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27.10.05 13:29
Placer Dome Announces 2005 Third Quarter Results

Placer Dome Inc. (TSX:PDG) (NYSE:PDG)(ASX:PDG)(SWX:PDG)(BOURSE:PDG) -


This news release contains "forward-looking statements" that are subject to risk factors set out in the cautionary note contained within this news release.


All amounts are in United States ("U.S.") dollars, in accordance with U.S. generally accepted accounting principles ("GAAP").



Placer Dome Inc. announces third quarter earnings of $34 million ($0.08 per share) on gold production of 901,000 ounces. Mine operating earnings were $109 million and cash from operations totalled $27 million, or $60 million before change in non-cash operating working capital, for the three months ending September 30, 2005. Cash and total operating costs were $288 and $348 per ounce of gold, respectively, reflecting ongoing pressure from rising currency rates and energy prices.



The third quarter was highlighted by positive development decisions on two of Placer Dome's undeveloped projects, Cortez Hills in Nevada and Pueblo Viejo in the Dominican Republic.



"Our gold production remains in line with our expectations, and we succeeded in offsetting a portion of cost pressures with our efficiency programs," Placer Dome President and CEO Peter Tomsett said. "I am pleased we have now set the direction on our near-term development projects. Decisions to proceed with development of Cortez Hills and Pueblo Viejo demonstrate our ability to create value from our exploration and development programs."



Also during the third quarter, Placer Dome announced the appointment of Lindsay Hall to the position of Executive Vice-President and Chief Financial Officer. Mr. Hall is a Chartered Accountant with extensive experience in senior financial positions in the energy industry, including Westcoast Energy Inc. and Duke Energy Corporation. Mr. Hall's appointment is effective November 1, 2005.



MANAGEMENT'S DISCUSSION AND ANALYSIS



United States ("U.S.") dollars, in accordance with U.S. generally accepted accounting principles ("GAAP")



Throughout this document, "Placer Dome" is defined to be collectively Placer Dome Inc., its consolidated subsidiaries and its proportionate share of unincorporated joint venture interests. Placer Dome's share is defined to exclude minority shareholders' interests. The "Corporation" refers to Placer Dome Inc. This Management's Discussion and Analysis ("MD&A") was made as of October 26, 2005. Additional information relating to Placer Dome, including Placer Dome's annual information form is available free of charge on Placer Dome's website at www.placerdome.com, and on SEDAR at www.sedar.com.



Highlights



The third quarter of 2005 was highlighted by positive development decisions on two of Placer Dome's undeveloped projects, clarifying the company's near-term growth and development program. The Board of Directors approved development of the Cortez Hills project in Nevada and the Pueblo Viejo project in the Dominican Republic. Together these two projects contain proven and probable mineral reserves of 16.7 million ounces to Placer Dome's account, and once operational, are expected to produce over one million ounces of gold per year (see the Development Projects - New Mine Developments section of this document for more details).



Operationally, Placer Dome's gold mines performed in line with expectations during the third quarter, producing 901,000 ounces at cash and total costs of $288 and $348 per ounce, respectively. For the first nine months of the year, gold production totalled 2.73 million ounces at cash and total costs of $281 and $346 per ounce, respectively. Seven mines reported cash cost improvements in the third quarter relative to the second quarter. These improvements, however, were more than offset by continued cost pressures from energy, fuel and input commodity costs and stronger Canadian and Australian currencies.



Copper production of 87 million pounds in the third quarter was below expectations due to a strike in early July and other short-term operational issues at Zaldivar. As a result, cash and total operating costs for copper of $0.76 and $0.89 per pound, respectively, for the third quarter were higher than expected. Copper production is expected to increase in the fourth quarter with a commensurate reduction in costs (see the Review of Mining Operations section of this document for more details). Year to date, copper production totalled 268 million pounds at cash and total operating costs of $0.69 and $0.82 per pound, respectively.



Net earnings in the third quarter totalled $34 million ($0.08 per share). For the first nine months net earnings totalled $58 million ($0.13 per share). Earnings in the third quarter included a pre-tax net loss of $39 million on all of Placer Dome's metal hedge positions, of which $23 million related to maturing gold hedge positions. Placer Dome's realized gold price was $412 per ounce in the third quarter, compared to a spot price of $440 per ounce, as it delivered into all maturing hedge positions. The realized gold price was $21 per ounce higher in the third quarter than in the second quarter due to a higher average spot price and a reduced quantity of lower valued maturing positions. Placer Dome realized $1.52 per pound for its copper production in the third quarter, versus an average spot price of $1.71 per pound. The realized copper price was $0.16 per pound higher in the third quarter than the second quarter due to a higher spot price and a lower quantity of copper hedges.



Mine operating earnings were $109 million in the third quarter and $291 million for the first nine months. Cash from operations totalled $27 million for the third quarter and $148 million for the first nine months. Cash from operations before changes in non-cash operating working capital was $60 million for the quarter as gold inventory build-up impacted cash from operations.



                                   --------------------------------
                                             September 30
                                   --------------------------------
                                    Third quarter       Nine months
                                   --------------------------------
                                    2005     2004     2005     2004
                                                       (ii)     (ii)
--------------------------------------------------
Financial ($millions, except
per share amounts)
Sales                                 488      453    1,439    1,428
Mine operating earnings
Gold                                  60       70      153      249
Copper                                54       46      152      170
Other                                 (5)      (6)     (14)     (13)
--------------------------------------------------
                                     109      110      291      406
--------------------------------------------------
Net earnings                           34      148       58      245
Per share                           0.08     0.36     0.13     0.59
Cash from operations                   27       91      148      332
--------------------------------------------------
Operations - Gold (000s ozs)
Production (Placer Dome's share)     901      888    2,728    2,725
Production (consolidated)            881      871    2,667    2,669
Sales (consolidated)                 875      885    2,656    2,691
Cash production costs ($/oz)
 (Placer Dome's share)(i)            288      235      281      232
Total production costs ($/oz)
 (Placer Dome's share)(i)            348      291      346      287
Sales price realized ($/oz)          412      382      406      389
London spot price ($/oz)             440      401      432      401
--------------------------------------------------
Operations - Copper (millions lbs)
Production                            87      101      268      319
Sales                                 90      102      271      339
Cash production costs ($/lb)(i)     0.76     0.56     0.69     0.52
Total production costs ($/lb)(i)    0.89     0.70     0.82     0.66
Sales price realized ($/lb)         1.52     1.16     1.40     1.16
London spot price ($/lb)            1.71     1.29     1.58     1.27
--------------------------------------------------(i)  Cash and total production costs per ounce and pound are non-GAAP
    measures that do not have any standardized meaning as prescribed
    by GAAP and are therefore unlikely to be comparable to similar
    measures presented by other entities. Please refer to the
    Non-GAAP Measures section for further detail.
(ii) During the first quarter of 2005, Placer Dome changed its
    accounting policy with respect to termination obligations,
    whereby the liability accrued represents the obligation to date
    for all employees at mine sites (see note 2 to the unaudited
    interim consolidated financial statements for more details). The
    cumulative effect of this change was a non-cash reduction in
    earnings on a pre-tax and after-tax basis of $21 million and $14
    million ($0.03 per share), respectively. The first quarter of
    2004 earnings included the effect of a change in accounting
    policy, with respect to deferred stripping to exclude the
    recording of liabilities on the balance sheet. The cumulative
    effect of this change through December 31, 2003, was to increase
    earnings on an after-tax basis by $4 million ($0.01 per share).



Exploration



For details concerning mineral reserve and mineral resource estimates for the exploration and development projects set out below, please refer to Placer Dome's mineral reserve and mineral resource tables and notes contained in the Corporation's Annual Report and Annual Information Form/Form 40-F for the year ended December 31, 2004 and the subsequent news releases referred to below.



Through focused investment in exploration, Placer Dome is actively searching for and advancing quality projects that drive future production, earnings and cash flow per share growth. In 2005 Placer Dome plans to invest $90 million in exploration activities around the world. Two-thirds of this year's spending, or approximately $60 million, will be targeted toward exploration at and around existing mine sites, with major focuses at Cortez, Kalgoorlie, Musselwhite, North Mara, Bald Mountain, Campbell and Porcupine. The remaining one-third will be directed toward greenfield exploration projects. A total of eight new greenfield projects have been signed in 2005. During the third quarter, drill programs were initiated on three projects. At quarter end, 27 projects were active.



At the Sedibelo PGM project in South Africa, drilling continued during the third quarter, with six rigs active on both the Central and Eastern blocks. Drilling in the Central block is targeting expansion of the existing inferred mineral resource, both down dip and along strike. In-fill drilling is also under way to upgrade a portion of the previously released inferred mineral resource. Drilling on the Eastern block is targeting additional platinum group element potential. Underground access was gained through a re-commissioned shaft in the Central block. Geological mapping over 600 metres of strike in the Merensky reef indicates the area is consistent with results forecast from drilling.



Development Projects



New Mine Developments



During the third quarter, Placer Dome announced positive development decisions on the Cortez Hills project in Nevada and the Pueblo Viejo project in the Dominican Republic. Placer Dome also announced it has reached an agreement in principle with its partners in the Cerro Casale project in Chile to sell its interest in the project. Also during the quarter, pre-feasibility studies continued on two additional undeveloped projects - Donlin Creek in Alaska and Mount Milligan in northern British Columbia.



- The Cortez Hills project involves the development of two adjacent deposits - Cortez Hills and Pediment. Ore from the deposits will be milled at the existing Pipeline mill or leached at a new facility to be constructed near the deposits. Placer Dome's share of production from the project is expected to total 2.8 million ounces at average cash costs of approximately $170 per ounce(1) over a seven-year mining schedule. Placer Dome's share of capital costs is estimated at $245 million(2). Commencement of construction is subject to receiving required permits(3).



As part of the Cortez Hills project, Placer Dome also approved an underground exploration decline on the Cortez property that is expected to commence in the fourth quarter. The decline project, to be completed over about 48 months, will result in an exploration decline being driven from an existing open pit to under the proposed Cortez Hills open pit. Placer Dome's share of costs is estimated at $30 million(2). The decline will enable more effective exploration of underground targets, confirm grade and continuity of existing mineral resources through closer-spaced drilling, and determine applicable mining methods. In addition to the mineral resources below the proposed open pit, surface drilling has identified mineralization in potentially mineable widths and thicknesses lying deeper and to the west of the proposed open pit. Subject to additional permitting, the decline may be suitable for use as part of any future underground mine or as part of the open pit development. For additional information see the news release dated September 15, 2005 available on Placer Dome's website at www.placerdome.com.



The Pueblo Viejo project contains a 13.4 million-ounce refractory gold mineral reserve in the Dominican Republic. Placer Dome acquired 100% of the project through an agreement with the Dominican government in 2002. Pueblo Viejo is expected to produce approximately 12 million ounces of gold at average cash costs between $200 and $210 per ounce(4) over 20 years. Capital costs for the mine are estimated at approximately $1.0 billion(5). In the initial six years of the mine's operation, Pueblo Viejo is expected to produce on average 800,000 ounces of gold per year at cash costs between $175 and $185 per ounce(4). In addition, a 140-megawatt power plant to support the mine is planned to be constructed at a capital cost estimated at $350 million(5).



Commencement of construction is subject to Placer Dome issuing a project notice to the Dominican Republic state. Project notice is conditional upon the receipt of required permits(6) for the mine and power plant and the Dominican Republic state fulfilling or addressing all of its contractual obligations related to the project. For additional information see the news release dated September 27, 2005 available on Placer Dome's website at www.placerdome.com.



- Placer Dome has reached an agreement in principle with its partners in the Cerro Casale project in Chile to sell its interest in Compania Minera Casale, the company holding the Cerro Casale project, to Bema Gold Corporation and Arizona Star Resources Corp. in return for contingent payments. Bema and Arizona Star will jointly pay Placer Dome $10 million upon a decision to construct a mine at Cerro Casale and either (a) a gold payment beginning 12 months after commencement of production consisting of 10,000 ounces of gold per year for five years and 20,000 of gold per year for a subsequent seven years; or (b) a cash payment of $70 million payable when a construction decision is made. The election between (a) or (b) is to be made by Bema and Arizona Star.



- The Donlin Creek project is a large refractory gold deposit in southwest Alaska. Placer Dome owns 30% of the project and is earning an additional 40%. Placer Dome's share of the project's measured and indicated gold mineral resource and inferred gold mineral resource, assuming 70% ownership, is 7.8 million ounces and 10.0 million ounces, respectively. As part of the pre-feasibility study currently under way, a 21,000-metre drilling program was completed in the third quarter and a revised resource estimate, incorporating the additional drilling results, will be released with year-end results. During the third quarter, work focused on geotechnical data collection, the development of a comprehensive water model and management plan, and collection of the engineering data required for project infrastructure design. Baseline environmental studies are ongoing. Mineralized core from the 2005 drilling program has been shipped to the Placer Dome lab in Vancouver for bench scale metallurgical testing and pilot plant studies.



- At Mount Milligan in British Columbia, work on a pre-feasibility study continued during the third quarter and is expected to be completed by year end. The objective of the study is to update the feasibility study completed in 1991 to reflect new technologies, cost assumptions and improvements in operating efficiencies. A new mineral resource model is being developed and metallurgical test work is optimizing the milling process.



At Mine Developments



Placer Dome is investing approximately $125 million of its capital budget in 2005 to expand existing operations and develop new ore bodies. The focus areas of this work in the third quarter included:



- At the North Mara mine in Tanzania, development of the Gokona pit began in early 2005. Gokona is the second open pit on the North Mara property and contains significantly higher grades than the Stage 1 of Nyabirama pit previously mined. Production from Gokona began in June 2005 and will continue to ramp up to provide 100% of feed for the mill by the latter part of the fourth quarter. Development costs are estimated at $46 million, $25 million of which has been spent to date.



- At the Porcupine mine in Ontario, Pamour open pit development has been completed. Production from Pamour began in June and will continue to increase over the remainder of the year.



- At the Kalgoorlie mining operation in Australia, development of the Raleigh underground mine continued in the third quarter. The underground mine will be an extension of the Raleigh open pit mine. Production is scheduled to begin in late 2005, contingent upon successful conclusion of ore treatment negotiations, and continue through 2011. The Raleigh mine is located partially on a mining lease owned 100% by Placer Dome and partially on a mining lease owned by a joint venture in which Placer Dome has a 51% interest. Placer Dome's share of the capital cost is estimated at $22 million, with the majority of this expenditure in 2005.



- At the Granny Smith mine in Australia, Placer Dome approved the development of the Wallaby underground project during the quarter. The project anticipates underground mining of three of seven mineralized zones and provides access to further evaluate the remaining four zones. Capital costs are estimated at approximately $35 million(7) with full production being achieved by the end of 2006.



- At the La Coipa mine in Chile, efforts focused on pre-stripping of the Puren deposit, with production expected to begin in the third quarter of 2006 and form part of La Coipa's millfeed for 2006 and 2007.



Notes to Development Projects



(1) Real dollar average cash costs assuming cost environment prevailing at the Cortez mine as of July 2005, the date of completion of the feasibility study, except for a diesel price assumption of approximately $0.40/litre.



(2) Estimated capital costs assuming cost environment prevailing at the date of the completion of the feasibility study.



(3) Permitting processes are mandated by government regulatory agencies and therefore timelines are estimated and not entirely under Placer Dome's control.



