/FIRST AND FINAL ADD - TO069 - Placer Dome Inc. Earnings/
CONSOLIDATED STATEMENTS OF EARNINGS (millions of U.S.$, except
share and per share amounts, U.S. GAAP, unaudited)
------------------------------------------- December 31
------------------------------------------- Fourth Quarter Twelve
Months ------------------------------------------- 2004 2003 2004
2003
-------------------------------------------------------------------------
Sales 460 492 1,888 1,763 Cost of sales 311 293 1,149 1,090
Depreciation and depletion 71 71 255 267
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Mine operating earnings 78 128 484 406
-------------------------------------------------------------------------
General and administrative 16 14 64 51 Exploration 25 22 77 76
Resource development, technology and other 22 10 63 64 Write-down
of mining assets and restructuring charges 14 - 20 -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Operating earnings 1 82 260 215
-------------------------------------------------------------------------
Non-hedge derivative gains (losses) (13) 2 (28) 46 Investment and
other business income (loss) 4 (1) (11) (3) Interest and financing
expense (21) (19) (77) (65)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings (loss) before taxes and other items (29) 64 144 193
-------------------------------------------------------------------------
Income and resource tax recovery 66 12 130 44 Equity earnings of
associates 2 4 7 7 Minority interests - 1 (1) 2
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net earnings before the cumulative effect of the change in
accounting policies 39 81 280 246
-------------------------------------------------------------------------
Changes in accounting policies - - 4 (17)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net earnings 39 81 284 229
-------------------------------------------------------------------------
Per common share Net earnings before the cumulative effect of the
changes in accounting policies 0.09 0.20 0.67 0.60 Net earnings
0.09 0.20 0.68 0.56 Dividends - - 0.10 0.10
-------------------------------------------------------------------------
Weighted average number of common shares outstanding (millions)
423.7 410.6 416.8 409.4
-------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (millions of U.S.$,
except share amounts, U.S. GAAP, unaudited)
------------------------------------------- December 31
------------------------------------------- Fourth Quarter Twelve
Months ------------------------------------------- 2004 2003 2004
2003
-------------------------------------------------------------------------
Common shares, opening 2,049 2,003 2,023 1,992 Issued in equity
offering 457 - 457 - Exercise of options 16 20 42 31
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Common shares, closing 2,522 2,023 2,522 2,023
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Accumulated other comprehensive income, opening (27) (38) (35) (50)
Cumulative translation adjustment - - 34 - Unrealized gains on
securities 1 5 - 6 Unrealized gains on currency derivatives 10 12
10 25 Reclassification of currency derivatives to net earnings (2)
- (10) - Unrealized gains (losses) on copper derivatives - (11)
(24) (12) Reclassification of copper derivatives to net earnings 3
1 10 1 Minimum pension liability adjustment - (4) - (5)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Accumulated other comprehensive income, closing (15) (35) (15) (35)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Contributed surplus, opening 69 61 66 60 Stock-based compensation -
5 3 6
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Contributed surplus, closing 69 66 69 66
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Retained earnings, opening 549 264 345 157 Net income 39 81 284 229
Common share dividends - - (41) (41)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Retained earnings, closing 588 345 588 345
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Shareholders' equity 3,164 2,399 3,164 2,399
-------------------------------------------------------------------------
CONSOLIDATED STATEMENTS OF CASH FLOWS (millions of U.S.$, U.S.
GAAP, unaudited) -------------------------------------------
December 31 ------------------------------------------- Fourth
Quarter Twelve Months -------------------------------------------
2004 2003 2004 2003
-------------------------------------------------------------------------
Operating activities Net earnings 39 81 284 229 Add (deduct) non
cash items Depreciation and amortization 71 71 255 267 Deferred
stripping adjustments (10) (6) (44) (3) Deferred income and
resource taxes (61) (67) (159) (130) Deferred reclamation 14 - 22
16 Cumulative translation adjustment - - 34 - Write down of assets
10 - 16 - Deferred commodity and currency sales contracts and
derivatives (5) (11) (18) (45) Unrealized losses (gains) on foreign
currency and option contracts 5 (3) 8 (44) Change in accounting
policy - - (4) 17 Other items, net 3 15 3 46
-------------------------------------------------------------------------
Cash from operation before change in non-cash operating working
capital 66 80 397 353 Change in non-cash operating working capital
(22) (51) (21) (56)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cash from operations 44 29 376 297
-------------------------------------------------------------------------
Investing activities Property, plant and equipment (103) (63) (340)
(213) Business acquisition, net of cash acquired - - - (253)
Short-term investments - - (5) (2) Disposition of assets and
investments 2 8 13 13 Other, net (2) - 4 4
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(103) (55) (328) (451)
-------------------------------------------------------------------------
Financing activities Short-term debt 23 (165) 113 - Long-term debt
and capital leases net (2) 514 (35) 181 Restricted cash (20) -
(110) - Common shares issued 466 20 492 31 Redemption of minority
interest - - - (1) Dividends paid Common shares - - (41) (41)
Minority interest - - - (3)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
467 369 419 167
-------------------------------------------------------------------------
Increase in cash and cash equivalents 408 343 467 13
-------------------------------------------------------------------------
Cash and cash equivalents Beginning of period 609 207 550 537
-------------------------------------------------------------------------
-------------------------------------------------------------------------
End of period 1,017 550 1,017 550
-------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEETS (millions of U.S.$, U.S. GAAP,
unaudited) ASSETS --------------------- As at December 31
--------------------- 2004 2003 (restated) (i)
-------------------------------------------------------------------------
Current assets Cash and cash equivalents 1,017 550 Short-term
investments 14 9 Restricted cash 122 32 Accounts receivable 138 131
Income and resource tax assets 97 17 Inventories 248 244
-------------------------------------------------------------------------
-------------------------------------------------------------------------
1,636 983
-------------------------------------------------------------------------
Investments 50 51 Other assets 173 168 Deferred commodity and
currency sales contract and derivatives 54 48 Income and resource
tax assets 400 230 Deferred stripping 170 107 Property, plant and
equipment 2,607 2,544 Goodwill 454 454
-------------------------------------------------------------------------
-------------------------------------------------------------------------
5,544 4,585
-------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY --------------------- As at
December 31 --------------------- 2004 2003 (restated) (i)
-------------------------------------------------------------------------
Current liabilities Accounts payable and accrued liabilities 268
243 Income and resource taxes liabilities 27 26 Short-term debt 113
- Current portion of long-term debt and capital leases 45 10
-------------------------------------------------------------------------
-------------------------------------------------------------------------
453 279
-------------------------------------------------------------------------
Long-term debt and capital leases 1,109 1,179 Reclamation and post
closure obligations 251 225 Income and resource tax liabilities 265
216 Deferred commodity and currency sales contracts and derivatives
223 209 Deferred credits and other liabilities 79 78 Shareholders'
equity 3,164 2,399
-------------------------------------------------------------------------
-------------------------------------------------------------------------
5,544 4,585
-------------------------------------------------------------------------
(i) On July 23, 2003, Placer Dome completed the acquisition of 100%
of the shares of East African Gold Mines Limited ("East African
Gold"). The transaction provides Placer Dome with the North Mara
open pit gold mine in Northern Tanzania and surrounding land
packages. The results of operations of East African Gold have been
included in the accompanying financial statements since July 23,
2003. With the finalization of the East African Gold purchase price
equation in the second quarter of 2004, there were several
adjustments to the fair values assigned to the acquired assets and
liabilities from the initial purchase price allocation.
