Placer Dome reports profitable first quarter

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

    VANCOUVER, April 24 /PRNewswire/ - Placer Dome Inc. is pleased to report
 strong financial results for the three-month period ended March 31, 2001. Mine
 operating earnings totalled $93 million during the first quarter, compared to
 $133 million in 2000. Cash flow from operations amounted to $121 million, or
 $0.37 per share, up from $112 million, or $0.34 per share in the same period
 last year. Net earnings totalled $16 million, or $0.05 per share, compared to
 $29 million or $0.09 per share in the corresponding period of 2000.
     Placer Dome President and CEO Jay Taylor commented that he was pleased
 with these results given the continuing fall in the gold price in the first
 quarter. "Despite a further 9% reduction in the gold price since the first
 quarter of 2000, we have maintained strong mine operating earnings and cash
 flow from operations", he said. "Our strategy of maximizing the value of our
 existing assets while following a prudent program of quality reinvestment is
 paying off."
     The first quarter net earnings figure includes the impact of unrealized,
 non-cash, mark-to-market adjustments on metals options and foreign currency
 forward and option contracts amounting to $19 million. Excluding these
 provisions, net earnings before unusual items totalled $35 million ($0.11 per
 share) in the first quarter of 2001, compared to $49 million ($0.15 per share)
 in the same period last year.
     Placer Dome continued to reinvest capital at its existing properties
 during the first quarter, including ongoing development work at Granny Smith
 to bring the Wallaby deposit into production. In addition, the company
 completed the sinking of the world's deepest vent shaft at South Deep on
 schedule and on budget, setting a new standard for mining in South Africa. Pre-
 feasibility work at Getchell continues as the company works toward completing
 a full feasibility study by the end of 2002.
     Placer Dome's share of gold production during the first quarter of 2001
 was 694,000 ounces, compared to 786,000 ounces in the same period last year.
 The lower production resulted in higher unit cash and total costs of $163 and
 $244 per ounce, respectively, compared to 2000 first quarter cash and total
 costs of $151 and $220 per ounce, respectively.
     In addition to gold, Placer Dome produced 100 million pounds of copper
 during the first quarter at cash and total costs of $0.44 and $0.58 per pound,
 respectively. This compares to copper production of 107 million pounds at cash
 and total costs of $0.45 and $0.64 per pound last year.
     The year-over-year gold production decline was primarily due to the
 following:
 
     - a 44% decrease at Granny Smith related to the transition from Sunrise
       to the new Wallaby deposit;
     - an expected 42% drop in production at Misima as the mine approaches the
       end of its life; and
     - adjustments to the stoping sequence at Campbell, where production fell
       by 41% due to rock mechanics problems and seismic activity experienced
       in 2000.
 
     These production decreases were partially offset by an increase of 21% at
 South Deep due to higher grades and increases at five other mines. "Production
 levels at each of our other mines remained strong and stable during the first
 quarter, holding steady at close to last year's levels," Taylor explained.
     First quarter sales revenue of $341 million was off 11% or $42 million
 from the same period last year due to the lower gold price and decreased
 production. Gold revenue decreased by 13% to $260 million, while copper
 revenue remained relatively steady at $80 million.
     Placer Dome's strong and balanced forward sales continued to contribute
 to the bottom line, contributing $49 million to first quarter earnings. The
 company's average realized gold sales price was $327 per ounce in the first
 quarter, $63 per ounce above the average spot price of $264 per ounce. This
 compared to an average realized gold sales price of $355 per ounce in the same
 period last year, $65 per ounce above the average spot price of $290 per
 ounce. At the end of the first quarter of 2001, the mark-to-market value of
 Placer Dome's precious metals forward sales program was approximately $625
 million, based on a spot gold price of $259 per ounce.
     Looking ahead to the remainder of the year, Taylor commented that these
 positive first quarter results bode well for the company to meet its planned
 2001 cash flow and mine operating earnings targets of $400 million. "Our
 number one commitment is to operate profitably despite a challenging business
 environment and to deliver competitive returns within our industry," he said.
 "We are holding steady to our strategy and are turning today's challenges into
 tomorrow's opportunities."
 
     APRIL 24, 2001
     --------------
 
                                CAUTIONARY NOTE
     Some of the statements contained in this news release are forward-looking
 statements, such as estimates and statements that describe Placer Dome's
 future plans, objectives or goals, including words to the effect that Placer
 Dome or management expects a stated condition or result to occur. Since
 forward-looking statements address future events and conditions, by their very
 nature they involve inherent risks and uncertainties. Actual results relating
 to among other things, reserves, resources, results of exploration, capital
 costs and mine production costs could differ materially from those currently
 anticipated in such statements by reason of factors such as the productivity
 of Placer Dome's mining properties, changes in general economic conditions and
 conditions in the financial markets, changes in demand and prices for the
 minerals Placer Dome produces, litigation, legislative, environmental and
 other judicial, regulatory, political and competitive developments in domestic
 and foreign areas in which Placer Dome operates, technological and operational
 difficulties encountered in connection with Placer Dome's mining activities,
 and labour relations matters and costs. "Placer Dome" is used in this news
 release to collectively mean Placer Dome Inc., its subsidiary companies and
 its proportionate share of joint ventures. "Placer Dome Group" or "Group"
 means collectively Placer Dome Inc., its subsidiary companies, its
 proportionate share of joint ventures and also companies for which it equity
 accounts. "Placer Dome Group's share" or the "Group's share" is defined to
 exclude minority shareholders' interest. The "Corporation" refers to Placer
 Dome Inc.
 
                                HIGHLIGHTS (1)
        (millions of U.S. dollars, except per share amounts, U.S. GAAP)
 
                                         -----------------------------------
                                              For the three months ended
                                         -----------------------------------
                                         March 31   December 31   March 31
                                           2001        2000         2000(2)
                                             $           $            $
                                         -----------------------------------
     Financial
       Sales                               341         337         383
       Mine operating earnings              93          91         133
       Net earnings (loss)                  16         (89)         29
       Cash flow from operations           121          29         112
       Cash and short-term investments     389         340         244
     -----------------------------------------------------------------------
     Per common share
       Net earnings (loss)                0.05       (0.27)       0.09
       Cash flow from operations          0.37        0.09        0.34
       Dividends                          0.05        -           0.05
     -----------------------------------------------------------------------
     Return on net assets (3)              1.8%       (5.4%)       3.5%
     -----------------------------------------------------------------------
     Operating
     Placer Dome's share: (4)
        Gold production (000's ozs.)       694         760         786
        Gold cash production costs
         ($/oz.)                           163         161         151
        Gold total production costs
         ($/oz.)                           244         240         220
     -----------------------------------------------------------------------
 