(4) Real dollar cash costs in 2005 dollars assuming cost environment prevailing at the date of completion of the Pueblo Viejo feasibility study in July 2005, except for diesel that is assumed to average $0.31/litre over the life of the project and coal which is assumed to average $47/tonne over the life of project. Coal and/or petroleum coke is utilized in the production of power for the project and estimated operating costs to produce are $0.037/KWh. Excess and required power is assumed to be bought from and sold to the national power grid as required at prevailing prices. Estimates for Pueblo Viejo are based on an average long-term exchange rate of 36 Dominican Republic pesos to the U.S. dollar. For an explanation of non-GAAP performance measures refer to page 58 of Management's Discussion and Analysis found in Placer Dome's 2004 Annual Report available on Placer Dome's website at www.placerdome.com.



(5) Estimated capital costs assuming cost environment prevailing at the date of the completion of the feasibility study in July 2005.



(6) Permitting and other pre-condition processes are mandated by government regulatory agencies and therefore timelines are estimated and not entirely under Placer Dome's control.



(7) Estimated capital costs assuming cost environment prevailing at the September 2005 date of the completion of the feasibility study.



Outlook



Statements in this section are subject to the risks and uncertainties identified in the Forward-Looking Statements portion of this document and additional information provided in the Review of Mining Operations section.



Placer Dome expects to produce approximately 3.6 million ounces of gold in 2005 at cash and total costs per ounce of between $280 and $285 and $345 to $350, respectively, a slight increase from previous cash cost per ounce guidance. Copper production is forecast to be 370 million pounds at cash and total costs per pound of between $0.60 to $0.65 and $0.75 to $0.80 per pound, respectively, a slight reduction in forecast production, largely due to actual performance in the third quarter.



Capital expenditures, excluding deferred stripping expenditures of approximately $75 million, are forecast at $280 million, an increase of $20 million due to cost escalations and foreign exchange changes. Exploration expenditures are still forecast to be approximately $90 million in 2005.



During the fourth quarter of the year, if the spot price of gold averages the same $440 per ounce as in the third quarter, Placer Dome's realized price will be approximately $410 per ounce, or in line with the third quarter. For copper if the spot price of copper averages the same $1.71 per pound in the fourth quarter of the year, the realized price will be approximately $1.65 per pound, compared to $1.52 in the third quarter.



Placer Dome has been reviewing its strategy around business improvement. The three components of business improvement involved: (1) AMS (A Mine Standard), a five-year program aimed at standardizing core business process across the company; (2) the adoption of a standardized enterprise resource planning ("ERP") platform at significant operations; and (3) a Research and Technology program aimed at developing and implementing breakthrough technologies. To provide the mine sites with greater resources and skill sets to address the challenges within the business, and recognizing the current financial performance and cost pressures within the gold industry, Placer Dome is re-aligning, reducing and rescheduling these functions to have a more direct reporting relationship with the mines.



As a result of the slower roll out of the ERP platform and the resource reductions in these areas to reduce near-term costs, the benefits of the business improvement program are now expected to be approximately $60 million to $65 million per year by 2008.



During the second quarter of 2005, the Chilean Congress passed a tax bill enacting a maximum 5% tax on mine operating profits, effective January 1, 2006. Compania Minera Mantos de Oro, the operator of La Coipa mine, has opted out of its DL600 tax stability clause and intends to apply for an invariable tax rate of 4% for a period of 12 years. Compania Minera Zaldivar, the owner of the Zaldivar mine, continues to operate under its DL600 tax stability agreement. As such, the new mining tax will not apply to Zaldivar unless Placer Dome elects to opt out of the DL600 tax stability clause. In that case, Placer Dome would apply before November 30, 2005 for an invariable tax rate of 4% for a period of 12 years. The final regulations relating to the new mining tax have yet to be issued. Aside from knowing that tax rates will increase, Placer Dome cannot determine the exact impact of the change at this time.



Assuming current copper prices and operating costs, Zaldivar will pay approximately $50 million in Chilean income taxes during the fourth quarter of 2005. The majority of the related net earnings impact has already been expensed through the income statement as at September 30, 2005. This payment will impact reported cash from operations in the fourth quarter.



The 2005 British Columbia budget proposed a reduction of 1.5% in the corporate income tax rate. The change is expected to be enacted in the fourth quarter of 2005. Should the change be enacted, the estimated income tax impact to Placer Dome would be a charge to deferred income tax expense of approximately $9 million and an equivalent reduction in the deferred tax asset.



On March 30, 2005, the Financial Accounting Standards Board ("FASB") ratified the consensus of the Emerging Issues Task Force ("EITF") of the FASB Issue 04-6 that stripping costs incurred during the production phase of a mine are variable production costs that should be included in the costs of the inventory produced during the period that the stripping costs are incurred. This consensus is effective for the first reporting period in fiscal years beginning after December 15, 2005, with early adoption permitted. The consensus can be adopted either prospectively through a cumulative-effect adjustment or retrospectively by restating prior period financial statements. Placer Dome currently capitalizes stripping costs incurred during the production phase of a mine to the deferred stripping account. Amortization, which is calculated using the units of production method based on recovered ounces of gold or pounds of copper, is charged to cost of sales as gold or copper is produced and sold, using a stripping ratio calculated as the ratio of total tonnes of rock to be moved to total ounces of gold or total pounds of copper expected to be recovered over the life of open pits. This policy results in the expensing of stripping costs over the lives of the open pits as gold or copper is produced and sold. At September 30, 2005, Placer Dome's deferred stripping amount on its unaudited interim consolidated balance sheet was $222 million. In addition to this, smaller deferred stripping balances were present in various product inventory accounts such as metal in circuit and ore stockpiles. Placer Dome is currently evaluating the impact of this consensus which it will adopt effective January 1, 2006 retroactively with a charge to opening retained earnings and restatement of the results for the years ended December 31, 2004 and 2005 to eliminate the impact of deferred stripping and related inventory and tax balances.



Detailed Review of Financial Results



Earnings



Consolidated net earnings in accordance with U.S. GAAP for the first nine months of 2005 and quarter ended September 30, 2005 were $58 million ($0.13 per share) and $34 million ($0.08 per share), respectively, compared with $245 million ($0.59 per share) and $148 million ($0.36 per share) for the same periods in 2004.



The first nine months of 2005 net earnings included the effect of the adoption of a new accounting policy relating to accounting for post-closure termination obligations. The cumulative effect of this change was a non-cash decrease in after-tax earnings of $14 million. The first nine months of 2005 net earnings also included a non-cash charge to Income and resource tax provision of $15 million as a result of an increase in the valuation allowance relating to Australian deferred tax assets due to a decrease in expected future taxable income in Australia due to higher forecast costs and revised production estimates. Income tax recoveries during the third quarter of 2005 were largely due to foreign exchange gains resulting from the impact of the appreciation of the Canadian dollar against the U.S. dollar on resource tax assets and the favourable resolution of certain tax issues. In the first nine months and the third quarter of 2005, Placer Dome's net earnings were impacted by unrealized non-hedge derivatives after-tax losses of $8 million and $5 million, respectively (2004 - loss of $5 million and gain of $1 million, respectively).



In the first nine months and the third quarter of 2004, Placer Dome's net earnings included an after-tax gain of $76 million for the reversal of a previously accrued tax and interest liability relating to Ontario mining taxes as a result of a decision by the Ontario Court of Appeal which ruled in favour of Placer Dome (see note 8(b) to the unaudited interim consolidated financial statements for more details). During the third quarter of 2004, Placer Dome determined that, due to a more positive outlook for its Australian operations including an improved gold price environment, only $24 million of its deferred tax assets for tax benefits relating to these operations required a valuation allowance. Pursuant to this, the valuation allowance was reduced to that level by recording a non-cash credit of $37 million to Income and resource tax recovery in the income statement during the first nine months and third quarter of the year. Placer Dome's net earnings for the first nine months of 2004 also included a non-cash charge of $34 million, previously recognized in accumulated comprehensive income, relating to the cumulative foreign exchange translation loss on Placer Dome's investment in Misima as that mine ceased commercial production during the second quarter. The first nine months of 2004 net earnings also included the effect of the adoption of a new accounting policy relating to accounting for deferred stripping activities. The cumulative effect of this change to January 1, 2004 was a non-cash increase in year to date after-tax earnings of $4 million.



Mine operating earnings for the first nine months and third quarter of 2005 were $291 million and $109 million, respectively, a decrease of 28% or $115 million and a decrease of 1% or $1 million over the comparative 2004 periods due primarily to lower contributions from gold, offset by higher contributions from copper in the third quarter.



Gold operating earnings decreased by 14% to $60 million in the third quarter of 2005 compared with $70 million in the third quarter of 2004. Gold sales revenue for the quarter was $358 million compared with $336 million in the prior-year period, an increase of 7% primarily reflecting an 8% increase in the average price realized. The increase in the average realized sales price was due to a 9% increase in the average market price. Placer Dome's realized price was $412 per ounce versus a spot price of $440 per ounce as Placer Dome delivered into all hedge positions that matured during the quarter. Production for the quarter was similar to the prior-year period as increases at Turquoise Ridge, Bald Mountain, North Mara and South Deep mines and from the restart of the Golden Sunlight mine in 2005 were offset by lower production from the Cortez, Campbell and Porgera mines.



Placer Dome's share of cash and total production costs per ounce for the third quarter of 2005 were $288 and $348, respectively, compared with $235 and $291 in the prior-year period. The increase in cash costs per ounce was due primarily to various mine site specific issues, higher input commodity costs, increased global energy prices ($12 per ounce) and the appreciation of the Canadian and Australian dollars and the Chilean peso against the U.S. dollar (cumulatively $8 per ounce), partially offset by a positive $8 per ounce contribution from Placer Dome's currency hedging program.



Copper operating earnings of $54 million in the third quarter of 2005 were 17% higher than in the comparative 2004 period. Copper sales revenue for the quarter was $129 million compared with $116 million in the 2004 period, reflecting a 33% increase in the average spot price, partially offset by a 12% decrease in sales volume. Consolidated copper production in the third quarter of 2005 was 86.9 million pounds (39,407 tonnes), down 14% from the prior-year period due primarily to lower production from Zaldivar. Placer Dome's share of cash and total production costs per pound of copper for the quarter were $0.76 and $0.89, respectively, compared with $0.56 and $0.70, respectively, in the third quarter of 2004. The increase in unit production costs reflects the lower production levels, higher input, energy and shipping costs and the appreciation of the Australian dollar and the Chilean peso against the U.S. dollar.



Cash from Operations



Cash from operations was $148 million and $27 million in the first nine months and third quarter of 2005, compared with $332 million and $91 million in the corresponding periods in 2004. Excluding the impact of non-cash working capital, cash from operations was $188 million and $60 million in the first nine months and third quarter of 2005, respectively, compared with $331 million and $105 million in the prior-year periods. The decrease of 43% for the nine months and ended September 30, 2005 primarily reflect a decrease in mine operating earnings, an increase in exploration and resource development spending and an increase in cash taxes. The decrease of 43% for the three months ended September 30, 2005 is primarily due to an increase in exploration and resource development spending and higher inventory levels.



Expenditures on property, plant and equipment in the first nine months and third quarter of 2005 amounted to $192 million and $59 million, respectively, decreases of $45 million and $29 million from the comparative prior-year periods. The expenditures for the nine months included outlays of $29 million primarily for mobile equipment and development at Cortez, $27 million at North Mara primarily for pre-stripping of the Gokona pit and mobile equipment, $25 million at Kalgoorlie primarily for mine development, $20 million at Porcupine for the Pamour pit and underground development at Hoyle Pond, $21 million for information technology development and implementation and $14 million at South Deep for underground development and infrastructure. In 2004, expenditures included $42 million for the main shaft and underground development at the South Deep mine, $26 million for leach pad and tailings expansion, Cortez Hills development and sustaining capital at Cortez, $24 million for underground development at Turquoise Ridge, $21 million for pre-stripping at Golden Sunlight, $18 million for the mill upgrade at North Mara and $13 million for processing enhancements and sustaining capital at Zaldivar. Other cash from investing activities of $8 million and $7 million in the first nine months and third quarter of 2005, respectively, (2004 - $17 million and $14 million), primarily related to the disposition of assets.



Financing activities in the first nine months and third quarter of 2005 included net debt additions of $29 million and $13 million, respectively, and increases in restricted cash balances of $31 million and $10 million, respectively. There were $44 million and $22 million of dividend payments in the first nine months and third quarter of 2005, respectively (2004 - $41 million and $20 million). Consolidated short-term and long-term debt balances, net of related restricted cash, at September 30, 2005, were $1,153 million, compared with $1,154 million at December 31, 2004.



Financing activities in the third quarter of 2004 included net long-term debt repayments of $31 million, primarily relating to the repayment of the non-recourse loan relating to East African Gold Mines Limited's project financing for the North Mara mine.



On September 30, 2005, consolidated cash and cash equivalents and short-term investments amounted to $952 million, a decrease of $79 million from the beginning of the year. Of the consolidated balance of cash and short-term investments, $942 million was held by Placer Dome and its wholly owned subsidiaries. In addition to cash and short-term investments, Placer Dome had $153 million of restricted cash, primarily related to a demand loan, which requires cash to be placed on deposit with the lender in an amount equal to drawdowns. At September 30, 2005, Placer Dome also had $864 million of undrawn bank lines of credit available.



Forward Sales and Options



During the first nine months of 2005, Placer Dome reduced the maximum committed ounces under its precious metals sales program by 1.0 million ounces to 8.0 million ounces. Committed ounces were reduced during the period by delivering into forward sales contracts. This represents maximum committed ounces as a percentage of reserves at December 31, 2004 of 13% at an average expected realized price of approximately $397 per ounce for delivery over 12 years. Looking forward, Placer Dome expects to reduce its maximum committed ounces to 7.5 million by December 31, 2005 by delivering into maturing contracts. This would represent a cumulative decrease in maximum committed ounces of approximately 17% for the year. See note 7 of the unaudited interim consolidated financial statements for detailed allocation of the metals sales and currency programs.



On September 30, 2005, based on spot prices of $473.25 per ounce for gold, $7.53 per ounce for silver and an Australian to U.S. dollar ("AUD/USD") exchange rate of $1.3139, the mark-to-market value of Placer Dome's precious metal sales program was negative $993 million, a decrease of $218 million from the negative $775 million at December 31, 2004 (at the then spot prices of $438 per ounce of gold, $6.80 per ounce of silver and an AUD/USD exchange rate of $1.2814). The amount reflects the value that would have been paid to counterparties if the contracts were closed out on September 30, 2005 under prevailing market conditions without allowance for market illiquidity.



The period-over-period change in the mark-to-market value of Placer Dome's precious metals sales program and the reconciliation to the unrealized mark-to-market value are detailed as follows:



                                                         ----------
                                                          $millions
--------------------------------------------------
Mark-to-market value at December 31, 2004                       (775)
Cash value cost                                                   71
Change in spot price ($473.25 / oz versus $438.00 / oz)         (255)
Accrued contango                                                  95
Change in the AUD/USD exchange rate, volatility,
interest rates and gold lease rates                            (129)
--------------------------------------------------
Mark-to-market value at September 30, 2005                      (993)Provision included in Deferred Commodity and Currency
Sales Contracts and Derivatives liability relating
primarily to the value of the AurionGold and East
African Gold precious metal hedge books remaining from
the acquisitions by Placer Dome                                 155
--------------------------------------------------
Net unrealized mark-to-market value at September 30, 2005       (838)
--------------------------------------------------



The net unrealized mark-to-market value of negative $838 million reflects the income statement effect that Placer Dome could expect to incur had it closed out its contracts at September 30, 2005 under metal price, foreign exchange rates, interest rates and volatilities prevailing at that time. This amount is the mark-to-market balance of negative $993 million less the remaining amount of the deferred commodity derivative provision of $155 million recorded on Placer Dome's balance sheet at September 30, 2005 primarily related to the fair value of the AurionGold and East African Gold precious metal hedge books on the dates that Placer Dome acquired control of those companies.



