Placer Dome appoints new president

Jay Taylor will take the reigns as president and chief executive officer of Placer Dome (PDG-T) when John Willson steps down at the company’s next annual meeting.

There has been speculation that recent managerial changes at Placer Dome are related to disappointment over the performance of Colorado-based Getchell Gold, which Placer Dome acquired earlier this summer. However, Placer says Willson made it known to the board in late 1997 that he planned to retire when he turned 60. He has been the CEO since 1993.

“I’m delighted by the board’s decision for succession,” says Willson of Taylor. “As a member of Placer Dome’s executive team, Jay has played a key role in Placer Dome’s achievement as a worldwide leader in the gold industry. I am confident he has both the vision and depth of operational experience to assume the leadership of Placer Dome when I step down.”

Taylor, 53, joined Placer Development (one of Placer Dome’s predecessor companies) in 1972. He recently held the position of executive vice-president of Placer’s North American operations. Previously, he was president and CEO of the company’s U.S. and Latin American divisions, and is credited with having directed Placer’s first venture into Chile, in 1989.

Taylor is a graduate of the University of British Columbia, where he obtained a master’s degree in mining engineering.

“I am proud to have the opportunity to lead such a great company,” says Taylor. “Under John’s leadership, we have tripled our reserves, seen a dramatic improvement in the quality of our mine portfolio, achieved a better cost structure and revamped our business focus and corporate culture.”

Willson intends to continue in his capacity of chairman of the World Gold Council, a London-based group that lobbies governments on behalf of the gold industry. He hopes to convince the International Monetary Fund not to sell off its bullion reserves in a bid to ease the debt of third world countries.

Placer produced 821,000 oz. gold in the second quarter of 1999 at a production cost of US$238 per oz. and a cash cost of US$169 per oz.

In the first half of 1999, the major produced 1.5 million oz. gold at a production cost of US$237 and a cash cost of US$167. Placer’s share of gold production for all of 1999 is pegged at 3 million oz. at an average production cost of US$240 per oz. and a cash cost of US$170 per oz.