PDG Pendragon Plc

/FIRST AND FINAL ADD - VA057 - PLACER DOME EARNINGS/ CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (millions of U.S.$, except share and per share amounts, U.S. GAAP, unaudited) ------------------------------------ December 31 ------------------------------------ Fourth Quarter Twelve Months ------------------------------------ 2003(i) 2002 2003(i) 2002 ------------------------------------------------------------------------- Sales 492 355 1,763 1,209 Cost of sales 293 212 1,090 698 Depreciation and depletion 71 60 267 187 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Mine operating earnings 128 83 406 324 ------------------------------------------------------------------------- General and administrative 14 12 51 40 Exploration 22 21 76 52 Resource development, technology and other 10 27 64 55 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Operating earnings 82 23 215 177 ------------------------------------------------------------------------- Non-hedge derivative gains (losses) 2 (5) 46 3 Investment and other business income (loss) (1) 7 (3) 39 Interest and financing expense (19) (18) (65) (66) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Earnings before taxes and other items 64 7 193 153 ------------------------------------------------------------------------- Income and resource tax recovery (provision) 12 (4) 44 (34) Equity earnings of associates 4 3 7 5 Minority interests 1 - 2 - ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net earnings before the cumulative effect of the change in accounting policy 81 6 246 124 ------------------------------------------------------------------------- Change in accounting policy - - (17) (8) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Net earnings 81 6 229 116 ------------------------------------------------------------------------- Per common share Net earnings before the cumulative effect of the change in accounting policy 0.20 0.02 0.60 0.35 Net earnings 0.20 0.02 0.56 0.33 Dividends - - 0.10 0.10 ------------------------------------------------------------------------- Weighted average number of common shares outstanding (millions) 410.6 391.3 409.4 349.4 ------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (millions of U.S.$, except share amounts, U.S. GAAP, unaudited) ------------------------------------ December 31 ------------------------------------ Fourth Quarter Twelve Months ------------------------------------ 2003(i) 2002 2003(i) 2002 ------------------------------------------------------------------------- Common shares, opening 2,003 1,584 1,992 1,259 Acquisition of AurionGold Limited - 408 - 710 Exercise of options 20 - 31 23 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Common shares, closing 2,023 1,992 2,023 1,992 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Accumulated other comprehensive income, opening (38) (40) (50) (48) Unrealized gains (losses) in securities 5 (2) 6 5 Unrealized gains on derivatives 2 2 14 3 Minimum pension liability adjustment (4) (10) (5) (10) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Accumulated other comprehensive income, closing (35) (50) (35) (50) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Contributed surplus, opening 61 57 60 57 Stock-based compensation 5 3 6 3 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Contributed surplus, closing 66 60 66 60 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Retained earnings, opening 264 151 157 75 Net income 81 6 229 116 Common share dividends - - (41) (34) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Retained earnings, closing 345 157 345 157 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Shareholders' equity 2,399 2,159 2,399 2,159 ------------------------------------------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOWS (millions of U.S.$, U.S. GAAP, unaudited) ------------------------------------ December 31 ------------------------------------ Fourth Quarter Twelve Months ------------------------------------ 2003(i) 2002 2003(i) 2002 ------------------------------------------------------------------------- Operating activities Net earnings 81 6 229 116 Add (deduct) non cash items Depreciation and amortization 71 60 267 187 Deferred stripping adjustments (6) 4 (3) 17 Deferred income and resource taxes (59) - (130) 8 Deferred reclamation (1) 6 16 12 Equity earnings and dividends 3 4 7 10 Deferred commodity and currency sales contracts and derivatives (11) (14) (45) (14) Unrealized losses (gains) on foreign currency and option contracts (3) 3 (44) (11) Change in accounting policy - - 17 8 Other items, net 8 (1) 39 2 ------------------------------------------------------------------------- Cash from operation before change in non-cash operating working capital 83 68 353 335 Change in non-cash operating assets and liabilities (22) (21) (24) (15) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Cash from operations 61 47 329 320 ------------------------------------------------------------------------- Investing activities Property, plant and equipment (63) (33) (213) (127) Business acquisition, net of cash acquired - (13) (253) (47) Short-term investments - - (2) (1) Disposition of assets and investments 8 9 13 17 Other, net - 1 4 4 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (55) (36) (451) (154) ------------------------------------------------------------------------- Financing activities Short-term debt (165) - - (2) Long-term debt and capital leases net 514 2 181 (32) Common shares issued 20 - 31 23 Redemption of minority interest - - (1) (5) Dividends paid Common shares - - (41) (34) Minority interest - (10) (3) (12) ------------------------------------------------------------------------- ------------------------------------------------------------------------- 369 (8) 167 (62) ------------------------------------------------------------------------- Net increase in cash and cash equivalents 375 3 45 104 ------------------------------------------------------------------------- Cash and cash equivalents Beginning of period 207 534 537 433 ------------------------------------------------------------------------- ------------------------------------------------------------------------- End of period 582 537 582 537 ------------------------------------------------------------------------- CONSOLIDATED BALANCE SHEETS (millions of U.S.