The mark-to-market and unrealized mark-to-market amounts are not estimates of future losses which depend on various factors including contango and interest rates, gold lease rates and the then prevailing spot price.



The copper sales program mark-to-market value of forward and option contracts on September 30, 2005, was negative $7 million based on a spot copper price of $1.791 per pound (December 31, 2004 - negative $38 million based on a spot copper price of $1.488 per pound). The currency derivative program's mark-to-market on September 30, 2005 was positive $29 million based on an AUD/USD foreign exchange rate of 1.3139 and a Canadian to U.S. dollar foreign exchange rate of $1.1611 (December 31, 2004 - positive $51 million based on an AUD/USD foreign exchange rate of 1.2814 and a Canadian to U.S. dollar foreign exchange rate of $1.2036), respectively.



Other Income Statement Items



Costs related to general and administrative, exploration, resource development, technology and other totalled $169 million and $62 million in the first nine months and third quarter of 2005, respectively, representing increases of $28 million and $12 million from the respective prior-year comparative periods. The respective $13 million and $5 million increases in exploration were due to additional mine site exploration primarily in the Kalgoorlie region and precious metals exploration activity in South Africa. The increases in resource development, technology and other costs were primarily due to expenditures on the Donlin Creek and Cerro Casale projects. Restructuring costs in the third quarter of 2005 related to corporate office personnel changes.



Pre-tax non-hedge derivative losses in the first nine months and third quarter of 2005 were $19 million and $11 million, respectively (2004 - $15 million and $1 million). Included in these amounts are net unrealized non-cash losses of $12 million and $8 million for the first nine months and third quarter of 2005, respectively (2004 - $3 million and $1 million). The unrealized losses in 2005 were largely related to the mark-to-market value changes in Australian dollar denominated metal derivative instruments which do not qualify for hedge accounting. The realized losses in 2004 were largely due to the appreciation in the price of copper.



Investment and other business income in the first nine months and third quarter of 2005 were $46 million and $11 million, respectively, compared with a loss of $15 million and income of $10 million in the comparative prior-year periods. The 2005 balance includes insurance recoveries of $6 million in the first quarter and an increase in interest income of $17 million in the first nine months and $4 million in the third quarter due primarily to higher cash balances. The 2004 losses were due to an after-tax non-cash charge of $34 million relating to the cumulative foreign exchange translation loss on Placer Dome's investment in Misima, which ceased commercial production during the second quarter of that year.



Interest and financing expenses were $69 million and $23 million in the first nine months and third quarter of 2005, respectively, compared with $56 million and $19 million in the comparative prior-year periods. The increase relates to higher short-term debt levels in 2005 and the capitalization of interest in 2004.



Income tax recoveries during the third quarter of 2005 were largely due to foreign exchange gains resulting from the impact of the appreciation of the Canadian dollar against the U.S. dollar on resource tax assets and the favourable resolution of certain tax issues. Income tax expense for the first nine months of 2005 included a non-cash charge to earnings in the second quarter of $15 million to increase the valuation allowance relating to Placer Dome's Australian deferred tax assets as a result of lower expected taxable earnings due to higher forecast costs and revised production estimates.



Income and resource tax recoveries in the nine months and quarter ended September 30, 2004 were largely due to an after-tax gain of $76 million relating to the reversal of a previously accrued tax and interest liability for Ontario mining taxes as a result of a decision by the Ontario Court of Appeal on August 31, 2004 which ruled in favour of Placer Dome. On April 21, 2005 the Supreme Court of Canada granted leave for the Ontario Ministry of Finance to appeal a decision by the Ontario Court of Appeal which reversed a reassessment of a subsidiary of the Corporation for Ontario mining taxes. Management is of the view that Placer Dome will ultimately prevail; accordingly, Placer Dome has not recorded a liability for this contingency. See note 8(b) to the unaudited interim consolidated financial statements for more details. During the third quarter of 2004, Placer Dome determined that, due to a more positive outlook for its Australian operations including an improved gold price environment, only $24 million of its deferred tax assets for tax benefits relating to these operations required a valuation allowance. Pursuant to this, the valuation allowance was reduced to that level by recording a non-cash credit of $37 million to Income and resource tax recovery in the income statement during the quarter. The $34 million charge in the second quarter of 2004 relating to the Misima cumulative foreign exchange loss was not deductible for tax purposes.



The first quarter and first nine months of 2005 net earnings (loss) include the effect of a change in accounting policy with respect to termination obligations, whereby the liability accrued represents the obligation to date for all employees at mine sites (see note 2 to the unaudited interim consolidated financial statements for more details). The cumulative effect of this change was a non-cash reduction in earnings on a pre-tax and after-tax basis of $21 million and $14 million ($0.03 per share), respectively.



The first quarter and first nine months of 2004 net earnings included the effect of a change in accounting policy with respect to deferred stripping to exclude the recording of liabilities on the balance sheet. The cumulative effect of this change through December 31, 2003, was to increase earnings on an after-tax basis by $4 million ($0.01 per share). During the second quarter of 2004, Placer Dome changed its accounting policy, prospectively from April 1, 2004, with respect to mineral rights to reclassify them from intangible to tangible assets. Due to this change in accounting policy, Placer Dome ceased amortization of the excess of the carrying value over the residual value of these assets and accounts for them according to its accounting policy for property, plant and equipment (see note 2 to the unaudited interim consolidated financial statements for more details). If this change had been adopted January 1, 2004, it would have increased Placer Dome's earnings on a pre and after tax basis for the first quarter of 2004 by $3 million ($0.01 per share) and $2 million (nil per share), respectively.



Share Capital



As at October 21, 2005, Placer Dome had 436,679,863 common shares outstanding. As at the same date, it had $230 million in convertible debentures outstanding, none of which were in a position to be converted. If conversion were possible, the total number of common shares the Corporation would have to issue would be 10,991,631. As at October 21, 2005 Placer Dome had 14,110,052 share options outstanding under its stock-based incentive plans. If all of these options were exercised on that date, the Corporation would have to issue 14,110,052 common shares.



Recent Accounting Developments



On July 14, 2005, the FASB issued an exposure draft of a proposed Interpretation, Accounting for Uncertain Tax Positions - an Interpretation of FASB Statement No. 109. The proposed interpretation would require companies to recognize the best estimate of an uncertain tax position only if it is probable of being sustained on audit by the taxation authorities. Subsequently, the tax benefit would be derecognized (by either recording a tax liability or decreasing a tax asset) when the probable threshold is no longer met and it is more likely than not that the tax position will not be sustained.



The proposed Interpretation would be effective for years ending after December 15, 2005 and treated as a change in accounting policy. It would require companies to assess all uncertain tax positions and only those meeting the probable threshold at the transition date would continue to be recognized. The difference between the amount previously recognized and the amount recognized after applying the proposed Interpretation would be recorded as the cumulative-effect adjustment in the 2005 statement of earnings (restatement is not permitted). Placer Dome does not expect the proposed Interpretation to have a material impact on its results.



Review of Mining Operations
--------------------------------------------------
                     PRODUCTION AND OPERATING SUMMARY
--------------------------------------------------
                  For the nine months ended September 30
--------------------------------------------------
                                              Placer
                                              Dome's           Mine
                                               share      operating
                                          (% of mine       earnings
Mine                                       production)            (1)
--------------------------------------------------
--------------------------------------------------
GOLD
Canada
Campbell                                          100%   2005  $  12
                                                        2004  $  11
--------------------------------------------------
Musselwhite                                        68%   2005      4
                                                        2004      6
--------------------------------------------------
Porcupine                                          51%   2005     15
                                                        2004     16
--------------------------------------------------
United States
Bald Mountain(3)                                  100%   2005      2
                                                        2004      2
--------------------------------------------------
Cortez (3),(4)                                     60%   2005     82
                                                        2004     99
--------------------------------------------------
Golden Sunlight (5)                               100%   2005     (4)
                                                        2004      1
--------------------------------------------------
Turquoise Ridge(6)                                 75%   2005      2
                                                 100%   2004      2
--------------------------------------------------
Australia
Granny Smith                                      100%   2005    (10)
                                                        2004     (5)
--------------------------------------------------
Henty                                             100%   2005      8
                                                        2004     14
--------------------------------------------------
Kalgoorlie (7)                                    100%   2005     (5)
                                                        2004     18
--------------------------------------------------
Osborne (8)                                       100%   2005      -
                                                        2004      -
--------------------------------------------------
Papua New Guinea
Misima (9)                                         80%   2004      6
--------------------------------------------------
Porgera                                            75%   2005     86
                                                        2004     92
--------------------------------------------------
Chile
La Coipa (10)                                      50%   2005      8
                                                        2004     11
--------------------------------------------------
South Africa
South Deep                                         50%   2005     (3)
                                                        2004     (7)
--------------------------------------------------
Tanzania
North Mara                                        100%   2005      9
                                                        2004     16
--------------------------------------------------
Metal hedging loss                                       2005    (62)
                                                        2004    (31)
--------------------------------------------------
Currency hedging gain                                    2005     17
                                                        2004      9
--------------------------------------------------
TOTAL GOLD                                               2005  $ 153
                                                        2004  $ 249
--------------------------------------------------
--------------------------------------------------
COPPER
Osborne (8)                                       100%   2005     17
                                                        2004     29
--------------------------------------------------
Zaldivar (3)                                      100%   2005    187
                                                        2004    176
--------------------------------------------------
Metal hedging loss                                       2005    (52)
                                                        2004    (35)
--------------------------------------------------
TOTAL COPPER                                             2005  $ 152
                                                        2004  $ 170
--------------------------------------------------
--------------------------------------------------
Other (11)                                               2005    (14)
                                                        2004    (13)
--------------------------------------------------
--------------------------------------------------
CONSOLIDATED MINE                                        2005  $ 291
OPERATING EARNINGS (1)                                   2004  $ 406
--------------------------------------------------
--------------------------------------------------
                              Placer Dome's share
         --------------------------------------------------
                                           Production
                                    -----------------      Cost per
         Millfeed           Recov-      (ozs,               unit (2)
Mine         (000s   Grade     ery       000s        %   ($/oz, $/lb)
           tonnes) (g/t,%)     (%)       lbs)  change  Cash   Total
--------------------------------------------------
--------------------------------------------------
GOLD
Canada
Campbell       323    15.6    96.5    159,963       +1%  295     358
              340    15.2    95.8    158,337            251     319
--------------------------------------------------
Musselwhite    741     5.7    95.2    131,800      +10%  312     395
              749     5.2    95.7    119,749            265     343
--------------------------------------------------
Porcupine    1,633     3.0    92.9    148,954       -5%  267     329
            1,529     3.5    92.0    156,301            230     302
--------------------------------------------------
United States
Bald
Mountain(3) 4,358     0.9       -     48,051      +35%  342     377
            1,330     0.8       -     35,583            325     351
--------------------------------------------------
Cortez
(3),(4)    13,417     1.1       -    430,730      -14%  196     235
           17,207     1.2       -    500,705            157     193
--------------------------------------------------
Golden
Sunlight
(5)         1,763     1.4    76.9     57,778      n/a   398     505
                -       -       -      2,419              -       -
--------------------------------------------------
Turquoise
Ridge(6)      287    14.1    91.0    117,800      +34%  298     335
              222    13.7    90.5     88,058            315     323
--------------------------------------------------
Australia
Granny
Smith       3,056     2.8    91.1    254,121      +46%  349     465
            3,282     1.9    89.1    174,237            330     417
--------------------------------------------------
Henty          223    12.8    95.1     86,570      -22%  231     330
              216    16.7    96.6    110,434            161     267
--------------------------------------------------
Kalgoorlie
(7)         3,432     3.3    93.1    345,130       -9%  362     443
            3,728     3.3    93.5    378,248            288     356
--------------------------------------------------
Osborne (8)  1,355     0.9    84.1     32,355       -5%    -       -
            1,203     1.1    82.9     34,051              -       -
--------------------------------------------------
Papua New
Guinea
Misima (9)   1,850     0.8    87.5     40,522            275     281
--------------------------------------------------
Porgera      3,281     5.3    85.2    510,783       -9%  226     259
            3,500     5.9    87.7    560,699            189     221
--------------------------------------------------
Chile
La Coipa
(10)        2,403     1.0    80.0     60,672       -8%  311     385
            2,451     1.0    81.8     65,776            234     305
--------------------------------------------------
South Africa
South Deep     772     6.9    97.3    167,813       +9%  389     454
              808     6.1    97.2    154,536            398     440
--------------------------------------------------
Tanzania
North Mara   2,250     2.7    89.0    175,391      +21%  308     384
            1,523     3.2    92.6    145,457            235     293
--------------------------------------------------
Metal
hedging loss
--------------------------------------------------
Currency
hedging gain                                             (7)     (7)
                                                         (3)     (3)
--------------------------------------------------
TOTAL GOLD                          2,727,911       +0%  281     346
                                   2,725,112            232     287
--------------------------------------------------
--------------------------------------------------
COPPER
Osborne (8)  1,355     2.3    94.0     65,439       -6%  0.92   1.07
            1,203     2.8    94.8     69,472            0.62   0.74
--------------------------------------------------
Zaldivar
(3)        12,727     0.9       -    202,222      -19%  0.62   0.74
           13,771     1.1       -    249,960            0.50   0.64
--------------------------------------------------
Metal
hedging loss
--------------------------------------------------
TOTAL COPPER                          267,661      -16%  0.69   0.82
                                     319,432            0.52   0.66
--------------------------------------------------
--------------------------------------------------
Other (11)
--------------------------------------------------
--------------------------------------------------
CONSOLIDATED MINE
OPERATING EARNINGS (1)
--------------------------------------------------
--------------------------------------------------
--------------------------------------------------
                Estimated annual 2005(12)/Actual 2004
--------------------------------------------------
                         Placer Dome's share
--------------------------------------------------
                                               Produc-     Cost per
                                                 tion   unit (2)(12)
                                                 (ozs,  ($/oz, $/lb)
Mine                                          000s lbs) Cash   Total
--------------------------------------------------
GOLD
Canada
Campbell                                       210,000   300     370
                                              209,045   276     344
--------------------------------------------------
Musselwhite                                    170,000   310     395
                                              163,386   269     345
--------------------------------------------------
Porcupine                                      190,000   280     355
                                              201,710   236     310
--------------------------------------------------
United States
Bald Mountain(3)                                90,000   330     380
                                               46,685   349     379
--------------------------------------------------
Cortez (3),(4)                                 525,000   205     245
                                              630,801   162     201
--------------------------------------------------
Golden Sunlight (5)                             75,000   405     510
                                                2,419     -       -
--------------------------------------------------
Turquoise Ridge(6)                             150,000   310     350
                                              126,921   343     352
--------------------------------------------------
Australia
Granny Smith                                   350,000   310     420
                                              267,267   354     440
--------------------------------------------------
Henty                                          110,000   245     370
                                              143,064   170     283
--------------------------------------------------
Kalgoorlie (7)                                 490,000   350     425
                                              499,844   297     370
--------------------------------------------------
Osborne (8)                                     40,000     -       -
                                               41,630     -       -
--------------------------------------------------
Papua New Guinea
Misima (9)                                      40,522   275     281
--------------------------------------------------
Porgera                                        630,000   245     280
                                              764,809   192     228
--------------------------------------------------
Chile
La Coipa (10)                                   82,000   300     365
                                               90,932   231     300
--------------------------------------------------
South Africa
South Deep                                     225,000   385     450
                                              214,293   394     437
--------------------------------------------------
Tanzania
North Mara                                     245,000   300     380
                                              208,484   230     289
--------------------------------------------------
Metal hedging loss
--------------------------------------------------
Currency hedging gain
--------------------------------------------------
TOTAL GOLD                                   3,600,000   280-    345-
                                                        285     350
                                            3,651,812   240     298
--------------------------------------------------
--------------------------------------------------
COPPER
Osborne (8)                                     90,000   0.88   1.03
                                               87,404   0.69   0.84
--------------------------------------------------
Zaldivar (3)                                   280,000   0.57   0.69
                                              325,406   0.51   0.66
--------------------------------------------------
Metal hedging loss
--------------------------------------------------
TOTAL COPPER                                   370,000   0.60-  0.75-
                                                        0.65   0.80
                                              412,810   0.55   0.70
--------------------------------------------------
--------------------------------------------------
Other (11)
--------------------------------------------------
--------------------------------------------------
CONSOLIDATED MINE
OPERATING EARNINGS (1)
--------------------------------------------------
--------------------------------------------------
--------------------------------------------------
                   PRODUCTION AND OPERATING SUMMARY
--------------------------------------------------
                        For the Third Quarter
--------------------------------------------------
                                               Placer
                                               Dome's
                                                share          Mine
                                           (% of mine     operating
                                               produc-     earnings
Mine                                              tion)           (1)
--------------------------------------------------
--------------------------------------------------
GOLD
Canada
Campbell                                           100%  2005  $   3
                                                        2004  $   5
--------------------------------------------------
Musselwhite                                         68%  2005      1
                                                        2004      2
--------------------------------------------------
Porcupine                                           51%  2005      3
                                                        2004      4
--------------------------------------------------
United States
Bald Mountain(3)                                   100%  2005      3
                                                        2004      -
--------------------------------------------------
Cortez (3),(4)                                      60%  2005     23
                                                        2004     33
--------------------------------------------------
Golden Sunlight (5)                                100%  2005      -
--------------------------------------------------
Turquoise Ridge (6)                                 75%  2005      4
                                                        2004     (2)
--------------------------------------------------
Australia
Granny Smith                                       100%  2005      -
                                                        2004      -
--------------------------------------------------
Henty                                              100%  2005      1
                                                        2004      2
--------------------------------------------------
Kalgoorlie (7)                                     100%  2005      4
                                                        2004      3
--------------------------------------------------
Osborne (8)                                        100%  2005      -
                                                        2004      -
--------------------------------------------------
Papua New Guinea
Misima (10)                                         80%  2005      -
Misima (9)                                          80%  2004      -
--------------------------------------------------
Porgera                                             75%  2005     28
                                                        2004     33
--------------------------------------------------
Chile
La Coipa (10)                                       50%  2005     (1)
                                                        2004      3
--------------------------------------------------
South Africa
South Deep                                          50%  2005      4
                                                        2004     (1)
--------------------------------------------------
Tanzania
North Mara                                         100%  2005      2
                                                        2004      4
--------------------------------------------------
Metal hedging loss                                       2005    (23)
                                                        2004    (15)
--------------------------------------------------
Currency hedging gain                                    2005      7
                                                        2004      2
--------------------------------------------------
TOTAL GOLD                                               2005  $  60
                                                        2004  $  70
--------------------------------------------------
--------------------------------------------------
COPPER
Osborne (8)                                        100%  2005     10
                                                        2004      9
--------------------------------------------------
Zaldivar (3)                                       100%  2005     60
                                                        2004     54
--------------------------------------------------
Metal hedging loss                                       2005    (16)
                                                        2004    (17)
--------------------------------------------------
--------------------------------------------------
TOTAL COPPER                                             2005  $  54
                                                        2004  $  46
--------------------------------------------------
--------------------------------------------------
Other (11)                                               2005     (5)
                                                        2004     (6)
--------------------------------------------------
--------------------------------------------------
CONSOLIDATED MINE                                        2005  $ 109
OPERATING EARNINGS (1)                                   2004  $ 110
--------------------------------------------------
--------------------------------------------------
--------------------------------------------------
                         Placer Dome's Share
--------------------------------------------------
                                           Production      Cost per
         Millfeed           Recov-  -----------------       unit (2)
            (000s   Grade     ery       (ozs,       %   ($/oz, $/lb)
Mine        tonnes) (g/t,%)     (%)  000s lbs)  change  Cash   Total
--------------------------------------------------
--------------------------------------------------
GOLD
Canada
Campbell       100    13.6    97.2     43,334      -31%  319     380
              125    16.4    96.0     62,427            228     287
--------------------------------------------------
Musselwhite    254     5.5    94.8     44,507      +10%  324     409
              253     5.2    96.1     40,558            269     347
--------------------------------------------------
Porcupine      527     2.8    92.5     40,330      -14%  337     404
              519     3.1    92.4     46,920            242     321
--------------------------------------------------
United States
Bald Mountain
(3)         2,179     1.0       -     22,295     +119%  263     294
              750     0.9       -     10,182            445     458
--------------------------------------------------
Cortez
(3),(4)     3,945     0.9       -    134,027      -15%  229     270
            6,345     1.0       -    158,157            168     204
--------------------------------------------------
Golden
Sunlight
(5)           628       -       -     23,261      n/a   423     429
--------------------------------------------------
Turquoise
Ridge (6)     111    14.3    91.0     44,552     +179%  231     266
               49    13.0    80.3     15,959            446     459
--------------------------------------------------
Australia
Granny Smith 1,069     2.4    89.8     83,569       +4%  333     434
            1,127     2.7    90.2     80,534            294     386
--------------------------------------------------
Henty           73     8.7    93.9     19,359      -29%  328     372
               72    13.1    96.4     27,431            188     303
--------------------------------------------------
Kalgoorlie
(7)         1,190     3.7    93.1    124,567       -2%  327     406
            1,231     3.3    93.5    127,435            284     358
--------------------------------------------------
Osborne (8)    486     1.1    84.8     12,719       -0%    -       -
              423     1.3    82.0     12,757              -       -
--------------------------------------------------
--------------------------------------------------
Papua New
Guinea
Misima (9)       -       -       -      1,428            275     281
--------------------------------------------------
Porgera      1,053     5.5    73.1    162,730      -10%  222     255
            1,081     6.3    89.0    180,564            181     210
--------------------------------------------------
Chile
La Coipa
(10)          758     1.0    78.5     19,427      +16%  399     490
              856     0.6    80.7     16,716            232     295
--------------------------------------------------
South Africa
South Deep     245     8.6    97.7     65,789      +15%  335     394
              284     6.5    97.0     57,238            374     415
--------------------------------------------------
Tanzania
North Mara     802     2.5    87.2     60,127      +21%  306     390
              497     3.2    92.0     49,861            252     316
--------------------------------------------------
Metal
hedging loss
--------------------------------------------------
Currency
hedging gain                                             (8)     (8)
                                                         (2)     (2)
--------------------------------------------------
TOTAL GOLD                            900,593       +1%  288     348
                                     888,167            235     291
--------------------------------------------------
--------------------------------------------------
COPPER
Osborne (8)    486     2.5    95.3     25,636       +9% 0.89    1.04
              423     2.7    93.4     23,512           0.62    0.74
--------------------------------------------------
Zaldivar (3) 4,343     0.9       -     61,240      -21% 0.71    0.83
            4,518     0.8       -     77,859           0.54    0.68
--------------------------------------------------
Metal
hedging loss
--------------------------------------------------
TOTAL COPPER                           86,876      -14% 0.76    0.89
                                     101,371           0.56    0.70
--------------------------------------------------
--------------------------------------------------
Other (11)
--------------------------------------------------
--------------------------------------------------
CONSOLIDATED MINE
OPERATING EARNINGS (1)
--------------------------------------------------
--------------------------------------------------



