/FIRST AND FINAL ADD - - VA227 - - Placer Dome Inc./

Apr 24, 2001, 01:00 ET from Placer Dome Inc.

    VANCOUVER, April 24 /PRNewswire/ -
 
                               PLACER DOME INC.
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                (millions of United States dollars, U.S. GAAP)
                                  (unaudited)
 
                                         -------------------------------------
                                              For the three months ended
                                         -------------------------------------
                                          March 31   December 31   March 31
                                            2001        2000     2000 (note 2)
                                             $           $           $
     -------------------------------------------------------------------------
     Operating activities
     Net earnings (loss)                      16         (89)         29
     Add (deduct) non-cash items
         Depreciation and depletion           70          78          69
         Unrealized losses (gains) on
          derivatives                         22         (54)         15
         Equity adjustment                     1           7           3
         Deferred reclamation                 (4)          4           6
         Deferred options                      -          17           1
         Deferred income and resource
          taxes                               (2)        (78)          9
         Write-down of mining interest
          and investments                      -         261           -
         Investment adjustments                -         (77)         (8)
         Change in accounting policies         -           -          17
         Other items, net                      1          (8)          3
     Change in non-cash operating
      working capital                         17         (32)        (32)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Cash from operations                    121          29         112
     -------------------------------------------------------------------------
     Investing activities
     Property, plant and equipment           (53)        (36)        (50)
     Short-term investments                   (4)         25          (7)
     Disposition of assets                     1           4          11
     Other, net                                -           5           1
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                             (56)         (2)        (45)
     -------------------------------------------------------------------------
     Financing activities
     Short-term debt                           -           -         (16)
     Long-term debt and capital leases        (1)        (10)         (3)
     Common shares issued                      -           -           1
     Dividends paid
        Common shares                        (18)          -         (16)
        Minority interest                     (1)          -           -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                             (20)        (10)        (34)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Increase in cash and cash
      equivalents                             45          17          33
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Cash and cash equivalents
     Beginning of period                     331         314         191
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     End of period                           376         331         224
     -------------------------------------------------------------------------
         (See accompanying notes to consolidated financial statements)
 
 
                               PLACER DOME INC.
                          CONSOLIDATED BALANCE SHEETS
                (millions of United States dollars, U.S. GAAP)
                                  (unaudited)
 
                                                    --------------------------
                                            ASSETS    March 31    December 31
                                                        2001         2000
                                                         $            $
     -------------------------------------------------------------------------
     Current assets
        Cash and cash equivalents                        376          331
        Short-term investments                            13            9
        Accounts receivable                              148          182
        Inventories (note 4)                             171          196
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                         708          718
     -------------------------------------------------------------------------
     Investments                                          66           66
     Other assets (note 5)                               133          163
     Deferred income and resource taxes                  118          118
     Property, plant and equipment                     1,966        1,975
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                       2,991        3,040
     -------------------------------------------------------------------------
 
                     LIABILITIES AND SHAREHOLDERS' EQUITY
 
                                                    --------------------------
                                                      March 31    December 31
                                                        2001         2000
                                                         $            $
     -------------------------------------------------------------------------
     Current liabilities
        Accounts payable and accrued liabilities         145          195
        Income and resource taxes payable                 40           33
        Current portion of long-term debt and
         capital leases                                   65           35
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                         250          263
     -------------------------------------------------------------------------
     Long-term debt and capital leases                   812          843
     Deferred credits and other liabilities              173          177
     Deferred income and resource taxes                  228          232
     Minority interests in subsidiaries                   14           12
     Commitments and contingencies (note 6)
     Shareholders' equity                              1,514        1,513
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                       2,991        3,040
     -------------------------------------------------------------------------
         (See accompanying notes to consolidated financial statements)
 
 
                               PLACER DOME INC.
                CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
                -----------------------------------------------
     (millions of United States dollars, except share amounts, U.S. GAAP)
                                  (unaudited)
 
                                         -------------------------------------
                                              For the three months ended
                                         -------------------------------------
                                          March 31   December 31   March 31
                                            2001        2000        2000
                                             $           $           $
     -------------------------------------------------------------------------
     Common shares (i), beginning of
      period                               1,248       1,248       1,247
     Exercise of options                       -           -           1
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Common shares, end of period          1,248       1,248       1,248
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Unrealized gain on securities,
      beginning of period                      1           2           4
     Holding gains (loss)                      -          (1)          4
     Reclassification of gains
      included in net income                   -           -          (4)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Unrealized gain on securities,
      end of period                            1           1           4
     -------------------------------------------------------------------------
     Unrealized hedging, beginning
      of period                                -           -           -
     Holding gains                             1           -           -
     -------------------------------------------------------------------------
     Unrealized hedging, end of period         1           -           -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Accumulated other comprehensive
      income                                   2           1           4
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Contributed surplus                      52          52          52
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Cumulative translation adjustment       (29)        (29)        (29)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Retained earnings, beginning of
      period                                 241         330         365
       Net income (loss)                      16         (89)         29
       Common share dividends                (16)          -         (16)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Retained earnings,
      end of period                          241         241         378
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Shareholders' equity                  1,514       1,513       1,653
     -------------------------------------------------------------------------
 
     (i) Preferred shares - unlimited shares authorized, no par value, none
         issued.
         Common shares - unlimited shares authorized, no par value, issued and
         outstanding at March 31, 2001 327,620,037 shares (December 31, 2000 -
         327,617,871 shares).
 
         (see accompanying notes to consolidated financial statements)
 
 
                               PLACER DOME INC.
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)
     (all tabular amounts are in millions of United States dollars, U.S. GAAP)
 
     1. The accompanying interim consolidated financial statements have been
        prepared in accordance with accounting principles generally accepted
        in the United States. They do not include all of the disclosures
        required by generally accepted accounting principles 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 months ended March 31,
        2001 are not necessarily indicative of the results that may be
        expected for the full year ending December 31, 2001.  For further
        information, see the Corporation's consolidated financial statements,
        including the accounting policies and notes thereto, included in the
        Annual Business Report and Annual Information Form/Form 40-F for the
        year ended December 31, 2000.
 
        The Corporation also prepares a management's discussion and analysis
        and consolidated financial statements in accordance with Canadian
        generally accepted accounting principles ("GAAP") as included in note
        7. The consolidated net earnings (loss) under Canadian GAAP were $34
        million, $(407) million and $59 million for the three months ended
        March 31, 2001, December 31, 2000 and March 31, 2000, respectively.
 
     2. Change in Accounting Policies
 
     (a) In December 1999, the staff of the U.S. Securities and Exchange
         Commission ("SEC") released Staff Accounting Bulletin ("SAB") No.
         101, "Revenue Recognition", to provide guidance on the recognition,
         presentation, and disclosure of revenues in financial statements. In
         the fourth quarter of 2000, Placer Dome adopted SAB 101 with
         retroactive application to January 1, 2000, and recorded a charge of
         $17 million (net of income taxes of $5 million) in the first quarter
         of 2000 related to 1999 gold earnings. The adjustment resulted from
         SEC's clarification of their view on when gold is considered to be in
         a saleable form. Accordingly, the results for the first three
         quarters of 2000 have been restated to reflect this change. The
         net effect of the change on the first quarter of 2000 was to increase
         sales revenue by $8 million, cost of sales and depreciation by $3
         million and income taxes by $2 million, resulting in an increase in
         earnings of $3 million ($0.01 per share).
 
     (b) In June 1998, the U.S. Financial Accounting Standards Board
         ("FASB") issued its Statement of Financial Accounting Standards
         No.133, "Accounting for Derivative Instruments and Hedging
         Activities" ("SFAS 133") and in June 2000 the companion statement No.
         138. SFAS 133 establishes accounting and reporting standards for
         derivative instruments, including certain derivative instruments
         embedded in other contracts and requires recognition of all
         derivative instruments on the balance sheet as either assets or
         liabilities with measurement at fair value. Changes in the fair value
         of derivatives are recorded each period in the current earnings or
         other comprehensive income, depending on the intent and nature of the
         derivative instrument and whether it qualifies for hedge accounting
         as defined in SFAS 133 and 138. The Corporation adopted SFAS 133 on
         January 1, 2001. Of Placer Dome's metals program, the majority
         relates to gold and silver metal forward contracts that are exempt
         from SFAS 133 as normal course sales. Copper forward contracts, which
         previously were accounted for off balance sheet, are now accounted
         for as cash flow hedges with the changes in fair values recorded each
         period in other comprehensive income ("OCI"). Foreign currency
         derivative contracts relating to expenditures which are capital in
         nature are also accounted for as cash flow hedges in accordance with
         SFAS 133. As of January 1, 2001, the cumulative effect of the change
         in policy on the opening accumulated OCI on the balance sheet was
         nil, and an unrealized gain of $1 million was recorded in OCI in the
         first quarter of 2001. As for metals put/call collars which
         previously were accounted for off balance sheet, they are now
         recorded at fair value with the change in value recorded in earnings
         in the period as non-hedge derivative gains (losses). The cumulative
         effect of the change in accounting policy as of January 1, 2001 was
         nil, and an unrealized gain of $1 million (after tax) was recorded in
         earnings in the period. Under SFAS 133, foreign currency forward and
         option contracts used for managing foreign production cost exposures
         will continue to be recorded at fair value with the change in value
         recorded in earnings in the period as non-hedge derivative gains
         (losses).
 
     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 business results and regional corporate offices
        provide support to the mines in addressing local and regional issues.
        Major products are gold, silver and copper produced from mines located
        in Canada, the U.S., Australia, Papua New Guinea, South Africa and
        Chile.
 