Accordingly, Placer Dome's December 31, 2003 consolidated balance
sheet has been restated to reflect these changes. Net earnings for
2003 and the first quarter of 2004 were not re-stated as the effect
on the post acquisition period in those years was not material.
Forward Sales At December 31, 2004, Placer Dome's consolidated
metal sales program consisted of:
-------------------------------------------------------- 2005 2006
2007 2008 2009 2010 2011+ Total
-------------------------------------------------------------------------
Gold (000s ounces):
-------------------------------------------------------------------------
Forward contracts sold(i) Fixed contracts Amount 1,047 1,239 1,245
978 347 246 461 5,563 Average price ($/oz) 330 344 372 396 411 410
474 375 Fixed interest floating lease rate Amount - - 15 232 772
285 625 1,929 Average price ($/oz) - - 414 357 430 420 485 437 A$
forward contracts Amount - 15 24 - - - - 39 Average price ($/oz) -
482 494 - - - - 489
-------------------------------------------------------------------------
Total Forward contracts sold 1,047 1,254 1,284 1,210 1,119 531
1,086 7,531 A$ forward contracts purchased (75) - - - - - - (75)
-------------------------------------------------------------------------
Total Forward contracts 972 1,254 1,284 1,210 1,119 531 1,086 7,456
-------------------------------------------------------------------------
Call options sold and cap agreements(ii) Amount 277 219 115 200 20
40 20 891 Average price ($/oz) 362 357 363 394 500 500 500 380 A$
contracts Amount 56 - - - - - - 56 Average price ($/oz) 391 - - - -
- - 391
-------------------------------------------------------------------------
Total Call options sold and cap agreements 333 219 115 200 20 40 20
947
-------------------------------------------------------------------------
Total Firm committed ounces(iii) 1,305 1,473 1,399 1,410 1,139 571
1,106 8,403
-------------------------------------------------------------------------
Contingent call options sold(iv) Knock-in (up and in) Amount 128 52
- - - - 64 244 Average price ($/oz) 404 390 - - - - 429 408 Average
barrier level ($/oz) 439 429 - - - - 429 434 Knock-out (down and
out) Amount 38 42 66 54 117 30 - 347 Average price ($/oz) 415 436
444 458 436 480 - 442 Average barrier level ($/oz) 364 395 387 374
384 390 - 383
-------------------------------------------------------------------------
Total Maximum committed ounces(v) 1,471 1,567 1,465 1,464 1,256 601
1,170 8,994
-------------------------------------------------------------------------
Put options purchased(vi) Amount 718 538 363 179 159 103 99 2,159
Average price ($/oz) 406 416 441 414 407 440 434 418
-------------------------------------------------------------------------
Put options sold(vii) Amount 80 80 160 Average price ($/oz) 250 250
250
-------------------------------------------------------------------------
Contingent call options purchased not included in the above table
total 0.1 million ounces at an average price of $437 per ounce.
----------------------------------------- 2005 2006 2007 2008 2009
Total
-------------------------------------------------------------------------
Silver (000s ounces):
-------------------------------------------------------------------------
Fixed forward contracts(i) Amount - 1,200 - - - 1,200 Average price
($/oz) - 6.25 - - - 6.25 Call options sold(ii) Amount 1,560 3,632
1,050 820 550 7,612 Average price ($/oz) 5.25 9.01 9.11 8.98 8.75
8.23
-------------------------------------------------------------------------
Total committed amount 1,560 4,832 1,050 820 550 8,812
-------------------------------------------------------------------------
Put options purchased(vi) Amount 2,160 3,820 1,050 820 550 8,400
Average price ($/oz) 5.21 6.40 6.89 7.25 7.25 6.29
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Copper (millions of pounds): --------------------------------------
-------------------------------------- Fixed forward contracts(i)
Amount 28.1 Average price ($/lb) 1.19 Call options sold(ii) Amount
103.1 Average price ($/lb) 1.11
-------------------------------------- Total committed amount
Amount 131.2 Average price ($/lb) 1.12
-------------------------------------- Put options purchased (vi)
Amount 100.9 Average price ($/lb) 1.00
-------------------------------------- (i) Forward sales contracts
- Forward sales establish a selling price for future production at
the time they are entered into, thereby limiting the risk of
declining prices but also limiting potential gains on price
increases. The types of forward sales contracts used include: a)
Fixed forward contracts - a deliverable sales contract, denominated
in U.S. dollars, where the interest rate and metal lease rate of
the contract are fixed to the maturity of the contract. The average
price is based on the price at the maturity of the contract. b)
Fixed interest floating lease rate contracts - a deliverable sales
contract, denominated in U.S. dollars, which has the U.S. dollar
interest rate fixed to the maturity of the contract. Gold lease
rates are reset at rollover dates ranging from 3 months to 4 years.
The average price reflects the expected value to maturity of the
contracts based on assumed gold lease rates. c) Australian dollar
forward contracts - a deliverable sales contract denominated in
Australian dollars that has been converted to U.S. dollars at an
exchange rate of 1.2814. On a portion of these contracts, the gold
lease rates have been fixed to maturity. The remaining contracts
include a lease rate allowance or are floating at market rates.
Forward sales that are offset by call options purchased are
combined with the call option purchased and included in put options
purchased. Please refer to item (vi). (ii) Call options sold and
cap agreements - Call options sold by the Corporation provide the
buyer with the right, but not the obligation, to purchase
production from the Corporation at a predetermined price on the
exercise date of the option. Cap agreements represent sales
contracts requiring physical delivery of gold at the prevailing
spot price or the cap option price at the expiry date of the
contract. Call options and cap agreements are disclosed based on
the intended delivery date of the option. The expiry date of the
option may differ from the intended delivery date. The average
price is based on the exercise price of the options. Call options
denominated in Australian dollars have been converted to U.S.
dollars at an exchange rate of 1.2814. (iii) Firm committed ounces
- Firm committed ounces is the total of forward sales and call
options and cap agreements sold net of call options purchased. It
does not include any contingent option commitments, whether bought
or sold. (iv) Contingent call options sold - Contingent call
options sold are option contracts denominated in Australian dollars
that have been converted to U.S. dollars at an exchange rate of
1.2814. These contracts are similar to standard call options except
that they are extinguished or activated when the gold price reaches
a predetermined barrier. Contingent options are path-dependent
since they are dependent on the price movement of gold during the
life of the option or within specified time frames. Knock-out
options consist of down and out options and up and out options. A
down and out option will expire early if the gold price trades
below the barrier price within specified time frames whereas an up
and out option will expire early if the gold price trades above the
barrier price within specified time frames. Knock-in options
consist of up and in and down and in options. An up and in option
will come into existence if the gold price trades above the barrier
price within specified time frames whereas a down and in option
will come into existence if the gold price trades below the barrier
price within specified time frames. As of December 31, 2004, the
positions disclosed as contingent call options sold have not been
extinguished (knocked out) or activated (knocked in) as the gold
price has not traded above or below the barrier levels during the
specified time frames. In the event these positions are activated
they will be reclassified to call options sold. (v) Maximum
committed ounces - Maximum committed ounces is the total of firm
committed ounces and contingent call options sold. This total
represents the maximum committed ounces in each period, provided
the contingent call options sold are not extinguished or are
activated and the contingent call options purchased are not
activated. (vi) Put options purchased - Put options purchased by
the Corporation establish a minimum sales price for the production
covered by such put options and permit the Corporation to
participate in any price increases above the strike price of such
put options. Certain positions disclosed as put options are a
combination of a purchased call option and a forward sale of the
same amount and maturity. Therefore, the amount of call options
purchased offsets the committed ounces of the corresponding forward
sale. The combined instrument is referred to as a synthetic put.