     (1) Presentation of the previous quarter's results is to facilitate a
         greater understanding of the Corporation's operational and financial
         trends. Discussions in the Review of Operations compare the first
         quarter of 2001 to the first quarter of 2000.
     (2) In the fourth quarter of 2000, Placer Dome adopted U.S. Securities
         and Exchange Commission Staff Accounting Bulletin No. 101 ("SAB
         101"), Revenue Recognition, with retroactive application to January
         1, 2000. Accordingly, results for the first three quarters of 2000
         have been restated.
     (3) Return on net assets is defined as pre-tax earnings adjusted for the
         inclusion of equity earnings of associates and exclusion of long-term
         financing charges divided by net assets.
     (4) Throughout this document, Placer Dome is defined to be Placer Dome
         Inc., its consolidated subsidiaries and its proportionate share of
         unincorporated joint venture interests. Placer Dome's share is
         defined to include the proportionate share of results of incorporated
         joint ventures and exclude minority shareholders' percentage of
         results in non-wholly-owned subsidiaries.
 
 
                          NET EARNINGS (LOSS) SUMMARY
                     (millions of U.S. dollars, U.S. GAAP)
 
                                         -----------------------------------
                                              For the three months ended
                                         -----------------------------------
                                         March 31   December 31   March 31
                                           2001        2000         2000 (1)
                                             $           $            $
     -----------------------------------------------------------------------
     Mine operating earnings
       Gold                                 73          72         116
       Copper                               21          20          18
       Other                                (1)         (1)         (1)
     -----------------------------------------------------------------------
                                            93          91         133
     -----------------------------------------------------------------------
     General and administrative            (10)        (11)        (10)
     Exploration                            (8)        (16)        (15)
     Technology, resource development
      and other                            (10)        (28)        (10)
     Merger and restructuring costs          -          (1)         (3)
     Write-downs of mining interests         -        (261)          -
     Non-hedge derivative gains (losses)   (28)          8         (16)
     Investment and other business income    5          95          12
     Interest and financing                (17)        (17)        (20)
     Change in accounting policies           -           -         (17)
     Income and resource taxes              (8)         59         (26)
     Other                                  (1)         (8)          1
     -----------------------------------------------------------------------
     -----------------------------------------------------------------------
     Net earnings (loss)                    16         (89)         29
     -----------------------------------------------------------------------
 
     (1) 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.
 
 
              COMPONENTS OF PLACER DOME'S SHARE OF CASH AND TOTAL
                               PRODUCTION COSTS
            (in accordance with Gold Institute Standard, U.S. GAAP)
 
                                         -----------------------------------
                                              For the three months ended
                                         -----------------------------------
                                         March 31   December 31   March 31
                                           2001        2000         2000
                                           $/oz        $/oz         $/oz
     ------------------------------------------------------------------------
     Direct mining expenses                180         175         160
     Stripping and mine development
      adjustment                           (22)        (18)        (16)
     Third party smelting, refining and
      transportation                         1           1           1
     By-product credits                     (1)         (2)         (2)
     ------------------------------------------------------------------------
     ------------------------------------------------------------------------
     Cash operating costs                  158         156         143
     ------------------------------------------------------------------------
     Royalties                               3           4           5
     Production taxes                        2           1           3
     ------------------------------------------------------------------------
     ------------------------------------------------------------------------
     Total cash costs                      163         161         151
     ------------------------------------------------------------------------
     Depreciation                           42          34          38
     Depletion and amortization (1)         32          36          23
     Reclamation and mine closure            7           9           8
     ------------------------------------------------------------------------
     ------------------------------------------------------------------------
     Total production costs                244         240         220
     ------------------------------------------------------------------------
 
     (1) Includes the amortization of deferred stripping costs.
 
 
 
                             REVIEW OF OPERATIONS
                        (in accordance with U.S. GAAP)
 
                                         -----------------------------------
                                              For the three months ended
                                         -----------------------------------
                                         March 31   December 31   March 31
                                           2001        2000        2000(1)
     -----------------------------------------------------------------------
     Production and sales volumes
     Gold (000's ozs.)
       Group's share production            694         760         786
       Consolidated production             707         768         811
       Consolidated sales                  802         723         844
     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        $352        $355
       London spot price                  $264        $269        $290
       Group's share cash cost            $163        $161        $151
       Group's share total cost           $244        $240        $220
     Copper ($/lb.)
       Price realized (2) - 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          $0.58       $0.68       $0.64
     -----------------------------------------------------------------------
 
     (1) 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.
     (2) Copper price realized includes final sales settlement adjustments.
 
     Review of Operations
 
     Consolidated net earnings in accordance with U.S. GAAP for the first
 quarter of 2001 were $16 million ($0.05 per share), compared with $29 million
 ($0.09 per share) in the first quarter of 2000. Excluding unusual items as
 noted below, consolidated net earnings were $35 million ($0.11 per share) for
 the first quarter compared with $49 million ($0.15 per share) in the prior
 year period. Return on net assets ("RONA") for the first three months of the
 year was 1.8% compared with 3.5% for the prior year period (return on net
 assets is defined as pre-tax earnings adjusted for the inclusion of equity
 earnings of associates and exclusion of long-term financing charges divided by
 net assets). Excluding unusual items, RONA was 2.7% for the current quarter
 compared with 3.9% in the prior year quarter.
 
                                     ---------------------------------------
                                       For the three months ended March 31
                                     ---------------------------------------
                                           2001                    2000
                                            $                       $
     -----------------------------------------------------------------------
     Net earnings                           16                      29
     Unusual items, net of tax
        Merger and restructuring costs       -                       2
        (Gain) loss on common share
         investments                         -                      (8)
        Unrealized non-hedge derivative
         losses                             19                       9
        Change in accounting policies        -                      17
     -----------------------------------------------------------------------
     Earnings before unusual items          35                      49
     -----------------------------------------------------------------------
     Per common share                     0.11                    0.15
     -----------------------------------------------------------------------
 
     Sales revenue of $341 million for the first three months of 2001 was $42
 million lower than the 2000 period. Gold sales revenue in the first quarter of
 2001 decreased by 13% to $260 million compared with the 2000 period due to a
 5% 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 30% to $93 million in the first quarter
 of 2001, compared with $133 million in the 2000 period. Gold operating
 earnings for the quarter were $73 million compared with $116 million in the
 prior year, a decline of 37% reflecting a $28 per ounce decrease in the
 average realized price and a $24 per ounce increase in total production costs.
 Consolidated gold production in the first quarter of 2001 was down 13% to
 707,000 ounces compared with 811,000 ounces in the prior year period with
 seven of the eleven 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 8% and 11% to $163 and $244,
 respectively, compared with $151 and $220 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 $21 million, $3 million higher than the prior year period due to
 a 9% 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 $0.58, respectively, compared with $0.45 and $0.64 per pound,
 respectively, in 2000.
 