 
        (a) Sales revenue
                                       ---------------------------------------
                                              Sales by metal segment
                                       ---------------------------------------
                                            For the three months ended
                                       ---------------------------------------
                                        March 31    December 31   March 31
                                          2001         2000         2000
                                           $            $            $
     -------------------------------------------------------------------------
     Gold                                  260          249          299
     Copper                                 80           86           82
     Other                                   1            2            2
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                           341          337          383
     -------------------------------------------------------------------------
 
        (b) Segment profit (loss) and revenue
 
                    ----------------------------------------------------------
                                    Sales          Mine Operating Earnings (i)
                    ----------------------------------------------------------
                      For the three months ended    For the three months ended
                    ----------------------------------------------------------
                         March   December   March   March   December  March
                          31       31        31      31        31      31
                         2001     2000      2000    2001      2000    2000
                                            (ii)                      (ii)
                          $        $        $        $        $        $
     ------------------------------------------------------------------------
     Canada
        Campbell          15       14       21       (2)       1        6
        Dome              25       20       23       (1)       2       (1)
        Musselwhite       13       10       13        -        1        2
     ------------------------------------------------------------------------
     ------------------------------------------------------------------------
                          53       44       57       (3)       4        7
     ------------------------------------------------------------------------
     United States
        Bald Mountain      7       10        9       (3)      (1)      (2)
        Cortez            46       46       51       21       19       31
        Golden Sunlight   15       12       14        2        -       (2)
     ------------------------------------------------------------------------
     ------------------------------------------------------------------------
                          68       68       74       20       18       27
     ------------------------------------------------------------------------
     Papua New Guinea
        Misima            15       13       24        2       (3)       7
        Porgera           25       30       26        -        -        4
     ------------------------------------------------------------------------
     ------------------------------------------------------------------------
                          40       43       50        2       (3)      11
     ------------------------------------------------------------------------
     Australia
        Granny Smith      20        6       38        3        -       21
        Kidston           19       20       19        1       (5)      (1)
        Osborne           20       20       17        3        2       (1)
     ------------------------------------------------------------------------
     ------------------------------------------------------------------------
                          59       46       74        7       (3)      19
     ------------------------------------------------------------------------
     Chile
        Zaldivar          62       69       68       18       19       19
     ------------------------------------------------------------------------
     ------------------------------------------------------------------------
     South Africa
        South Deep        10       12        9        1        3        -
     ------------------------------------------------------------------------
     ------------------------------------------------------------------------
     Metal hedging
      revenue realized    49       55       51       49       55       51
     Other                 -        -        -       (1)      (2)      (1)
     ------------------------------------------------------------------------
     ------------------------------------------------------------------------
                         341      337      383       93       91      133
     ------------------------------------------------------------------------
 
     (i)  Mine operating earnings are defined as sales, at the metal spot
          price, less cost of sales, including reclamation costs, depreciation
          and depletion for each mine.
     (ii) In the fourth quarter of 2000, Placer Dome adopted SAB 101 with
          retroactive application to January 1, 2000. Prior periods in 2000
          have been restated to reflect this change.
 
     4. Inventories comprise the following:
 
                                                ------------------------------
                                                      March 31    December 31
                                                        2001         2000
                                                         $            $
        ----------------------------------------------------------------------
        Product inventories                              22           52
        Metal in circuit                                 69           66
        Current ore stockpiles                           22           17
        Materials and supplies                           58           61
        ----------------------------------------------------------------------
        ----------------------------------------------------------------------
                                                        171          196
        ----------------------------------------------------------------------
 
     5. Other assets consist of the following:
 
                                                ------------------------------
                                                      March 31    December 31
                                                        2001         2000
                                                         $            $
        ----------------------------------------------------------------------
        Sale agreement receivable (i)                    80           78
        Ore stockpiles (ii)                              65           69
        Forward and option contract receivables          17           30
        Other                                            18           21
        ----------------------------------------------------------------------
        ----------------------------------------------------------------------
                                                        180          198
        Current portion of other assets                 (47)         (35)
        ----------------------------------------------------------------------
        ----------------------------------------------------------------------
                                                        133          163
        ----------------------------------------------------------------------
 
        (i)  In December 2000, Compania Minera Zaldivar completed the sale
             of some of its water rights for a sum of $135 million, receivable
             in fifteen equal annual installments 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.
        (ii) Includes $22 million (December 31, 2000 - $17 million) of
             stockpiled ore which is expected to be processed in the following
             twelve months.
 
     6. Commitments and Contingencies
 
     (a) At March 31, 2001, Placer Dome has outstanding commitments
         aggregating $13 million under capital expenditure and exploration
         programs.
 
     (b) On November 21, 2000, the Interior Department issued a final rule
         amending the 43 C.F.R. Subpart 3809 regulations ("3809 regulations")
         which govern reviews and approvals of mining plans of operations.
         This rule, which took effect on January 20, 2001, increases the
         Bureau of Land Management's ("BLM") regulatory authority and imposes
         new requirements for mining operations on federal lands, including a
         new definition of unnecessary or undue degradation which contains a
         mine veto provision, and revised performance standards. Although the
         rule contains certain exemptions for existing approved operations,
         this new rule will increase regulatory obligations and compliance
         costs. This regulation is being challenged by the National Mining
         Association ("NMA"), of which Placer Dome is a member, by a lawsuit
         filed in the Federal District Court for the District of Columbia on
         December 15, 2000.  A lawsuit has also been filed by the State of
         Nevada.  A stay request was also made by the NMA and was denied on
         January 19, 2001.  On March 23, 2001, the BLM published a proposal in
         the Federal Register to suspend the 3809 regulations.
 
     (c) In addition to the above, reference is made to note 19 to the 2000
         Consolidated Financial Statements included in the Annual Business
         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 based on management's assessment of the risks.
 
     7. Canadian Generally Accepted Accounting Principles
 
        The consolidated financial statements of Placer Dome Inc. have been
        prepared in accordance with accounting principles generally accepted
        in the U.S. and the accounting rules and regulations of the Securities
        and Exchange Commission ("U.S. GAAP") which differ in certain material
        respects from those principles and practices that Placer Dome would
        have followed had its consolidated financial statements been prepared
        in accordance with accounting principles and practices generally
        accepted in Canada ("Canadian GAAP"). Some of the significant
        differences between Canadian and U.S. GAAP that impact the
        consolidated financial statements of Placer Dome include the
        following:
 
         (i) The investments in La Coipa (50%) and Las Cristinas (70%) are in
             the form of incorporated joint ventures.  Under U.S. GAAP, La
             Coipa is accounted for on an equity basis and Las Cristinas is
             fully consolidated.  Under Canadian GAAP these joint ventures are
             proportionately consolidated.
        (ii) Under U.S. GAAP, foreign currency forward and option (puts and
             calls) contracts used for managing foreign production cost
             exposures are marked-to-market with the change in value recorded
             in earnings in the period as non-hedge derivative gains (losses).
             Under Canadian GAAP, all such contracts are accounted for off
             balance sheet with the exception of open call positions which
             commencing October 1, 2000, following the adoption of EIC-113,
             now follow the same accounting as U.S. GAAP. (See note 7 (c)
             (iii) for more information.)
       (iii) Under U.S. GAAP, metals open call positions are marked-to-market
             with the change in value recorded in earnings in the period as
             non-hedge derivative gains (losses).  For the first three
             quarters of 2000, all such positions under Canadian GAAP are
             accounted for off balance sheet.  However, with the adoption of
             EIC-113 effective October 1, 2000, the accounting under Canadian
             GAAP is now consistent with U.S. GAAP.
        (iv) Under U.S. GAAP, SFAS 133 came into effect on January 1, 2001.
             The accounting treatment for precious metal forward contracts is
             the same under both GAAPs.  However, while copper forward
             contracts and metals put/call collars are accounted for off
             balance sheet under Canadian GAAP, under U.S. GAAP, with the
             adoption of SFAS 133, they are now marked-to-market with the
             change in value recorded in the period in comprehensive income
             and non-hedge derivative gains (losses), respectively.
         (v) Preferred Securities, under U.S. GAAP, are accounted for as long-
             term debt.  Under Canadian GAAP, these securities are accounted
             for as equity with the related interest expense reported as
             dividend.  On redemption of the Preferred Securities, gains are
             reported in the statement of earnings as investment income under
             U.S. GAAP, whereas under Canadian GAAP, it is credited to
             contributed surplus.
        (vi) The Getchell acquisition, under U.S. GAAP, was accounted for
             using the pooling of interests method which combined, at book
             value, the net assets and operations of Getchell and Placer Dome.
             Under Canadian GAAP, the acquisition was accounted for using the
             purchase method with the purchase price of $832 million being
             allocated to operating assets ($207 million), exploration
             potential ($620 million) and the hedge position ($5 million).  In
             the fourth quarter of 2000, Placer Dome recorded Getchell asset
             write-downs of $66 million and $651 million under U.S. and
             Canadian GAAP, respectively.  The additional $585 million write-
             down under Canadian GAAP was related to the value ascribed to
             exploration potential.
 
     In addition to the above, reference is made to note 21 to the 2000
 Consolidated Financial Statements included in the Annual Business Report and
 Annual Information Form/Form 40-F.  Had Placer Dome followed Canadian GAAP,
 the Review of Operations, the consolidated statement of earnings, retained
 earnings, cash flows and balance sheets would have been as follows:
 
     (a)    Review of Operations
 
 
                                          ---------------------------------
                                              For the three months ended
                                          ---------------------------------
                                          March 31     Dec. 31     March 31
                                            2001         2000        2000
     -----------------------------------------------------------------------
     Production and sales volumes
     Gold (000's ozs.)
       Group's share production                 694          760         786
       Consolidated production                  723          788         821
       Consolidated sales                       817          743         855
     Copper (000's lbs.)
       Group's share production              99,854      109,436     106,909
       Consolidated production               99,854      109,436     106,909
       Consolidated sales                   106,150      104,371     106,764
     -----------------------------------------------------------------------
     Average prices and costs
     Gold ($/oz.)
       Price realized - Group's share          $327         $348        $355
       London spot price                       $264         $269        $290
       Group's share cash cost                 $170         $170        $152
       Group's share total cost                $258         $248        $222
     Copper ($/lb.)
       Price realized - Group's share         $0.80        $0.86       $0.81
       London spot price                      $0.80        $0.84       $0.81
       Group's share cash cost                $0.44        $0.47       $0.45
       Group's share total cost               $0.61        $0.68       $0.64
     -----------------------------------------------------------------------
 
     Consolidated net earnings in accordance with Canadian GAAP for the first
 quarter of 2001 were $34 million ($0.09 per share after interests on preferred
 securities), compared with $59 million ($0.17 per share) in the first quarter
 of 2000.
     Sales revenue of $351 million for the first quarter of 2001 was $43
 million lower than the 2000 period.  Gold sales revenue in the first quarter
 of 2001 decreased by 13% to $264 million due to a 4% decline in sales volume
 and an 8% decline in the average realized price.  Under its gold price hedging
 program, Placer Dome realized an average price of $327 per ounce compared with
 the average spot price of $264 per ounce in the first quarter of 2001, a
 premium of $63 per ounce.  This compares to an average realized price of $355
 per ounce and spot price of $290 per ounce in the prior year period.  Copper
 sales revenue in the first three months of 2001 decreased by 2% to $80 million
 compared with the prior year period due to marginally lower sales volume and
 realized prices.  Placer Dome's average realized price for copper in the first
 three months of the year was $0.80 per pound compared with $0.81 per pound in
 2000.
     Mine operating earnings decreased 38% to $82 million in the first quarter
 of 2001, compared with $132 million in 2000.  Gold operating earnings for the
 quarter were $65 million compared with $92 million in the prior year, a
 decline of 29% reflecting a $28 per ounce decrease in the average realized
 price and a $36 per ounce increase in total production costs.  Consolidated
 gold production in the first quarter of 2001 was down 12% to 723,000 ounces
 compared with 821,000 ounces in the prior year period with seven of the twelve
 consolidated gold mines experiencing lower production.  As a result, Placer
 Dome's share of cash and total production costs per ounce of gold increased in
 the first quarter of 2001 by 12% and 16% to $170 and $258, respectively,
 compared with $152 and $222 in the corresponding period in 2000.  However, the
 impact of the lower production on unit production costs in the quarter was
 softened by the favourable impact of weaker local currencies as the U.S.
 dollar strengthened relative to the Canadian, Australian, Papua New Guinean
 and South African currencies.  Copper operating earnings for the quarter were
 $20 million, $1 million higher than the prior year period due to a 5% decline
 in unit total production costs partially offset by lower realized prices and
 sales volume.  Consolidated copper production in the first quarter of 2001 was
 down 7% to 99.9 million pounds (45,290 tonnes) compared with 106.9 million
 pounds (48,490 tonnes) in the prior year period reflecting lower production
 from the Zaldivar Mine.  Placer Dome's share of cash and total production
 costs per pound of copper in the first quarter of 2001 were $0.44 and $0.61,
 respectively, compared with $0.45 and $0.64 per pound, respectively, in 2000.
 