(vii) Put options sold - Put options sold by the Corporation are
sold in conjunction with a forward sales contract or with the
purchase of a higher strike put option. A put option sold gives the
put buyer the right, but not the obligation, to sell gold to the
put seller at a predetermined price on a predetermined date. At
December 31, 2004, Placer Dome's consolidated foreign currency
program consisted of: -------------------------------- 2005 2006
2007 Total
-------------------------------------------------------------------------
Australian Dollars (millions USD) Fixed forward contracts(i) Amount
54.3 37.1 5.0 96.4 Average rate (AUD/USD) 1.8182 1.9168 1.5713
1.8433 Put options sold(ii) Amount - 20.0 5.5 25.5 Average rate
(AUD/USD) - 1.5972 1.6537 1.6093
-------------------------------------------------------------------------
Total committed dollars Amount 54.3 57.1 10.5 121.9 Average rate
(AUD/USD) 1.8182 1.8049 1.6145 1.7944
-------------------------------------------------------------------------
Call options purchased(iii) Amount 75.0 23.5 12.0 110.5 Average
rate (AUD/USD) 1.3455 1.5099 1.6431 1.4128
-------------------------------------------------------------------------
Canadian Dollars (millions USD)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Call options purchased(iii) Amount 66.0 - - 66.0 Average rate
(CAD/USD) 1.2363 - - 1.2363
-------------------------------------------------------------------------
(i) Fixed forward contracts establish an exchange rate of U.S.
dollar to the operating currency of the region at the time they are
entered into, thereby limiting the risk of exchange rate
fluctuations. (ii) Put options sold by the Corporation provide the
buyer with the right, but not the obligation, to purchase U.S.
dollars from the Corporation at a predetermined exchange rate on
the exercise date of the options. (iii) Call options purchased by
the Corporation establish a minimum exchange rate for converting
U.S. dollars to the operating currency of the region for the amount
hedged, but permit the Corporation to participate in any further
weakness in the hedged currency. Mineral Reserves(1)(2)(9)(12) -
Proven and Probable(2) Estimates of the Corporation's share at
December 31, 2004
-------------------------------------------------------------------------
MINE BY METAL PROVEN MINERAL RESERVES PROBABLE MINERAL RESERVES
-------------------------------------------------------------------------
Contained Contained Tonnes Grade oz Tonnes Grade oz (000s) (g/t)
(000s) (000s) (g/t) (000s)
-------------------------------------------------------------------------
GOLD Canada Campbell 1,039 18.6 621 1,574 16.0 811 Musselwhite
4,243 5.5 754 3,312 5.5 590 Porcupine 11,454 1.3 481 24,014 1.6
1,273 United States Bald Mountain 10,637 1.0 332 8,715 2.2 617
Cortez(8) 115,925 1.8 6,601 59,668 1.2 2,257 Golden Sunlight 7,171
2.2 501 3,706 1.9 227 Turquoise Ridge 3,080 20.9 2,065 1,586 21.3
1,085 Australia Granny Smith 4,180 2.1 288 4,556 3.7 542 Henty - -
- 749 10.1 242 Kalgoorlie West 164 4.2 22 7,922 3.5 891 Kanowna
Belle 6,871 5.3 1,164 4,297 4.6 640 Osborne 5,352 0.9 156 2,404 0.6
50 Papua New Guinea Porgera(8) 36,813 3.5 4,094 6,962 6.2 1,391
South Africa South Deep(8)(9) 6,131 9.6 1,889 104,684 7.7 25,919
Tanzania North Mara 6,294 2.3 464 27,758 3.9 3,444 Chile La Coipa
9,158 1.3 369 4,089 1.0 137
-------------------------------------------------------------------------
-------------------------------------------------------------------------
19,801 40,116
-------------------------------------------------------------------------
SILVER La Coipa 9,158 68.1 20,043 4,089 94.6 12,437
-------------------------------------------------------------------------
-------------------------------------------------------------------------
20,043 12,437
-------------------------------------------------------------------------
COPPER Contained Contained Tonnes Grade lbs Tonnes Grade lbs (000s)
(%) (millions) (000s) (%) (millions)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Zaldivar(8) 132,347 0.685 1,998 288,926 0.660 4,204 Osborne 5,352
1.829 216 2,404 2.336 124
-------------------------------------------------------------------------
-------------------------------------------------------------------------
2,214 4,238
-------------------------------------------------------------------------
---------------------------------------------------------- MINE BY
METAL TOTAL PROVEN AND PROBABLE MINERAL RESERVES
----------------------------------------------------------
Contained Tonnes Grade oz Recovery (000s) (g/t) (000s) (%)(1)
---------------------------------------------------------- GOLD
Canada Campbell 2,613 17.0 1,432 95.5 Musselwhite 7,555 5.5 1,344
95.7 Porcupine 35,468 1.5 1,754 90.5 United States Bald Mountain
19,532 1.5 949 76.8 Cortez(8) 175,593 1.6 8,858 78.5 Golden
Sunlight 10,877 2.1 728 79.3 Turquoise Ridge 4,666 21.0 3,150 90.8
Australia Granny Smith 8,736 3.0 830 86.0 Henty 749 10.1 242 94.6
Kalgoorlie West 8,086 3.5 913 96.0 Kanowna Belle 11,168 5.0 1,804
89.3 Osborne 7,756 0.8 206 80.0 Papua New Guinea Porgera(8) 43,775
3.9 5,485 83.0 South Africa South Deep(8)(9) 110,815 7.8 27,808
97.0 Tanzania North Mara 34,052 3.6 3,908 89.0 Chile La Coipa
13,247 1.2 506 81.0
----------------------------------------------------------
---------------------------------------------------------- 59,917
---------------------------------------------------------- SILVER
La Coipa 13,247 76.3 32,480 63.6
----------------------------------------------------------
---------------------------------------------------------- 32,480
---------------------------------------------------------- COPPER
Contained Tonnes Grade lbs Recovery (000s) (%) (millions) (%)(1)
----------------------------------------------------------
----------------------------------------------------------
Zaldivar(8) 421,273 0.668 6,202 81.0 Osborne 7,756 1.986 340 94.7
----------------------------------------------------------
---------------------------------------------------------- 6,542
---------------------------------------------------------- Rounding
differences may occur. Notes: Refer to notes following these
tables. Reconciliation of Mineral Reserves(1)(2)(9)(12) - Proven
and Probable(2) Estimates of the Corporation's share
-------------------------------------------------------------------------
Other Mineral increase or Mineral Reserves (decrease) Reserves
December 31, Mined in in mineral December 31, MINE BY METAL 2003
2004(5) reserves(6) 2004
-------------------------------------------------------------------------
GOLD (000s ozs) Canada Campbell 1,430 218 220 1,432 Musselwhite
1,402 171 113 1,344 Porcupine 1,549 219 424 1,754 United States
Bald Mountain 676 67 340 949 Cortez 7,646 891 2,103 8,858 Golden
Sunlight 706 3 25 728 Turquoise Ridge 3,642 140 (352) 3,150
Australia Granny Smith 1,404 299 (275) 830 Henty 333 148 57 242
Kalgoorlie West 1,003 275 185 913 Kanowna Belle 2,246 265 (177)
1,804 Osborne 237 51 20 206 Papua New Guinea Misima 40 46 6 -
Porgera 5,391 865 959 5,485 South Africa South Deep(9) 28,442 220
(414) 27,808 Tanzania North Mara 3,808 227 327 3,908 Chile La Coipa
590 112 28 506
-------------------------------------------------------------------------
-------------------------------------------------------------------------
60,545 4,217 3,589 59,917
-------------------------------------------------------------------------
SILVER (000s ozs) La Coipa 38,232 6,423 671 32,480 Misima 374 374 -
-
-------------------------------------------------------------------------
-------------------------------------------------------------------------
38,606 7,825 1,699 32,480
-------------------------------------------------------------------------
COPPER (million lbs) Zaldivar 6,534 424 92 6,202 Osborne 418 93 15
340
-------------------------------------------------------------------------
-------------------------------------------------------------------------
6,952 517 107 6,542
-------------------------------------------------------------------------
Rounding differences may occur. Notes: Refer to the notes following
these tables. Mineral Resources(3)(4)(7)(9)(12) (in addition to
