PDG Pendragon Plc

/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

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