     Expenses and other income
 
     Discretionary spending on general and administrative, exploration,
 technology, resource development and other totalled $28 million in the first
 quarter of 2001, a decline of 18% from $34 million in the year-earlier period.
 The decline reflects reduced exploration expenditures primarily at the
 Getchell property.  In the prior year quarter, there were also $3 million of
 restructuring costs that followed from the restructuring process which
 commenced in 1999.
     Effective October 1, 2000, Placer Dome adopted the Canadian Institute of
 Chartered Accountants Emerging Issues Committee Abstract of Issue Discussed
 EIC-113, Accounting by Commodity Producers for Written Call Options.  Under
 EIC-113, call options that are not part of a put/call collar strategy ("net
 call position") are marked-to-market with the change in value recorded in
 current period earnings.  In accordance with EIC-113, the new accounting
 treatment is applied prospectively to only those call option contracts entered
 into on or after October 1, 2000.  The impact in the first quarter of 2001 was
 nil.
     Investment and other business income in the first three months of 2001
 were $5 million compared with $13 million in the year-earlier period.  In
 2000, the amount included an $8 million gain on the disposal of the
 Corporation's common share investment in Vengold Inc.
     Interest and financing expenses were $12 million and $14 million in the
 first quarter of 2001 and 2000, respectively.  In addition, there was $1
 million of interest capitalized in the current quarter and nil in the prior
 year period.
     Effective tax rates on pre-tax accounting earnings were 23% and 36% for
 the first three months of 2001 and 2000, respectively. Excluding the impact of
 the common share investment gain in 2000, the effective tax rate in the prior
 year period would have been 40%. The decline in the effective tax rate
 reflects, in part, tax rate reductions in a number of jurisdictions where
 Placer Dome's operations are located.
     Following the adoption of SAB 101 under U.S. GAAP, Placer Dome adopted
 the same policy under Canadian GAAP for consistency, although the change is
 not required under Canadian GAAP.  This was applied retroactively with
 restatement of 2000 comparative figures and a reduction to retained earnings
 at January 1, 2000 of $17 million.  The change resulted from SEC's
 clarification on their view of when gold is considered to be in a saleable
 form. (See note 2 (b) to the consolidated financial statements for further
 information.)
 
     Financial Condition, Liquidity and Capital Resources
 
     Cash flow from operations increased $11 million to $126 million in the
 first quarter of 2001 compared with the corresponding period in 2000.  The
 increase of 10% reflects a decrease in the investment in non-cash working
 capital, primarily an inventory drawdown, partially offset by lower sales
 revenues and higher cash production costs for gold.
     Expenditures on property, plant and equipment in the first three months
 of 2001 amounted to $56 million, an increase of $4 million compared with the
 2000 period.  The expenditures included outlays of $5 million (2000 - $15
 million) at the Getchell Mine, $14 million (2000 - $14 million) for Placer
 Dome's share of deferred development costs at the Cortez and Porgera mines and
 $8 million for the main shaft and underground development at the South Deep
 Mine ($2000 - $8 million).
     In the first quarter of 2000, sale proceeds included $9 million for the
 disposal of shares of Vengold Inc.
     Consolidated current and long-term debt balances at March 31, 2001 were
 $619 million, compared with $620 million at December 31, 2000.  Financing
 activities in the first three months of 2001 included long-term debt and
 capital lease repayments of $1 million (2000 - $3 million) and dividend
 payments of $21 million (2000 - $17 million).  In the year-earlier period,
 financing activities also included short-term debt repayments of $16 million.
     On March 31, 2001, consolidated cash and short-term investments amounted
 to $389 million, an increase of $49 million from the beginning of the year. Of
 the consolidated balance of cash and short-term investments, $366 million was
 held by the Corporation and its wholly owned subsidiaries and $23 million by
 other subsidiaries.  Placer Dome also has approximately $780 million of
 undrawn bank lines of credit available.
 
     (b)    Consolidated Financial Statements
 
                                           -----------------------------------
                                                      Canadian Basis
                                                       Consolidated
                                                  statements of earnings
                                                       (unaudited)
                                           -----------------------------------
                                                For the three months ended
                                           -----------------------------------
                                           March 31    December 31    March 31
                                             2001          2000         2000
                                               $             $            $
     -------------------------------------------------------------------------
     Sales                                      351         346         394
     Cost of sales                              190         191         190
     Depreciation and depletion                  79          79          72
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Mine operating earnings                     82          76         132
     -------------------------------------------------------------------------
     General and administrative                  10          11          10
     Exploration                                  8          17          15
     Technology, resource
      development and other                      10          29           9
     Restructuring costs                          -           1           3
     Write-down of mining interests               -         720           -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Operating earnings (loss)                   54        (702)         95
     -------------------------------------------------------------------------
     Investment and other
      business income                             5          93          13
     Non-hedge metal derivative gains             -           5           -
     Interest and financing                     (12)        (12)        (14)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Earnings before taxes
      and other items                            47        (616)         94
     -------------------------------------------------------------------------
     Income and resource taxes                  (11)        211         (34)
     Minority interests                          (2)         (2)         (1)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Net earnings (loss)                         34        (407)         59
     -------------------------------------------------------------------------
     Net earnings (loss) attributable
      to common shareholders                     30        (411)         56
     -------------------------------------------------------------------------
     Per common share
       Net earnings (loss)                     0.09       (1.25)       0.17
       Diluted net earnings (loss)             0.09       (1.25)       0.17
       Dividends                               0.05           -        0.05
     -------------------------------------------------------------------------
     Weighted average number of common
      shares outstanding (millions)
         Basic                                327.6       327.6       327.5
         Diluted                              327.6       327.6       327.5
     -------------------------------------------------------------------------
 
 
                                           -----------------------------------
                                                       Canadian Basis
                                                  Consolidated statements
                                                       of cash flows
                                                        (unaudited)
                                           -----------------------------------
                                                For the three months ended
                                           -----------------------------------
                                           March 31    December 31    March 31
                                             2001          2000         2000
                                               $             $            $
     -------------------------------------------------------------------------
     Operating activities
     Net earnings (loss)                         34        (407)         59
     Add (deduct) non-cash items
         Depreciation and depletion              79          79          72
         Deferred reclamation                    (4)          4           6
         Deferred income and
          resource taxes                         (5)       (223)         14
         Deferred options                         -         (15)          1
         Write-down of mining
          interests and investments               -         720           -
         Investment adjustments                   -         (77)         (8)
         Other items, net                         6           1           6
     Change in non-cash operating
      working capital                            16         (50)        (35)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Cash from operations                       126          32         115
     -------------------------------------------------------------------------
     Investing activities
     Property, plant and equipment              (56)        (35)        (52)
     Short-term investments                      (4)         25          (7)
     Disposition of assets                        1           5          11
     Other, net                                   -           6           -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                (59)          1         (48)
     -------------------------------------------------------------------------
     Financing activities
     Short-term debt                              -          (2)        (16)
     Long-term debt and
      capital leases                             (1)          -          (3)
     Repurchase of preferred
      securities                                  -          (8)          -
     Common shares issued                         -           -           1
     Dividends paid
         Common shares                          (18)          -         (16)
         Preferred securities                    (2)         (6)         (1)
         Minority interest                       (1)          -           -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                (22)        (16)        (35)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Net increase in cash
      and cash equivalents                       45          17          32
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Cash and cash equivalents
     Beginning of period                        331         314         192
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     End of period                              376         331         224
     -------------------------------------------------------------------------
 
 
                                                   ---------------------------
                                                           Canadian Basis
                                                   Consolidated balance sheets
                                                            (unaudited)
                                                   ---------------------------
                                                   March 31        December 31
                                                     2001              2000
                                                       $                 $
     -------------------------------------------------------------------------
                              Assets
     -------------------------------------------------------------------------
 
     Current assets
         Cash and cash equivalents                    376               331
         Short-term investments                        13                 9
         Accounts receivable                          159               186
         Inventories                                  177               202
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                      725               728
     -------------------------------------------------------------------------
     Other assets                                     154               164
     Future income and
      resource taxes                                   47                47
     Property, plant and equipment                  2,126             2,142
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                    3,052             3,081
     -------------------------------------------------------------------------
 
                     Liabilities and Shareholders' Equity
     -------------------------------------------------------------------------
 
     Current liabilities
         Accounts payable and
          accrued liabilities                         156               200
         Income and resource
          taxes payable                                40                34
         Current portion of long-term
          debt and capital leases                      66                36
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                      262               270
     -------------------------------------------------------------------------
     Long-term debt and capital leases                553               584
     Deferred credits and other liabilities           176               179
     Future income and resource taxes                 215               219
     Minority interests in subsidiaries                14                12
     Shareholders' equity                           1,832             1,817
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                    3,052             3,081
     -------------------------------------------------------------------------
 