     Canada
 
     In Canada, gold production decreased by 26,283 ounces, or 15% to 154,113
 ounces, in the first three months of 2001 compared with the corresponding
 period in 2000. At the Campbell Mine, first quarter production decreased by
 41% to 38,422 ounces compared with 65,661 ounces in the prior year period.
 This was due lower mill throughput and grades resulting from the re-sequencing
 of mining areas caused by rock mechanics problems and seismic activity
 experienced in the second half of 2000. As well, production was curtailed by a
 planned 10-day shut down of the mill to replace the ball mill bull gear. As a
 result, cash and total costs per ounce increased to $281 and $363,
 respectively, compared with $157 and $214, respectively, in the year-earlier
 period. At the Dome Mine, operations in the first quarter of 2001 benefited
 from higher grades leading to a 6% increase in gold production to 76,203
 ounces and a corresponding decline in unit total costs to $274 per ounce
 compared with 2000. Gold production at the Musselwhite Mine was 39,488 ounces
 in the first quarter of 2001, a decrease of 7% from the corresponding period
 in 2000 due to a 12% decline in head grade partially offset by a 6% increase
 in mill throughput. Cash and total costs increased to $186 and $256 per ounce,
 respectively, compared to $154 and $226 per ounce, respectively, from the
 prior year period.
     At this time, 2001 production at the Campbell Mine is expected to be
 reduced by about 15%, or slightly below 200,000 ounces, compared to 2000 due
 to the re-engineering and re- scheduling of production caused by the seismic
 activity in late 2000. Unit cash and total production costs are expected to
 rise by 25% and 20%, respectively, compared to 2000. A complete revision of
 Campbell's life of mine plan has been initiated which is expected to be
 completed by the third quarter of this year. At the Musselwhite Mine,
 production in 2001 is expected to be marginally higher than 2000 but unit cash
 costs are expected to rise by about 5%. At the Dome Mine, production in 2001
 is expected to be 5% higher than 2000 with proportionately lower unit cash and
 total production costs.
 
     United States
 
     In the United States, gold production in the first three months of 2001
 decreased by 4% to 255,189 ounces compared with the corresponding period in
 2000. At the Cortez Mine, Placer Dome's share of production from the Pipeline
 deposit in the first quarter of 2001 and 2000 was 154,749 ounces and 187,105
 ounces (excluding roast ore sales of 22,357 ounces and nil), respectively, 17%
 lower than the year-earlier period due to lower grades and mill throughput
 partially offset by higher recovery. While unit cash costs of $47 per ounce
 was at the same level as 2000, unit non-cash costs increased to $103 per ounce
 from $61 per ounce reflecting higher stripping costs associated with Stage 3
 production, resulting in total production costs of $150 per ounce for the
 current quarter. Production at the Golden Sunlight Mine increased by 4% to
 53,189 ounces in the first quarter of 2001 compared with the year-earlier
 period due to a combination of higher grades, mill throughput and recovery.
 Cash and total costs decreased to $94 and $233 per ounce, respectively,
 compared with $111 and $283 per ounce, respectively, from the prior year
 period. At the Bald Mountain Mine, production was 24,894 ounces for the first
 quarter, a decrease of 7% compared to the year-earlier period. Cash and total
 costs per ounce were $256 and $386 per ounce, respectively, compared with $286
 and $381, respectively, in the prior year period.
     In 2001, Placer Dome's share of production from Cortez is expected to
 increase by about 17% from 2000 due to a full year of roast ore sales and an
 increase in heap leach production. Roast ore sales are anticipated to account
 for about 13% of Cortez's overall production. Also, production from the South
 Pipeline deposit is expected to commence in July. Unit cash and total
 production costs are expected to rise by about 20% and 18%, respectively,
 compared with 2000 due to higher costs associated with South Pipeline. At the
 Golden Sunlight Mine, with slightly more than a year of mine life remaining,
 gold production in 2001 is expected to be 18% lower than 2000 due to lower
 grades, and unit costs are expected to be proportionately higher. Currently,
 Golden Sunlight is in the process of renegotiating its power contract which
 expires on June 30, 2001. Should an affordable power source not be found,
 Golden Sunlight may shut down earlier than planned and adjustments to the
 carrying value of certain assets may be required. Production and costs at the
 Bald Mountain Mine in 2001 are expected to be at 2000 levels.
     At the Getchell Mine, development of the N Zone is progressing in
 accordance with plan. Efforts in 2001 are focused on further delineation of
 the N Zone and completion of a pre-feasibility study. An exploration drilling
 program outside the current area of interest is not contemplated at the
 present time. In the first three months of 2001, a total of $11 million (2000 -
 $32 million) was expended at Getchell, comprising of $5 million (2000 - $15
 million) on capital development, $5 million (2000 - $7 million) on standby
 costs and $1 million (2000 - $10 million) on exploration. Capital expenditures
 on development and drilling are expected to total $26 million in 2001, and
 additional property and exploration expenses are expected to total $20 million
 and $4 million, respectively. Placer Dome expects to undertake a final,
 detailed feasibility study in 2002.
 