mineral reserves) - Measured, Indicated and Inferred(4) Estimates
of the Corporation's share at December 31, 2004
--------------------------------------------------------------------
--------------------------------------------------------------------
MINE BY METAL MEASURED MINERAL INDICATED MINERAL RESOURCES
RESOURCES
--------------------------------------------------------------------
--------------------------------------------------------------------
Contained Contained Tonnes Grade oz Tonnes Grade oz (000s) (g/t)
(000s) (000s) (g/t) (000s)
--------------------------------------------------------------------
--------------------------------------------------------------------
GOLD Canada Campbell 1,286 17.4 720 3,936 7.8 987 Musselwhite 1,056
3.9 133 910 6.5 190 Porcupine 3,167 2.6 267 24,431 1.9 1,469 United
States Bald Mountain 31,783 0.8 844 16,829 1.1 578 Cortez(8) 73,630
1.2 2,868 97,697 0.8 2,423 Golden Sunlight 5,841 1.7 313 1,411 3.0
135 Turquoise Ridge 2,008 13.4 866 795 11.9 306 Australia Granny
Smith 81 7.5 19 2,839 2.7 248 Henty - - - 68 7.0 15 Kalgoorlie West
264 1.0 9 6,853 2.0 433 Kanowna Belle 6,066 5.2 1,020 5,392 4.5 786
Osborne 1,777 1.4 80 2,964 1.1 109 Papua New Guinea Porgera(8)
14,808 3.2 1,508 11,873 2.3 863 South Africa South Deep(8)(9) 208
13.5 89 15,354 11.0 5,434 Tanzania North Mara 481 1.7 26 10,123 2.2
723 Chile La Coipa 9,076 0.9 266 5,034 1.1 176
--------------------------------------------------------------------
--------------------------------------------------------------------
9,028 14,875
--------------------------------------------------------------------
SILVER La Coipa 9,077 34.0 9,916 5,033 35.2 5,696
--------------------------------------------------------------------
--------------------------------------------------------------------
9,916 5,696
--------------------------------------------------------------------
Contained Contained Tonnes Grade lbs Tonnes Grade lbs COPPER (000s)
(%) (millions) (000s) (%) (millions)
--------------------------------------------------------------------
--------------------------------------------------------------------
Zaldivar(8) 11,439 0.563 141 50,112 0.540 598 Osborne 1,777 4.987
195 2,964 1.797 118
--------------------------------------------------------------------
--------------------------------------------------------------------
336 716
--------------------------------------------------------------------
--------------------------------------------------------------------
--------------------------------------------------------------------
MINE BY METAL TOTAL MEASURED AND INFERRED MINERAL INDICATED
RESOURCES
--------------------------------------------------------------------
--------------------------------------------------------------------
Contained Contained Tonnes Grade oz Tonnes Grade oz (000s) (g/t)
(000s) (000s) (g/t) (000s)
--------------------------------------------------------------------
--------------------------------------------------------------------
GOLD Canada Campbell 5,222 10.2 1,707 4,876 17.9 2,807 Musselwhite
1,966 5.1 323 5,428 6.3 1,087 Porcupine 27,598 2.0 1,736 7,600 3.1
749 United States Bald Mountain 48,612 0.9 1,422 9,805 0.6 193
Cortez(8) 171,327 1.0 5,291 18,597 0.8 489 Golden Sunlight 7,252
1.9 448 335 1.8 19 Turquoise Ridge 2,803 13.0 1,172 2,098 20.6
1,389 Australia Granny Smith 2,920 2.8 267 16,213 5.3 2,763 Henty
68 7.0 15 186 9.1 54 Kalgoorlie West 7,117 1.9 442 12,449 3.8 1,506
Kanowna Belle 11,458 4.9 1,806 534 4.2 73 Osborne 4,741 1.2 189 934
1.2 35 Papua New Guinea Porgera(8) 26,681 2.8 2,371 3,522 6.9 785
South Africa South Deep(8)(9) 15,562 11.0 5,523 - - - Tanzania
North Mara 10,604 2.2 749 4,117 3.2 424 Chile La Coipa 14,110 1.0
442 523 0.7 12
--------------------------------------------------------------------
--------------------------------------------------------------------
23,903 12,385
--------------------------------------------------------------------
SILVER La Coipa 14,110 34.4 15,612 523 62.4 1,049
--------------------------------------------------------------------
--------------------------------------------------------------------
15,612 1,049
--------------------------------------------------------------------
Contained Contained Tonnes Grade lbs Tonnes Grade lbs COPPER (000s)
(%) (millions) (000s) (%) (millions)
--------------------------------------------------------------------
--------------------------------------------------------------------
Zaldivar(8) 61,551 0.545 739 35,139 0.499 377 Osborne 4,741 2.992
313 934 1.895 39
--------------------------------------------------------------------
--------------------------------------------------------------------
1,052 426
--------------------------------------------------------------------
Rounding differences may occur. Notes: Refer to notes following
these tables. Mineral Resources - Exploration and Development
Properties(3)(4)(7)(12) (Measured, Indicated and Inferred)(4)
Estimates of the Corporation's Share at December 31, 2004
--------------------------------------------------------------------
--------------------------------------------------------------------
PROPERTY BY METAL MEASURED MINERAL INDICATED MINERAL RESOURCES
RESOURCES
--------------------------------------------------------------------
--------------------------------------------------------------------
Contained Contained Tonnes Grade oz Tonnes Grade oz (000s) (g/t)
(000s) (000s) (g/t) (000s)
--------------------------------------------------------------------
--------------------------------------------------------------------
GOLD Cerro Casale(10) 103,413 0.8 2,493 464,526 0.7 10,471 Donlin
Creek(11) 5,530 3.1 559 76,650 2.9 7,240 Mount Milligan 156,497 0.5
2,263 251,957 0.4 3,362 Pueblo Viejo 118,326 3.2 12,280 31,937 2.9
2,973
--------------------------------------------------------------------
--------------------------------------------------------------------
17,595 24,046
--------------------------------------------------------------------
SILVER Pueblo Viejo 118,326 18.2 69,138 31,937 13.3 13,637
--------------------------------------------------------------------
--------------------------------------------------------------------
69,138 13,637
--------------------------------------------------------------------
Contained Contained Tonnes Grade lbs Tonnes Grade lbs COPPER (000s)
(%) (millions) (000s) (%) (millions)
--------------------------------------------------------------------
--------------------------------------------------------------------
Cerro Casale(11) 103,413 0.250 570 464,526 0.260 2,685 Mount
Milligan 156,497 0.198 683 251,957 0.175 972
--------------------------------------------------------------------
--------------------------------------------------------------------
1,253 3,657
--------------------------------------------------------------------
--------------------------------------------------------------------
--------------------------------------------------------------------
PROPERTY BY METAL TOTAL MEASURED AND INFERRED MINERAL INDICATED
MINERAL RESOURCES RESOURCES
--------------------------------------------------------------------
--------------------------------------------------------------------
Contained Contained Tonnes Grade oz Tonnes Grade oz (000s) (g/t)
(000s) (000s) (g/t) (000s)
--------------------------------------------------------------------
--------------------------------------------------------------------
GOLD Cerro Casale(10) 567,939 0.7 12,964 87,310 0.6 1,782 Donlin
Creek(11) 82,180 3.0 7,799 99,540 3.1 10,016 Mount Milligan 408,454
0.4 5,625 35,393 0.4 444 Pueblo Viejo 150,263 3.2 15,253 2,148 2.9
199
--------------------------------------------------------------------
--------------------------------------------------------------------
41,641 12,441
--------------------------------------------------------------------
SILVER Pueblo Viejo 150,263 17.1 82,775 2,148 12.6 873
--------------------------------------------------------------------
--------------------------------------------------------------------
82,775 873
--------------------------------------------------------------------
Contained Contained Tonnes Grade lbs Tonnes Grade lbs COPPER (000s)