 
                                           -----------------------------------
                                                      Canadian Basis
                                                  Consolidated Statement
                                                  of Shareholders' Equity
                                                       (unaudited)
                                           -----------------------------------
                                                For the three months ended
                                           -----------------------------------
                                           March 31    December 31    March 31
                                             2001          2000         2000
                                                       (note c(ii))     (note
                                                                        c(ii))
                                               $             $            $
     -------------------------------------------------------------------------
     Common shares, beginning
      of the period                          1,851          1,851       1,850
     Exercise of options                         -              -           1
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Common shares,
      end of the period                      1,851          1,851       1,851
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Preferred securities c (iii),
      beginning of the period                  257            267         280
     Repurchase of preferred securities          -            (10)          -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Preferred securities, end
      of the period                            257            257         280
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Contributed surplus,
      beginning of the period                   45             43          40
     Repurchase of preferred securities          -              2           -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Contributed surplus, end
      of the period                             45             45          40
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Cumulative translation adjustment         (40)           (40)        (40)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Retained earnings, beginning
      of the period                           (296)           115         401
         Net income (loss)                      34           (407)         59
         Common share dividends                (16)             -         (16)
         Preferred securities dividends         (3)            (4)         (3)
         Change in accounting
          policy c (i), (ii)                     -              -        (304)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Retained earnings (deficit),
      end of the period                       (281)          (296)        137
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Shareholders' equity                    1,832          1,817       2,268
     -------------------------------------------------------------------------
 
     (c)    (i)   In December 1997, the Canadian Institute of Chartered
                  Accountants issued Handbook Section 3465 ("CICA 3465"),
                  Income Taxes, which was effective January 1, 2000.  The
                  standard requires a change from the deferred method of
                  accounting for income taxes under Handbook Section 3470,
                  Corporate Income Taxes, to the asset and liability method of
                  accounting for income taxes.  Under the new method, future
                  tax assets and liabilities are recognized for the future tax
                  consequences attributable to differences between the
                  financial statement carrying amounts of existing assets and
                  liabilities and their respective tax bases. Future tax
                  assets and liabilities are measured using enacted or
                  substantively enacted tax rates expected to apply when the
                  asset is realized or the liability settled. Under CICA
                  3465, the effect on future tax assets and liabilities of a
                  change in tax rates is recognized in income in the period
                  that substantive enactment or enactment occurs. On March 3,
                  2000, the Emerging Issues Committee ("EIC"), of the Canadian
                  Institute of Chartered Accountants issued EIC-108 to address
                  CICA 3465 transitional provisions related to business
                  combinations.
 
                  The Corporation has adopted CICA 3465 and EIC-108
                  retroactively without restatement.  The retained earnings
                  as at January 1, 2000 have been reduced by $287 million,
                  with a corresponding increase in future income and resource
                  taxes.
 
            (ii)  Following the adoption of SAB 101 under U.S. GAAP, Placer
                  Dome adopted the same policy under Canadian GAAP for
                  consistency, although the change is not required under
                  Canadian GAAP. This was applied retroactively with
                  restatement of 2000 comparative figures and a reduction to
                  retained earnings at January 1, 2000 of $17 million. The
                  change resulted from SEC's clarification on their view of
                  when gold is considered to be in a saleable form. (See note
                  2 (b) to the consolidated financial statements for further
                  information.)
 
            (iii) Commencing October 1, 2000 Placer Dome adopted the CICA EIC
                  Abstract of Issue Discussed EIC-113, Accounting by Commodity
                  Producers for Written Call Options. Prior to October 1, all
                  call options were given hedge accounting treatment in
                  accordance with common industry practice, whereby the change
                  in market value and premium received were deferred until the
                  forward date identified at the contract inception. Under EIC-
                  113, call options that are not part of a put/call collar
                  strategy ("net call position") are marked-to-market with the
                  change in value recorded in earnings currently. In
                  accordance with EIC-113, the new accounting treatment is
                  applied prospectively to only those call option contracts
                  entered into on or after October 1, 2000. The impact was nil
                  in 2000. The mark-to-market value of the net call position
                  in the future will be affected by the then spot prices of
                  gold and silver, the length of time to expiry of the
                  options, metal price volatility and interest rates in the
                  market at the time of valuation.
 
            (iv)  At March 31, 2001, the Corporation had outstanding $185
                  million 8.625% Series A Preferred Securities and $77 million
                  8.5% Series B Preferred Securities, due December 31, 2045.
                  The Series A and Series B Preferred Securities are
                  redeemable by the Corporation, in whole or in part, on or
                  after December 17, 2001 and December 17, 2006, respectively,
                  at the principal amount plus accrued and unpaid interest to
                  the date of redemption (hereafter referred to as the
                  "Maturity Amount"). The Corporation may, at its option,
                  pay the Maturity Amount, by delivering Common Shares in
                  which event the holder of the Securities shall be entitled
                  to receive a cash payment equal to the Maturity Amount from
                  proceeds of the sale of the Common Shares on behalf of the
                  holder. Holders of the Securities will not be entitled to
                  receive any Common Shares in satisfaction of the obligation
                  to pay the Maturity Amount.
 
     (d) 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 business results and regional corporate offices
         provide support to the mines in addressing local and regional issues.
         Major products are gold, silver and copper produced from mines
         located in Canada, the U.S., Australia, Papua New Guinea, South
         Africa and Chile.
 
     (i) Product segments on a Canadian Basis
 
                                           -----------------------------------
                                                 Sales by metal segment
                                           -----------------------------------
                                               For the three months ended
                                           -----------------------------------
                                           March 31    December 31    March 31
                                             2001          2000         2000
                                               $             $            $
     -------------------------------------------------------------------------
     Gold                                    264            251         302
     Copper                                   80             86          82
     Silver                                    7              9          10
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                             351            346         394
     -------------------------------------------------------------------------
 
 
     (ii) Segment profit (loss) on a Canadian Basis
 
               ---------------------------------------------------------------
                          Sales                   Mine Operating Earnings (i)
               ---------------------------------------------------------------
                  For the three months ended      For the three months ended
               ---------------------------------------------------------------
               March 31  December 31  March 31  March 31  December 31 March 31
                 2001        2000       2000      2001        2000      2000
                   $           $          $         $           $         $
     -------------------------------------------------------------------------
     U.S. basis
      (note 3
      (b))        341         337         383      93          91       133
       La Coipa     9          11          10       -          (3)        -
       Osborne      -           -           -      (3)          -         -
       Porgera      -           -           -      (4)          -         -
       Metal
        hedging
        revenue
        realized    1          (2)          1       1          (2)        1
       Currency
        hedging
        revenue
        realized   n/a         n/a         n/a     (6)        (10)       (2)
       Other        -           -           -       1           -         -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                  351         346         394      82          76       132
     -------------------------------------------------------------------------
 
     (i) Mine operating earnings are defined as sales, at the metal spot
         price, less cost of sales, including reclamation costs, depreciation
         and depletion for each mine.
 
 
     8. Comparative Figures
 
        Certain amounts for 2000 have been reclassified to conform with
        current year's presentation.
 
                PLACER DOME'S CONSOLIDATED METALS SALES PROGRAM
                             As at March 31, 2001
 
                         -----------------------------------------------------
                         2001    2002    2003    2004    2005    2006    2007+
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Gold (000's ounces):
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Spot deferred
      contracts
         Amount            -     137      67       25      51     13       70
         Average price
          (i) ($/oz.)      -     401     510      564     430    560      377
     Fixed forward
      contracts
         Amount          996     606     305      275     266    100      300
         Average price
          (i) ($/oz.)    396     442     432      421     392    367      385
     Fixed interest
      floating lease
      rate contracts
         Amount           41     174     174      100     148    267    2,326
         Average price
          (i) ($/oz.)    458     406     408      433     527    489      538
     Ounces purchased
         Amount          115       -       -        -       -      -        -
         Average price   261       -       -        -       -      -        -
     Call options sold
      (ii)
         Amount          200     200     200      170     150    100      300
         Average price
          ($/oz.)        309     329     371      374     373    367      385
     -------------------------------------------------------------------------
     Total committed
         Amount        1,122   1,117     746      570     615    480    2,996
         Average price
          ($/oz.)        397     411     417      415     423    440      504
     -------------------------------------------------------------------------
     Put options
      purchased (ii)
         Amount           45       -       -        -       -      -        -
         Average price
          ($/oz.)        300       -       -        -       -      -        -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Silver (000's ounces):
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Fixed forward
      contracts
         Amount          700   1,350     500        -       -      -        -
         Average price
          ($/oz.)       5.71    6.36    5.50        -       -      -        -
     Call options
      sold
         Amount          250     800     650        -       -      -        -
         Average price
          ($/oz.)       7.90    7.95    7.90        -       -      -        -
     -------------------------------------------------------------------------
     Total committed
         Amount          950   2,150   1,150        -       -      -        -
         Average price
          ($/oz.)       6.29    6.95    7.10        -       -      -        -
     -------------------------------------------------------------------------
     Put options
      purchased (ii)
         Amount          250   2,300     650        -       -      -        -
         Average price
          ($/oz.)       6.00    5.49    5.50        -       -      -        -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Copper (millions of pounds):
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Fixed forward
      contracts
         Amount         20.4      -        -        -       -      -        -
         Average price
          ($/lb.)       0.89      -        -        -       -      -        -
     Call options sold
         Amount         29.2      -        -        -       -      -        -
         Average price
          ($/lb.)       0.93      -        -        -       -      -        -
     -------------------------------------------------------------------------
     Total committed
         Amount         49.6      -        -        -       -      -        -
         Average price
          ($/lb.)       0.91      -        -        -       -      -        -
     -------------------------------------------------------------------------
     Put options purchased
         Amount         21.5      -        -        -       -      -        -
         Average price
          ($/lb.)       0.84      -        -        -       -      -        -
     -------------------------------------------------------------------------
 
     (i)  Forward sales contracts include:
          a) Spot deferred forward contracts - a forward sale which will
             accrue contango until the intended delivery date of the contract.
             The rate at which contango accrues will be determined by U.S.
             dollar interest rates less gold lease rates existing at the time
             of each rollover. The average price reflects the expected value
             to maturity of the contracts.
          b) Fixed forward contracts - a forward contract where the interest
             rate and gold lease rate of the contract are fixed to the
             maturity of the contract.
          c) Fixed interest floating lease rate contracts - a forward sale
             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.
     (ii) Put and call options are disclosed based on the intended delivery
          date of the option.  The expiry date of the option may differ from
          the intended delivery date.
 
     Forward sales contracts 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.
     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.
     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.
     Call options purchased by the Corporation provide the Corporation with
 the right, but not the obligation, to purchase the commodity from the counter-
 party at a predetermined price on the exercise date of the option.
     The actual gain or loss to be realized on the commodity contracts will be
 determined by the spot price on the maturity of the contracts.
 