Notes to the Production and Operating Summary Tables:



(1) Mine operating earnings represent 100% of the results of mines owned by Placer Dome and its subsidiaries and a pro-rata share of joint ventures. Consolidated mine operating earnings, (and the related sub-totals), in accordance with accounting principles generally accepted in the U.S., exclude the pro-rata share of La Coipa, a non-controlled incorporated joint venture. Mine operating earnings comprises sales, at the spot price, less cost of sales including reclamation costs, depreciation and depletion for each mine, in millions of U.S. dollars.



(2) Components of Placer Dome's share of cash and total production costs in accordance with the Gold Institute Standard:



                                  ---------------------------------
                                  For the period ended September 30
                                  ---------------------------------
                                    Third Quarter       Nine Months
                                  ---------------------------------
                                    2005     2004     2005     2004
                                    $/oz     $/oz     $/oz     $/oz
--------------------------------------------------
Direct mining expenses                290      232      285      229
Stripping and mine development
adjustment                           (20)     (16)     (22)     (15)
Third party smelting, refining
and transportation                     1        1        1        1
By-product credits                     (1)       -       (1)      (1)
--------------------------------------------------
--------------------------------------------------
Cash operating costs per ounce        270      217      263      214
--------------------------------------------------
Royalties                              16       15       16       15
Production taxes                        2        3        2        3
--------------------------------------------------
--------------------------------------------------
Total cash costs per ounce            288      235      281      232
--------------------------------------------------
Depreciation                           35       26       35       29
Depletion and amortization             21       25       23       22
Reclamation and mine closure            4        5        7        4
--------------------------------------------------
--------------------------------------------------
Total production costs per ounce      348      291      346      287
--------------------------------------------------(3) Recovery percentage is difficult to accurately measure at heap
leach operations.(4) The Cortez mine processes material by way of carbon-in-leach
("CIL") and heap leaching.                         -------------------------------------------
                           Millfeed   Grade   Recovery   Production
                       (000s tonnes)   (g/t)        (%)        (ozs)
--------------------------------------------------
Carbon in leach
For the nine months
ended September 30
2005                          1,469     5.1       88.4      212,273
2004                          1,400     6.0       88.5      236,846
For the third quarter of
2005                            455     5.0       89.2       65,825
2004                            475     5.3       87.8       71,117
--------------------------------------------------
Heap leach
For the nine months
ended September 30
2005                         11,826     0.6     Note 3      194,702
2004                         15,619     0.7     Note 3      230,880
For the third quarter of
2005                          3,435     0.5     Note 3       57,997
2004                          5,806     0.7     Note 3       74,792
--------------------------------------------------
Sale of carbonaceous ore
For the nine months
ended September 30
2005                            122     6.8       87.8       23,755
2004                            188     6.4       85.8       32,979
For the third quarter of
2005                             54     6.7       87.7       10,205
2004                             64     6.9       85.9       12,248
--------------------------------------------------
--------------------------------------------------
Total
For the nine months
ended September 30
2005                         13,417     1.1     Note 3      430,730
2004                         17,207     1.2     Note 3      500,705
For the third quarter of
2005                          3,945     1.1     Note 3      134,027
2004                          6,345     1.1     Note 3      158,157
--------------------------------------------------



(5) Production from Golden Sunlight was suspended in December 2003 and recommenced when ore was delivered to the mill from Stage 2B in January 2005.



(6) Production from Turquoise Ridge relates to third party ore sales. The mine's cash and total costs per ounce do not include the cost of processing the ore and are not included in Placer Dome's cash and total costs per ounce balances.



(7) The management of Placer Dome's Kalgoorlie West and Kanowna Belle operations have been realigned with all operations under one general manager and all regional development responsibilities including exploration, project development and joint venture and third party relationships under a separate general manager. As a result of this management change, commencing in the second quarter, the reporting for Kalgoorlie West and Kanowna Belle is consolidated in a single Kalgoorlie operation. Production and operating summary information for the first nine months and third quarter of 2004 has been reclassified to reflect this change.



(8) Osborne produces copper concentrate with gold as a by-product. Therefore, gold unit costs are not applicable.



(9) Silver is a by-product at the Misima mine. For the nine and three months ended September 30, 2004, Misima produced 202,000 and 7,000 ounces of silver, respectively. Mining was completed at Misima in May 2001, but processing of stockpiled ore continued until May 2004.



(10) Gold and silver are accounted for as co-products at La Coipa. Gold equivalent ounces are calculated using a ratio of the silver market price to gold market price for purposes of calculating costs per equivalent ounce of gold. The equivalent ounces of gold produced at La Coipa were 91,940 and 27,667 ounces, respectively for the nine and three month periods ended September 30, 2005 and 108,234 and 35,363 ounces, respectively, for the comparative prior-year periods. At La Coipa, production for silver was 1.9 million and 0.5 million ounces for the nine and three months ended September 30, 2005, respectively, and 2.6 million and 1.2 million ounces for the comparative prior-year periods.



(11) Pursuant to SFAS 109 - Accounting for Income Taxes, on business acquisitions, where differences between assigned values and tax bases of property, plant and equipment acquired exist, Placer Dome grosses up the property, plant and equipment values to reflect the recognition of the deferred tax liabilities for the tax effect of such differences. Other mine operating earnings included charges of $10 million and $3 million in the nine months and three months ended September 30, 2004, respectively (2003 - $8 million and $3 million), related to the amortization of the gross up of the property, plant and equipment allocation. The amortization of these amounts for the first nine months and third quarter of 2005, respectively, includes $4 million and $1 million (2004 - $3 million and $1 million) for Porgera, $2 million and nil (2004 - $2 million and $1 million) for North Mara, $2 million and $1 million (2004 - $1 million and nil) for Kalgoorlie, $1 million and nil (2004 - $1 million and nil) for Henty and $1 million and $1 million (2004 - $1 million and $1 million) for Zaldivar.



(12) Estimated 2005 annual production and unit costs are based on actual year-to-date results and forecasts for the remainder of the year and are subject to the risks and uncertainties identified in the Forward-Looking Statements portion of this document and additional information provided in this section. Estimated 2005 annual unit costs for the Canadian, Australian, Papua New Guinean, Chilean and South Deep mines are based on Canadian and Australian dollar, Papua New Guinean kina, Chilean peso and South African rand exchange rates to the U.S. dollar of 1.2048, 1.2821, 3.00, 600, and 6.00 to 1, respectively. Any change from these exchange rates would have an impact on the unit costs. At September 30, 2005 these exchange rates were 1.1610, 1.3170, 3.029, 529 and 6.3518 to 1, respectively.



Review of Mining Operations



Canada



On average, the Canadian dollar appreciated 9% against the U.S. dollar for the third quarter of 2005 compared to the third quarter of 2004.



Production at the Campbell mine for the three months ended September 30, 2005 decreased by 31% over the prior-year period. Throughput and grades were lower as a result of the mine plan and mix of mining methods. Cash costs per ounce were 40% higher than the prior-year period due to lower production levels, the appreciation of the Canadian dollar, higher maintenance expenses and costs related to the implementation of the SAP enterprise resource planning system. Cash costs during the third quarter were 17% higher than those of the second quarter of 2005, primarily due to lower production levels. Factoring in the actual third quarter results and assuming a continued strong Canadian dollar and energy costs, has caused the mine to increase its forecast of cash and total costs per ounce for 2005 to $300 and $370, respectively, from $285 and $365 with no change in production guidance.



At the Musselwhite mine, Placer Dome's share of production for the third quarter was 10% higher than the prior-year period due to higher grades from the upper PQ area. Cash costs per ounce were 20% higher than the prior-year period as increased short-term development activities and other operating costs and the appreciation of the Canadian dollar more than offset the higher production levels. Cash costs were 2% above those of the second quarter of 2005, as the continued appreciation of the Canadian dollar and higher input costs offset higher production levels.