$, U.S. GAAP, unaudited) ASSETS --------------------- As at December 31 --------------------- 2003 2002 (restated)(i) ------------------------------------------------------------------------- Current assets Cash and cash equivalents 582 537 Short-term investments 9 7 Accounts receivable 131 103 Income and resource tax assets 17 10 Inventories 244 202 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 983 859 ------------------------------------------------------------------------- Investments 51 53 Other assets 168 154 Deferred commodity and currency sales contract and derivatives 48 - Income and resource tax assets 186 45 Deferred stripping 107 119 Purchased undeveloped mineral interests 429 323 Property, plant and equipment 2,028 1,890 Goodwill 515 430 4,515 3,873 ------------------------------------------------------------------------- LIABILITIES ANDSHAREHOLDERS' EQUITY --------------------- As at December 31 --------------------- 2003 2002 (restated)(i) ------------------------------------------------------------------------- Current liabilities Accounts payable and accrued liabilities 243 193 Income and resource taxes liabilities 20 35 Current portion of long-term debt and capital leases 10 340 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 273 568 ------------------------------------------------------------------------- Long-term debt and capital leases 1,179 607 Reclamation and post closure obligations 225 176 Income and resource tax liabilities 152 84 Deferred commodity and currency sales contracts and derivatives 209 212 Deferred credits and other liabilities 78 67 Shareholders' equity 2,399 2,159 ------------------------------------------------------------------------- 4,515 3,873 ------------------------------------------------------------------------- (i) With the finalization of the AurionGold purchase price allocation in the fourth quarter of 2003, there have been several adjustments to the fair values assigned to the acquired assets and liabilities from the initial purchase price allocation. Accordingly, the results for the first three quarters of 2003 and the 2002 consolidated balance sheet has been restated to reflect these changes. Forward Sales At December 31, 2003, Placer Dome's consolidatedmetal sales program consisted of: -------------------------------------------------------- 2004 2005 2006 2007 2008 2009 2010+ Total ------------------------------------------------------------------------- ------------------------------------------------------------------------- Gold (000s ounces): ------------------------------------------------------------------------- ------------------------------------------------------------------------- Forward contracts sold (i) Fixed contracts Amount 510 947 1,139 1,060 786 269 457 5,168 Average price ($/oz) 342 347 347 376 387 395 404 366 Fixed interest floating lease rate Amount 100 100 100 200 424 850 1,160 2,934 Average price ($/oz) 309 309 309 359 392 435 483 430 A$ forward contracts Amount 15 130 63 44 15 30 60 357 Average price ($/oz) 432 401 420 456 442 448 453 427 ------------------------------------------------------------------------- Total Forward contracts sold 625 1,177 1,302 1,304 1,225 1,149 1,677 8,459 A$ forward contracts purchased (125) (75) - - - - - (200) ------------------------------------------------------------------------- Total Forward contracts 500 1,102 1,302 1,304 1,225 1,149 1,677 8,259 ------------------------------------------------------------------------- Call options sold and cap agreements (ii) Amount 506 276 249 115 200 - - 1,346 Average price ($/oz) 337 362 356 363 394 - - 356 A$ contracts Amount 53 65 - - - - - 118 Average price ($/oz) 383 376 - - - - - 379 ------------------------------------------------------------------------- Total Call options sold and cap agreements 559 341 249 115 200 - - 1,464 ------------------------------------------------------------------------- Total Firm committed ounces (iii) 1,059 1,443 1,551 1,419 1,425 1,149 1,677 9,723 ------------------------------------------------------------------------- Contingent call options sold (iv) Knock-in (up and in) Amount 68 135 63 - - - 70 336 Average price ($/oz) 390 388 382 - - - 413 392 Average barrier level ($/oz) 427 422 418 - - - 413 420 Knock-out (down and out) Amount 20 39 45 70 60 128 37 399 Average price ($/oz) 398 399 419 428 442 420 456 425 Average barrier level ($/oz) 347 350 382 372 361 370 375 368 ------------------------------------------------------------------------- Total Maximum committed ounces (v) 1,147 1,617 1,659 1,489 1,485 1,277 1,784 10,458 ------------------------------------------------------------------------- Put options purchased (vi) Amount 1,710 631 514 341 154 119 142 3,611 Average price ($/oz) 353 412 419 447 418 409 437 390 ------------------------------------------------------------------------- Put options sold (vii) Amount 380 80 80 - - - - 540 Average price ($/oz) 274 250 250 - - - - 267 ------------------------------------------------------------------------- Contingent call options purchased not included in the above table total 0.2 million ounces at an average price of $407 per ounce. ----------------- 2004 2005 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Silver (000s ounces): ------------------------------------------------------------------------- ------------------------------------------------------------------------- Call options sold (ii) Amount 2,100 1,560 Average price ($/lb) 5.26 5.25 ------------------------------------------------------------------------- Total committed amount 2,100 1,560 ------------------------------------------------------------------------- Put options purchased (vii) Amount 2,100 1,560 Average price ($/lb) 4.90 4.90 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Copper (millions of pounds): ------------------------------------------------------------------------- ------------------------------------------------------------------------- Fixed forward contracts (i) Amount 95.9 6.6 Average price ($/lb) 0.893 0.979 Call options sold (ii) Amount 89.3 43.0 Average price ($/lb) 0.958 0.995 ------------------------------------------------------------------------- Total committed amount Amount 185.2 49.6 Average price ($/lb) 0.924 0.993 ------------------------------------------------------------------------- Put options purchased (vi) Amount 72.8 43.0 Average price ($/lb) 0.875 0.898 ------------------------------------------------------------------------- Put options sold (vii) Amount 9.9 - Average price ($/lb) 0.753 - ------------------------------------------------------------------------- (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 gold 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 reflectsthe 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 1.3319. 