     Australia and Papua New Guinea
 
     Operations in Australia and Papua New Guinea contributed 260,006 ounces
 to consolidated gold production in the first three months of 2001, a drop of
 74,329 ounces or 22% compared to the year-earlier period. At the Porgera Mine,
 first quarter production at 90,975 ounces was higher than expected, though 11%
 lower than the year earlier period due to a 17% decline in grades partially
 offset by a 9% improvement in recovery. Cash and total production costs per
 ounce of $163 and $270, respectively, were about $5 per ounce higher than the
 prior year period. At the Misima Mine, as it approaches the end of its mine
 life, gold production decreased by 35,639 ounces or 42% to 49,506 ounces in
 the first quarter compared with the year-earlier period due to lower grades,
 mill throughput and recovery. Cash and total costs per ounce for the quarter
 were $203 and $226, respectively, compared with $163 and $216 from the prior
 year period. At the Granny Smith Mine, production in the first quarter was
 43,435 ounces, 44% lower than the prior year period due to a 49% decline in
 grades. Cash production costs per ounce increased to $275 compared with $166
 in the year-earlier period, due to the impact of the lower production and
 deeper mining at the Sunrise pit pushback. At the Kidston Mine, consolidated
 gold production in the first quarter of 2001 of 64,260 ounces was 6% higher
 than the prior year period due to higher recovery. Cash and total production
 costs declined by about 20% to $182 and $251 per ounce, respectively. At the
 Osborne Mine, copper production in the first quarter of 2001 was 26.6 million
 pounds (12,080 tonnes), in line with production in the prior year period. Cash
 and total production costs per pound, net of by-product credits for gold
 produced, at $0.54 and $0.65, respectively, were 17% and 23% lower than the
 respective costs in the year-earlier period.
     In 2001, production at the Porgera Mine is expected to be 23% lower than
 2000 due to the depletion of open pit Stage 3 ore by mid-year and the
 transition to Stage 4 production. Accordingly, unit cash costs are expected to
 rise compared with the prior year. At the Granny Smith Mine, production in
 2001 is expected to further decline by 8% from 2000 levels due to lower head
 grade from the Sunrise pit and lower throughput as a result of an increase in
 ore hardness. Unit cash costs are expected to rise by about 25%. In 2001, it
 is expected that mining operations at the Misima and Kidston mines will be
 completed by the end of April and mid-year, respectively, due to the depletion
 of ore. However, Misima has low-grade ore stockpiles remaining to be processed
 and it is expected that milling will continue into 2004. Misima's production
 in 2001 is expected to decline by 25% from 2000. Total production cost per
 ounce is expected to be 15% lower than 2000 due to lower operating costs
 resulting from a reduction in labour and cost reduction measures, as well as
 lower depreciation associated with the ceased mining activity. At the Kidston
 Mine, production in 2001 is expected to be 60% lower than 2000 and total
 production cost per ounce is anticipated to be approximately 6% higher. In
 2001, copper production from the Osborne Mine is expected to be in line with
 2000. Total production costs per pound are expected to be lower than 2000 as
 an expected increase in cash cost is offset by lower depreciation resulting
 from the write-down recorded in 2000.
 
     South Africa
 
     At the 50%-owned South Deep Mine, Placer Dome's share of production for
 the first quarter of 2001 was 37,798 ounces, 21% higher than the prior year
 period due primarily to higher grades. Cash and total production costs for the
 quarter of $198 and $231 per ounce, respectively, were 21% and 16% lower than
 2000 due to the impact of favourable exchange rate effects and productivity
 improvements. On March 30, 2001, the National Union of Mineworkers, one of
 four unions at South Deep, initiated strike action over a dispute on holiday
 scheduling. The dispute was settled after a 4-day strike and operations have
 returned to normal.
     In 2001, Placer Dome's share of production from the South Deep Mine is
 expected to increase by 48% due to higher throughput resulting from the start
 of bulk mechanized mining in September 2000 and higher grades. Total unit cost
 of production is anticipated to be 7% lower than 2000 as a result of the
 increase in production, efficiency improvements, and exchange rate effects.
 
     Chile
 
     At the 50%-owned La Coipa Mine (which is equity accounted for), the
 Corporation's share of production in the first three months of 2001 was 15,625
 ounces of gold and 1.4 million ounces of silver compared with 9,807 ounces and
 1.5 million ounces, respectively, in the prior year. Cash costs per equivalent
 ounce of gold decreased to $183 compared with $213 in the year-earlier period,
 reflecting the increase in gold production. At the Zaldivar Mine, copper
 production in the first quarter of 2001 declined by 9% to 73.2 million pounds
 (33,210 tonnes) compared with the 2000 period due to lower grades and
 recovery. Unit cash costs increased by 5% to $0.41 per pound while non-cash
 costs declined by $0.04 per pound to $0.15 per pound due to reserve additions
 in 2000, resulting in total costs of $0.56 per pound for the quarter compared
 with $0.58 per pound in the prior year.
     In 2001, production at La Coipa Mine will come from three separate pits
 and stockpiled ore. Ladera Farellon will be depleted in the first quarter,
 Farellon Bajo will commence production in the year and will be depleted by
 yearend, and Coipa Norte Stages 3 and 4 will be in development and providing
 ore throughout the year. It is anticipated that the processing of stockpiled
 ore will account for approximately 30% of La Coipa's 2001 production. Due to
 the nature of the ore bodies, Placer Dome's share of gold production is
 expected to decline by 47% while silver production is expected to increase by
 11% compared with 2000. Unit cash costs are expected to rise by about 3%. In
 2001, copper production from the Zaldivar Mines is expected to be at a level
 similar to 2000. Zaldivar will continue the dynamic stacking/leaching project
 started in 1999 to improve stacking efficiencies and recovery performance.
 Zaldivar's unit cash production costs are expected to rise by about 7%
 primarily due to costs associated with the removal of spent ore from the leach
 pads and to commence the second phase of stacking/leaching. However, this
 increase is expected to be offset by lower unit depreciation due to reserve
 additions 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 20% from $35 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
 merger and restructuring costs that followed from the restructuring process
 which commenced in 1999.
     Non-hedge derivative losses for the first quarter of 2001 were $28
 million compared with $16 million in the 2000 period. Most of this amount was
 from net unrealized paper losses of $22 million and $15 million for the 2001
 and 2000 periods, respectively, from mark-to-market value changes on metals
 option and foreign currency forward and option contracts covering future
 periods. The negative impact in the quarter for both years primarily reflect a
 weakening of the Australian and Canadian dollar relative to the U.S. dollar
 during the period.
     Investment and other business income in the first three months of 2001
 were $5 million compared with $12 million in the year-earlier period. The
 amount in 2000 included an $8 million gain on the disposal of the
 Corporation's common share investment in Vengold Inc.
     Interest and financing expenses were $17 million and $20 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 32% and 37% 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 41%. 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.
     Effective January 1, 2000, Placer Dome adopted Staff Accounting Bulletin
 ("SAB") No. 101 of the U.S. Securities and Exchange Commission which provides
 guidance on the recognition, presentation, and disclosure of revenues in
 financial statements. This was applied retroactively from January 1, 2000 with
 an adjustment totalling $17 million (net of income taxes of $5 million) being
 recorded in the first quarter of that year. The adjustment resulted from SEC's
 clarification on their view of when gold is considered to be in a saleable
 form. (See note 2 to the consolidated financial statements for further
 information.)
     Effective January 1, 2001, Placer Dome adopted U.S. Financial Accounting
 Standards Board Statement of Financial Accounting Standards No. 133,
 "Accounting for Derivative Instruments and Hedging Activities" ("SFAS 133")
 which establishes accounting and reporting standards for derivative
 instruments. 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 that 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).
 