 

SOURCE Placer Dome Inc.
    VANCOUVER, April 24 /PRNewswire/ -
 
                               PLACER DOME INC.
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
                (millions of United States dollars, U.S. GAAP)
                                  (unaudited)
 
                                         -------------------------------------
                                              For the three months ended
                                         -------------------------------------
                                          March 31   December 31   March 31
                                            2001        2000     2000 (note 2)
                                             $           $           $
     -------------------------------------------------------------------------
     Operating activities
     Net earnings (loss)                      16         (89)         29
     Add (deduct) non-cash items
         Depreciation and depletion           70          78          69
         Unrealized losses (gains) on
          derivatives                         22         (54)         15
         Equity adjustment                     1           7           3
         Deferred reclamation                 (4)          4           6
         Deferred options                      -          17           1
         Deferred income and resource
          taxes                               (2)        (78)          9
         Write-down of mining interest
          and investments                      -         261           -
         Investment adjustments                -         (77)         (8)
         Change in accounting policies         -           -          17
         Other items, net                      1          (8)          3
     Change in non-cash operating
      working capital                         17         (32)        (32)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Cash from operations                    121          29         112
     -------------------------------------------------------------------------
     Investing activities
     Property, plant and equipment           (53)        (36)        (50)
     Short-term investments                   (4)         25          (7)
     Disposition of assets                     1           4          11
     Other, net                                -           5           1
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                             (56)         (2)        (45)
     -------------------------------------------------------------------------
     Financing activities
     Short-term debt                           -           -         (16)
     Long-term debt and capital leases        (1)        (10)         (3)
     Common shares issued                      -           -           1
     Dividends paid
        Common shares                        (18)          -         (16)
        Minority interest                     (1)          -           -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                             (20)        (10)        (34)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Increase in cash and cash
      equivalents                             45          17          33
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Cash and cash equivalents
     Beginning of period                     331         314         191
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     End of period                           376         331         224
     -------------------------------------------------------------------------
         (See accompanying notes to consolidated financial statements)
 
 
                               PLACER DOME INC.
                          CONSOLIDATED BALANCE SHEETS
                (millions of United States dollars, U.S. GAAP)
                                  (unaudited)
 
                                                    --------------------------
                                            ASSETS    March 31    December 31
                                                        2001         2000
                                                         $            $
     -------------------------------------------------------------------------
     Current assets
        Cash and cash equivalents                        376          331
        Short-term investments                            13            9
        Accounts receivable                              148          182
        Inventories (note 4)                             171          196
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                         708          718
     -------------------------------------------------------------------------
     Investments                                          66           66
     Other assets (note 5)                               133          163
     Deferred income and resource taxes                  118          118
     Property, plant and equipment                     1,966        1,975
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                       2,991        3,040
     -------------------------------------------------------------------------
 
                     LIABILITIES AND SHAREHOLDERS' EQUITY
 
                                                    --------------------------
                                                      March 31    December 31
                                                        2001         2000
                                                         $            $
     -------------------------------------------------------------------------
     Current liabilities
        Accounts payable and accrued liabilities         145          195
        Income and resource taxes payable                 40           33
        Current portion of long-term debt and
         capital leases                                   65           35
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                         250          263
     -------------------------------------------------------------------------
     Long-term debt and capital leases                   812          843
     Deferred credits and other liabilities              173          177
     Deferred income and resource taxes                  228          232
     Minority interests in subsidiaries                   14           12
     Commitments and contingencies (note 6)
     Shareholders' equity                              1,514        1,513
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                       2,991        3,040
     -------------------------------------------------------------------------
         (See accompanying notes to consolidated financial statements)
 
 
                               PLACER DOME INC.
                CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
                -----------------------------------------------
     (millions of United States dollars, except share amounts, U.S. GAAP)
                                  (unaudited)
 
                                         -------------------------------------
                                              For the three months ended
                                         -------------------------------------
                                          March 31   December 31   March 31
                                            2001        2000        2000
                                             $           $           $
     -------------------------------------------------------------------------
     Common shares (i), beginning of
      period                               1,248       1,248       1,247
     Exercise of options                       -           -           1
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Common shares, end of period          1,248       1,248       1,248
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Unrealized gain on securities,
      beginning of period                      1           2           4
     Holding gains (loss)                      -          (1)          4
     Reclassification of gains
      included in net income                   -           -          (4)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Unrealized gain on securities,
      end of period                            1           1           4
     -------------------------------------------------------------------------
     Unrealized hedging, beginning
      of period                                -           -           -
     Holding gains                             1           -           -
     -------------------------------------------------------------------------
     Unrealized hedging, end of period         1           -           -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Accumulated other comprehensive
      income                                   2           1           4
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Contributed surplus                      52          52          52
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Cumulative translation adjustment       (29)        (29)        (29)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Retained earnings, beginning of
      period                                 241         330         365
       Net income (loss)                      16         (89)         29
       Common share dividends                (16)          -         (16)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Retained earnings,
      end of period                          241         241         378
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Shareholders' equity                  1,514       1,513       1,653
     -------------------------------------------------------------------------
 
     (i) Preferred shares - unlimited shares authorized, no par value, none
         issued.
         Common shares - unlimited shares authorized, no par value, issued and
         outstanding at March 31, 2001 327,620,037 shares (December 31, 2000 -
         327,617,871 shares).
 
         (see accompanying notes to consolidated financial statements)
 
 
                               PLACER DOME INC.
                  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (unaudited)
     (all tabular amounts are in millions of United States dollars, U.S. GAAP)
 
     1. The accompanying interim consolidated financial statements have been
        prepared in accordance with accounting principles generally accepted
        in the United States. They do not include all of the disclosures
        required by generally accepted accounting principles 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 months ended March 31,
        2001 are not necessarily indicative of the results that may be
        expected for the full year ending December 31, 2001.  For further
        information, see the Corporation's consolidated financial statements,
        including the accounting policies and notes thereto, included in the
        Annual Business Report and Annual Information Form/Form 40-F for the
        year ended December 31, 2000.
 
        The Corporation also prepares a management's discussion and analysis
        and consolidated financial statements in accordance with Canadian
        generally accepted accounting principles ("GAAP") as included in note
        7. The consolidated net earnings (loss) under Canadian GAAP were $34
        million, $(407) million and $59 million for the three months ended
        March 31, 2001, December 31, 2000 and March 31, 2000, respectively.
 
     2. Change in Accounting Policies
 
     (a) In December 1999, the staff of the U.S. Securities and Exchange
         Commission ("SEC") released Staff Accounting Bulletin ("SAB") No.
         101, "Revenue Recognition", to provide guidance on the recognition,
         presentation, and disclosure of revenues in financial statements. In
         the fourth quarter of 2000, Placer Dome adopted SAB 101 with
         retroactive application to January 1, 2000, and recorded a charge of
         $17 million (net of income taxes of $5 million) in the first quarter
         of 2000 related to 1999 gold earnings. The adjustment resulted from
         SEC's clarification of their view on when gold is considered to be in
         a saleable form. Accordingly, the results for the first three
         quarters of 2000 have been restated to reflect this change. The
         net effect of the change on the first quarter of 2000 was to increase
         sales revenue by $8 million, cost of sales and depreciation by $3
         million and income taxes by $2 million, resulting in an increase in
         earnings of $3 million ($0.01 per share).
 
     (b) In June 1998, the U.S. Financial Accounting Standards Board
         ("FASB") issued its Statement of Financial Accounting Standards
         No.133, "Accounting for Derivative Instruments and Hedging
         Activities" ("SFAS 133") and in June 2000 the companion statement No.
         138. SFAS 133 establishes accounting and reporting standards for
         derivative instruments, including certain derivative instruments
         embedded in other contracts and requires recognition of all
         derivative instruments on the balance sheet as either assets or
         liabilities with measurement at fair value. Changes in the fair value
         of derivatives are recorded each period in the current earnings or
         other comprehensive income, depending on the intent and nature of the
         derivative instrument and whether it qualifies for hedge accounting
         as defined in SFAS 133 and 138. The Corporation adopted SFAS 133 on
         January 1, 2001. Of Placer Dome's metals program, the majority
         relates to gold and silver metal forward contracts that are exempt
         from SFAS 133 as normal course sales. Copper forward contracts, which
         previously were accounted for off balance sheet, are now accounted
         for as cash flow hedges with the changes in fair values recorded each
         period in other comprehensive income ("OCI"). Foreign currency
         derivative contracts relating to expenditures which are capital in
         nature are also accounted for as cash flow hedges in accordance with
         SFAS 133. As of January 1, 2001, the cumulative effect of the change
         in policy on the opening accumulated OCI on the balance sheet was
         nil, and an unrealized gain of $1 million was recorded in OCI in the
         first quarter of 2001. As for metals put/call collars which
         previously were accounted for off balance sheet, they are now
         recorded at fair value with the change in value recorded in earnings
         in the period as non-hedge derivative gains (losses). The cumulative
         effect of the change in accounting policy as of January 1, 2001 was
         nil, and an unrealized gain of $1 million (after tax) was recorded in
         earnings in the period. Under SFAS 133, foreign currency forward and
         option contracts used for managing foreign production cost exposures
         will continue to be recorded at fair value with the change in value
         recorded in earnings in the period as non-hedge derivative gains
         (losses).
 
     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 business results and regional corporate offices
        provide support to the mines in addressing local and regional issues.
        Major products are gold, silver and copper produced from mines located
        in Canada, the U.S., Australia, Papua New Guinea, South Africa and
        Chile.
 