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 capagreements - Call options sold by Placer Dome provide the buyer with the right, but not the obligation, to purchase production from Placer Dome 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 1.3319. (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 1.3319. 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, 2003, 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 Placer Dome establish a minimum sales price for the production covered by such put options and permit Placer Dome 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 Placer Dome 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. Mineral Reserves and Resources Mineral Reserves (1)(2)(9)(15) (proven and probable) (2) Estimates of Placer Dome's share at December 31, 2003 ------------------------------------------------------------------------- ------------------------------------------------------------------------- MINE BY METAL PROVEN MINERAL RESERVES PROBABLE MINERAL RESERVES ------------------------------------------------------------------------- ------------------------------------------------------------------------- Tonnes Grade Contained Tonnes Grade Contained (000s) (g/t) oz (000s) (000s) (g/t) oz (000s) ------------------------------------------------------------------------- ------------------------------------------------------------------------- GOLD Canada Campbell 696 17.6 394 2,820 11.4 1,036 Musselwhite 5,042 5.6 912 2,624 5.8 490 Porcupine JV 9,501 1.4 425 18,769 1.9 1,124 United States Bald Mountain 10,306 1.0 332 8,586 1.2 344 Cortez (7) (8) 89,546 1.9 5,400 50,420 1.4 2,246 Golden Sunlight 6,120 2.4 468 4,025 1.8 238 Turquoise Ridge (11) 4,035 19.6 2,543 1,602 21.3 1,099 Australia Granny Smith 7,023 2.0 462 8,039 3.6 942 Henty - - - 973 10.7 333 Kalgoorlie West 309 6.5 65 9,057 3.2 938 Kanowna Belle 9,154 4.6 1,345 6,533 4.3 901 Osborne 5,198 1.1 177 2,140 0.9 60 Papua New Guinea Misima 1,662 0.7 40 - - - Porgera (7) 41,182 3.2 4,296 7,668 4.4 1,095 South Africa South Deep (7)(9) 5,345 8.3 1,424 100,165 8.4 27,018 Tanzania North Mara (10) 15,438 3.0 1,507 18,558 3.9 2,301 Chile La Coipa 11,579 1.2 443 4,458 1.0 147 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 20,233 40,312 ------------------------------------------------------------------------- SILVER La Coipa 11,579 68.9 25,641 4,458 87.9 12,591 Misima 1,662 7.0 374 - - - ------------------------------------------------------------------------- ------------------------------------------------------------------------- 26,015 12,591 ------------------------------------------------------------------------- COPPER Tonnes Grade Contained Tonnes Grade Contained (000s) (%) lbs (000s) (%) lbs (millions) (millions) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Zaldivar (7) 152,354 0.680 2,283 297,480 0.648 4,251 Osborne 5,198 2.496 286 2,140 2.795 132 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 2,569 4,383 ------------------------------------------------------------------------- Rounding differences may occur. Refer to the notes following these tables. ------------------------------------------------------------------------- ------------------------------------------------------------------------- MINE BY METAL TOTAL PROVEN AND PROBABLE MINERAL RESERVES ------------------------------------------------------------------------- ------------------------------------------------------------------------- Tonnes Grade Contained Recovery (000s) (g/t) oz (000s) (%) (1) ------------------------------------------------------------------------- ------------------------------------------------------------------------- GOLD Canada Campbell 3,516 12.6 1,430 95.5 Musselwhite 7,666 5.7 1,402 95.2 Porcupine JV 28,270 1.7 1,549 91.5 United States Bald Mountain 18,892 1.1 676 72.0 Cortez (7) (8) 139,966 1.7 7,646 86.5 Golden Sunlight 10,145 2.2 706 73.0 Turquoise Ridge (11) 5,637 20.1 3,642 92.5 Australia Granny Smith 15,062 2.9 1,404 86.0 Henty 973 10.7 333 95.0 Kalgoorlie West 9,366 3.3 1,003 95.0 Kanowna Belle 15,687 4.5 2,246 89.3 Osborne 7,338 1.0 237 78.3 Papua New Guinea Misima 1,662 0.7 40 75.0 Porgera (7) 48,850 3.4 5,391 83.6 South Africa South Deep (7)(9) 105,510 8.4 28,442 97.0 Tanzania North Mara (10) 33,996 3.5 3,808 85.3 Chile La Coipa 16,037 1.1 590 80.9 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 60,545 ------------------------------------------------------------------------- SILVER La Coipa 16,037 74.1 38,232 62.5 Misima 1,662 7.0 374 35.0 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 38,606 ------------------------------------------------------------------------- COPPER Tonnes Grade Contained Recovery (000s) (%) lbs (millions) (%) (1) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Zaldivar (7) 449,834 0.659 6,534 77.2 Osborne 7,338 2.583418 93.6 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 6,952 ------------------------------------------------------------------------- Rounding differences may occur. Refer to the notes following these tables. Reconciliation of Mineral Reserves (1)(2)(9)(15) (proven and probable) (2) Estimates of Placer Dome's share at December 31, 2003 ------------------------------------------------------------------------- ------------------------------------------------------------------------- MINE BY METAL Mineral Mined in Other increase Mineral Reserves 2003 (5) or (decrease) Reserves December in mineral December 31, 2002 reserves 31, 2003 (6)(11)(12) ------------------------------------------------------------------------- ------------------------------------------------------------------------- GOLD (000s ozs) Canada Campbell 1,279 205 356 1,430 Musselwhite 1,419 159 142 1,402 Porcupine Joint Venture 1,545 252 256 1,549 United States Bald Mountain 508 129 297 676 Cortez 4,745 903 3,804 7,646 Golden Sunlight 194 286 798 706 Turquoise Ridge (11) 2,690 116 1,068 3,642 Australia Granny Smith 2,145 315 (426) 1,404 Henty 397 107 43 333 Kalgoorlie