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Friday, 29th July 2005 (4271 views)

Placer Dome has announced plans for an extensive cost savings programme after posting a second quarter loss of $7million for the three months to June 30th.<br/><br/>The Vancouver-based mining firm reported that the loss amounted to one cent per share, compared with a profit of $33 million or eight cents per share in the same quarter of last year. Sales fell 1.4 per cent over the three months to $460 million, compared with a year earlier.<br/><br/>The company also increased its full-year costs forecast to $280 per ounce of gold, up from earlier guidance of $260 to $270, but insisted that gold production met expectations at 916,000 ounces during the second quarter.<br/><br/>"It has certainly been a tough quarter for us and a tough quarter for you," chief executive Peter Tomsett told reporters. "But I am certainly looking forward to the second half of this year because I know that we are a much better company than these results show. I am very confident that we will be reporting better operating results."<br/><br/>Mr Tomsett announced that Placer Dome is planning job cuts and changes to its mine plans in order to reduce costs and improve operating conditions.<br/><br/>Canada's second-largest gold miner saw share prices drop on the Toronto Stock Exchange after announcing the disappointing quarterly results.<img alt="track" src="http://feeds.directnews.org.uk/feedtrack/dn.gif?feedid=196&itemid=15013318"/>

 

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