 
        (a) Sales revenue
                                       ---------------------------------------
                                              Sales by metal segment
                                       ---------------------------------------
                                            For the three months ended
                                       ---------------------------------------
                                        March 31    December 31   March 31
                                          2001         2000         2000
                                           $            $            $
     -------------------------------------------------------------------------
     Gold                                  260          249          299
     Copper                                 80           86           82
     Other                                   1            2            2
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                           341          337          383
     -------------------------------------------------------------------------
 
        (b) Segment profit (loss) and revenue
 
                    ----------------------------------------------------------
                                    Sales          Mine Operating Earnings (i)
                    ----------------------------------------------------------
                      For the three months ended    For the three months ended
                    ----------------------------------------------------------
                         March   December   March   March   December  March
                          31       31        31      31        31      31
                         2001     2000      2000    2001      2000    2000
                                            (ii)                      (ii)
                          $        $        $        $        $        $
     ------------------------------------------------------------------------
     Canada
        Campbell          15       14       21       (2)       1        6
        Dome              25       20       23       (1)       2       (1)
        Musselwhite       13       10       13        -        1        2
     ------------------------------------------------------------------------
     ------------------------------------------------------------------------
                          53       44       57       (3)       4        7
     ------------------------------------------------------------------------
     United States
        Bald Mountain      7       10        9       (3)      (1)      (2)
        Cortez            46       46       51       21       19       31
        Golden Sunlight   15       12       14        2        -       (2)
     ------------------------------------------------------------------------
     ------------------------------------------------------------------------
                          68       68       74       20       18       27
     ------------------------------------------------------------------------
     Papua New Guinea
        Misima            15       13       24        2       (3)       7
        Porgera           25       30       26        -        -        4
     ------------------------------------------------------------------------
     ------------------------------------------------------------------------
                          40       43       50        2       (3)      11
     ------------------------------------------------------------------------
     Australia
        Granny Smith      20        6       38        3        -       21
        Kidston           19       20       19        1       (5)      (1)
        Osborne           20       20       17        3        2       (1)
     ------------------------------------------------------------------------
     ------------------------------------------------------------------------
                          59       46       74        7       (3)      19
     ------------------------------------------------------------------------
     Chile
        Zaldivar          62       69       68       18       19       19
     ------------------------------------------------------------------------
     ------------------------------------------------------------------------
     South Africa
        South Deep        10       12        9        1        3        -
     ------------------------------------------------------------------------
     ------------------------------------------------------------------------
     Metal hedging
      revenue realized    49       55       51       49       55       51
     Other                 -        -        -       (1)      (2)      (1)
     ------------------------------------------------------------------------
     ------------------------------------------------------------------------
                         341      337      383       93       91      133
     ------------------------------------------------------------------------
 
     (i)  Mine operating earnings are defined as sales, at the metal spot
          price, less cost of sales, including reclamation costs, depreciation
          and depletion for each mine.
     (ii) In the fourth quarter of 2000, Placer Dome adopted SAB 101 with
          retroactive application to January 1, 2000. Prior periods in 2000
          have been restated to reflect this change.
 
     4. Inventories comprise the following:
 
                                                ------------------------------
                                                      March 31    December 31
                                                        2001         2000
                                                         $            $
        ----------------------------------------------------------------------
        Product inventories                              22           52
        Metal in circuit                                 69           66
        Current ore stockpiles                           22           17
        Materials and supplies                           58           61
        ----------------------------------------------------------------------
        ----------------------------------------------------------------------
                                                        171          196
        ----------------------------------------------------------------------
 
     5. Other assets consist of the following:
 
                                                ------------------------------
                                                      March 31    December 31
                                                        2001         2000
                                                         $            $
        ----------------------------------------------------------------------
        Sale agreement receivable (i)                    80           78
        Ore stockpiles (ii)                              65           69
        Forward and option contract receivables          17           30
        Other                                            18           21
        ----------------------------------------------------------------------
        ----------------------------------------------------------------------
                                                        180          198
        Current portion of other assets                 (47)         (35)
        ----------------------------------------------------------------------
        ----------------------------------------------------------------------
                                                        133          163
        ----------------------------------------------------------------------
 
        (i)  In December 2000, Compania Minera Zaldivar completed the sale
             of some of its water rights for a sum of $135 million, receivable
             in fifteen equal annual installments 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.
        (ii) Includes $22 million (December 31, 2000 - $17 million) of
             stockpiled ore which is expected to be processed in the following
             twelve months.
 
     6. Commitments and Contingencies
 
     (a) At March 31, 2001, Placer Dome has outstanding commitments
         aggregating $13 million under capital expenditure and exploration
         programs.
 
     (b) On November 21, 2000, the Interior Department issued a final rule
         amending the 43 C.F.R. Subpart 3809 regulations ("3809 regulations")
         which govern reviews and approvals of mining plans of operations.
         This rule, which took effect on January 20, 2001, increases the
         Bureau of Land Management's ("BLM") regulatory authority and imposes
         new requirements for mining operations on federal lands, including a
         new definition of unnecessary or undue degradation which contains a
         mine veto provision, and revised performance standards. Although the
         rule contains certain exemptions for existing approved operations,
         this new rule will increase regulatory obligations and compliance
         costs. This regulation is being challenged by the National Mining
         Association ("NMA"), of which Placer Dome is a member, by a lawsuit
         filed in the Federal District Court for the District of Columbia on
         December 15, 2000.  A lawsuit has also been filed by the State of
         Nevada.  A stay request was also made by the NMA and was denied on
         January 19, 2001.  On March 23, 2001, the BLM published a proposal in
         the Federal Register to suspend the 3809 regulations.
 
     (c) In addition to the above, reference is made to note 19 to the 2000
         Consolidated Financial Statements included in the Annual Business
         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 based on management's assessment of the risks.
 
     7. Canadian Generally Accepted Accounting Principles
 
        The consolidated financial statements of Placer Dome Inc. have been
        prepared in accordance with accounting principles generally accepted
        in the U.S. and the accounting rules and regulations of the Securities
        and Exchange Commission ("U.S. GAAP") which differ in certain material
        respects from those principles and practices that Placer Dome would
        have followed had its consolidated financial statements been prepared
        in accordance with accounting principles and practices generally
        accepted in Canada ("Canadian GAAP"). Some of the significant
        differences between Canadian and U.S. GAAP that impact the
        consolidated financial statements of Placer Dome include the
        following:
 
         (i) The investments in La Coipa (50%) and Las Cristinas (70%) are in
             the form of incorporated joint ventures.  Under U.S. GAAP, La
             Coipa is accounted for on an equity basis and Las Cristinas is
             fully consolidated.  Under Canadian GAAP these joint ventures are
             proportionately consolidated.
        (ii) Under U.S. GAAP, foreign currency forward and option (puts and
             calls) contracts used for managing foreign production cost
             exposures are marked-to-market with the change in value recorded
             in earnings in the period as non-hedge derivative gains (losses).
             Under Canadian GAAP, all such contracts are accounted for off
             balance sheet with the exception of open call positions which
             commencing October 1, 2000, following the adoption of EIC-113,
             now follow the same accounting as U.S. GAAP. (See note 7 (c)
             (iii) for more information.)
       (iii) Under U.S. GAAP, metals open call positions are marked-to-market
             with the change in value recorded in earnings in the period as
             non-hedge derivative gains (losses).  For the first three
             quarters of 2000, all such positions under Canadian GAAP are
             accounted for off balance sheet.  However, with the adoption of
             EIC-113 effective October 1, 2000, the accounting under Canadian
             GAAP is now consistent with U.S. GAAP.
        (iv) Under U.S. GAAP, SFAS 133 came into effect on January 1, 2001.
             The accounting treatment for precious metal forward contracts is
             the same under both GAAPs.  However, while copper forward
             contracts and metals put/call collars are accounted for off
             balance sheet under Canadian GAAP, under U.S. GAAP, with the
             adoption of SFAS 133, they are now marked-to-market with the
             change in value recorded in the period in comprehensive income
             and non-hedge derivative gains (losses), respectively.
         (v) Preferred Securities, under U.S. GAAP, are accounted for as long-
             term debt.  Under Canadian GAAP, these securities are accounted
             for as equity with the related interest expense reported as
             dividend.  On redemption of the Preferred Securities, gains are
             reported in the statement of earnings as investment income under
             U.S. GAAP, whereas under Canadian GAAP, it is credited to
             contributed surplus.
        (vi) The Getchell acquisition, under U.S. GAAP, was accounted for
             using the pooling of interests method which combined, at book
             value, the net assets and operations of Getchell and Placer Dome.
             Under Canadian GAAP, the acquisition was accounted for using the
             purchase method with the purchase price of $832 million being
             allocated to operating assets ($207 million), exploration
             potential ($620 million) and the hedge position ($5 million).  In
             the fourth quarter of 2000, Placer Dome recorded Getchell asset
             write-downs of $66 million and $651 million under U.S. and
             Canadian GAAP, respectively.  The additional $585 million write-
             down under Canadian GAAP was related to the value ascribed to
             exploration potential.
 
     In addition to the above, reference is made to note 21 to the 2000
 Consolidated Financial Statements included in the Annual Business Report and
 Annual Information Form/Form 40-F.  Had Placer Dome followed Canadian GAAP,
 the Review of Operations, the consolidated statement of earnings, retained
 earnings, cash flows and balance sheets would have been as follows:
 
     (a)    Review of Operations
 
 
                                          ---------------------------------
                                              For the three months ended
                                          ---------------------------------
                                          March 31     Dec. 31     March 31
                                            2001         2000        2000
     -----------------------------------------------------------------------
     Production and sales volumes
     Gold (000's ozs.)
       Group's share production                 694          760         786
       Consolidated production                  723          788         821
       Consolidated sales                       817          743         855
     Copper (000's lbs.)
       Group's share production              99,854      109,436     106,909
       Consolidated production               99,854      109,436     106,909
       Consolidated sales                   106,150      104,371     106,764
     -----------------------------------------------------------------------
     Average prices and costs
     Gold ($/oz.)
       Price realized - Group's share          $327         $348        $355
       London spot price                       $264         $269        $290
       Group's share cash cost                 $170         $170        $152
       Group's share total cost                $258         $248        $222
     Copper ($/lb.)
       Price realized - Group's share         $0.80        $0.86       $0.81
       London spot price                      $0.80        $0.84       $0.81
       Group's share cash cost                $0.44        $0.47       $0.45
       Group's share total cost               $0.61        $0.68       $0.64
     -----------------------------------------------------------------------
 
     Consolidated net earnings in accordance with Canadian GAAP for the first
 quarter of 2001 were $34 million ($0.09 per share after interests on preferred
 securities), compared with $59 million ($0.17 per share) in the first quarter
 of 2000.
     Sales revenue of $351 million for the first quarter of 2001 was $43
 million lower than the 2000 period.  Gold sales revenue in the first quarter
 of 2001 decreased by 13% to $264 million due to a 4% decline in sales volume
 and an 8% decline in the average realized price.  Under its gold price hedging
 program, Placer Dome realized an average price of $327 per ounce compared with
 the average spot price of $264 per ounce in the first quarter of 2001, a
 premium of $63 per ounce.  This compares to an average realized price of $355
 per ounce and spot price of $290 per ounce in the prior year period.  Copper
 sales revenue in the first three months of 2001 decreased by 2% to $80 million
 compared with the prior year period due to marginally lower sales volume and
 realized prices.  Placer Dome's average realized price for copper in the first
 three months of the year was $0.80 per pound compared with $0.81 per pound in
 2000.
     Mine operating earnings decreased 38% to $82 million in the first quarter
 of 2001, compared with $132 million in 2000.  Gold operating earnings for the
 quarter were $65 million compared with $92 million in the prior year, a
 decline of 29% reflecting a $28 per ounce decrease in the average realized
 price and a $36 per ounce increase in total production costs.  Consolidated
 gold production in the first quarter of 2001 was down 12% to 723,000 ounces
 compared with 821,000 ounces in the prior year period with seven of the twelve
 consolidated gold mines experiencing lower production.  As a result, Placer
 Dome's share of cash and total production costs per ounce of gold increased in
 the first quarter of 2001 by 12% and 16% to $170 and $258, respectively,
 compared with $152 and $222 in the corresponding period in 2000.  However, the
 impact of the lower production on unit production costs in the quarter was
 softened by the favourable impact of weaker local currencies as the U.S.
 dollar strengthened relative to the Canadian, Australian, Papua New Guinean
 and South African currencies.  Copper operating earnings for the quarter were
 $20 million, $1 million higher than the prior year period due to a 5% decline
 in unit total production costs partially offset by lower realized prices and
 sales volume.  Consolidated copper production in the first quarter of 2001 was
 down 7% to 99.9 million pounds (45,290 tonnes) compared with 106.9 million
 pounds (48,490 tonnes) in the prior year period reflecting lower production
 from the Zaldivar Mine.  Placer Dome's share of cash and total production
 costs per pound of copper in the first quarter of 2001 were $0.44 and $0.61,
 respectively, compared with $0.45 and $0.64 per pound, respectively, in 2000.
 