     Financial Condition, Liquidity and Capital Resources
 
     Cash flow from operations increased $9 million to $121 million in the
 first quarter of 2001 compared with the corresponding period in 2000. The
 increase of 8% primarily reflects a decrease in the investment in non-cash
 working capital, partially offset by lower sales revenues and higher cash
 production costs for gold. The net decline in non-cash working capital
 primarily reflects a drawdown of product inventory due to the timing of sales
 and changes in the terms of certain sales contracts.
     Expenditures on property, plant and equipment in the first three months
 of 2001 amounted to $53 million, an increase of $3 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
 $877 million, compared with $878 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 dividends of
 $19 million (2000 - $16 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.
 
     Forward Sales, Options and Other Commitments
 
     Placer Dome enters into financial agreements with major international
 banks and other international financial institutions in order to manage
 underlying revenue and cost exposures arising from fluctuations in commodity
 prices, foreign currency exchange rates and interest rates. Contracts include
 forward sales and options, which, with the exception of call options, commit
 counterparties to prices payable at a future date. Specific limits are set as
 a declining percentage of planned production in each of the next 15 years.
 These limits are set out in policies approved by the Board of Directors. Under
 its programs, Placer Dome has established the minimum prices it expects to
 receive (or pay) in the future for a portion of metal sales (and foreign
 currency production costs), through a combination of forward sales contracts
 and options.
     As at March 31, 2001, Placer Dome's forward and option contracts for
 precious metals consisted of the following, for delivery over the next 14
 years (See the table "Consolidated Metals Sales Program" in the notes for
 detailed allocations):
 
     -------------------------------------------------------------------------
                                            Quantity         Average Price
                                        (millions of ozs )      ($/oz.)
     -------------------------------------------------------------------------
     Gold
       Forward contracts (1)                   6.3               $468
       Call options sold                       1.3               $359
       Total committed ounces                  7.6               $449
 
     Silver
       Forward contracts (1)                   2.6              $6.12
       Call options sold                       1.7              $7.92
       Total committed ounces                  4.3              $6.84
       Put options purchased                   3.2              $5.53
     -------------------------------------------------------------------------
 
 
     (1)    Forward contracts include fixed forward, spot deferred and fixed
            interest floating lease rate forward contracts. For average prices
            realized: fixed forward contracts are based on the price at the
            maturity of the contract; spot deferred contracts are based on an
            assumed contango rate to the maturity of the contract. Fixed
            interest floating lease rate forward contracts are contracts where
            the interest rate is fixed and the metal borrowing cost is
            floating. For the above average prices realized there is an
            assumed lease rate to the maturity of the contract.
 
     On March 31, 2001, based on the spot gold price of $259 per ounce and a
 spot silver price of $4.32 per ounce, the mark-to-market value of Placer
 Dome's precious metals forward and option contracts position was approximately
 $625 million (December 31, 2000 - $500 million).
     As at March 31, 2001, Placer Dome's forward and option contracts for
 copper consisted of the following, for delivery over the next 9 months (See
 the table "Consolidated Metals Sales Program" in the notes for detailed
 allocations):
 
 
     -------------------------------------------------------------------------
                                            Quantity         Average Price
                                        (millions of lbs)       ($/lb)
     -------------------------------------------------------------------------
     Copper
       Forward contracts                      20.4              $0.89
       Call options sold                      29.2              $0.93
       Total committed pounds                 49.6              $0.91
       Put options purchased                  21.5              $0.84
     -------------------------------------------------------------------------
 
     For copper, the Corporation's mark-to-market value on its copper forward
 and option contracts on March 31, 2001 was approximately $4 million based on a
 spot copper price of $0.76 per pound, (December 31, 2000 - cost of $2
 million).
     As at March 31, 2001, Placer Dome's currency forward and option contracts
 consisted of the following for delivery over the next 3 years:
 
     -------------------------------------------------------------------------
                                 Maturity Period    Quantity    Average Price
                                  (to the year)    (millions      (per US$)
                                                    of US$)
     -------------------------------------------------------------------------
     Canadian dollars
       Fixed forward contracts        2003           $60           $1.4975
       Call options purchased         2003           $42           $1.4919
       Put options sold               2003           $46           $1.5500
 
     Australian dollars
       Fixed forward contracts        2004          $134           $1.8811
       Call options purchased         2004          $178           $1.3976
       Put options sold               2004          $106           $1.4945
     -------------------------------------------------------------------------
 
     Based on March 31, 2001 foreign exchange rates C$/US$1.5774, A$/US$2.0367
 and Rand/US$8.0100 should the Corporation have closed out its currency forward
 and option contracts, the cash cost would have been approximately $40 million
 (cost at December 31, 2000 - $11 million).
 
     Outlook
 
     Consolidated gold and copper production for 2001 is targeted at
 approximately 2.9 million ounces and 430 million pounds, respectively. Cash
 and total production costs for gold are expected to be about $165 and $240 per
 ounce, respectively.
     In 2001, Placer Dome's share of capital expenditures are anticipated to
 be about $290 million, including $26 million at Getchell related to the N Zone
 development, $69 million at South Deep for the shaft, mill and underground
 development, $39 million at Granny Smith for development of the Wallaby
 deposit, $37 million at Zaldivar for the dynamic leach pad project, and $68
 million on deferred stripping at the Cortez and Porgera mines. Exploration
 expenditures for 2001 are budgeted at approximately $50 million with $28
 million allocated to mine sites and $22 million on global exploration
 priorities. Placer Dome also plans to spend approximately $29 million on
 technology.
 
     Canadian GAAP
 
     The Corporation also prepares a management's discussion and analysis and
 interim financial statements in accordance with Canadian generally accepted
 accounting principles ("GAAP") as included in note 7 to the consolidated
 financial statements.
 