Placer Dome's share of production in the third quarter for the Porcupine Joint Venture was 14% below that of the prior-year period due to processing of lower grade ore. Lower grade stockpiled ore supplemented lower volumes of mined ore due to transitioning from the Dome open pit to the Pamour open pit and a bench failure in the Dome open pit. Cash costs per ounce were 39% higher than the third quarter of 2004 and 46% higher than the second quarter of 2005 primarily due to lower production levels, higher input costs and the continued appreciation of the Canadian dollar. Factoring in the actual third quarter results and assuming a continued strong Canadian dollar and higher power costs, have caused the joint venture to increase its forecast of cash and total costs per ounce for 2005 to $280 and $355, respectively, from $255 and $335 with no change in production guidance.



United States



Placer Dome's share of production from the Cortez mine in the third quarter of 2005 decreased by 15% compared with the 2004 period and 19% from the second quarter of 2005. The mine processed lower grades at both the heap leach and CIL operations. Additionally, tonnes placed on the heap leach pads decreased as a result of longer haul cycles associated with the location of mining in the pit. Cash costs per ounce were 36% higher than in the prior-year period, due to lower production and higher mining costs, including fuel and tires. Lower production levels were the primary reason for cash costs per ounce being 22% higher than in the second quarter of the year. Factoring in actual third quarter results, expectations that a higher proportion of fourth quarter production will come from lower grade heap leach material and assuming continued high energy and fuel costs have caused the joint venture to increase its forecast of cash and total costs per ounce for 2005 to $205 and $245, respectively from $185 and $225.



The Record of Decision for the Pipeline / South Pipeline Pit Expansion Environment Impact Study was signed in July of this year and no appeals of the decision occurred. The decision permits mining of the Pipeline/South Pipeline pit to below its ultimate planned depth.



At the Golden Sunlight mine production in the third quarter was 23,261 ounces, slightly higher than the second quarter of the year. Cash costs per ounce were $423, 16% higher than in the second quarter due to the impact of a slide on the west wall of stage 5B of the open pit in the second quarter. The slide resulted in the closure of the west side of the open pit in the second quarter, with only the southern portion of the west side still closed at the end of the third quarter. Mitigation efforts, including a step in from the west wall, are under way and are currently expected to cost approximately $1 million. The mine is reviewing the full impact on mineral reserves and longer-term production. As a result of the slide, the mine has reduced its forecast for production for 2005 by 15,000 ounces to 75,000 ounces and increased its forecast for cash and total costs per ounce to $405 and $510, respectively from $345 and $470.



Placer Dome's share of production from Turquoise Ridge in the third quarter of 2005 was 179% higher than the prior-year period due to increased tonnes mined from the Getchell underground and continued increased mining rates at the Turquoise Ridge mine. Cash costs per ounce, excluding the cost of processing, were 48% lower than the prior-year period due primarily to the higher production levels.



Australia and Papua New Guinea



On average, the Australian dollar appreciated 7% against the U.S. dollar for the third quarter of 2005 compared to the third quarter of 2004.



At the Porgera mine, Placer Dome's share of production in the third quarter of 2005 was 10% below the prior-year period levels. Lower grade ore was processed as mining occurred solely in stage 4 of the pit. Cash costs per ounce were 23% higher than the third quarter of 2004, primarily due to the decrease in production, the appreciation of the Australian dollar and higher fuel prices. Stronger than expected year-to-date production levels have caused the joint venture to increase its forecast of production for 2005 with Placer Dome's share increasing by 30,000 ounces to 630,000 ounces and decrease its cash and total costs per ounce forecast to $245 and $280, respectively, from $265 and $305.



The joint venture participants have approved a 27 million tonne cutback of the west wall as a means to mitigate erosion of the wall and enable access to stage 5 ore. Placer Dome's share of the cutback, associated drainage control, waste rock cover for erosion protection and a waste rock toe buttress is estimated at $45 million. The mine will process principally stockpiled ore early in 2006 until mining of stage 5 recommences. Ore delivery from stage 5 will increase throughout the year and will become the primary ore source by the fourth quarter. The cutback is forecast to be completed by mid 2007. These measures are expected to have no impact on reserves.



Incursions into the operating areas of the Porgera mine lease by illegal miners have recently and periodically escalated. The mine has implemented a number of measures aimed at reducing the level of incursions with limited success. The current situation endangers the illegal miners and mine personnel and has the potential to impact on the operations of the mine. As a result, the mine has applied to the PNG National Court to require the PNG Department of Mining to take action to address illegal mining at the mine in accordance with its obligations under the PNG Mining Act. The Mining Act permits the Department of Mining to request, via the courts, support from the PNG police to address illegal mining activities. This course of action has been taken in consultation with the Department of Mining and the court application is broadly supported by the PNG Government and local authorities. The Court application contemplates that any police activities will be conducted in accordance with agreed human rights standards and under the observation of an independent third party. Concurrently, the mine continues to implement preventive measures such as increased fencing and expanded stakeholder awareness programs. The mine continues to support the PNG Government decision to establish a multi-stakeholder committee to seek long-term solutions to the illegal miner situation.



At the Granny Smith mine, production for the second quarter was similar to the prior-year period. Cash costs per ounce were 13% higher than the comparative prior-year period due to higher fuel and other input prices and the appreciation of the Australian dollar. Production during the third quarter of 2005 was 10% higher than the second quarter of the year due to higher throughput. Continued cost cutting efforts, including a further staff reduction by year end and an expected decrease in stripping activity and stockpile build-up in the fourth quarter result in no change in previously forecast cash and total costs per ounce.



Production from the Kalgoorlie operations during the third quarter was similar to the prior-year period. Cash costs per ounce in the quarter increased by 15% compared to the prior-year period due to stripping costs for several small open pit mines which will be mined later in 2005 and early in 2006, higher input costs and the appreciation of the Australian dollar. Cash costs per ounce were 14% below those of the second quarter of 2005 due to higher production and cost savings initiatives. Factoring in actual third quarter performance, delays in the mining schedule due to wet weather, a continued strong Australian dollar and input costs have caused the mine to decrease its forecast of production for 2005 by 25,000 ounces to 490,000 ounces and increase its cash and total costs per ounce forecast to $350 and $425, respectively, from $330 and $420.



At the Osborne mine, copper production in the third quarter of 2005 increased 9% from the prior-year period due to higher throughput, partially offset by lower grades. Cash costs per pound of copper (Osborne produces copper concentrate with gold as a by-product) were 44% above prior period levels due to higher fuel costs and smelting charges, production from lower grade areas and the appreciation of the Australian dollar, partially offset by higher gold credits. Positive production performance to date and site cost savings programs have resulted in 2005 forecast copper production being increased by 10 million pounds to a total of 90 million pounds with cash and total costs per pound forecast decreasing to $0.88 and $1.03, respectively, from $0.91 and $1.04.



Africa



At the South Deep mine, Placer Dome's share of production for the third quarter of 2005 was 15% higher than the prior-year period and 16% higher than the second quarter of 2005 due to an increase in underground mining rates despite a brief strike that occurred at the mine. Unit cash costs decreased by 10% from the prior-year period as a result of the higher production levels. Relative to the second quarter of 2005, unit cash costs decreased 12% due primarily to the increase in production. During the quarter, Western Areas Limited, a 50% joint venture participant in the South Deep mine, fully funded its outstanding cash call obligations to the joint venture.



Production from the North Mara mine during the third quarter was 21% greater than in the prior-year as increased throughput as a result of the mill expansion completed in the fourth quarter of 2004 more than offset the lower grade stockpiled ore that was processed as the Gokona pit development is completed. Cash costs per ounce were 21% higher than in the third quarter of 2004 due to the processing of higher amounts of low-grade ore and increased input costs, principally diesel. Processing of softer ore from the first stages of the Gokona pit resulted in production in the third quarter being 15% higher and, combined with lower maintenance spending, cash costs per ounce 20% lower than in the second quarter.



Chile



At the Zaldivar mine, copper production for the third quarter of 2005 was 61 million pounds, a decrease of 21% from the prior-year period. The mine continued to perform below historical levels in the third quarter. Production was principally impacted by lower grade and tonnage placed on the heaps and an eight-day strike in July. Unusually cold winter temperatures have also caused slower leach cycles. Cash costs per pound during the period were $0.71, an increase of 31% from the prior-year period due to lower production, a 14% appreciation in the Chilean peso relative to the U.S. dollar and higher fuel, spare parts and acid costs. Factoring in actual third quarter results while still taking into account anticipated higher leach rates in the fourth quarter has caused the mine to decrease its forecast for production for 2005 by 20 million pounds to 280 million pounds with an increase in cash and total costs per pound to $0.57 and $0.69, respectively, from $0.55 and $0.68, respectively. Production in the fourth quarter of 2005 is expected to be approximately 80 million pounds at cash and total costs per pound of $0.44 and $0.56, respectively.



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 are therefore unlikely to be comparable to similar measures presented by other companies. Placer Dome believes that as well as 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.



Unit Costs



A reconciliation of costs per ounce of gold produced, calculated in accordance with the Gold Institute Standard, and costs per pound of copper produced to the Cost of sales and Depreciation and depletion income statement lines is included below:



