Placer Dome Inc said on Monday it expects its gold and copper production to rise in 2005 even as costs are likely to be higher from currency and input cost movements. Gold production is expected to total 3.7 million ounces in 2005, up from 3.6 million ounces forecast in 2004, the world's fifth-largest gold producer said in a release. Copper production is expected to total 430 million pounds next year, up from 415 million pounds forecast in 2004.
A restart of milling at the Golden Sunlight mine in Montana, and increased production at the North Mara mine in Tanzania and the Granny Smith mine in Australia are expected to help boost overall gold output, although these increases will be partly offset by lower projected production at the Cortez mine in Nevada, it said.
A weaker US dollar is seen making costs higher for both gold and copper production. Assuming prevailing foreign exchange rates, cash costs are forecast to be between $250 and $260 per ounce for gold, and total costs are expected to be in the $315 to $325 per ounce range.
For copper, cash costs are expected to be in the range of 60 cents to 65 cents per pound, and total costs are forecast at 75 cents to 80 cents per pound.
"Our production costs will continue to be influenced by currency and input cost movements," Peter Tomsett, Placer Dome's president and chief executive officer said.
"However, at prevailing gold and copper prices our margins remain healthy, which combined with forecast increased production will maintain financial performance."
Placer Dome also plans $250 million in capital expenditures next year. Deferred stripping expenditures are expected to total an additional $35 million, while exploration spending are seen rising to $90 million next year from $75 million in 2004.