Company reports higher gold production

Friday, April 30, 1999 | 5:35 a.m.

That compares with $21 million, or 8 cents per share, in the first quarter of last year.

The corporation produced 683,996 ounces of gold for its account in the first quarter, 7 percent more than the 637,867 ounces produced in the first quarter of last year, at an average cash production cost of $154 per ounce, compared with $184 per ounce a year earlier.

Total production costs averaged $224 per ounce of gold, compared with $259 an ounce in the first quarter of 1998, Placer Dome also reported.

However, cash flow from operations was down $3 million to $100 million in the first quarter of this year, compared with $103 million in the first quarter of 1998.

The corporation also reported its price hedging program enabled Placer Dome to realize prices on first quarter sales of $68 an ounce more than the average London market price of $287 an ounce of gold.

"Our operating results show that the major performance improvements recorded in 1998 are continuing into 1999," said John Willson, president and chief executive officer.

"We are successfully managing in the low gold price environment by empowering our mines to control costs and increase profitability. We expect to be profitable in 1999 even if gold prices do not increase from current levels."