West 1,480 416 (61) 1,003 Kanowna Belle 2,053 295 488 2,246 Osborne 258 46 25 237 Papua New Guinea Misima 194 107 (47) 40 Porgera 4,681 7291,439 5,391 South Africa South Deep (9) 28,658 227 11 28,442 Tanzania North Mara (10) - 96 3,904 3,808 Chile La Coipa 645 11964 590 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 52,891 4,507 12,161 60,545 ------------------------------------------------------------------------- SILVER (000s ozs) La Coipa 32,038 6,700 12,894 38,232 Misima 1,757 1,125 (258) 374 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 33,795 7,825 12,636 38,606 ------------------------------------------------------------------------- COPPER (million lbs) Zaldivar 6,886 432 80 6,534 Osborne 476 98 40 418 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 7,362 530 120 6,952 ------------------------------------------------------------------------- Rounding differences may occur. Refer to the notes following these tables. Mineral Resources (in addition to mineral reserves) (3)(4)(9)(15) (measured, indicated and inferred) (4) Estimates of Placer Dome's share at December 31, 2003 ------------------------------------------------------------------------- ------------------------------------------------------------------------- MINE BY METAL MEASURED MINERAL INDICATED MINERAL RESOURCES RESOURCES ------------------------------------------------------------------------- Tonnes Grade Contained Tonnes Grade Contained (000s) (g/t) oz (000s) (000s) (g/t) oz (000s) ------------------------------------------------------------------------- GOLD Canada Campbell 844 20.1 546 3,441 9.6 1,061 Musselwhite 1,784 7.8 448 2,045 5.4 355 Porcupine JV 4,882 2.6 403 32,451 1.8 1,843 United States Bald Mountain 10,537 0.8 279 11,010 1.3 465 Cortez (7)(8) 45,333 1.4 2,053 132,676 0.8 3,540 Golden Sunlight 5,183 1.2 203 779 1.3 32 Turquoise Ridge (11) 3,620 11.2 1,307 1,991 12.9 828 Australia Granny Smith 23 4.0 3 2,957 3.4 320 Henty - - - 59 8.2 16 Kalgoorlie West 457 2.8 41 13,778 1.5 686 Kanowna Belle 6,208 5.2 1,036 4,865 3.6 557 Osborne 1,838 1.4 85 1,7201.2 66 Papua New Guinea Porgera (7) 29,232 2.8 2,614 28,157 2.5 2,278 South Africa South Deep (7)(9) 895 10.9 314 66,819 9.0 19,279 Tanzania North Mara (10) 2,589 1.4 119 11,955 1.7 662 Chile La Coipa 9,815 1.0 314 5,670 1.1 202 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 9,765 32,190 ------------------------------------------------------------------------- SILVER La Coipa 9,815 29.7 9,385 5,670 17.2 3,127 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 9,385 3,127 ------------------------------------------------------------------------- COPPER Tonnes Grade Contained Tonnes Grade Contained (000s) (%) lbs (000s) (%) lbs (millions) (millions) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Zaldivar (7) 23,441 0.487 251 101,565 0.513 1,149 Osborne 1,838 3.901 158 1,720 2.000 76 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 409 1,225 ------------------------------------------------------------------------- Rounding differences may occur. Refer to the notes following these tables. ------------------------------------------------------------------------- ------------------------------------------------------------------------- MINE BY METAL TOTAL MEASURED AND INFERRED MINERAL INDICATED RESOURCES ------------------------------------------------------------------------- Tonnes Grade Contained Tonnes Grade Contained (000s) (g/t) oz (000s) (000s) (g/t) oz (000s) ------------------------------------------------------------------------- GOLD Canada Campbell 4,285 11.7 1,607 3,590 12.4 1,435 Musselwhite 3,829 6.5 803 2,392 8.0 617 Porcupine JV 37,333 1.9 2,246 8,825 2.9 826 United States Bald Mountain 21,547 1.1 744 19,533 0.9 557 Cortez (7)(8) 178,009 1.0 5,593 18,312 1.4 856 Golden Sunlight 5,962 1.2 235 364 1.3 15 Turquoise Ridge (11) 5,611 11.8 2,135 3,305 16.8 1,780 Australia Granny Smith 2,980 3.4 323 18,323 5.2 3,046 Henty 59 8.2 16 300 8.8 85 Kalgoorlie West 14,235 1.6 727 24,136 2.7 2,086 Kanowna Belle 11,073 4.5 1,593 1,949 4.2 264 Osborne 3,558 1.3 151 792 1.2 31 Papua New Guinea Porgera (7) 57,389 2.7 4,892 8,220 3.8 1,003 South Africa South Deep (7)(9) 67,714 9.0 19,593 - - - Tanzania North Mara (10) 14,544 1.7 781 599 1.9 37 Chile La Coipa 15,845 1.0 516 - - - ------------------------------------------------------------------------- ------------------------------------------------------------------------- 41,95512,638 ------------------------------------------------------------------------- SILVER La Coipa 15,845 25.1 12,512 - - - ------------------------------------------------------------------------- ------------------------------------------------------------------------- 12,512 - ------------------------------------------------------------------------- COPPER Tonnes Grade Contained Tonnes Grade Contained (000s) (%) lbs (000s) (%) lbs (millions) (millions) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Zaldivar (7) 125,006 0.508 1,400 11,561 0.487 124 Osborne 3,558 2.982 234 792 2.000 35 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 1,634 159 ------------------------------------------------------------------------- Rounding differences may occur. Refer to the notes following these tables. Mineral Resources - Exploration Properties (3)(4)(15) (measured, indicated and inferred)(4) Estimates of Placer Dome's share at December 31, 2003 ------------------------------------------------------------------------- ------------------------------------------------------------------------- EXPLORATION MEASURED MINERAL INDICATED MINERAL PROPERTY BY RESOURCES RESOURCES METAL ------------------------------------------------------------------------- Tonnes Grade Contained Tonnes Grade Contained (000s) (g/t) oz (000s) (000s) (g/t) oz (000s) ------------------------------------------------------------------------- GOLD Cerro Casale(12) 103,413 0.8 2,493 464,526 0.7 10,471 Donlin Creek(13) 5,559 3.1 559 76,676 2.9 7,240 Mount Milligan 156,497 0.5 2,263 251,957 0.4 3,362 Pueblo Viejo(14) - - - 177,797 3.1 17,492 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 5,315 38,565 ------------------------------------------------------------------------- SILVER Pueblo Viejo(14) - - - 177,797 17.7 101,407 ------------------------------------------------------------------------- ------------------------------------------------------------------------- - 