Placer’s output surpasses 1 million o\.

With a 43% increase in gold production to a record 1,183,000 ounces, Placer Dome (TSE) surpassed the 1- million-oz. level for the first time in 1989. However, the company’s consolidated 1989 net earnings declined to $125.1 million or 53 cents per share from $262.4 million or $1.16 per share in 1988 when a onetime gain of $150.5 million was recorded on the sale of investments. Sales revenue from mining operations reached $904.3 million for the year ended Dec. 31, compared with $698.5 million in 1988.

The average cash cost of gold production at US$245 for the year was only marginally higher than the US$242 achieved in 1988. This is expected to decrease in 1990 as a result of increased production at North American mines and initial production at the Misima mine in Papua New Guinea.

In 1989, operations started at the Big Bell mine in Western Australia, the Dona Lake mine in Ontario, the Misima mine in Papua New Guinea and the La Coipa mine in Chile. Mill startup at the Granny Smith mine in Australia was in progress in late 1989 and the first gold was poured early this year, with completion ahead of schedule and under budget.

Startup problems have been reported at the Big Bell mine related to drilling and blasting with oversize material affecting the efficiency of shovel operations. A review is under way.

In addition, Placer Dome is preparing an updated capital cost estimate for its Porgera mine project in Papua New Guinea where it is planning a phased expansion of the 1,650-ton-per-day plant to a capacity of 8,800 tons per day. The costs for the overall Porgera mine project are expected to increase from $660 million to about $1,100 million, excluding financing charges, as a result of the mill optimization. Placer Dome (TSE) Year ended Dec. 31 1989 1988 Revenue (000s) $904,300 $698,500 Net earnings (000s) $125,100 $262,400 Net earnings

(per share) 53 cents $1.16004