--------------------------------------------------
                             For the nine months ended September 30
--------------------------------------------------
                                             2005
--------------------------------------------------
                                   Gold                 Copper
--------------------------------------------------
(in millions of dollars
except production and       Cost of  Depreci-    Cost of    Depreci-
unit costs) (i)               sales    ation       sales      ation
--------------------------------------------------
Reported                         953      195           -          -
Copper                          (192)     (34)        192         34
Corporate (ii)                     -      (13)          -          -
--------------------------------------------------
--------------------------------------------------
Related to metals produced      761      148         192         34
Add La Coipa                      29        7           -          -
Deduct minority interest           -        -           -          -
By-product                        (3)       -         (13)         -
Reclamation                      (17)      17          (3)         3
Ore sales costs                  (40)       -           -          -
Inventories                        6        -           -          -
Other (iii)                      (10)      (4)          9         (2)
--------------------------------------------------
--------------------------------------------------
                                726      168         185         35
--------------------------------------------------
Production reported (i)       2,728    2,728         268        268
Osborne gold ozs.                (32)     (32)          -          -
Ore sales ozs.                  (142)    (142)          -          -
Golden Sunlight ozs.               -        -           -          -
La Coipa au equivalents ozs.      31       31           -          -
--------------------------------------------------
--------------------------------------------------
Production base for
calculation                   2,585    2,585         268        268
--------------------------------------------------
--------------------------------------------------
Unit costs (i)                  281       65        0.69       0.13
--------------------------------------------------
--------------------------------------------------
                             For the nine months ended September 30
--------------------------------------------------
                                             2004
--------------------------------------------------
                                   Gold                 Copper
--------------------------------------------------
(in millions of dollars
except production and       Cost of  Depreci-    Cost of    Depreci-
unit costs) (i)               sales    ation       sales      ation
--------------------------------------------------
Reported                         838      184           -          -
Copper                          (185)     (45)        185         45
Corporate (ii)                    (3)     (11)          -          -
--------------------------------------------------
--------------------------------------------------
Related to metals produced      650      128         185         45
Add La Coipa                      25        8           -          -
Deduct minority interest          (3)       -           -          -
By-product                        (3)       -         (14)         -
Reclamation                      (12)      12          (1)         1
Ore sales costs                  (33)       -           -          -
Inventories                       (6)      (3)         (9)        (2)
Other (iii)                      (12)      (1)          5          1
--------------------------------------------------
--------------------------------------------------
                                606      144         166         45
--------------------------------------------------
Production reported (i)       2,725    2,725         319        319
Osborne gold ozs.                (34)     (34)          -          -
Ore sales ozs.                  (121)    (121)          -          -
Golden Sunlight ozs.              (2)      (2)          -          -
La Coipa au equivalents ozs.      42       42           -          -
--------------------------------------------------
--------------------------------------------------
Production base for
calculation                   2,610    2,610         319        319
--------------------------------------------------
--------------------------------------------------
Unit costs (i)                  232       55        0.52       0.14
--------------------------------------------------
--------------------------------------------------
--------------------------------------------------
                            For the three months ended September 30
--------------------------------------------------
                                             2005
--------------------------------------------------
                                   Gold                 Copper
--------------------------------------------------
(in millions of dollars
except production and       Cost of  Depreci-    Cost of    Depreci-
unit costs) (i)               sales    ation       sales      ation
--------------------------------------------------
Reported                         317       62           -          -
Copper                           (70)     (11)         70         11
Corporate (ii)                     -       (4)          -          -
--------------------------------------------------
--------------------------------------------------
Related to metals produced      247       47          70         11
Add La Coipa                      11        2           -          -
Deduct minority interest           -        -           -          -
By-product                        (1)       -          (6)         -
Reclamation                       (2)       2          (1)         1
Ore sales costs                  (12)       -          (3)         -
Inventories                        3        -          (3)         1
Other (iii)                       (4)       -           9         (1)
--------------------------------------------------
--------------------------------------------------
                                242       51          66         12
--------------------------------------------------
Production reported (i)         901      901          87         87
Osborne gold ozs.                (13)     (13)          -          -
Ore sales ozs.                   (55)     (55)          -          -
Golden Sunlight ozs.               -        -           -          -
La Coipa au equivalents ozs.       8        8           -          -
--------------------------------------------------
--------------------------------------------------
Production base for
calculation                     841      841          87         87
--------------------------------------------------
--------------------------------------------------
Unit costs (i)                  288       60        0.76       0.13
--------------------------------------------------
--------------------------------------------------
                            For the three months ended September 30
--------------------------------------------------
                                             2004
--------------------------------------------------
                                   Gold                 Copper
--------------------------------------------------
(in millions of dollars
except production and       Cost of  Depreci-    Cost of    Depreci-
unit costs) (i)               sales    ation       sales      ation
--------------------------------------------------
Reported                         282       61           -          -
Copper                           (60)     (14)         60         14
Corporate (ii)                    (1)      (3)          -          -
--------------------------------------------------
--------------------------------------------------
Related to metals produced      221       44          60         14
Add La Coipa                       8        3           -          -
Deduct minority interest           -        -           -          -
By-product                         -        -          (5)         -
Reclamation                       (5)       5           -          -
Ore sales costs                   (9)       -           -          -
Inventories                       (7)      (1)          -          -
Other (iii)                       (6)      (2)          -          -
--------------------------------------------------
--------------------------------------------------
                                202       49          55         14
--------------------------------------------------
Production reported (i)         888      888         101        101
Osborne gold ozs.                (13)     (13)          -          -
Ore sales ozs.                   (28)     (28)          -          -
Golden Sunlight ozs.               -        -           -          -
La Coipa au equivalents ozs.      18       18           -          -
--------------------------------------------------
--------------------------------------------------
Production base for
calculation                     865      865         101        101
--------------------------------------------------
--------------------------------------------------
Unit costs (i)                  235       56        0.56       0.14
--------------------------------------------------
--------------------------------------------------
(i)   Gold production is in thousands of ounces and unit costs for
     gold are in dollars per ounce. Copper production is in
     millions of pounds, and unit costs for copper are in dollars
     per pound.
(ii)  Corporate depreciation includes the amortization of the tax
     gross ups (note 3(b) to the unaudited interim consolidated
     financial statements).
(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 in the determination of unit costs.
PLACER DOME INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(millions of U.S. dollars, except share and per share amounts, U.S.
GAAP)
(unaudited)                              -------------------------------------
                                            September 30
                             -------------------------------------
                                 Third Quarter         Nine Months
                             -------------------------------------
                               2005       2004      2005      2004
                                  $          $         $         $
--------------------------------------------------
Sales (note 3)                   488        453     1,439     1,428
Cost of sales                    317        282       953       838
Depreciation and
amortization                     62         61       195       184
--------------------------------------------------
--------------------------------------------------
Mine operating earnings
(note 3(b))                     109        110       291       406
--------------------------------------------------
General and administrative        16         17        48        48
Exploration                       24         19        65        52
Resource development,
technology and other             22         14        56        41
Write-downs of mining assets
and restructuring costs           4          1         4         6
--------------------------------------------------
--------------------------------------------------
Operating earnings                43         59       118       259
--------------------------------------------------
Non-hedge derivative loss        (11)        (1)      (19)      (15)
Investment and other
business income (loss)           11         10        46       (15)
Interest and financing
expense                         (23)       (19)      (69)      (56)
--------------------------------------------------
--------------------------------------------------
Earnings before taxes and
other items                      20         49        76       173
--------------------------------------------------
Income and resource tax
recovery (provision)
(notes 4 and 8(b))               16         99        (9)       64
Equity in earnings of
associates                       (2)         -         4         5
Minority interests                 -          -         1        (1)
--------------------------------------------------
--------------------------------------------------
Net earnings before the
cumulative effect of
change in accounting
policies                         34        148        72       241
--------------------------------------------------
--------------------------------------------------
Changes in accounting
policies (note 2)                 -          -       (14)        4
--------------------------------------------------
--------------------------------------------------
Net earnings                      34        148        58       245
--------------------------------------------------
Comprehensive income              41        148        76       253
--------------------------------------------------
Per common share
Net earnings (and diluted
 net earnings) before the
 cumulative effect of
 changes in accounting
 policies                      0.08       0.36      0.16      0.58
Net earnings                   0.08       0.36      0.13      0.59
Diluted net earnings           0.08       0.34      0.13      0.57
Dividends                      0.05       0.05      0.10      0.10
--------------------------------------------------
--------------------------------------------------
Weighted average number
of common shares (millions)
Basic                         436.6      413.5     436.5     412.9
Diluted                       438.6      432.0     438.6     432.1
--------------------------------------------------
(See accompanying notes to the unaudited interim consolidated
financial statements)
PLACER DOME INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(millions of U.S dollars, U.S. GAAP)
(unaudited)                              -------------------------------------
                                            September 30
                             -------------------------------------
                                 Third Quarter         Nine Months
                             -------------------------------------
                               2005       2004      2005      2004
                                  $          $         $         $
--------------------------------------------------
Operating activities
Net earnings                      34        148        58       245
Add (deduct) non-cash items
Depreciation and depletion       62         61       195       184
Deferred stripping
 adjustment                     (15)       (11)      (49)      (34)
Cumulative translation
 adjustment                       -          -         -        34
Unrealized loss on
 derivatives                      8          1        12         3
Deferred reclamation              4          7        17         8
Deferred income and
 resource taxes                 (36)       (94)      (54)      (98)
Changes in accounting
 policies (note 2)                -          -        14        (4)
Other items, net                  3         (7)       (5)       (7)
--------------------------------------------------
--------------------------------------------------
Cash from operations
before change in non-cash
operating working capital        60        105       188       331
Change in non-cash
operating working capital       (33)       (14)      (40)        1
--------------------------------------------------
--------------------------------------------------
Cash from operations              27         91       148       332
--------------------------------------------------
Investing activities
Property, plant and
equipment                       (59)       (88)     (192)     (237)
Short-term investments             -         (1)       (3)       (5)
Other, net                         7         14         8        17
--------------------------------------------------
--------------------------------------------------
Cash used in investing           (52)       (75)     (187)     (225)
--------------------------------------------------
Financing activities
Short-term debt, net              13         85        30        90
Restricted cash                  (10)       (90)      (31)      (90)
Long-term debt and
capital leases
Borrowings                         -          -         -         5
Repayments                         -        (31)       (1)      (38)
Common shares issued               2          6         3        26
Dividends paid on common
shares                          (22)       (20)      (44)      (41)
--------------------------------------------------
--------------------------------------------------
Cash used in financing           (17)       (50)      (43)      (48)
--------------------------------------------------
--------------------------------------------------
Increase (decrease) in
cash and cash equivalents       (42)       (34)      (82)       59
--------------------------------------------------
--------------------------------------------------
Cash and cash equivalents
Beginning of period              977        675     1,017       582
--------------------------------------------------
End of period                    935        641       935       641
--------------------------------------------------
(See accompanying notes to the unaudited interim consolidated
financial statements)
PLACER DOME INC.
CONSOLIDATED BALANCE SHEETS
(millions of United States dollars, U.S. GAAP)
(unaudited)ASSETS
                                      -----------------------------
                                      September 30      December 31
                                              2005             2004
                                                 $                $
--------------------------------------------------
Current assets
Cash and cash equivalents                      935            1,017
Short-term investments                          17               14
Restricted cash                                153              122
Accounts receivable                            133              138
Income and resource tax assets                 121               97
Inventories (note 5)                           275              248
--------------------------------------------------
--------------------------------------------------
                                             1,634            1,636
--------------------------------------------------
Investments                                      63               50
Other assets (note 6)                           176              173
Deferred commodity and currency sales
contracts and derivatives                       30               54
Income and resource tax assets (note 4)         425              400
Deferred stripping                              222              170
Goodwill                                        454              454
Property, plant and equipment
Cost                                         4,942            4,791
Accumulated depreciation
 and amortization                           (2,351)          (2,184)
--------------------------------------------------
                                             2,591            2,607
--------------------------------------------------
--------------------------------------------------
                                             5,595            5,544
--------------------------------------------------LIABILITIES AND SHAREHOLDERS' EQUITY
                                      -----------------------------
                                      September 30      December 31
                                              2005             2004
                                                 $                $
--------------------------------------------------
Current liabilities
Accounts payable and accrued
 liabilities                                   254              268
Short-term debt                                143              113
Income and resource taxes
 liabilities (note 4)                           54               27
Current portion of long-term debt
 and capital leases                             46               45
--------------------------------------------------
--------------------------------------------------
                                               497              453
--------------------------------------------------
Long-term debt and capital leases             1,107            1,109
Reclamation and post closure
obligations                                    288              251
Income and resource tax liabilities
(note 4)                                       237              265
Deferred commodity and currency sales
contracts and derivatives                      192              223
Deferred credits and other liabilities           74               79
Commitments and contingencies
(notes 7 and 8)
Shareholders' equity                          3,200            3,164
--------------------------------------------------
--------------------------------------------------
                                             5,595            5,544
--------------------------------------------------
(See accompanying notes to the unaudited interim consolidated
financial statements)
PLACER DOME INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(millions of U.S. dollars, except share amounts, U.S. GAAP)
(unaudited)                                    --------------------------------
                                             September 30
                                   --------------------------------
                                    Third Quarter       Nine Months
                                   --------------------------------
                                    2005     2004     2005     2004
                                       $        $        $        $
--------------------------------------------------
Common shares (i),
beginning of period                2,523    2,043    2,522    2,023
Exercise of options                     2        6        3       26
--------------------------------------------------
--------------------------------------------------
Common shares, end of period        2,525    2,049    2,525    2,049
--------------------------------------------------
--------------------------------------------------
Accumulated other comprehensive
loss, beginning of period             (4)     (27)     (15)     (35)
Unrealized gain (loss)
on securities                          7        3       11       (1)
Unrealized gain (loss)
on derivatives
Copper                                 1      (10)      (3)     (24)
Currency                               -        6       (1)       -
Reclassification of (gain) loss
on derivatives included in
net earnings
Copper                                 4        3       23        7
Currency                              (5)      (2)     (12)      (8)Reclassification of cumulative
translation account loss
included in net earnings               -        -        -       34
--------------------------------------------------
--------------------------------------------------
Accumulated other comprehensive
income (loss), end of period           3      (27)       3      (27)
--------------------------------------------------
--------------------------------------------------
Contributed surplus,
beginning of period                   68       68       69       66
Stock-based compensation                2        1        1        3
--------------------------------------------------
--------------------------------------------------
Contributed surplus, end of period     70       69       70       69
--------------------------------------------------
--------------------------------------------------
Retained earnings,
beginning of period                  590      421      588      345
Net earnings                          34      148       58      245
Common share dividends               (22)     (20)     (44)     (41)
--------------------------------------------------
--------------------------------------------------
Retained earnings, end of period      602      549      602      549
--------------------------------------------------
--------------------------------------------------
Shareholders' equity                3,200    2,640    3,200    2,640
--------------------------------------------------(i)  Authorized and issued share capital:
    Preferred shares - unlimited shares authorized, no par value,
                        none issued.
    Common shares - unlimited shares authorized, no par value,
                    issued and outstanding at September 30, 2005 -
                    436,653,540 shares (December 31, 2004 -
                    436,395,449).(See accompanying notes to the unaudited interim consolidated
financial statements)PLACER DOME INC.
NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
(all tabular amounts are in millions of U.S. dollars, U.S. GAAP)



1. Basis of Presentation



The accompanying unaudited interim consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). They do not include all of the disclosures required by GAAP for annual financial statements. In the opinion of management, the adjustments considered necessary for fair presentation, all of which are of a normal and recurring nature, have been included in these financial statements. Operating results for the three and nine months ended September 30, 2005 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2005 or future operating periods. For further information, see Placer Dome's consolidated financial statements, including the accounting policies and notes thereto, included in the Annual Report and Annual Information Form/Form 40-F for the year ended December 31, 2004.



On March 30, 2005, the Financial Accounting Standards Board ("FASB") ratified the consensus of the Emerging Issues Task Force ("EITF") of the FASB Issue 04-6 that stripping costs incurred during the production phase of a mine are variable production costs that should be included in the costs of the inventory produced during the period that the stripping costs are incurred. This consensus is effective for the first reporting period in fiscal years beginning after December 15, 2005, with early adoption permitted. The consensus can be adopted either prospectively through a cumulative-effect adjustment or retrospectively by restating prior period financial statements.



Placer Dome currently capitalizes stripping costs incurred during the production phase of a mine to the deferred stripping account. Amortization, which is calculated using the units of production method based on recovered ounces of gold or pounds of copper, is charged to cost of sales as gold or copper is produced and sold, using a stripping ratio calculated as the ratio of total tonnes of rock to be moved to total ounces of gold or total pounds of copper expected to be recovered over the life of open pits. This policy results in the expensing of stripping costs over the lives of the open pits as gold or copper is produced and sold. At September 30, 2005, Placer Dome's deferred stripping amount on its unaudited interim consolidated balance sheet was $222 million. In addition to this, smaller stripping balances were present in various product inventory accounts such as metal in circuit and ore stockpiles.



Placer Dome is currently evaluating the impact of this consensus which it will adopt effective January 1, 2006 retroactively with a charge to opening retained earnings and restatement of the results for the years ended December 31, 2004 and 2005 to eliminate the impact of deferred stripping and related inventory and tax balances.



On April 15, 2005, the U.S. Securities and Exchange Commission ("SEC") announced that it would provide for a phased-in implementation process for FASB Statement No. 123(R), Share-Based Payment ("SFAS 123(R)"). The SEC would require that registrants adopt SFAS 123(R)'s fair value method of accounting for share-based payments to employees no later than the beginning of the first fiscal year beginning after June 15, 2005. Placer Dome plans to adopt SFAS 123(R) effective January 1, 2006.



On July 14, 2005, the FASB issued an exposure draft of a proposed Interpretation, Accounting for Uncertain Tax Positions - an Interpretation of FASB Statement No. 109. The proposed interpretation would require companies to recognize the best estimate of an uncertain tax position only if it is probable of being sustained on audit by the taxation authorities. Subsequently, the tax benefit would be derecognized (by either recording a tax liability or decreasing a tax asset) when the probable threshold is no longer met and it is more likely than not that the tax position will not be sustained.



The proposed Interpretation would be effective for years ending after December 15, 2005 and treated as a change in accounting policy. It would require companies to assess all uncertain tax positions and only those meeting the probable threshold at the transition date would continue to be recognized. The difference between the amount previously recognized and the amount recognized after applying the proposed Interpretation would be recorded as the cumulative-effect adjustment in the 2005 statement of earnings (restatement is not permitted). Placer Dome does not expect the proposed Interpretation to have a material impact on its results.



Certain amounts for 2004 have been reclassified to conform with the current period's presentation.



2. Changes in Accounting Policies



Effective January 1, 2005, Placer Dome changed its accounting policy with respect to termination obligations, whereby the liability accrued will represent the obligation to date for all employees at mine sites. The amount of the liability is subject to re-measurement at each reporting period. This differs from the prior practice, which involved accruing for the estimated termination costs through annual charges to earnings over the estimated life of the mine. The cumulative effect of the change in policy on the balance sheet at January 1, 2005 was to increase Deferred credits and other liabilities by $21 million with a one time after-tax charge to net earnings of $14 million ($0.03 per share).



During the second quarter of 2004, Placer Dome changed its accounting policy, retroactive to January 1, 2004, with respect to deferred stripping to exclude the recording of liabilities on the balance sheet. Previously, Placer Dome had, at December 31, 2003, a liability in deferred stripping relating to its share of the Cortez joint venture on Placer Dome's consolidated balance sheet. This change was made as a result of deliberations by the EITF at its July 1, 2004 meeting which concluded that a deferred stripping liability did not meet the definition of a liability under FASB Concept Statement No. 6. The cumulative effect of this change through December 31, 2003, was to increase earnings on an after-tax basis by $4 million ($0.01 per share).



During the second quarter of 2004, Placer Dome changed its accounting policy, prospectively from April 1, 2004, with respect to mineral rights to reclassify them from intangible to tangible assets. This change was made as a result of deliberations by the EITF at its March 17-18, 2004 meeting, subsequently approved by FASB, which concluded mining rights should be classified as tangible assets. Prior to this change in accounting policy, Placer Dome had recorded mineral rights as intangible assets on its consolidated balance sheet as purchased undeveloped mineral interests and amortized the excess of the carrying value over the residual value on a straight-line basis over the period that it expected to convert, develop or further explore the underlying properties. Due to this change in accounting policy, Placer Dome ceased amortization of the excess of the carrying value over the residual value of these assets and accounts for them according to its accounting policy for property, plant and equipment. If this change had been adopted January 1, 2004, it would have increased Placer Dome's earnings on a pre and after tax basis for the first quarter of 2004 by $3 million ($0.01 per share) and $2 million (nil per share), respectively.



3. Business Segments



Substantially all of Placer Dome's operations are within the mining sector. Due to the geographic and political diversity, Placer Dome's mining operations are decentralized whereby Mine General Managers are responsible for achieving specific business results within a framework of global policies and standards. Country corporate offices provide support infrastructure to the mines in addressing local and country issues including financial, human resource and exploration support. Major products are gold and copper produced from mines located in Canada, the U.S., Australia, Papua New Guinea, South Africa, Tanzania and Chile.



