third quarter of 2003. The decrease reflects less production and fewer sales in the gold division.
Cash production costs for gold mining climbed to US$235 per ounce, compared with US$217 per oz. a year earlier. Placer realized US$382 per oz. for bullion sold, slightly below US$392 in the third quarter of 2003 and also below this year’s average to date of US$389.
Cash production costs for copper were down (the major produced 101 million lbs. in the recent 3-month period at a 56 per lb., compared with 52 per lb. a year earlier), while sales were up (US$1.16 per lb. versus 81).
So far this year, Placer has cranked out 2.7 million oz. gold, down 3% from this time last year. The drop reflects the closure of the Golden Sunlight and Misima mines in Australia, as well as reduced production from Kalgoorlie West and Granny Smith, in the same country.
The company has produced 319 million lbs. copper so far in 2004, up 2% from a year ago. Higher output at the Zaldivar and Osborne mines in Australia are responsible.
Placer announced plans to finance the Cerro Casale gold project in Chile to the tune of US$1.3 billion, and is engaged in a feasibility study at the Cortez Hills gold project in Nevada.
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