 
                       PRODUCTION AND OPERATING SUMMARY
 
     -------------------------------------------------------------------------
                                                Placer Dome's Share(1)
                        Placer           -----------------------------------
                     Dome's share        Millfeed  Cost per
         Mine           of mine   three   (000's    tonne    Grade   Recovery
                      production  months  tonnes)   milled (g/t/%)(2)   (%)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     GOLD
     Canada
     Campbell            100%      2001     119      117      10.6     94.5
                                   2000     126      112      16.9     96.0
     -----------------------------------------------------------------------
     Dome                100%      2001   1,055       20       2.5     89.1
                                   2000   1,082       20       2.3     91.5
     -----------------------------------------------------------------------
     Musselwhite          68%      2001     221       46       5.9     94.9
                                   2000     208       46       6.7     95.7
     -----------------------------------------------------------------------
     -----------------------------------------------------------------------
     United States
     Bald Mountain       100%      2001     887       11       1.3     65.9
                                   2000     869       12       1.1     67.3
     -----------------------------------------------------------------------
     Cortez(5)            60%      2001     492       54      10.1     91.6
                                   2000     524       39      12.2     86.0
     -----------------------------------------------------------------------
     Golden Sunlight     100%      2001     584       21       3.5     81.3
                                   2000     573       25       3.4     80.9
     -----------------------------------------------------------------------
     -----------------------------------------------------------------------
     Papua New Guinea
     Misima               80%      2001   1,078        8       1.3     89.0
                                   2000   1,231       12       1.8     93.6
     -----------------------------------------------------------------------
     Porgera              50%      2001     722       34       4.6     79.7
                                   2000     728       37       5.5     73.3
     -----------------------------------------------------------------------
     -----------------------------------------------------------------------
     Australia
     Granny Smith         60%      2001     625       20       2.4     90.8
                                   2000     575       24       4.7     89.7
     -----------------------------------------------------------------------
     Kidston              70%      2001   1,191        9       1.3     86.9
                                   2000   1,295       10       1.3     80.1
     -----------------------------------------------------------------------
     Osborne(6)          100%      2001     363        -       1.2     81.7
                                   2000     370        -       0.9     76.6
     -----------------------------------------------------------------------
     -----------------------------------------------------------------------
     Chile
     La Coipa(7)          50%      2001     785       14       0.8     81.5
                                   2000     716       15       0.5     79.8
     -----------------------------------------------------------------------
     South Africa
     South Deep           50%      2001     144       61       8.4     97.4
                                   2000     140       61       7.1     97.5
     -------------------------------------------------------------------------
     Metals hedging revenue        2001
                                   2000
     -------------------------------------------------------------------------
     Total gold                    2001
                                   2000
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     COPPER
     Osborne(6)          100%      2001     363       48       3.5     95.7
                                   2000     370       59       3.4     95.5
     -------------------------------------------------------------------------
     Zaldivar            100%      2001   4,152       10       1.1     71.7
                                   2000   4,062       12       1.2     75.2
     -------------------------------------------------------------------------
     Metals hedging revenue        2001
                                   2000
     -------------------------------------------------------------------------
     Total copper                  2001
                                   2000
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Other                         2001
                                   2000
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     CONSOLIDATED MINE             2001
     OPERATING EARNINGS(4)         2000
     -------------------------------------------------------------------------
 
 
     -------------------------------------------------------------------------
                                                 Placer Dome's Share(1)
                                         -------------------------------------
                                            Production     Cost  Cost   Mine
                                         ----------------  per   per    oper-
                        Placer                             oz/lb oz/lb  ating
                      Dome's share                         cash  total  earn-
         Mine           of mine    three   (oz/lbs)  %     (2,3) (2,3)  ings
                       production  months    (2)    change              (4)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     GOLD
     Canada
     Campbell            100%      2001    38,422   -41%    281   363    (2)
                                   2000    65,661           157   214     6
     -------------------------------------------------------------------------
     Dome                100%      2001    76,203    +6%    216   274    (1)
                                   2000    72,227           224   293    (1)
     -------------------------------------------------------------------------
     Musselwhite          68%      2001    39,488    -7%    186   256     -
                                   2000    42,508           154   226     2
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     United States
     Bald Mountain       100%      2001    24,894    -7%    256   386    (3)
                                   2000    26,904           286   381    (2)
     -------------------------------------------------------------------------
     Cortez(5)            60%      2001   177,106    -5%     47   150    21
                                   2000   187,105            47   109    31
     -------------------------------------------------------------------------
     Golden Sunlight     100%      2001    53,189    +4%     94   233     2
                                   2000    51,310           111   283    (2)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Papua New Guinea
     Misima               80%      2001    39,605   -42%    203   226     2
                                   2000    68,116           163   216     7
     -------------------------------------------------------------------------
     Porgera              50%      2001    90,975   -11%    163   270     -
                                   2000   102,664           157   265     4
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Australia
     Granny Smith         60%      2001    43,435   -44%    275   284     3
                                   2000    77,938           166   176    21
     -------------------------------------------------------------------------
     Kidston              70%      2001    44,982    +6%    182   251     1
                                   2000    42,391           238   306    (1)
     -------------------------------------------------------------------------
     Osborne(6)          100%      2001    11,830   +47%      -     -     -
                                   2000     8,030             -     -     -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Chile
     La Coipa(7)          50%      2001    15,625   +59%    183   272     -
                                   2000     9,807           213   289     -
     -------------------------------------------------------------------------
     South Africa
     South Deep           50%      2001    37,798   +21%    198   231     1
                                   2000    31,110           252   274     -
     -------------------------------------------------------------------------
     Metals hedging revenue        2001                                  49
                                   2000                                  51
     -------------------------------------------------------------------------
     Total gold                    2001   693,552   -12%    163   244  $ 73
                                   2000   785,771           151   220  $116
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     COPPER
     Osborne(6)          100%      2001    26,629    +2%   0.54  0.65     3
                                   2000    26,103          0.65  0.84    (1)
     -------------------------------------------------------------------------
     Zaldivar            100%      2001    73,225    -9%   0.41  0.56    18
                                   2000    80,806          0.39  0.58    19
     -------------------------------------------------------------------------
     Metals hedging revenue        2001                                   -
                                   2000                                   -
     -------------------------------------------------------------------------
     Total copper                  2001    99,854    -7%   0.44  0.58  $ 21
                                   2000   106,909          0.45  0.64  $ 18
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Other                         2001                                  (1)
                                   2000                                  (1)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     CONSOLIDATED MINE             2001                                $ 93
     OPERATING EARNINGS(4)         2000                                $133
     -------------------------------------------------------------------------
 
     Notes to the Production and Operating Summary
 
     (1)    Figures represent Placer Dome's share of the results of mines
            owned by the Corporation and its subsidiaries and a pro-rata share
            of joint ventures. All dollar amounts are in U.S. currency.
 
     (2)    Gold grades are shown as grams per tonne; copper grades are shown
            as a percentage. Gold production is shown as ounces while copper
            production is shown as thousands of pounds. Costs for gold are
            shown per ounce while costs for copper are shown per pound.
 
