A new quarterly record for gold production was set by Placer Dome (TSE), which turned out a total of 505,000 oz. for its most recent quarter ended June 30.
But the company’s latest operating results show that the bulk of this production came from its interest in the Porgera mine in Papua New Guinea, which achieved record production of 401,832 oz. for the quarter. Gold production for the first half of this year reached 965,000 oz., 28% higher than in the comparable 1991 period. Significant production increases were achieved at the Porgera and Misima mines in Papua New Guinea, the Campbell and Dome mines in Canada, the Bald Mountain mine in the U.S. and La Coipa mine in Chile.
The international major, which expects to produce more than 1.9 million oz. gold this year, also reported lower costs at many of its operations. In the first half, all the company’s 15 gold mines operated with cash production costs below the average spot price. As a result, the average cash production cost for gold fell to US$192 per oz., 21% less than in the year-earlier period.
The Porgera mine was also a star performer during this period, turning out 768,825 oz. gold with an average first-half cash production cost of US$83 per oz.
Operating results were even better in the most recent quarter when costs fell to US$184 per oz., the lowest since the fourth quarter of 1987. The company attributed its improved operating performance to increased mill throughput, better grade control during mining and decreases in mine site costs including employment expenses.
Placer’s net earnings for this year’s first half reached US$35 million, up from US$33 million in the year-earlier period
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