     Expenses and other income
 
     Discretionary spending on general and administrative, exploration,
 technology, resource development and other totalled $28 million in the first
 quarter of 2001, a decline of 18% from $34 million in the year-earlier period.
 The decline reflects reduced exploration expenditures primarily at the
 Getchell property.  In the prior year quarter, there were also $3 million of
 restructuring costs that followed from the restructuring process which
 commenced in 1999.
     Effective October 1, 2000, Placer Dome adopted the Canadian Institute of
 Chartered Accountants Emerging Issues Committee Abstract of Issue Discussed
 EIC-113, Accounting by Commodity Producers for Written Call Options.  Under
 EIC-113, call options that are not part of a put/call collar strategy ("net
 call position") are marked-to-market with the change in value recorded in
 current period earnings.  In accordance with EIC-113, the new accounting
 treatment is applied prospectively to only those call option contracts entered
 into on or after October 1, 2000.  The impact in the first quarter of 2001 was
 nil.
     Investment and other business income in the first three months of 2001
 were $5 million compared with $13 million in the year-earlier period.  In
 2000, the amount included an $8 million gain on the disposal of the
 Corporation's common share investment in Vengold Inc.
     Interest and financing expenses were $12 million and $14 million in the
 first quarter of 2001 and 2000, respectively.  In addition, there was $1
 million of interest capitalized in the current quarter and nil in the prior
 year period.
     Effective tax rates on pre-tax accounting earnings were 23% and 36% for
 the first three months of 2001 and 2000, respectively. Excluding the impact of
 the common share investment gain in 2000, the effective tax rate in the prior
 year period would have been 40%. The decline in the effective tax rate
 reflects, in part, tax rate reductions in a number of jurisdictions where
 Placer Dome's operations are located.
     Following the adoption of SAB 101 under U.S. GAAP, Placer Dome adopted
 the same policy under Canadian GAAP for consistency, although the change is
 not required under Canadian GAAP.  This was applied retroactively with
 restatement of 2000 comparative figures and a reduction to retained earnings
 at January 1, 2000 of $17 million.  The change resulted from SEC's
 clarification on their view of when gold is considered to be in a saleable
 form. (See note 2 (b) to the consolidated financial statements for further
 information.)
 
     Financial Condition, Liquidity and Capital Resources
 
     Cash flow from operations increased $11 million to $126 million in the
 first quarter of 2001 compared with the corresponding period in 2000.  The
 increase of 10% reflects a decrease in the investment in non-cash working
 capital, primarily an inventory drawdown, partially offset by lower sales
 revenues and higher cash production costs for gold.
     Expenditures on property, plant and equipment in the first three months
 of 2001 amounted to $56 million, an increase of $4 million compared with the
 2000 period.  The expenditures included outlays of $5 million (2000 - $15
 million) at the Getchell Mine, $14 million (2000 - $14 million) for Placer
 Dome's share of deferred development costs at the Cortez and Porgera mines and
 $8 million for the main shaft and underground development at the South Deep
 Mine ($2000 - $8 million).
     In the first quarter of 2000, sale proceeds included $9 million for the
 disposal of shares of Vengold Inc.
     Consolidated current and long-term debt balances at March 31, 2001 were
 $619 million, compared with $620 million at December 31, 2000.  Financing
 activities in the first three months of 2001 included long-term debt and
 capital lease repayments of $1 million (2000 - $3 million) and dividend
 payments of $21 million (2000 - $17 million).  In the year-earlier period,
 financing activities also included short-term debt repayments of $16 million.
     On March 31, 2001, consolidated cash and short-term investments amounted
 to $389 million, an increase of $49 million from the beginning of the year. Of
 the consolidated balance of cash and short-term investments, $366 million was
 held by the Corporation and its wholly owned subsidiaries and $23 million by
 other subsidiaries.  Placer Dome also has approximately $780 million of
 undrawn bank lines of credit available.
 
     (b)    Consolidated Financial Statements
 
                                           -----------------------------------
                                                      Canadian Basis
                                                       Consolidated
                                                  statements of earnings
                                                       (unaudited)
                                           -----------------------------------
                                                For the three months ended
                                           -----------------------------------
                                           March 31    December 31    March 31
                                             2001          2000         2000
                                               $             $            $
     -------------------------------------------------------------------------
     Sales                                      351         346         394
     Cost of sales                              190         191         190
     Depreciation and depletion                  79          79          72
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Mine operating earnings                     82          76         132
     -------------------------------------------------------------------------
     General and administrative                  10          11          10
     Exploration                                  8          17          15
     Technology, resource
      development and other                      10          29           9
     Restructuring costs                          -           1           3
     Write-down of mining interests               -         720           -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Operating earnings (loss)                   54        (702)         95
     -------------------------------------------------------------------------
     Investment and other
      business income                             5          93          13
     Non-hedge metal derivative gains             -           5           -
     Interest and financing                     (12)        (12)        (14)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Earnings before taxes
      and other items                            47        (616)         94
     -------------------------------------------------------------------------
     Income and resource taxes                  (11)        211         (34)
     Minority interests                          (2)         (2)         (1)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Net earnings (loss)                         34        (407)         59
     -------------------------------------------------------------------------
     Net earnings (loss) attributable
      to common shareholders                     30        (411)         56
     -------------------------------------------------------------------------
     Per common share
       Net earnings (loss)                     0.09       (1.25)       0.17
       Diluted net earnings (loss)             0.09       (1.25)       0.17
       Dividends                               0.05           -        0.05
     -------------------------------------------------------------------------
     Weighted average number of common
      shares outstanding (millions)
         Basic                                327.6       327.6       327.5
         Diluted                              327.6       327.6       327.5
     -------------------------------------------------------------------------
 
 
                                           -----------------------------------
                                                       Canadian Basis
                                                  Consolidated statements
                                                       of cash flows
                                                        (unaudited)
                                           -----------------------------------
                                                For the three months ended
                                           -----------------------------------
                                           March 31    December 31    March 31
                                             2001          2000         2000
                                               $             $            $
     -------------------------------------------------------------------------
     Operating activities
     Net earnings (loss)                         34        (407)         59
     Add (deduct) non-cash items
         Depreciation and depletion              79          79          72
         Deferred reclamation                    (4)          4           6
         Deferred income and
          resource taxes                         (5)       (223)         14
         Deferred options                         -         (15)          1
         Write-down of mining
          interests and investments               -         720           -
         Investment adjustments                   -         (77)         (8)
         Other items, net                         6           1           6
     Change in non-cash operating
      working capital                            16         (50)        (35)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Cash from operations                       126          32         115
     -------------------------------------------------------------------------
     Investing activities
     Property, plant and equipment              (56)        (35)        (52)
     Short-term investments                      (4)         25          (7)
     Disposition of assets                        1           5          11
     Other, net                                   -           6           -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                (59)          1         (48)
     -------------------------------------------------------------------------
     Financing activities
     Short-term debt                              -          (2)        (16)
     Long-term debt and
      capital leases                             (1)          -          (3)
     Repurchase of preferred
      securities                                  -          (8)          -
     Common shares issued                         -           -           1
     Dividends paid
         Common shares                          (18)          -         (16)
         Preferred securities                    (2)         (6)         (1)
         Minority interest                       (1)          -           -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                (22)        (16)        (35)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Net increase in cash
      and cash equivalents                       45          17          32
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Cash and cash equivalents
     Beginning of period                        331         314         192
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     End of period                              376         331         224
     -------------------------------------------------------------------------
 
 
                                                   ---------------------------
                                                           Canadian Basis
                                                   Consolidated balance sheets
                                                            (unaudited)
                                                   ---------------------------
                                                   March 31        December 31
                                                     2001              2000
                                                       $                 $
     -------------------------------------------------------------------------
                              Assets
     -------------------------------------------------------------------------
 
     Current assets
         Cash and cash equivalents                    376               331
         Short-term investments                        13                 9
         Accounts receivable                          159               186
         Inventories                                  177               202
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                      725               728
     -------------------------------------------------------------------------
     Other assets                                     154               164
     Future income and
      resource taxes                                   47                47
     Property, plant and equipment                  2,126             2,142
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                    3,052             3,081
     -------------------------------------------------------------------------
 
                     Liabilities and Shareholders' Equity
     -------------------------------------------------------------------------
 
     Current liabilities
         Accounts payable and
          accrued liabilities                         156               200
         Income and resource
          taxes payable                                40                34
         Current portion of long-term
          debt and capital leases                      66                36
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                      262               270
     -------------------------------------------------------------------------
     Long-term debt and capital leases                553               584
     Deferred credits and other liabilities           176               179
     Future income and resource taxes                 215               219
     Minority interests in subsidiaries                14                12
     Shareholders' equity                           1,832             1,817
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                                    3,052             3,081
     -------------------------------------------------------------------------
 