(%) (millions) (000s) (%) (millions)
--------------------------------------------------------------------
--------------------------------------------------------------------
Cerro Casale(11) 567,939 0.260 3,255 87,310 0.330 645 Mount
Milligan 408,454 0.184 1,655 35,393 0.146 114
--------------------------------------------------------------------
--------------------------------------------------------------------
4,910 759
--------------------------------------------------------------------
Rounding differences may occur. Refer to notes following these
tables. CAUTIONARY NOTE TO U.S. INVESTORS CONCERNING ESTIMATES OF
MEASURED, INDICATED AND INFERRED MINERAL RESOURCES: In this
document the Corporation uses the term "mineral resources" and its
subcategories "measured", "indicated" and "inferred" mineral
resources. Investors are advised that while such terms are
recognized and required by Canadian regulations, the U.S.
Securities and Exchange Commission does not recognize them. U.S.
investors are cautioned not to assume that any part or all of
mineral deposits in these categories will ever be converted into
reserves. "Inferred mineral resources" have a great amount of
uncertainty as to their existence, and great uncertainty as to
their economic and legal feasibility. It cannot be assumed that all
or any part of an inferred mineral resource will ever be upgraded
to a higher category. Under Canadian rules, issuers must not make
any disclosure of results of an economic evaluation that includes
inferred mineral resources, except in rare cases. U.S. investors
are cautioned not to assume that part or all of an inferred mineral
resource exists, or is economically or legally mineable. Notes to
the Mineral Reserves, Reconciliation of Mineral Reserves, Mineral
Resources and Mineral Resources - Exploration and Development
Properties Tables: (1) The Corporation's mineral reserves are
estimated as at December 31, 2004 using appropriate cut-off grades
associated with an average long-term gold price of $350 per ounce
(except at South Deep where a gold price of $325 per ounce was used
- see note 9) (2003 - $325), silver price of $5.00 per ounce (2003
- $4.75) and copper price of $0.90 per pound (except at Osborne
where, due to its shorter life a copper price of $1.09 per pound
was used) (2003 $0.85) and on Canadian and Australian dollar, Papua
New Guinean kina, Chilean peso and South African rand average
long-term exchange rates to the U.S. dollar of 1.43, 1.54, 3.33,
675 and 8.75 to 1, respectively (2003 - 1.45, 1.667, 4.00, 750 and
7 to 1, respectively). The estimates incorporate the current and/or
expected mine plans and cost levels at each property. Recovery is
approximate and is stated as a percentage of contained ounces for
gold and silver and contained pounds for copper. With respect to
long-term mines with a larger mineral reserve base and properties
under development, significant capital expenditures may be required
for mine construction prior to the start of commercial production
and for subsequent exploitation. The qualified persons responsible
for mineral reserve estimates are listed under note 12. Consistent
with Placer Dome's mineral reserve estimation practices,
independent data verification has not been performed. (2) A
"mineral reserve" is the economically mineable part of a measured
or indicated mineral resource demonstrated by at least a
preliminary feasibility study. This study must include adequate
information on mining, processing, metallurgical, economic and
other relevant factors that demonstrate, at the time of reporting,
that economic extraction can be justified. A mineral reserve
includes diluting materials and allowances for losses that may
occur when the material is mined. A "proven mineral reserve" is the
economically mineable part of a measured mineral resource
demonstrated by at least a preliminary feasibility study. This
study must include adequate information on mining, processing,
metallurgical, economic and other relevant factors that
demonstrate, at the time of reporting, that economic extraction is
justified. A "probable mineral reserve" is the economically
mineable part of an indicated, and in some circumstances a
measured, mineral resource demonstrated by at least a preliminary
feasibility study. This study must include adequate information on
mining, processing, metallurgical, economic and other relevant
factors that demonstrate, at the time of reporting, that economic
extraction can be justified. The above definitions of "mineral
reserve", "proven mineral reserve" and "probable mineral reserve"
conform to Canadian Institute of Mining, Metallurgy and Petroleum
("CIM") definitions of these terms as at the effective date of
estimation as required by National Instrument 43-101 of the
Canadian Securities Administrators ("NI 43-101"). (3) These mineral
resources are in addition to gold, silver and copper mineral
reserves and have been estimated as at December 31, 2004 using
appropriate cut-off grades associated with an average long-term
gold price of $425 per ounce and copper price of $1.00 per pound.
With respect to exploration properties and properties under
development, significant capital expenditures would be required for
mine construction prior to the start of commercial production. The
qualified persons responsible for mineral resource estimates are
listed under note 12. Consistent with Placer Dome's mineral
resource estimation practices, independent data verification has
not been performed except in the case of certain exploration
properties. Mineral resources which are not mineral reserves do not
have demonstrated economic viability. Where this document refers to
measured, indicated or inferred mineral resources, these would be
described as mineralized material in the U.S. reporting
environment. (4) A "mineral resource" is a concentration or
occurrence of natural, solid, inorganic or fossilized organic
material in or on the earth's crust in such form and quantity and
of such a grade or quality that it has reasonable prospects for
economic extraction. The location, quantity, grade, geological
characteristics and continuity of a mineral resource are known,
estimated or interpreted from specific geological evidence and
knowledge. A "measured mineral resource" is that part of a mineral
resource for which quantity, grade or quality, densities, shape,
and physical characteristics are so well established that they can
be estimated with confidence sufficient to allow the appropriate
application of technical and economic parameters, to support
production planning and evaluation of the economic viability of the
deposit. The estimate is based on detailed and reliable
exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes that are spaced closely enough to
confirm both geological and grade continuity. An "indicated mineral
resource" is that part of a mineral resource for which quantity,
grade or quality, densities, shape and physical characteristics,
can be estimated with a level of confidence sufficient to allow the
appropriate application of technical and economic parameters, to
support mine planning and evaluation of the economic viability of
the deposit. The estimate is based on detailed and reliable
exploration and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits,
workings and drill holes that are spaced closely enough for
geological and grade continuity to be reasonably assumed. An
"inferred mineral resource" is that part of a mineral resource for
which quantity and grade or quality can be estimated on the basis
of geological evidence and limited sampling and reasonable assumed,
but not verified, geological and grade continuity. The estimate is
based on limited information and samplings gathered through
appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes. The above definitions of "mineral
resource", "measured mineral resource", "indicated mineral
resource" and "inferred mineral resource" conform to CIM
definitions of those terms as at the effective date of estimation,
as required by NI 43-101. Mineral resources which are not mineral
reserves do not have demonstrated economic viability. (5) Based on
2004 production divided by the recovery percentage for each mine.