101,407 ------------------------------------------------------------------------- COPPER Tonnes Grade Contained Tonnes Grade Contained (000s) (%) lbs (000s) (%) lbs (millions) (millions) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Cerro Casale(12)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 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- EXPLORATION TOTAL MEASURED AND INFERRED MINERAL PROPERTY BY INDICATED RESOURCES METAL MINERAL RESOURCES ------------------------------------------------------------------------- Tonnes Grade Contained Tonnes Grade Contained (000s) (g/t) oz (000s) (000s) (g/t) oz (000s) ------------------------------------------------------------------------- GOLD Cerro Casale(12) 567,939 0.7 12,964 87,310 0.6 1,782 Donlin Creek(13) 82,235 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(14) 177,797 3.1 17,492 8,060 2.8 733 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 43,880 12,975 ------------------------------------------------------------------------- SILVER Pueblo Viejo(14) 177,797 17.7 101,407 8,060 13.5 3,506 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 101,407 3,506 ------------------------------------------------------------------------- COPPER Tonnes Grade Contained Tonnes Grade Contained (000s) (%) lbs (000s) (%) lbs (millions) (millions) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Cerro Casale(12) 567,939 0.260 3,255 87,310 0.330 645 Mount Milligan 408,454 0.180 1,655 35,393 0.146 114 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 4,910 759 ------------------------------------------------------------------------- Rounding differences may occur. Refer to the notes following these tables. Notes to the Mineral Reserves, Reconciliation of Mineral Reserves, Mineral Resources and Mineral Resources - Exploration Properties Tables (1) Placer Dome's mineral reserves are estimated as at December 31, 2003 using appropriate cut-off grades associated with an average long-term gold price of $325 per ounce, silver price of $4.75 per ounce and copper price of $0.85 per pound and on Canadian and Australian dollar, Papua New Guinean kina and Chilean peso average long-term exchange rates to the U.S. dollar of 1.45, 1.667, 4 and 750to 1, respectively (except at South Deep where a gold price of $300 per ounce and a long-term average rand to U.S. dollar exchange rate of 7:1 were used - see note 9). The estimates incorporate the current and/or expected mine plans and cost levels at each property. Recovery is stated as a percentage of contained ounces for gold and silver and contained pounds for copper. With respect to properties under development and long-term mines, significant capital expenditures would 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 shown under note 15. Consistent with Placer Dome's normal 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, 2003 using appropriate cut-off grades associated with an average long-term gold price of $450 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 shown under note 15. Consistent with Placer Dome's normal 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, 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 basedon 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 2003 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 remodelling and the impact of an increase in the average long-term gold price from $300 to $325 per ounce. (7) Economic assumptions 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 - 4.00 g/t 0.17 - 4.00 g/t Porgera 1.70 - 6.00 g/t 1.00 - 5.00 g/t South Deep 4.00 - 6.00 g/t 5.00 g/t Zaldivar 0.30 - 0.32 % 0.26 - 0.28 % --------------------------------------------------------------------- Placer Dome is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues which may materially affect Placer Dome's mineral reserve and mineral resource estimates, other than the factors discussed in the "Risks and Uncertainties" section of this report. (8) Mineral reserves and mineral resources at Cortez include the Cortez Hills deposit. Placer Dome's share of the Cortez Hills deposit is outlined in the tables below: ------------------------------------------------------------------------- Proven Mineral Probable Mineral Proven and Probable Reserves Reserves Mineral Reserves ------------------------------------------------------------------------- Tonnes Grade Contained Tonnes Grade Contained Tonnes Grade Contained (000s) (g/t) oz (000s) (000s) (g/t) oz (000s) (000s) (g/t) oz (000s) ------------------------------------------------------------------------- 15,083 4.59 2,221 7,398 3.91 930 22,481 4.36 3,151 ------------------------------------------------------------------------- ----------------------------------------------------------------- ----------------------------------------------------------------- Measured Mineral Indicated Mineral Resources Resources Tonnes Grade Contained Tonnes Grade Contained (000s) (g/t) oz (000s) (000s) (g/t) oz (000s) ----------------------------------------------------------------- 1,010 3.67 119 1,143 5.62 208 ----------------------------------------------------------------- ----------------------------------------------------------------- ----------------------------------------------------------------- Total Measured and Inferred Indicated Resources Mineral Resources Tonnes Grade Contained Tonnes Grade Contained (000s) (g/t) oz (000s) (000s) (g/t) oz (000s) ----------------------------------------------------------------- 2,153 4.73 327 4,418 4.30 610 ----------------------------------------------------------------- ----------------------------------------------------------------- (9) Mineral resource and reserve estimates for South Deep as at December 31, 2003 are based on estimates as at December 31, 2000, depleted for production in 2001, 2002 and 2003. The December 31, 2000 estimates were prepared using appropriate cut-off grades associated with an average long-term gold price of $300 per ounce and an average long-term rand to U.S. dollar exchange rate of 7:1. The geological modeling has been refined since the creation of the disclosed mineral reserve/resource to better reflect the layered, discrete zones of mineralization apparent in the deposit. Although review of an updated mineral resource estimate is still being carried out, initial indications are that there will be a reduction in the mineral resource primarily in