(a) Product segments
                     ---------------------------------------------
                             Sales by metal segment - September 30
                     ---------------------------------------------
                                Third quarter          Nine months
                     ---------------------------------------------
                               2005      2004       2005      2004
                                  $         $          $         $
--------------------------------------------------
Gold                             358       336      1,070     1,038
Copper                           129       116        365       386
Other                              1         1          4         4
--------------------------------------------------
--------------------------------------------------
                                488       453      1,439     1,428
--------------------------------------------------(b) Segment sales revenue and mine operating earnings (loss)
                     ---------------------------------------------
                              Sales revenue by mine - September 30
                     ---------------------------------------------
                                Third quarter          Nine months
                     ---------------------------------------------
                               2005      2004       2005      2004
                                  $         $          $         $
--------------------------------------------------
Canada
Campbell                         18        28         69        66
Musselwhite                      19        17         56        49
Porcupine                        22        19         64        65
--------------------------------------------------
--------------------------------------------------
                                 59        64        189       180
--------------------------------------------------
United States
Bald Mountain                     9         5         21        14
Cortez                           59        66        183       196
Golden Sunlight (i)              10         -         24         2
Turquoise Ridge                  17         5         43        30
--------------------------------------------------
--------------------------------------------------
                                 95        76        271       242
--------------------------------------------------
Australia
Granny Smith                     36        31        107        70
Henty                             8        10         37        44
Kalgoorlie (ii)                  54        51        147       158
Osborne                          40        30         90        92
--------------------------------------------------
--------------------------------------------------
                                138       122        381       364
--------------------------------------------------
Papua New Guinea
Misima (iii)                      -         1          -        23
Porgera                          70        71        223       221
--------------------------------------------------
--------------------------------------------------
                                 70        72        223       244
--------------------------------------------------
South Africa - South Deep         27        23         70        61
Tanzania - North Mara             26        20         79        60
Chile - Zaldivar                 112       108        340       343Metal hedging loss               (39)      (32)      (114)      (66)
--------------------------------------------------
--------------------------------------------------
                                488       453      1,439     1,428
--------------------------------------------------
--------------------------------------------------
                     ---------------------------------------------
                     Mine operating earnings (loss) - September 30
                     ---------------------------------------------
                                Third quarter          Nine months
                     ---------------------------------------------
                               2005      2004       2005      2004
                                  $         $          $         $
--------------------------------------------------
Canada
Campbell                          3         5         12        11
Musselwhite                       1         2          4         6
Porcupine                         3         4         15        16
--------------------------------------------------
--------------------------------------------------
                                  7        11         31        33
--------------------------------------------------
United States
Bald Mountain                     3         -          2         2
Cortez (note 2)                  23        33         82        99
Golden Sunlight (i)               -         -         (4)        1
Turquoise Ridge                   4        (2)         2         2
--------------------------------------------------
--------------------------------------------------
                                 30        31         82       104
--------------------------------------------------
Australia
Granny Smith                      -         -        (10)       (5)
Henty                             1         2          8        14
Kalgoorlie (ii)                   4         3         (5)       18
Osborne                          10         9         17        29
--------------------------------------------------
--------------------------------------------------
                                 15        14         10        56
--------------------------------------------------
Papua New Guinea
Misima (iii)                      -         -          -         6
Porgera                          28        33         86        92
--------------------------------------------------
--------------------------------------------------
                                 28        33         86        98
--------------------------------------------------
South Africa - South Deep          4        (1)        (3)       (7)
Tanzania - North Mara              2         4          9        16
Chile - Zaldivar                  60        54        187       176
Metal hedging loss               (39)      (32)      (114)      (66)
Currency hedging gain              7         2         17         9
Amortization of tax gross
up (iv)                          (3)       (3)       (10)       (8)
Stock-based compensation          (1)       (2)         -        (4)
Other                             (1)       (1)        (4)       (1)
--------------------------------------------------
--------------------------------------------------
                                109       110        291       406
--------------------------------------------------(i)   Production from Golden Sunlight was temporarily suspended in
     December 2003 and recommenced when ore was delivered from
     Stage 2B in January 2005.
(ii)  As a result of a management change, whereby operations of
     Kanowna Belle and Kalgoorlie West have been realigned with
     all operations under one mine general manager, commencing in
     the second quarter, the reporting for Kalgoorlie West and
     Kanowna Belle has been consolidated into a single Kalgoorlie
     operation. Results for the first nine months and third quarter
     of 2004 have been reclassified to reflect this change.
(iii) Processing of ore ceased at Misima in May 2004.
(iv)  Pursuant to SFAS 109 - Accounting for Income Taxes, on business
     acquisitions, where differences between assigned values and tax
     bases of property, plant and equipment acquired exist, Placer
     Dome grosses up the property, plant and equipment values to
     reflect the recognition of the deferred tax assets and
     liabilities for the tax effect of such differences. The
     amortization of these amounts for the first nine months and
     third quarter of 2005, respectively, includes $4 million and
     $1 million (2004 - $3 million and $1 million) for Porgera,
     $2 million and nil (2004 - $2 million and $1 million) for North
     Mara, $2 million and $1 million (2004 - $1 million and nil) for
     Kalgoorlie, $1 million and nil (2004 - $1 million and nil) for
     Henty and $1 million and $1 million (2004 - $1 million and $1
     million) for Zaldivar.



4. Income and Resource Taxes



Upon completion of the strategic business plans for Placer Dome's Australian operations in the second quarter of 2005, incorporating higher costs and production forecast updates, expected future taxable income in Australia has decreased. Pursuant to this, the valuation allowance relating to Australian deferred tax assets was increased by a non-cash charge to earnings in the second quarter of $15 million. At September 30, 2005, Placer Dome has a deferred tax asset of $118 million for tax benefits relating to its Australian operations against which a valuation allowance of $66 million has been recorded.



See note 8(b) for a discussion of Placer Dome's reversal of a previously accrued tax and interest liability of $76 million relating to Ontario mining taxes during the third quarter of 2004.



During the third quarter of 2004, Placer Dome determined that, due to a more positive outlook for its Australian operations including an improved gold price environment, only $24 million of its deferred tax assets for tax benefits relating to these operations required a valuation allowance. Pursuant to this, the valuation allowance was reduced to that level by recording a non-cash credit of $37 million to Income and resource tax recovery in the income statement during the quarter.



5. Inventories



Inventories comprise the following:
                           ----------------------------------------
                           September 30, 2005     December 31, 2004
                                            $                     $
--------------------------------------------------
Metal in circuit                           115                   102
Ore stockpiles                             102                   103
Materials and supplies                      96                    83
Product inventories                         37                    31
--------------------------------------------------
--------------------------------------------------
                                          350                   319
Long-term portion of
ore stockpiles                            (75)                  (71)
--------------------------------------------------
--------------------------------------------------
Inventories                                275                   248
--------------------------------------------------6. Other AssetsOther assets consist of the following:
                           ----------------------------------------
                           September 30, 2005     December 31, 2004
                                            $                     $
--------------------------------------------------
Sale agreement receivable(i)                61                    66
Long-term ore stockpiles
(note 5)                                   75                    71
Debt issue costs and
discounts                                  17                    17
Pension asset                               18                    15
Other                                       14                    13
--------------------------------------------------
--------------------------------------------------
                                          185                   182
Current portion of other
assets                                     (9)                   (9)
--------------------------------------------------
--------------------------------------------------
                                          176                   173
--------------------------------------------------(i) In December 2000, Compania Minera Zaldivar completed the sale of
   some of its water rights for a sum of $135 million, receivable in
   15 equal annual installments of $9 million commencing July 1,
   2001. On a discounted basis, this resulted in a pre-tax gain of
   $76 million and a corresponding receivable being recorded in
   2000. Imputed interest on the receivable is being accrued
   monthly.



7. Consolidated Metals Sales and Currency Programs



At September 30, 2005, based on spot prices of $473.25 per ounce for gold, $7.53 per ounce for silver and $1.791 per pound for copper an Australian to U.S. dollar ("AUD/USD") exchange rate of $1.3139, the mark-to-market value of Placer Dome's precious metal and copper sales programs were negative $993 million and negative $7 million, respectively. The precious metal mark-to-market does not take into the account the $155 million liability in Deferred commodity and currency sales contracts and derivatives as at September 30, 2005 primarily representing the remaining provision booked on acquisition for the fair value of the AurionGold and East African Gold metal hedge books. For the currency program, the mark-to-market value of Placer Dome's currency forward and option contracts on September 30, 2005, was approximately positive $29 million (based on an AUD/USD foreign exchange rate of $1.3139 and a Canadian to U.S. dollar foreign exchange rate of $1.1611), all of which has been recognized through earnings or other comprehensive income.



Gains and losses on Placer Dome's gold and silver forward contracts and cap agreements are recognized in sales revenue on the initial intended delivery date, except in instances where Placer Dome chooses to deliver prior to that date, in which case they are recognized on delivery. Placer Dome's copper forward contracts are accounted for as cash flow hedges with the change in fair values recorded each period in other comprehensive income and subsequently reclassified to sales revenue on the contract forward date. Changes in the fair values of all other metals financial instruments are recorded each period in earnings in the non-hedge derivative gain (loss) line.



At September 30, 2005, Placer Dome's consolidated metals sales
program consisted of:                    ------------------------------------------------
                   2005  2006  2007  2008  2009  2010   2011+ Total
--------------------------------------------------
--------------------------------------------------
Gold (000s
ounces):
--------------------------------------------------
--------------------------------------------------
Forward contracts
sold (i)
Fixed contracts
Amount              295 1,239 1,260 1,013   347   246    461  4,861
Average price
 ($/oz)             366   344   372   393   409   409    471    383
Fixed interest
floating lease
rate
Amount                -     -     -   197   772   285    625  1,879
Average price
 ($/oz)               -     -     -   355   426   416    479    435
A$ forward
contracts
Amount                -    11    21     -     -     -      -     32
Average price
 ($/oz)               -   467   482     -     -     -      -    477
--------------------------------------------------
Total
Forward contracts
sold                295 1,250 1,281 1,210 1,119   531  1,086  6,772A$ forward
contracts
purchased           (25)    -     -     -     -     -      -    (25)
--------------------------------------------------
Total
Forward contracts    270 1,250 1,281 1,210 1,119   531  1,086  6,747
--------------------------------------------------
Call options
sold and cap
agreements (ii)
Amount              225   219   115   200    20    40     20    839
Average price
 ($/oz)             365   357   363   394   500   500    500    382
--------------------------------------------------
Total
Call option
sold and cap
agreements          225   219   115   200    20    40     20    839
--------------------------------------------------
Total
Firm committed
 ounces (iii)       495 1,469 1,396 1,410 1,139   571  1,106  7,586
--------------------------------------------------
Contingent call
options sold (iv)
Knock-in (up and in)
Amount               26    52     -     -     -     -     64    142
Average price
 ($/oz)             381   381     -     -     -     -    350    367
Average barrier
 level ($/oz)       418   418     -     -     -     -    419    418
Knock out
(down and out)
Amount               14    31    59    52   115    29      -    300
Average price
 ($/oz)             412   420   432   446   425   469      -    433
Average barrier
 level ($/oz)       363   395   380   364   375   381      -    376
--------------------------------------------------
Total
Maximum committed
 ounces (v)         535 1,552 1,455 1,462 1,254   600  1,170  8,028
--------------------------------------------------
Put options
purchased (vi)
Amount              165   546   362   179   159   103     99  1,613
Average price
 ($/oz)             419   414   439   405   397   432    416    419
--------------------------------------------------
Put options
sold (vii)
Amount               40    80     -     -     -     -      -    120
Average price
 ($oz)              250   250     -     -     -     -      -    250
--------------------------------------------------Contingent call options purchased not included in the above table
total 32 thousand ounces at an average price of $434 per ounce.
                           ----------------------------------------
                           2005   2006   2007   2008   2009   Total
--------------------------------------------------
--------------------------------------------------
Silver (000s ounces):
--------------------------------------------------
--------------------------------------------------
Fixed forward contracts (i)
Amount                        -  1,200      -      -      -   1,200
Average price ($/oz)          -   6.25      -      -      -    6.25
Call options sold (ii)
Amount                      390  3,632  1,050    820    550   6,442
Average price ($/oz)       5.25   9.01   9.11   8.98   8.75    8.77
--------------------------------------------------
Total committed amount      390  4,832  1,050    820    550   7,642
--------------------------------------------------
Put options
purchased (vi)
Amount                      540  3,820  1,050    820    550   6,780
Average price ($/oz)       5.21   6.40   6.89   7.25   7.25    6.55
--------------------------------------------------
--------------------------------------------------
Copper (millions of pounds):
--------------------------------
--------------------------------
Fixed forward contracts (i)
Amount                        -
Average price ($/lb.)         -
Call options sold (ii)
Amount                     13.2
Average price ($/lb.)      1.22
--------------------------------
Total committed amount
Amount                     13.2
Average price ($/lb.)      1.22
--------------------------------
Put options purchased (vi)
Amount                     13.2
Average price ($/lb.)      1.10
--------------------------------(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
        metal 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 reflects
        the 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 1.3139. 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 cap agreements - Call options sold by the
     Corporation provide the buyer with the right, but not the
     obligation, to purchase production from the Corporation 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.
(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 1.3139.
     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 September 30, 2005, 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 the
     Corporation establish a minimum sales price for the production
     covered by such put options and permit the Corporation 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 the Corporation 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.At September 30, 2005, Placer Dome's consolidated foreign currency
program consisted of:
                                  ---------------------------------
                                    2005     2006     2007    Total
--------------------------------------------------
Australian Dollars (millions USD)
Fixed forward contracts(i)
Amount                               8.6     37.1      5.0     50.7
Average rate (AUD/USD)            1.9692   1.9167   1.5713   1.8915
Put options sold(ii)
Amount                                 -     17.0      5.5     22.5
Average rate (AUD/USD)                 -   1.5957   1.6538   1.6099
--------------------------------------------------
Total committed dollars
Amount                               8.6     54.1     10.5     73.2
Average rate (AUD/USD)            1.9692   1.8159   1.6145   1.8049
--------------------------------------------------
Call options purchased(iii)
Amount                              25.5     23.5     12.0     61.0
Average rate (AUD/USD)            1.3900   1.5098   1.6430   1.4859
--------------------------------------------------
Canadian Dollars (millions USD)
Call options purchased(iii)
Amount                              16.5        -        -     16.5
Average rate (CAD/USD)            1.2346        -        -   1.2346
--------------------------------------------------(i)   Fixed forward contracts establish an exchange rate of U.S.
     dollar to the operating currency of the region at the time they
     are entered into, thereby limiting the risk of exchange rate
     fluctuations.
(ii)  Put options sold by the Corporation provide the buyer with the
     right, but not the obligation, to purchase U.S. dollars from
     the Corporation at a predetermined exchange rate on the
     exercise date of the options.
(iii) Call options purchased by the Corporation establish a minimum
     exchange rate for converting U.S. dollars to the operating
     currency of the region for the amount hedged, but permit the
     Corporation to participate in any further weakness in the
     hedged currency.



8. Commitments and Contingencies



(a) At September 30, 2005, Placer Dome has outstanding commitments of approximately $30 million under capital expenditure programs.