(6) Increase (decrease) in mineral reserves resulted from
reclassifications between mineral resources and mineral reserves,
acquisition and divestiture of mineral reserves during the year,
changes due to geological remodeling and mine planning, changes in
currency exchange rates and costs of input commodities and the
impact of an increase in the average long term gold price from $325
to $350 per ounce. (7) Increase (decrease) in mineral resources
resulted from reclassifications between mineral resources and
mineral reserves, changes due to geological remodeling, exploration
activity, changes in currency exchange rates and the impact of a
decrease in the average long term gold price from $450 to $425 per
ounce. The overall reduction of measured and indicated gold mineral
resources at mine sites to 23.9 million ounces at December 31, 2004
from 42.0 million ounces at December 31, 2003 was primarily due to
a previously announced 14.1 million ounce decrease at South Deep as
a result of a review completed in the middle of 2004 (refer to note
9). (8) Economic cut-off grades for material properties: The
cut-off grades for a particular property can vary depending on the
various rock types, metallurgical processes and mining methods.
Cut-off grades are therefore quoted below as a range for each
material property to reflect the variability of these parameters.
--------------------------------------------
-------------------------------------------- MINERAL RESERVES
MINERAL RESOURCES --------------------------------------------
Cut-off grade Cut-off grade (g/t gold, % copper) (g/t gold, %
copper)
--------------------------------------------------------------
--------------------------------------------------------------
Cortez 0.17 - 3.30 g/t 0.17 - 3.30 g/t Porgera 1.00 - 5.00 g/t 1.00
- 4.00 g/t South Deep 5.00 - 7.40 g/t 5.00 g/t Zaldivar 0.283 -
0.289 % 0.245%
-------------------------------------------------------------- The
Corporation is not aware of any environmental, permitting, legal,
title, taxation, socio-political, marketing or other relevant
issues which may materially affect the Corporation's mineral
reserve and mineral resource estimates, other than the factors
discussed in the filings by Placer Dome with the U.S. Securities
and Exchange Commission and Canadian provincial securities
regulatory authorities. (9) Mineral resource and reserve estimates
for South Deep as at December 31, 2004 are based on estimates as at
June 30, 2004, depleted for production in the last six months of
2004. The June 30, 2004 estimates were prepared using appropriate
cut-off grades associated with an average long-term gold price of
$325 per ounce and an average long-term rand to U.S. dollar
exchange rate of 8.75:1. A qualified person employed by the Placer
Dome Western Areas Joint Venture ("PDWAJV") prepared the mineral
resource estimate. Steffen, Robertson and Kirsten (South Africa)
(Pty) Ltd. ("SRK Consulting") were retained by the PDWAJV to review
the mine's mineral reserve estimation process. In completing its
review, SRK Consulting determined that additional geological
modeling at South Deep was advisable, and the mineral reserve
estimate has been qualified accordingly. SRK Consulting was of the
view that additional geological modeling would improve the
understanding of the Phase 1 mine mineral resource estimate and
thus reduce the risks associated with applying this interpretation
to the Phase 2 area. It would also improve the confidence in the
various mining methods selected for Phase 2 and associated
production schedules. Accordingly, the mine continues to work to
improve the mineral resource and mineral reserve estimation to
address the qualifying issues raised by SRK Consulting. This is
consistent with the ongoing mineral resource estimation process of
the mine and its strategy to optimize the operation. Additional
geological modeling, changes in economic assumptions and the
long-term cost structure of the mine may impact future mineral
reserve and mineral resource estimates. It is expected that this
work will be completed for Placer Dome's year- end 2005 disclosure.
(10) Assuming 51% indirect ownership by Placer Dome, which
ownership interest is subject to certain obligations of Placer Dome
under the terms of a shareholders agreement. The other indirect
owners of the Cerro Casale property are Bema Gold Corporation (24%)
and Arizona Star Resource Corp. (25%). (11) Assuming 70% ownership
by Placer Dome; the other owner of the Donlin Creek property is
NovaGold Resources Inc. On February 11, 2003, Placer Dome announced
that it was exercising its option to earn back to a 70% interest in
Donlin Creek. In order to do this, Placer Dome must spend $32
million over 5 years and complete a feasibility study, followed by
a positive construction decision for a mine that would produce
600,000 ounces of gold per annum. If Placer Dome chooses to
terminate such expenditures and not to complete its earn-in, the
Corporation retains its 30% interest. (12) The Corporation's
mineral reserve and mineral resource estimates are based on
information prepared by or under the supervision of one or more
"qualified persons", as that term is defined in NI 43-101. The
qualified persons responsible for the Corporation's mineral reserve
and mineral resource estimates as at December 31, 2004 are listed
below. All named persons are, or were at the time the estimates
were prepared, employees of Placer Dome. In estimating the
applicable mineral reserves and mineral resources, the qualified
persons have used assumptions, parameters and methods appropriate
for each property and have verified the underlying data as
appropriate in their professional opinion (including sampling,
analytical and test data).