 
                                           -----------------------------------
                                                      Canadian Basis
                                                  Consolidated Statement
                                                  of Shareholders' Equity
                                                       (unaudited)
                                           -----------------------------------
                                                For the three months ended
                                           -----------------------------------
                                           March 31    December 31    March 31
                                             2001          2000         2000
                                                       (note c(ii))     (note
                                                                        c(ii))
                                               $             $            $
     -------------------------------------------------------------------------
     Common shares, beginning
      of the period                          1,851          1,851       1,850
     Exercise of options                         -              -           1
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Common shares,
      end of the period                      1,851          1,851       1,851
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Preferred securities c (iii),
      beginning of the period                  257            267         280
     Repurchase of preferred securities          -            (10)          -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Preferred securities, end
      of the period                            257            257         280
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Contributed surplus,
      beginning of the period                   45             43          40
     Repurchase of preferred securities          -              2           -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Contributed surplus, end
      of the period                             45             45          40
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Cumulative translation adjustment         (40)           (40)        (40)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Retained earnings, beginning
      of the period                           (296)           115         401
         Net income (loss)                      34           (407)         59
         Common share dividends                (16)             -         (16)
         Preferred securities dividends         (3)            (4)         (3)
         Change in accounting
          policy c (i), (ii)                     -              -        (304)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Retained earnings (deficit),
      end of the period                       (281)          (296)        137
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Shareholders' equity                    1,832          1,817       2,268
     -------------------------------------------------------------------------
 
     (c)    (i)   In December 1997, the Canadian Institute of Chartered
                  Accountants issued Handbook Section 3465 ("CICA 3465"),
                  Income Taxes, which was effective January 1, 2000.  The
                  standard requires a change from the deferred method of
                  accounting for income taxes under Handbook Section 3470,
                  Corporate Income Taxes, to the asset and liability method of
                  accounting for income taxes.  Under the new method, future
                  tax assets and liabilities are recognized for the future tax
                  consequences attributable to differences between the
                  financial statement carrying amounts of existing assets and
                  liabilities and their respective tax bases. Future tax
                  assets and liabilities are measured using enacted or
                  substantively enacted tax rates expected to apply when the
                  asset is realized or the liability settled. Under CICA
                  3465, the effect on future tax assets and liabilities of a
                  change in tax rates is recognized in income in the period
                  that substantive enactment or enactment occurs. On March 3,
                  2000, the Emerging Issues Committee ("EIC"), of the Canadian
                  Institute of Chartered Accountants issued EIC-108 to address
                  CICA 3465 transitional provisions related to business
                  combinations.
 
                  The Corporation has adopted CICA 3465 and EIC-108
                  retroactively without restatement.  The retained earnings
                  as at January 1, 2000 have been reduced by $287 million,
                  with a corresponding increase in future income and resource
                  taxes.
 
            (ii)  Following the adoption of SAB 101 under U.S. GAAP, Placer
                  Dome adopted the same policy under Canadian GAAP for
                  consistency, although the change is not required under
                  Canadian GAAP. This was applied retroactively with
                  restatement of 2000 comparative figures and a reduction to
                  retained earnings at January 1, 2000 of $17 million. The
                  change resulted from SEC's clarification on their view of
                  when gold is considered to be in a saleable form. (See note
                  2 (b) to the consolidated financial statements for further
                  information.)
 
            (iii) Commencing October 1, 2000 Placer Dome adopted the CICA EIC
                  Abstract of Issue Discussed EIC-113, Accounting by Commodity
                  Producers for Written Call Options. Prior to October 1, all
                  call options were given hedge accounting treatment in
                  accordance with common industry practice, whereby the change
                  in market value and premium received were deferred until the
                  forward date identified at the contract inception. Under EIC-
                  113, call options that are not part of a put/call collar
                  strategy ("net call position") are marked-to-market with the
                  change in value recorded in earnings currently. In
                  accordance with EIC-113, the new accounting treatment is
                  applied prospectively to only those call option contracts
                  entered into on or after October 1, 2000. The impact was nil
                  in 2000. The mark-to-market value of the net call position
                  in the future will be affected by the then spot prices of
                  gold and silver, the length of time to expiry of the
                  options, metal price volatility and interest rates in the
                  market at the time of valuation.
 
            (iv)  At March 31, 2001, the Corporation had outstanding $185
                  million 8.625% Series A Preferred Securities and $77 million
                  8.5% Series B Preferred Securities, due December 31, 2045.
                  The Series A and Series B Preferred Securities are
                  redeemable by the Corporation, in whole or in part, on or
                  after December 17, 2001 and December 17, 2006, respectively,
                  at the principal amount plus accrued and unpaid interest to
                  the date of redemption (hereafter referred to as the
                  "Maturity Amount"). The Corporation may, at its option,
                  pay the Maturity Amount, by delivering Common Shares in
                  which event the holder of the Securities shall be entitled
                  to receive a cash payment equal to the Maturity Amount from
                  proceeds of the sale of the Common Shares on behalf of the
                  holder. Holders of the Securities will not be entitled to
                  receive any Common Shares in satisfaction of the obligation
                  to pay the Maturity Amount.
 
     (d) 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 business results and regional corporate offices
         provide support to the mines in addressing local and regional issues.
         Major products are gold, silver and copper produced from mines
         located in Canada, the U.S., Australia, Papua New Guinea, South
         Africa and Chile.
 
     (i) Product segments on a Canadian Basis
 
                                           -----------------------------------
                                                 Sales by metal segment
                                           -----------------------------------
                                               For the three months ended
                                           -----------------------------------
                                           March 31    December 31    March 31
                                             2001          2000         2000
                                               $             $            $
     -------------------------------------------------------------------------
     Gold                                    264            251         302
     Copper                                   80             86          82
     Silver                                    7              9          10
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                                             351            346         394
     -------------------------------------------------------------------------
 
 
     (ii) Segment profit (loss) on a Canadian Basis
 
               ---------------------------------------------------------------
                          Sales                   Mine Operating Earnings (i)
               ---------------------------------------------------------------
                  For the three months ended      For the three months ended
               ---------------------------------------------------------------
               March 31  December 31  March 31  March 31  December 31 March 31
                 2001        2000       2000      2001        2000      2000
                   $           $          $         $           $         $
     -------------------------------------------------------------------------
     U.S. basis
      (note 3
      (b))        341         337         383      93          91       133
       La Coipa     9          11          10       -          (3)        -
       Osborne      -           -           -      (3)          -         -
       Porgera      -           -           -      (4)          -         -
       Metal
        hedging
        revenue
        realized    1          (2)          1       1          (2)        1
       Currency
        hedging
        revenue
        realized   n/a         n/a         n/a     (6)        (10)       (2)
       Other        -           -           -       1           -         -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
                  351         346         394      82          76       132
     -------------------------------------------------------------------------
 
     (i) Mine operating earnings are defined as sales, at the metal spot
         price, less cost of sales, including reclamation costs, depreciation
         and depletion for each mine.
 
 
     8. Comparative Figures
 
        Certain amounts for 2000 have been reclassified to conform with
        current year's presentation.
 
                PLACER DOME'S CONSOLIDATED METALS SALES PROGRAM
                             As at March 31, 2001
 
                         -----------------------------------------------------
                         2001    2002    2003    2004    2005    2006    2007+
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Gold (000's ounces):
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Spot deferred
      contracts
         Amount            -     137      67       25      51     13       70
         Average price
          (i) ($/oz.)      -     401     510      564     430    560      377
     Fixed forward
      contracts
         Amount          996     606     305      275     266    100      300
         Average price
          (i) ($/oz.)    396     442     432      421     392    367      385
     Fixed interest
      floating lease
      rate contracts
         Amount           41     174     174      100     148    267    2,326
         Average price
          (i) ($/oz.)    458     406     408      433     527    489      538
     Ounces purchased
         Amount          115       -       -        -       -      -        -
         Average price   261       -       -        -       -      -        -
     Call options sold
      (ii)
         Amount          200     200     200      170     150    100      300
         Average price
          ($/oz.)        309     329     371      374     373    367      385
     -------------------------------------------------------------------------
     Total committed
         Amount        1,122   1,117     746      570     615    480    2,996
         Average price
          ($/oz.)        397     411     417      415     423    440      504
     -------------------------------------------------------------------------
     Put options
      purchased (ii)
         Amount           45       -       -        -       -      -        -
         Average price
          ($/oz.)        300       -       -        -       -      -        -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Silver (000's ounces):
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Fixed forward
      contracts
         Amount          700   1,350     500        -       -      -        -
         Average price
          ($/oz.)       5.71    6.36    5.50        -       -      -        -
     Call options
      sold
         Amount          250     800     650        -       -      -        -
         Average price
          ($/oz.)       7.90    7.95    7.90        -       -      -        -
     -------------------------------------------------------------------------
     Total committed
         Amount          950   2,150   1,150        -       -      -        -
         Average price
          ($/oz.)       6.29    6.95    7.10        -       -      -        -
     -------------------------------------------------------------------------
     Put options
      purchased (ii)
         Amount          250   2,300     650        -       -      -        -
         Average price
          ($/oz.)       6.00    5.49    5.50        -       -      -        -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Copper (millions of pounds):
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Fixed forward
      contracts
         Amount         20.4      -        -        -       -      -        -
         Average price
          ($/lb.)       0.89      -        -        -       -      -        -
     Call options sold
         Amount         29.2      -        -        -       -      -        -
         Average price
          ($/lb.)       0.93      -        -        -       -      -        -
     -------------------------------------------------------------------------
     Total committed
         Amount         49.6      -        -        -       -      -        -
         Average price
          ($/lb.)       0.91      -        -        -       -      -        -
     -------------------------------------------------------------------------
     Put options purchased
         Amount         21.5      -        -        -       -      -        -
         Average price
          ($/lb.)       0.84      -        -        -       -      -        -
     -------------------------------------------------------------------------
 
     (i)  Forward sales contracts include:
          a) Spot deferred forward contracts - a forward sale which will
             accrue contango until the intended delivery date of the contract.
             The rate at which contango accrues will be determined by U.S.
             dollar interest rates less gold lease rates existing at the time
             of each rollover. The average price reflects the expected value
             to maturity of the contracts.
          b) Fixed forward contracts - a forward contract where the interest
             rate and gold lease rate of the contract are fixed to the
             maturity of the contract.
          c) Fixed interest floating lease rate contracts - a forward sale
             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.
     (ii) Put and call options are disclosed based on the intended delivery
          date of the option.  The expiry date of the option may differ from
          the intended delivery date.
 
     Forward sales contracts 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.
     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.
     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.
     Call options purchased by the Corporation provide the Corporation with
 the right, but not the obligation, to purchase the commodity from the counter-
 party at a predetermined price on the exercise date of the option.
     The actual gain or loss to be realized on the commodity contracts will be
 determined by the spot price on the maturity of the contracts.
 
 SOURCE Placer Dome Inc.