(b) In September 2002 Placer Dome Canada Limited ("PDC") lost a tax appeal in the Ontario Superior Court related to a reassessment of Ontario mining taxes for the 1995 and 1996 taxation years. On the basis of the decision, Ontario mining tax and related interest increased by approximately $1 million for the years in question. Late in the fourth quarter of 2002 Placer Dome (CLA) Limited ("PDCLA"), the successor to PDC through amalgamation, was reassessed with respect to the same issue for the 1997 and 1998 taxation years. Ontario mining tax and related interest increased by approximately $16 million for these two taxation years. PDC and PDCLA paid all taxes and related interest up to and including the 1997 taxation year by December 31, 2002 and paid the 1998 reassessment liability early in January 2003. In the third quarter of 2003, PDCLA was reassessed with respect to the same issue for 1999. Ontario mining tax and related interest increased by approximately $20 million for the 1999 taxation year. The 1999 reassessment liability was paid in the fourth quarter of 2003. The Corporation filed an appeal of the decision to the Ontario Court of Appeal in 2003. On August 31, 2004, the Ontario Court of Appeal ruled in Placer Dome's favour in reversing the Ontario Superior Court decision. On April 21, 2005 the Supreme Court of Canada granted leave for the Ontario Ministry of Finance to appeal the Ontario Court of Appeal's decision. A court date for the appeal has been set for November 17, 2005. In the second quarter of 2005, PDCLA was reassessed with respect to the same issue for the 2000 and 2001 taxation years. Management is of the view that Placer Dome will ultimately prevail; accordingly, Placer Dome has not recorded a liability for this contingency. Placer Dome also expects to be reimbursed for previously made cash payments totalling $66 million plus interest thereon. The 2000 and 2001 reassessments totalling $23 million were paid in July 2005, and based on the above ruling, there was no income statement impact and a receivable, included in the above $66 million, was set up for the same amount.



(c) Placer Dome has been named the sole defendant in a Complaint filed on October 4, 2005, by the Provincial Government of Marinduque, an island province of the Philippines ("Province"), with the District Court in Clark County, Nevada. Placer Dome has been served with a copy of the Complaint in Vancouver, Canada and is reviewing it with legal advisers. The Complaint asserts that Placer Dome is responsible for alleged environmental degradation with consequent economic damages and impacts to the health of people living in the vicinity of the Marcopper mine that was owned and operated by Marcopper Mining Corporation. Placer Dome indirectly owned a minority shareholding of 39.9% in Marcopper Mining Corporation until the divestiture of its shareholding in 1997. According to the Complaint, the Province seeks an unspecified amount of damages (including exemplary damages, interest and attorneys' fees) and orders from the District Court requiring Placer Dome to complete an environmental clean-up of the impacted lands and water systems (including the reintroduction of harmed species into the restored environment), repair the deteriorating Marcopper mine structures and create and fund environmental and medical monitoring funds. The company will challenge the Complaint on various grounds and otherwise vigorously defend the litigation.



(d) During the second quarter of 2005, the Chilean Congress passed a tax bill enacting a maximum 5% tax on mine operating profits, effective January 1, 2006. Compania Minera Mantos de Oro, the operator of La Coipa mine, has opted out of its DL600 tax stability clause and intends to apply for an invariable tax rate of 4% for a period of 12 years. Compania Minera Zaldivar, the owner of the Zaldivar mine, continues to operate under its DL600 tax stability agreement. As such, the new mining tax will not apply to Zaldivar unless Placer Dome elects to opt out of the DL600 tax stability clause. In that case, Placer Dome would apply before November 30, 2005 for an invariable tax rate of 4% for a period of 12 years. The final regulations relating to the new mining tax have yet to be issued. Aside from knowing that tax rates will increase, Placer Dome cannot determine the exact impact of the change at this time.



(e) The 2005 British Columbia budget proposed a reduction of 1.5% in the corporate income tax rate. The change is expected to be enacted in the fourth quarter of 2005. Should the change be enacted, the estimated income tax impact to Placer Dome would be a charge to deferred income tax expense of approximately $9 million and an equivalent reduction in the deferred tax asset.



(f) Since 1992, Placer Dome U.S. Inc. ("PDUS") and the Nevada joint venture it manages, Cortez Gold Mines ("Cortez") have been involved in litigation with ECM, Inc. ("ECM."). ECM claims that PDUS/Cortez acted improperly in 1991 when they kept confidential the results of a discovery hole drilled on PDUS/Cortez' holdings in Lander County, Nevada and the implications of that hole to surrounding lands during negotiations for a lease of mining claims held by ECM in the vicinity of the discovery hole. ECM claims that by virtue of PDUS/Cortez's non-disclosure of the discovery hole, ECM was induced to lease its property to PDUS/Cortez in exchange for less favourable royalties than ECM contends it would have obtained had the disclosure been made.



After three summary judgments and a jury verdict in favour of PDUS/Cortez and appeals from each of those judgments, ECM had one remaining claim for relief. That claim was based on a real property covenant which ECM says obligated PDUS/Cortez to reveal all reports and data it had that might, even indirectly, affect the value of ECM's mining claims in the vicinity of the discovery hole, including data and reports based on data obtained from PDUS/Cortez lands in the area. In March 2003, the federal District Court in Reno granted PDUS/Cortez's motion for summary judgment on that remaining claim for relief. Thereafter, ECM appealed the summary judgment to the U.S. Court of Appeals for the Ninth Circuit, in San Francisco. In September of this year the U.S. Court of Appeals affirmed the judgment of the District Court, thereby dismissing ECM's one remaining claim for relief.



(g) In addition to the above, reference is made to note 18 to the Consolidated Financial Statements included in the Annual Report and Annual Information Form/Form 40-F. Placer Dome is subject to various investigations, claims and legal and tax proceedings covering a wide range of matters that arise in the ordinary course of business activities. Each of these matters is subject to various uncertainties and it is possible that some of these matters may be resolved unfavourably to Placer Dome. The Corporation has established accruals for matters that are probable and can be reasonably estimated. Management believes that any liability that may ultimately result from the resolution of these matters in excess of amounts provided will not have a material adverse effect on Placer Dome's financial position or results of operations.



9. Stock-based Compensation



Placer Dome follows the disclosure-only provisions of SFAS No. 123, "Accounting for Stock-Based Compensation", for stock options granted to employees and directors. Had compensation cost for these grants been determined based on the fair value at the grant date consistent with the provisions of SFAS No. 123, Placer Dome's net earnings and net earnings per share would have been adjusted to the pro forma amounts indicated below:



                                     ------------------------------
                                             September 30
                                     ------------------------------
                                     Third quarter      Nine months
                                     ------------------------------
                                     2005     2004    2005     2004
                                        $        $       $        $
--------------------------------------------------
Net earnings - as reported              34      148      58      245
Net earnings - pro forma                30      145      46      237
Net earnings per share - as reported  0.08     0.36    0.13     0.59
Net earnings per share - pro forma    0.07     0.35    0.11     0.57
--------------------------------------------------



Placer Dome has three share option plans under which common shares are reserved for issuance to employees and directors. At September 30, 2005, there were 9.6 million vested and 4.6 million unvested stock options outstanding.



10. Pension Plans



Pension expenses are comprised of:
                                     ------------------------------
                                             September 30
                                     ------------------------------
                                     Third quarter      Nine months
                                     ------------------------------
                                     2005     2004    2005     2004
                                        $        $       $        $
--------------------------------------------------
Defined benefit plans:
Service costs (benefits earned
 during the period)                     2        1       5        4
Interest costs on projected
 benefit obligations                    3        2       8        7
Expected return on plan assets         (1)      (2)     (3)      (6)
Amortization of experience
 (gains) losses                         1        1       2        2
--------------------------------------------------
Total defined benefit plans              5        2      12        7
Defined contribution plans               1        1       3        4
--------------------------------------------------
--------------------------------------------------
Total pension expense                    6        3      15       11
--------------------------------------------------



Vancouver-based Placer Dome Inc. has interests in 16 mining operations in seven countries. The Corporation'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 third quarter results at 7:30am PDT/10:30am EDT on Thursday, October 27. North American participants may access the call toll free at 800-660-7963. International participants please dial 416-641-6714. A live audio webcast of the call and an accompanying slide presentation will be accessible on Placer Dome's website at www.placerdome.com/newsroom/presentations.htm.



For enquiries related to share ownership, share transfers, estate settlements, lost certificates, dividend payments, change of address, or other matters related to Placer Dome securities, please contact:



CIBC Mellon Trust Company



Toll-free within North America (800) 387-0825



Collect calls accepted from outside North America (416) 643-5500



FORWARD-LOOKING STATEMENTS



This report contains "forward-looking statements" that were based on Placer Dome's expectations, estimates and projections as of the dates as of which those statements were made. These forward-looking statements include, among other things, statements with respect to Placer Dome's business strategy, plans, outlook, long-term growth in cash flow, earnings per share and shareholder value, projections, targets and expectations as to reserves, resources, results of exploration (including targets) and related expenses, property acquisitions, mine development, mine operations, mine production costs, drilling activity, sampling and other data, recovery improvements, future production levels, capital costs, costs savings, cash and total costs of production of gold, copper and other minerals, expenditures for environmental matters and technology, projected life of our mines, reclamation and other post closure obligations and estimated future expenditures for those matters, completion dates for the various development stages of mines, future gold and other mineral prices (including the long-term estimated prices used in calculating Placer Dome's mineral reserves), the percentage of production derived from mechanized mining, currency exchange rates, debt reductions, and the percentage of anticipated production covered by forward sale and other option contracts or agreements. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "outlook", "anticipate", "project", "target", "believe", "estimate", "expect", "intend", "should" and similar expressions. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause Placer Dome's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking statements, including but not limited to:



- uncertainties and costs related to Placer Dome's exploration and development activities, such as those associated with determining whether gold or other mineral reserves exist on a property;



- uncertainties related to feasibility studies that provide estimates of expected or anticipated costs, expenditures and economic returns from a mining project;



- uncertainties related to expected production rates, timing of production and the cash and total costs of production and milling;



- uncertainties related to the ability to obtain necessary licenses, permits, electricity, surface rights and title for development projects and project delays due to third party opposition;



- operating and technical difficulties in connection with mining development activities;



- uncertainties related to the future development or implementation of new technologies, research and development and, in each case, related initiatives and the effect of those on our operating performance;



- uncertainties related to the accuracy of our reserve and resource estimates and our estimates of future production and future cash and total costs of production, and the geotechnical or hydrogeological nature of ore deposits, and diminishing quantities or grades of reserves;



- uncertainties related to unexpected judicial or regulatory proceedings;



- changes in, and the effects of, the laws, regulations and government policies affecting our mining operations, particularly laws, regulations and policies relating to:



- mine expansions, environmental protection and associated compliance costs arising from exploration, mine development, mine operations and mine closures;



- expected effective future tax rates in jurisdictions in which our operations are located;



- the protection of the health and safety of mine workers; and



- mineral rights ownership in countries where our mineral deposits are located, including the effect of the Mineral and Petroleum Resources Development Act (South Africa);



- changes in general economic conditions, the financial markets and in the demand and market price for gold, copper and other minerals and commodities, such as diesel fuel, coal, petroleum coke, steel, concrete, electricity and other forms of energy, mining equipment, operating supplies, and fluctuations in exchange rates, particularly with respect to the value of the U.S. dollar, Canadian dollar, Australian dollar, Papua New Guinean kina, South African rand, Dominican Republic peso and Chilean peso;



- the effects of forward selling instruments to protect against fluctuations in gold and copper prices and exchange rate movements and the risks of counterparty defaults, and mark to market risk;



- unusual or unexpected formation, cave-ins, flooding, pressures, and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance to cover these risks);



- changes in accounting policies and methods we use to report our financial condition, including uncertainties associated with critical accounting assumptions and estimates;



- environmental issues and liabilities associated with mining including processing and stock piling ore;



- geopolitical uncertainty and political and economic instability in countries which we operate; and,



- labour strikes, work stoppages, or other interruptions to, or difficulties in, the employment of labour in markets in which we operate mines, or extreme weather conditions, environmental hazards, industrial accidents or other events or occurrences, including third party interference that interrupt the production of minerals in our mines.



A discussion of these and other factors that may affect Placer Dome's actual results, performance, achievements or financial position is contained in the filings by Placer Dome with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities including Placer Dome's Form 40-F/Annual Information Form. This list is not exhaustive of the factors that may affect our forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking statements. Placer Dome does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

Placer Dome Inc. (TSX:PDG) (NYSE:PDG) (ASX.:PDG) (Swiss:PDG) (PARIS:PDG)
 

4689 Postings, 6830 Tage SolarparcBohrungen beginnen

 
  
    #2
21.04.06 18:36
Vancouver (ots) - Southern Silver Exploration gab heute den Beginn der Bohrungen in dem im vollständigen Besitz des Unternehmens befindlichen Kupferprojektes La Sopresa im mexikanischen Bundesstaat Jalisco bekannt. Dieses anfängliche, 15 Bohrungen mit einer Länge von 2500 m umfassende Programm wird acht weitverteilte ziele über eine Fläche von 700 m x 1200 m testen, die zahlreiche, unterschiedlich mineralisierte, Kupfer enthaltende Quartz-Tourmalin Brekzien testen. Die Kupfermineralisierung in den Brekzien umfasst Kupferoxide und Calcopyrit mit etwas Bornit, das stellenweise bis zu 5,30 % Kupfer über eine Länge von 2 m aus unterirdisch entnommenen Proben und bis zu 0,44 % Kupfer über 56 m von oberflächlich entnommenen Proben enthält.

Bis zu 6 Bohrungen werden eine Reihe von Zielen in die Tiefe und entlang der Schlaglänge entlang der La Sopresa Hauptbrekzie testen, wo Probeentnahmen der historischen Abbautätigkeiten im Untergrund über eine Länge von 32 m 2,1 % Kupfer und 9 g/t Silber ergaben (siehe Pressemitteilung vom 29.11.2005). Weitere vier Bohrungen werden mehrere Ziele im Bereich der West und Süd Brekzien testen. Drei der ausstehenden Bohrungen werden tiefere, geophysische Ziele (>150m), die bei kürzlich fertiggestellten IP-Untersuchungen ausgemacht wurden, testen und zwei Bohrungen werden mögliche, entlang der Schlaglänge verlaufende Ausläufer testen.

Anzeige:
Geldanlage Geothermie
10% Ausschüttung mit sauberem Strom. Investieren in Zukunft und Rendite!


Das laufende Bohrprogramm wird voraussichtlich 8 Wochen in Anspruch nehmen, bis es beendet ist. Die Analysen werden von BSI Inspectorate, einem nach ISO 9000 zertifizierten Betrieb, mit Sitz in Reno/Nevada vorgenommen.

Southern Silver kann einen Anteil von bis zu 100 % an dieser Liegenschaft durch gestaffelte Zahlungen von insgesamt 1 Mio USD über einen Zeitraum von vier Jahren erwerben.

Im Namen des Vorstands

'Lawrence Page'

Originaltext:

Southern Silver Exploration Corp. Digitale Pressemappe: http://presseportal.de/story.htx?firmaid=60417 Pressemappe via RSS : feed://presseportal.de/rss/pm_60417.rss2 ISIN:

CA8438141043  
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804 Postings, 6612 Tage Cincinnatisouthern

 
  
    #3
21.04.06 18:39
solch eine aktie hat man doch im depot  

4689 Postings, 6830 Tage SolarparcNa hoffentlich :-)

 
  
    #4
21.04.06 18:41
Ich hoffe, "man" hat

-Southern Silver
-Vedron Gold
-Silverado Gold
-Torrent Energy
-Sky Petroleum
-Fusa
-Itelligence
-Clickable

im Depot :-)  

4689 Postings, 6830 Tage SolarparcSouthern Silver macht es vor!

 
  
    #5
1
24.05.06 09:39
SO sieht ein Rebound aus!
Vedron, Silverado, Itelligence & Co. aufgepasst!

Southern Silver kann es! Dann könnt ihr es auch ;-)  
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4308 Postings, 8350 Tage Nukem$$$

 
  
    #6
21.08.07 10:17
Staendig Insiderkaeufe und dass seit Monaten. Ich kaufe noch ein paar Stuecke zu. Der Mai Einbruch wurde auch sehr schnell bereinigt. Wer damals kaufte, konnte eine gute Performance einstreichen.  

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