     (3)    Calculated in accordance with the Gold Institute Standard. Total
            cash production costs includes direct mining expenses, stripping
            and mine development adjustments, third party smelting, refining
            and transportation costs, by-product credits, royalties and
            production taxes. Total production costs comprises total cash
            production cost plus depreciation, depletion and reclamation
            provisions.
 
     (4)    Figures represent 100% of the results of mines owned by the
            Corporation and its subsidiaries and a pro-rata share of joint
            ventures. "Consolidated operating earnings", (and the related sub-
            totals), in accordance with accounting principles generally
            accepted in the United States, exclude the pro-rata share of La
            Coipa, an incorporated joint venture. Mine operating earnings
            comprise sales, at the spot price, less cost of sales including
            reclamation costs, depreciation and depletion for each mine, in
            millions of United States dollars.
 
     (5)    For the three months ended March 31, 2001, included in gold
            production is 22,357 ounces (March 31, 2000-nil) related to the
            sale of refractory ore, the effect of which has been excluded from
            the determination of unit cash and total production costs.
 
     (6)    Osborne produces copper concentrate with gold as a by-product.
 
     (7)    Gold and silver are accounted for as co-products at La Coipa Mine.
            Gold equivalent ounces are calculated using a ratio of the silver
            market price to gold market price for purposes of calculating
            costs per equivalent ounce of gold. At La Coipa, Placer Dome's
            share of production for silver was 1.4 million ounces for the
            first quarter of 2001 and 1.5 million ounces for the prior year
            period.
 
                               PLACER DOME INC.
                      CONSOLIDATED STATEMENTS OF EARNINGS
             (millions of United States dollars, except share and
                         per share amounts, U.S. GAAP)
                                  (unaudited)
 
                                         -------------------------------------
                                              For the three months ended
                                         -------------------------------------
                                          March 31   December 31    March 31
                                            2001        2000     2000 (note 2)
                                             $           $           $
     -------------------------------------------------------------------------
     Sales (note 3(a))                       341         337         383
     Cost of sales                           178         168         181
     Depreciation and depletion               70          78          69
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Mine operating earnings (note 3(b))      93          91         133
     -------------------------------------------------------------------------
     General and administrative               10          11          10
     Exploration                               8          16          15
     Technology, resource development
      and other                               10          28          10
     Merger and restructuring costs            -           1           3
     Write-downs of mining interests           -         261           -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Operating earnings (loss)                65        (226)         95
     -------------------------------------------------------------------------
     Non-hedge derivative gains (losses)     (28)          8         (16)
     Investment and other business income      5          95          12
     Interest and financing expense          (17)        (17)        (20)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Earnings (loss) before taxes and
      other items                             25        (140)         71
     -------------------------------------------------------------------------
     Income and resource taxes                (8)         59         (26)
     Equity in earnings (loss)
      of associates                            1          (7)          2
     Minority interests                       (2)         (1)         (1)
     Change in accounting policies
      (note 2)                                 -           -         (17)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Net earnings (loss)                      16         (89)         29
     -------------------------------------------------------------------------
     Comprehensive income (loss)              17         (90)         29
     -------------------------------------------------------------------------
     Per common share
        Net earnings (loss)                  0.05       (0.27)       0.09
        Diluted net earnings (loss)          0.05       (0.27)       0.09
        Dividends                            0.05           -        0.05
     -------------------------------------------------------------------------
     Weighted average number of common
      shares (millions)
        Basic                               327.6       327.6       327.5
        Diluted                             327.6       327.6       327.5
     -------------------------------------------------------------------------
 
       (See accompanying notes to the consolidated financial statements)
 
 

SOURCE Placer Dome Inc.
    VANCOUVER, April 24 /PRNewswire/ - Placer Dome Inc. is pleased to report
 strong financial results for the three-month period ended March 31, 2001. Mine
 operating earnings totalled $93 million during the first quarter, compared to
 $133 million in 2000. Cash flow from operations amounted to $121 million, or
 $0.37 per share, up from $112 million, or $0.34 per share in the same period
 last year. Net earnings totalled $16 million, or $0.05 per share, compared to
 $29 million or $0.09 per share in the corresponding period of 2000.
     Placer Dome President and CEO Jay Taylor commented that he was pleased
 with these results given the continuing fall in the gold price in the first
 quarter. "Despite a further 9% reduction in the gold price since the first
 quarter of 2000, we have maintained strong mine operating earnings and cash
 flow from operations", he said. "Our strategy of maximizing the value of our
 existing assets while following a prudent program of quality reinvestment is
 paying off."
     The first quarter net earnings figure includes the impact of unrealized,
 non-cash, mark-to-market adjustments on metals options and foreign currency
 forward and option contracts amounting to $19 million. Excluding these
 provisions, net earnings before unusual items totalled $35 million ($0.11 per
 share) in the first quarter of 2001, compared to $49 million ($0.15 per share)
 in the same period last year.
     Placer Dome continued to reinvest capital at its existing properties
 during the first quarter, including ongoing development work at Granny Smith
 to bring the Wallaby deposit into production. In addition, the company
 completed the sinking of the world's deepest vent shaft at South Deep on
 schedule and on budget, setting a new standard for mining in South Africa. Pre-
 feasibility work at Getchell continues as the company works toward completing
 a full feasibility study by the end of 2002.
     Placer Dome's share of gold production during the first quarter of 2001
 was 694,000 ounces, compared to 786,000 ounces in the same period last year.
 The lower production resulted in higher unit cash and total costs of $163 and
 $244 per ounce, respectively, compared to 2000 first quarter cash and total
 costs of $151 and $220 per ounce, respectively.
     In addition to gold, Placer Dome produced 100 million pounds of copper
 during the first quarter at cash and total costs of $0.44 and $0.58 per pound,
 respectively. This compares to copper production of 107 million pounds at cash
 and total costs of $0.45 and $0.64 per pound last year.
     The year-over-year gold production decline was primarily due to the
 following:
 
     - a 44% decrease at Granny Smith related to the transition from Sunrise
       to the new Wallaby deposit;
     - an expected 42% drop in production at Misima as the mine approaches the
       end of its life; and
     - adjustments to the stoping sequence at Campbell, where production fell
       by 41% due to rock mechanics problems and seismic activity experienced
       in 2000.
 