--------------------------------------------------------
-------------------------------------------------------- MINERAL
RESERVES
-------------------------------------------------------------------------
BY PROPERTY Name Title
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Campbell Stephane Blais Chief Engineer
-------------------------------------------------------------------------
Musselwhite Robert MacDonald Chief Mine Engineer
-------------------------------------------------------------------------
Porcupine Stephen Taylor Senior Engineer Peter Andrews Senior Open
Pit Project Engineer Jason Floyd Senior Open Pit Engineer
-------------------------------------------------------------------------
Bald Mountain Tim Thompson Chief Geologist Britt Buhl Business
Systems Co-ordinator
-------------------------------------------------------------------------
Cortez Bill Martinich Technical Service Superintendent
-------------------------------------------------------------------------
Golden Sunlight Paul Buckley Engineering Superintendent
-------------------------------------------------------------------------
Turquoise Ridge Simon Jackson Chief Engineer
-------------------------------------------------------------------------
Granny Smith Ray Hodson Chief Mining Engineer Richard Boffey
Underground Project Manager
-------------------------------------------------------------------------
Henty Simon Pollard Senior Geologist
-------------------------------------------------------------------------
Kalgoorlie West Mark Kaesehagen Project Development Manager Dan
Doherty Underground Superintendent
-------------------------------------------------------------------------
Kanowna Belle David Williams Resource Geologist Matthew Varvari
Senior Planning Engineer Mark Kaesehagen Project Development
Manager
-------------------------------------------------------------------------
Osborne Alasdair Noble Minerals Processing Engineer Sharn Morrison
Mine Engineering Team Leader
-------------------------------------------------------------------------
Porgera John Butterworth Senior Planning Engineer
-------------------------------------------------------------------------
South Deep Dexter Ferreira Chief Planning Engineer
-------------------------------------------------------------------------
North Mara Bruce Van Brunt Strategic Planning Engineer
-------------------------------------------------------------------------
La Coipa Mauricio Rubio Gonzalez Senior Production Geologist Andres
Guaringa Vasquez Mine Engineer
-------------------------------------------------------------------------
Zaldivar Eduardo Jofre Chief Mining Engineer
-------------------------------------------------------------------------
Cerro Casale N/A N/A
-------------------------------------------------------------------------
Donlin Creek N/A N/A
-------------------------------------------------------------------------
Mount Milligan N/A N/A
-------------------------------------------------------------------------
Pueblo Viejo N/A N/A
-------------------------------------------------------------------------
--------------------------------------------------------
-------------------------------------------------------- MINERAL
RESOURCES
-------------------------------------------------------------------------
BY PROPERTY Name Title
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Campbell Frank Hrdy Senior Resource Geologist
-------------------------------------------------------------------------
Musselwhite Andrew Cheatle Chief Geologist
-------------------------------------------------------------------------
Porcupine JV Alastair Still Strategic Development Superintendent
Stephen Price Chief Geologist
-------------------------------------------------------------------------
Bald Mountain Tim Thompson Chief Geologist Britt Buhl Business
Systems Co-ordinator
-------------------------------------------------------------------------
Cortez Bill Martinich Technical Service Superintendent
-------------------------------------------------------------------------
Golden Sunlight Paul Buckley Engineering Superintendent
-------------------------------------------------------------------------
Turquoise Ridge Tony Dorff Chief Geologist
-------------------------------------------------------------------------
Granny Smith Bruce Robertson Senior Underground Geologist Richard
Holmes Chief Mine Geologist
-------------------------------------------------------------------------
Henty Simon Pollard Senior Geologist
-------------------------------------------------------------------------
Kalgoorlie West Jon Abbott Senior Resource Geologist Roger Cooper
Senior Resource Geologist
-------------------------------------------------------------------------
Kanowna Belle Jon Abbott Senior Resource Geologist Ben Playford
Senior Mine Geologist
-------------------------------------------------------------------------
Osborne Philip Agnew Resource Geologist Frank Tullemans Geology
Team Leader John Crimeen Senior Project Geologist Richard Lewis
Manager Resource Evaluation
-------------------------------------------------------------------------
Porgera Anthony Burgess Senior Resource Geologist
-------------------------------------------------------------------------
South Deep Adrian Adams Chief Geologist
-------------------------------------------------------------------------
North Mara Darin Labrenz Chief Geologist
-------------------------------------------------------------------------
La Coipa Andres Guaringa Vasquez Mine Engineer Juan Ochoa Matulic
Mine Superintendent
-------------------------------------------------------------------------
Zaldivar Jorge Aceituno Mine Superintendent
-------------------------------------------------------------------------
Cerro Casale Marc Jutras Senior Mining Engineer/ Geostatistician
-------------------------------------------------------------------------
Donlin Creek Marc Jutras Senior Mining Engineer/ Geostatistician
-------------------------------------------------------------------------
Mount Milligan Rob Pease General Manager, Canada Exploration and
Global Major Projects
-------------------------------------------------------------------------
Pueblo Viejo Chris Keech Senior Geologist/ Geostatistician
-------------------------------------------------------------------------
Non-GAAP Measures Placer Dome has included certain non-GAAP
performance measures throughout this document. These non-GAAP
performance measures do not have any standardized meaning
prescribed by GAAP and, therefore, are unlikely to be comparable to
similar measures presented by other companies. Placer Dome believes
that, in addition to conventional measures, prepared in accordance
with U.S. GAAP, certain investors use this information to evaluate
Placer Dome's performance and its ability to generate cash flow for
use in investing and other activities. Accordingly, they are
intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. Set out below are
definitions for these performance measures and reconciliations of
the non-GAAP measures to reported GAAP measures. Cash Flow from
Operations per Common Share Cash flow from operations per common
share is determined by dividing the cash flow from operations by
the weighted average number of common shares outstanding during the
period, as follows: -------------------------------- December 31
-------------------------------- Fourth Quarter Twelve Months
-------------------------------- 2004 2003 2004 2003
-------------------------------------------------------------------------
Cash from operations ($millions) 44 29 376 297
-------------------------------------------------------------------------
Weighted average number of common shares (millions) 423.7 410.6
416.8 409.4
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cash from operations per common share $0.10 $0.07 $0.90 $0.73
-------------------------------------------------------------------------
Unit costs A reconciliation of costs per ounce of gold produced,
calculated in accordance with the Gold Institute Standard, and cost
per pound of copper produced to the Cost of Sales and Depreciation
and Depletion is included below: ($millions except production and
unit costs)(i)
--------------------------------------------------------------
Twelve Months ended December 31
-------------------------------------------------------------- 2004
2003 --------------------------------------------------------------
Gold Copper Gold Copper
-------------------------------------------------------------- Cost
Cost Cost Cost of Deprecia- of Deprecia- of Deprecia- of Depre-
Sales tion Sales tion Sales tion Sales ciation
-------------------------------------------------------------------------
Reported 1,149 255 - - 1,090 267 - - Copper (247) (59) 247 59 (219)
(57) 219 57 Corporate(ii) (4) (18) - - (7) (14) - -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Related to precious metals 898 178 247 59 864 196 219 57 Add La
Coipa 34 10 - - 30 12 - - Deduct minority interest (3) - - - (8)
(1) - - By-product (4) - (17) - (5) - (12) - Roast ore costs (51) -
- - - - - - Reclamation (18) 18 (4) 4 (14) 14 (2) 2 Inventories (3)
(3) (7) (2) (9) (2) 7 3 Other(iii) (15) (2) 8 1 (12) (2) 11 -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
838 201 227 62 846 217 223 62
-------------------------------------------------------------------------
Production reported(i) 3,652 3,652 413 413 3,861 3,861 425 425
Osborne gold ozs (42) (42) - - (37) (37) - - Roast ore ozs (175)
(175) - - - - - - Golden Sunlight ozs (2) (2) - - - - - - La Coipa
gold equivalents ozs 60 60 - - 55 55 - -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Production base for calculation 3,493 3,493 413 413 3,879 3,879 425
425
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Unit costs(i) 240 58 0.55 0.15 218 56 0.52 0.15
-------------------------------------------------------------------------
-------------------------------------------------------------------------
--------------------------------------------------------------
Fourth Quarter
-------------------------------------------------------------- 2004
