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Monday, 20th February 2006 (4286 views)

Canadian gold miner Placer Dome posted a big drop in profits as it absorbed costs related to the impending takeover by Barrick Gold Corp.

Placer reported a drop of 43.6 per cent in fourth quarter profits on Monday. Earnings were $22 million, equivalent to five cents a share, compared to $39 million, or nine cents a share, a year earlier.

Costs related to the takeover, together with write-downs and restructuring charges, amounted to $34 million over the quarter.

Other costs, including those related to resource development and technology, came to $31 million.

Placer sales over the quarter were worth $539 million on the back of 919,000 ounces of gold production, compared to $460 million on 927,000 ounces a year before.

Operating earnings from the company's copper mines tripled over the year-before period, due mainly to lower production costs and higher prices.

A Placer spokesman said: "Higher quarterly mine operating earnings were offset by costs associated with the Barrick offer and increased resource development, technology and other expenses."

Barrick is paying around $12.1 billion to acquire Placer Dome.

 

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