tonnage, and hence the contained ounce base, compared to the currently disclosed mineral resource at a similar cut-off grade. A mineral reserve estimate will be completed on this mineral resource model. A review and update of the South Deep life of mine plan is currently under way, taking into account technical issues specific to the South Deep operation as well as current and anticipated costs of operating in the South African environment, including the strength of the rand, proposed royalties and social costs imposed by pending minerals legislation. It is anticipated that the completion of the above processes will result in a reduction in the contained mineral reserve ounces. Revised mineral reserve and mineral resource estimates will be announced once the work is completed and reviewed by the Joint Venture participants, which is anticipated in the second half of 2004. (10) Placer Dome acquired 100% of East African Gold Mines Limited in 2003. This resulted in Placer Dome acquiring 100% of the North Mara mine. (11) Effective December 23, 2003, Placer Dome and Newmont Mining Corporation ("Newmont") formed the Turquoise Ridge Joint Venture which includes Placer Dome's Turquoise Ridge mine and Newmont's royalty interest from the Turquoise Ridge Mine. Placer Dome owns a 75% interest in and is the operator of the unincorporated joint venture. (12) Assuming51% 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 (24%) and Arizona Star (25%). (13) 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 has exercised its option to earn back to a 70% interest in Donlin Creek. In order to do this, Placer Dome must expend $30 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, Placer Dome retains its existing 30% interest. (14) Placer Dome has begun a study on the Pueblo Viejo gold deposit includingmetallurgical test work and evaluation of a whole ore pressure oxidation approach to gold recovery. (15) Placer Dome'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 Placer Dome's mineral reserve and mineral resource estimates as at December 31, 2003 are listed below. All named persons are, or were at the time the estimates were prepared, employees of Placer Dome unless indicated as Independent Consultant. 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). However refer to note 9 regarding the ongoing reserve/resource estimation review at South Deep. ------------------------------------------------------- MINERAL RESERVES ------------------------------------------------------------------------- BY PROPERTY Name Title ------------------------------------------------------------------------- Campbell Stephane Blais Senior Mining Engineer ------------------------------------------------------------------------- Musselwhite Robert MacDonald Chief Mine Engineer ------------------------------------------------------------------------- Porcupine JV Stephen Taylor Senior Engineer ------------------------------------------------------------------------- Bald Mountain Paul Buckley Engineering Superintendent ------------------------------------------------------------------------- Cortez Britt Buhl Technical Superintendent ------------------------------------------------------------------------- Golden Sunlight Paul Buckley Engineering Superintendent ------------------------------------------------------------------------- Turquoise Ridge John Porterfield Deputy Mine General Manager ------------------------------------------------------------------------- Granny Smith Ray Hodson Chief Mining Engineer Richard Boffey Underground Project Manager ------------------------------------------------------------------------- Henty Sean Halpin Technical Services Manager ------------------------------------------------------------------------- Kalgoorlie West Mark Kaesehagen Project Development Manager Andrew Law Mining Manager - Open Pits Steven Tombs Mining Manager - Underground ------------------------------------------------------------------------- Kanowna Belle Lara Bruhns Senior Mine Engineer Mark Kaesehagen Project Development Manager Ben Playford Senior Mine Geologist ------------------------------------------------------------------------- Osborne Sharn Morrison Mine Engineering Team Leader Peter Willcox Mine Coordinator ------------------------------------------------------------------------- Misima Trevor Jones Independent Consultant ------------------------------------------------------------------------- Porgera John Butterworth Senior Mining Engineer ------------------------------------------------------------------------- South Deep Dexter Ferreira Chief Planning Engineer ------------------------------------------------------------------------- North Mara Rob Usher Mine Superintendent ------------------------------------------------------------------------- La Coipa Mauricio Rubio Senior Geologist - Production Andres Guaringa Resources/Reserves 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 Glen Kuntz Senior Resource Geologist ------------------------------------------------------------------------- Musselwhite Andrew Cheatle Chief Geologist Simon Pollard Geological Coordinator ------------------------------------------------------------------------- Porcupine JV Alastair Still Chief Geologist & Manager of Exploration ------------------------------------------------------------------------- Bald Mountain John Porterfield Deputy Mine General Manager ------------------------------------------------------------------------- Cortez Britt Buhl Technical Superintendent ------------------------------------------------------------------------- Golden Sunlight Paul Buckley Engineering Superintendent ------------------------------------------------------------------------- Turquoise Ridge John Porterfield Deputy Mine General Manager ------------------------------------------------------------------------- Granny Smith Malcolm TitleyOpen Pit Superintendent ------------------------------------------------------------------------- Henty Sean Halpin Technical Services Manager ------------------------------------------------------------------------- Kalgoorlie West Jon Abbott Senior Resource Geologist Roger Cooper Senior Resource Geologist ------------------------------------------------------------------------- Kanowna Belle David Williams Senior Resource Geologist Jon Abbott Senior Resource Geologist Ben Playford Senior Mine Geologist ------------------------------------------------------------------------- Osborne Philip Agnew ResourceGeologist Frank Tullemans Geology Team Leader ------------------------------------------------------------------------- Misima Trevor Jones Independent Consultant ------------------------------------------------------------------------- Porgera Anthony Burgess Senior Resource Geologist Roger Hill Chief Geologist ------------------------------------------------------------------------- South Deep Adrian Adams Chief Geologist ------------------------------------------------------------------------- North Mara Peter Stockman Chief Geologist ------------------------------------------------------------------------- La Coipa Andres Guaringa Resources/Reserves Engineer Juan Ochoa Mine Superintendent ------------------------------------------------------------------------- Zaldivar Jorge Aceituno Mine Superintendent ------------------------------------------------------------------------- Cerro Casale Marc Jutras Senior Geostatistician ------------------------------------------------------------------------- Donlin Creek Marc Jutras Senior 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 ------------------------------------ 2003 2002 2003 2002 ------------------------------------------------------------------------- Cash from operations ($millions) 61 47 329 320 ------------------------------------------------------------------------- Weighted average number of common shares (millions) 410.6 391.3 409.4 349.4 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Cash from operations per common share $0.14 $0.12 $0.80 $0.92 ------------------------------------------------------------------------- Unit costs A reconciliation of costs per ounce of gold produced, calculated in accordance with the Gold Institute Standard, and cost per pound of copper produced to the Cost of Sales and Depreciation and Depletion is included below: ($millions except production and unit costs) (i) ------------------------------------------------ Twelve Months ended December 31 ------------------------------------------------ 2003 ------------------------------------------------ Gold Copper ------------------------------------------------ Cost of Depreciation Cost of Depreciation Sales Sales ------------------------------------------------------------------------- Reported 1,090 267 - - Copper (219) (57) 219 57 Corporate (ii) (7) (14) - - ------------------------------------------------------------------------- ------------------------------------------------------------------------- Related to precious metals 864 196 219 57 Add La Coipa 30 12 - - Deduct minority interest (8) (1) - - By-product (5) - (12) - Reclamation (14) 14 (2) 2 Inventories (9) (2) 7 3 Other (iii) (12) (2) 11 - ------------------------------------------------------------------------- ------------------------------------------------------------------------- 846 217 223 62 ------------------------------------------------------------------------- Production reported (i) 3,861 3,861 425,358 425,358 Less Osborne gold ozs. (37) (37) - - Add La Coipa gold equivalents ozs. 55 55 - - ------------------------------------------------------------------------- ------------------------------------------------------------------------- Production base for calculation 3,879 3,879 425,358 425,358 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Unit costs (i) 218 56 0.52 0.15 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------ Twelve Months ended December 31 ------------------------------------------------ 2002 ------------------------------------------------ Gold Copper ------------------------------------------------ Cost of Depreciation Cost of Depreciation Sales Sales ------------------------------------------------------------------------- Reported 698 187 - - Copper (190) (56) 190 56 Corporate (ii) (5) (7) - - ------------------------------------------------------------------------- ------------------------------------------------------------------------- Related to precious metals 503 124 190 56 Add La Coipa 33 12 - - Deduct minority interest (6) - - - By-product (4) - (11) - Reclamation (12) 12 (1) 1 Inventories 8 1 (3) (2) Other (iii) (17) 1 19 (1) ------------------------------------------------------------------------- ------------------------------------------------------------------------- 505 150 194 54 ------------------------------------------------------------------------- Production reported (i) 2,823 2,823 427,477 427,477 Less Osborne gold ozs. (38) (38) - - Add La Coipa gold equivalents ozs. 53 53 - - ------------------------------------------------------------------------- ------------------------------------------------------------------------- Production base for calculation 2,838 2,838 427,477 427,477 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Unit costs (i) 178 53 0.45 0.13 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------ Fourth Quarter ------------------------------------------------ 2003 ------------------------------------------------ Gold Copper ------------------------------------------------ Cost of Depreciation Cost of Depreciation Sales Sales ------------------------------------------------------------------------- Reported 294 71 - - Copper (57) (15) 57 15 Corporate (ii) (4) (4) - - ------------------------------------------------------------------------- ------------------------------------------------------------------------- Related to metals production 233 52 57 15 Add La Coipa 8 4 - - Deduct minority interest (2) (1) - - By product (2) - (3) - Reclamation (1) 1 (1) 1 Inventories 3 - 3 2 Other (iii) (1) 1 3 (2) ------------------------------------------------------------------------- ------------------------------------------------------------------------- 238 57 59 16 ------------------------------------------------------------------------- Production reported (i) 1,039 1,039 111,063 111,063 Less Osborne gold ozs. (12) (12) - - Add La Coipa gold equivalents ozs. 10 10 - - ------------------------------------------------------------------------- ------------------------------------------------------------------------- Production base for calculation 1,037 1,037 111,063 111,063 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Unit costs (i) 229 55 0.53 0.14 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------ Fourth Quarter ------------------------------------------------ 2002 ------------------------------------------------ Gold Copper ------------------------------------------------ Cost of Depreciation Cost of Depreciation Sales Sales ------------------------------------------------------------------------- Reported 212 60 - - Copper (50) (10) 50 10 Corporate (ii) (3) (3) - - ------------------------------------------------------------------------- ------------------------------------------------------------------------- Related to metals production 159 47 50 10 Add La Coipa 9 3 - - Deduct minority interest (1) - - - By product (1) - (3) - Reclamation (4) 4 - - Inventories 6 - - (1) Other (iii) (2) 2 4 1 ------------------------------------------------------------------------- ------------------------------------------------------------------------- 166 56 51 10 ------------------------------------------------------------------------- Production reported (i) 917 917 107,842 107,842 Less Osborne gold ozs. (10) (10) - - Add La Coipa gold equivalents ozs. 14 14 - - ------------------------------------------------------------------------- ------------------------------------------------------------------------- Production base for calculation 921 921 107,842 107,842 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Unit costs (i) 180 61 0.47 0.09 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (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 inthe determination of unit costs. Shareholders' Rights Plan Placer Dome's Board of Directors has approved a shareholders' rights plan to replace the existing shareholders' rights plan that expires at the close of the 2004 annual and special meeting of shareholders to be held on May 5, 2004. The 2004 Plan requires confirmation by shareholders at the annual and special meeting. The 2004 Plan is not materially different from the expiring plan and has been adopted at this time to avoid any gap in shareholder protection. In approving the 2004 Plan the Board has also declared a distribution of one right for each common share outstanding at 5:30 p.m. (EST) on the effective date of the 2004 Plan, which is May 5, 2004. The rights will trade with, and be represented by, the common shares. Rights certificates will not be distributed to shareholders unless and until the rights become exercisable. Placer Dome today declared a semi-annual dividend of $0.05 per common share, which will be payable on April12, 2004 to shareholders of record at the close of business on March 12, 2004. Placer Dome's audited consolidated financial statements prepared in both U.S. and Canadian GAAP will be first mailed to shareholders on or about March 26, 2004, and will beavailable on the Placer Dome website at http://www.placerdome.com/ as well as the website maintained by the Canadian securities regulators at http://www.sedar.com/, on or about March 5, 2004. Any shareholder entitled to receive Placer Dome's annual financial statements may also obtain a copy on request. Vancouver-based Placer Dome Inc. operates 18 mines on five continents. The company'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 results at 6:00am PST/ 9:00am EST on Friday, February 27. North American participants may access the call at (800) 291-5032. International participants please dial (416) 641-6700. Thecall will also be webcast on the Placer Dome website at http://www.placerdome.com/. Head Office Suite 1600, Bentall IV 1055 Dunsmuir Street (PO Box 49330, Bentall Postal Station) Vancouver, British Columbia Canada V7X 1P1 Tel: (604) 682-7082 Fax: (604) 682-7092 CAUTIONARY NOTE Some of the statements contained in this news release are forward-looking statements, such as estimates and statements that describe Placer Dome's future plans, expectations, objectives or goals, including words to the effect that Placer Dome or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "intends", "expects", "estimates", "may", "could", "would", "will" or "plan". Such forward-looking statements are made pursuant to the safe harbour provisions of the United States Private Securities Litigation Reform Act of 1995. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, mineral reserves, resources, results of exploration, reclamation and other post-closure costs, capital costs, mine production costs, and Placer Dome's financial condition and prospects, could differ materially from those currently anticipated in such statements by reason of factors such as the productivity of Placer Dome's mining properties, changes in general economic conditions and conditions in the financial markets, changes in demand and prices for the minerals Placer Dome produces, litigation, environmental, legislative and other judicial, regulatory, political and competitive developments in domestic and foreign areas in which Placer Dome operates, technological and operational difficulties encountered in connection with Placer Dome's mining activities, labour relations matters, costs and changing foreign exchange rates and other matters discussed under "Management's Discussion and Analysis" or detailed in Placer Dome's filings with securities regulatory authorities. This list is not exhaustive of the factors that may affect any of Placer Dome's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on Placer Dome's forward-looking statements. Further information regarding these and other factors which may cause results to differ materially from those projected in forward-looking statements are included in the filings by Placer Dome with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities. "Placer Dome" is used in this news release to collectively mean Placer Dome Inc., its subsidiary companies and its proportionate share of joint ventures. "Placer Dome Group" or "Group" means collectively Placer Dome Inc., its subsidiary companies, its proportionate share of joint ventures and also companies for which it equity accounts. "Placer Dome Group's share" or the "Group's share" is defined to exclude minority shareholders' interest. "The company" refers to Placer Dome Inc. Placer Dome does not undertake to update any forward-looking statement that may be made from time to time by Placer Dome or on its behalf, except in accordance with applicable securities laws. END FIRST AND FINAL DATASOURCE: Placer Dome Inc. CONTACT: Feb. 26

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