2003 --------------------------------------------------------------
Gold Copper Gold Copper
-------------------------------------------------------------- Cost
Cost Cost Cost of Deprecia- of Deprecia- of Deprecia- of Depre-
Sales tion Sales tion Sales tion Sales ciation
-------------------------------------------------------------------------
Reported 311 71 - - 293 71 - - Copper (62) (14) 62 14 (57) (15) 57
15 Corporate(ii) 1 (7) - - (4) (4) - -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Related to metals production 250 50 62 14 232 52 57 15 Add La Coipa
9 2 - - 8 4 - - Deduct minority interest - - - - (2) (1) - - By
product (1) - (3) - (2) - (3) - Roast ore costs (18) - - - - - - -
Reclamation (6) 5 (3) 3 (1) 1 (1) 1 Inventories 3 - 2 - 3 - 3 2
Other(iii) (4) 1 2 - (1) 1 3 (2)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
233 58 60 17 237 57 59 16
-------------------------------------------------------------------------
Production reported(i) 927 927 93 93 1,039 1,039 111 111 Osborne
gold ozs (8) (8) - - (12) (12) - - Roast ore ozs (54) (54) - - - -
- - La Coipa gold equivalents ozs 18 18 - - 10 10 - -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Production base for calculation 883 883 93 93 1,037 1,037 111 111
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Unit costs(i) 264 66 0.64 0.18 229 55 0.53 0.14
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(i) Gold production is in thousands of ounces, and unit costs for
gold are in $/oz. Copper production is in thousands of pounds, and
unit costs for copper are in $/lb. (ii) Corporate depreciation
includes the amortization of tax gross ups. (iii) Other consists of
management fees and unusual costs such as significant severance or
costs incurred during a temporary mine shut down, which are
excluded from the determination of unit costs and smelting charges
which are netted against sales revenue but included in the
determination of unit costs. Placer Dome today declared a
semi-annual dividend of $0.05 per common share, payable on April
11, 2005 to shareholders of record at the close of business on
March 11, 2005. Placer Dome's audited consolidated financial
statements prepared in Canadian GAAP will be first mailed to
registered shareholders on or about March 21, 2005, and will be
available on the Placer Dome website at http://www.placerdome.com/
on or about March 1, 2005. The audited consolidated financial
statement prepared in Canadian GAAP will be available on the
website maintained by the Canadian securities regulators at
http://www.sedar.com/, on or about March 1, 2005. Any shareholder
entitled to receive Placer Dome's annual financial statements may
also obtain a copy on request. Placer Dome is one of the world's
largest gold mining companies. Based in Vancouver, Canada, Placer
Dome has interests in 17 mines in seven countries and employs more
than 13,000 people around the world. Placer Dome's shares trade on
the Toronto, New York, Swiss and Australian stock exchanges and
Euronext-Paris under the symbol PDG. Placer Dome will host a
conference call to discuss fourth quarter and year-end results at
7:00am PST/10:00am EST on Thursday, February 24. North American
participants may access the call at (800) 424-9805. International
participants please dial (212) 676-4902. The call can be heard live
on the Placer Dome website at http://www.placerdome.com/, where it
will be accompanied by a webcast presentation. The conference call
will be available for replay until March 10, 2005 by dialling (416)
626-4100, reservation No. 21231253. Placer Dome's 2005 annual
meeting will be held at the Vancouver Convention and Exhibition
Centre on Wednesday, April 27, 2005 at 10:00am PDT. The meeting
will be webcast live at http://www.placerdome.com/. An archived
version of the webcast will be available following the conclusion
of the meeting. Two new candidates have been nominated for election
to the Placer Dome Board of Directors. Don Carty, retired Chairman
and Chief Executive Officer of American Airlines, and Clive Mather,
President and Chief Executive Officer of Shell Canada, will stand
for election at the upcoming annual meeting. Both individuals have
extensive experience leading large, complex multinational
organizations. More information on Messrs. Carty and Mather is
available at http://www.placerdome.com/board. For further
information on this news release please contact: Investor
Relations: Greg Martin (604) 661-3795 or Meghan Brown, (604)
661-1577 Media Relations: Gayle Stewart (604) 661-1911 Toll-free
within North America (800) 565-5815 For enquiries related to
shares, transfers and dividends please contact: CIBC Mellon Trust
Company Toll-free within North America (800) 387-0825 Collect calls
accepted from outside North America (416) 643-5500 Head Office
Suite 1600, Bentall IV, 1055 Dunsmuir Street P.O. Box 49330,
Bentall Postal Station Vancouver, British Columbia, Canada V7X 1P1
tel (604) 682-7082 fax (604) 682-7092 On the internet:
http://www.placerdome.com/ FORWARD-LOOKING STATEMENTS This news
release contains "forward-looking statements" based on Placer Dome
Inc's ("Placer Dome") expectations, estimates and projections as of
the dates which those statements were made. These forward-looking
statements include, among other things, statements with respect to
Placer Dome's business strategy, plans, outlook, long-term growth
in cash flow, earnings per share and shareholder value,
projections, targets and expectations as to reserves, resources,
results of exploration (including targets) and related expenses,
property acquisitions, mine development, mine operations, mine
production costs, drilling activity, sampling and other data,
recovery improvements, future production levels, capital costs,
costs savings, cash and total costs of production of gold, copper
and other minerals, expenditures for environmental matters and
technology, projected life of our mines, reclamation and other post
closure obligations and estimated future expenditures for those
matters, completion dates for the various development stages of
mines, future gold and other mineral prices (including the
long-term estimated prices used in calculating Placer Dome's
mineral reserves), the percentage of production derived from
mechanized mining, currency exchange rates, debt reductions, and
the percentage of anticipated production covered by forward sale
and other option contracts or agreements. Generally, these
forward-looking statements can be identified by the use of
forward-looking terminology such as "anticipate", "project",
"target", "believe", "estimate", "expect", "intend", "should" and
similar expressions. Forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that may
cause Placer Dome's actual results, level of activity, performance
or achievements to be materially different from those expressed or
implied by such forward-looking statements, including: -
uncertainties and costs related to Placer Dome's exploration and
development activities, such as those associated with determining
whether gold or other mineral reserves exist on a property; -
uncertainties related to feasibility studies that provide estimates
of expected or anticipated economic returns from a mining project;
- uncertainties related to expected production rates, timing of
production and the cash and total costs of production and milling;
- uncertainties related to the future development or implementation
of new technologies, research and development and, in each case,
related initiatives and the effect of those on our operating
performance; - uncertainties related to the accuracy of our reserve
and resource estimates and our estimates of future production and
future cash and total costs of production; - uncertainties related
to unexpected judicial or regulatory proceedings; - changes in, and
the effects of, the laws, regulations and government policies
affecting our mining operations, particularly laws, regulations and
policies relating to: - mine expansions, environmental protection
and associated compliance costs arising from exploration, mine
development, mine operations and mine closures; - expected
effective future tax rates in jurisdictions in which our operations
are located; - the protection of the health and safety of mine
workers; and - mineral rights ownership in countries where our
mineral deposits are located, including the effect of the Mineral
and Petroleum Resources Development Act (South Africa); - changes
in general economic conditions, the financial markets and in the
demand and market price for gold, copper and other minerals and
commodities, such as diesel fuel, electricity and other forms of
energy, and fluctuations in exchange rates, particularly with
respect to the value of the U.S. dollar, Canadian dollar,
Australian dollar, Papua New Guinean kina, South African rand and
Chilean peso - the effects of forward selling instruments to
protect against fluctuations in gold and copper prices and exchange
rate movements and the risks of counterparty defaults; -
geopolitical uncertainty and political and economic instability in
the countries in which we operate; and - labour strikes, work
stoppages, or other interruptions to, or difficulties in, the
employment of labour in markets in which we operate mines, or
environmental hazards, industrial accidents or other events or
occurrences that interrupt the production of minerals in our mines.
A discussion of these and other factors that may affect Placer
Dome's actual results, performance, achievements or financial
position is contained in the filings by Placer Dome with the U.S.
Securities and Exchange Commission and Canadian provincial
securities regulatory authorities. This list is not exhaustive of
the factors that may affect our forward-looking statements. These
and other factors should be considered carefully and readers should
not place undue reliance on such forward-looking statements. Placer
Dome does not undertake to update any forward-looking statements
that are incorporated by reference herein, except in accordance
with applicable securities laws. END FIRST AND FINAL ADD
DATASOURCE: Placer Dome Inc. CONTACT: PR Newswire -- Feb. 23
Copyright