     These production decreases were partially offset by an increase of 21% at
 South Deep due to higher grades and increases at five other mines. "Production
 levels at each of our other mines remained strong and stable during the first
 quarter, holding steady at close to last year's levels," Taylor explained.
     First quarter sales revenue of $341 million was off 11% or $42 million
 from the same period last year due to the lower gold price and decreased
 production. Gold revenue decreased by 13% to $260 million, while copper
 revenue remained relatively steady at $80 million.
     Placer Dome's strong and balanced forward sales continued to contribute
 to the bottom line, contributing $49 million to first quarter earnings. The
 company's average realized gold sales price was $327 per ounce in the first
 quarter, $63 per ounce above the average spot price of $264 per ounce. This
 compared to an average realized gold sales price of $355 per ounce in the same
 period last year, $65 per ounce above the average spot price of $290 per
 ounce. At the end of the first quarter of 2001, the mark-to-market value of
 Placer Dome's precious metals forward sales program was approximately $625
 million, based on a spot gold price of $259 per ounce.
     Looking ahead to the remainder of the year, Taylor commented that these
 positive first quarter results bode well for the company to meet its planned
 2001 cash flow and mine operating earnings targets of $400 million. "Our
 number one commitment is to operate profitably despite a challenging business
 environment and to deliver competitive returns within our industry," he said.
 "We are holding steady to our strategy and are turning today's challenges into
 tomorrow's opportunities."
 
     APRIL 24, 2001
     --------------
 
                                CAUTIONARY NOTE
     Some of the statements contained in this news release are forward-looking
 statements, such as estimates and statements that describe Placer Dome's
 future plans, objectives or goals, including words to the effect that Placer
 Dome or management expects a stated condition or result to occur. Since
 forward-looking statements address future events and conditions, by their very
 nature they involve inherent risks and uncertainties. Actual results relating
 to among other things, reserves, resources, results of exploration, capital
 costs and mine production costs could differ materially from those currently
 anticipated in such statements by reason of factors such as the productivity
 of Placer Dome's mining properties, changes in general economic conditions and
 conditions in the financial markets, changes in demand and prices for the
 minerals Placer Dome produces, litigation, legislative, environmental and
 other judicial, regulatory, political and competitive developments in domestic
 and foreign areas in which Placer Dome operates, technological and operational
 difficulties encountered in connection with Placer Dome's mining activities,
 and labour relations matters and costs. "Placer Dome" is used in this news
 release to collectively mean Placer Dome Inc., its subsidiary companies and
 its proportionate share of joint ventures. "Placer Dome Group" or "Group"
 means collectively Placer Dome Inc., its subsidiary companies, its
 proportionate share of joint ventures and also companies for which it equity
 accounts. "Placer Dome Group's share" or the "Group's share" is defined to
 exclude minority shareholders' interest. The "Corporation" refers to Placer
 Dome Inc.
 
                                HIGHLIGHTS (1)
        (millions of U.S. dollars, except per share amounts, U.S. GAAP)
 
                                         -----------------------------------
                                              For the three months ended
                                         -----------------------------------
                                         March 31   December 31   March 31
                                           2001        2000         2000(2)
                                             $           $            $
                                         -----------------------------------
     Financial
       Sales                               341         337         383
       Mine operating earnings              93          91         133
       Net earnings (loss)                  16         (89)         29
       Cash flow from operations           121          29         112
       Cash and short-term investments     389         340         244
     -----------------------------------------------------------------------
     Per common share
       Net earnings (loss)                0.05       (0.27)       0.09
       Cash flow from operations          0.37        0.09        0.34
       Dividends                          0.05        -           0.05
     -----------------------------------------------------------------------
     Return on net assets (3)              1.8%       (5.4%)       3.5%
     -----------------------------------------------------------------------
     Operating
     Placer Dome's share: (4)
        Gold production (000's ozs.)       694         760         786
        Gold cash production costs
         ($/oz.)                           163         161         151
        Gold total production costs
         ($/oz.)                           244         240         220
     -----------------------------------------------------------------------
 
     (1) Presentation of the previous quarter's results is to facilitate a
         greater understanding of the Corporation's operational and financial
         trends. Discussions in the Review of Operations compare the first
         quarter of 2001 to the first quarter of 2000.
     (2) In the fourth quarter of 2000, Placer Dome adopted U.S. Securities
         and Exchange Commission Staff Accounting Bulletin No. 101 ("SAB
         101"), Revenue Recognition, with retroactive application to January
         1, 2000. Accordingly, results for the first three quarters of 2000
         have been restated.
     (3) Return on net assets is defined as pre-tax earnings adjusted for the
         inclusion of equity earnings of associates and exclusion of long-term
         financing charges divided by net assets.
     (4) Throughout this document, Placer Dome is defined to be Placer Dome
         Inc., its consolidated subsidiaries and its proportionate share of
         unincorporated joint venture interests. Placer Dome's share is
         defined to include the proportionate share of results of incorporated
         joint ventures and exclude minority shareholders' percentage of
         results in non-wholly-owned subsidiaries.
 
 
                          NET EARNINGS (LOSS) SUMMARY
                     (millions of U.S. dollars, U.S. GAAP)
 
                                         -----------------------------------
                                              For the three months ended
                                         -----------------------------------
                                         March 31   December 31   March 31
                                           2001        2000         2000 (1)
                                             $           $            $
     -----------------------------------------------------------------------
     Mine operating earnings
       Gold                                 73          72         116
       Copper                               21          20          18
       Other                                (1)         (1)         (1)
     -----------------------------------------------------------------------
                                            93          91         133
     -----------------------------------------------------------------------
     General and administrative            (10)        (11)        (10)
     Exploration                            (8)        (16)        (15)
     Technology, resource development
      and other                            (10)        (28)        (10)
     Merger and restructuring costs          -          (1)         (3)
     Write-downs of mining interests         -        (261)          -
     Non-hedge derivative gains (losses)   (28)          8         (16)
     Investment and other business income    5          95          12
     Interest and financing                (17)        (17)        (20)
     Change in accounting policies           -           -         (17)
     Income and resource taxes              (8)         59         (26)
     Other                                  (1)         (8)          1
     -----------------------------------------------------------------------
     -----------------------------------------------------------------------
     Net earnings (loss)                    16         (89)         29
     -----------------------------------------------------------------------
 
     (1) 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.
 
 
              COMPONENTS OF PLACER DOME'S SHARE OF CASH AND TOTAL
                               PRODUCTION COSTS
            (in accordance with Gold Institute Standard, U.S. GAAP)
 
                                         -----------------------------------
                                              For the three months ended
                                         -----------------------------------
                                         March 31   December 31   March 31
                                           2001        2000         2000
                                           $/oz        $/oz         $/oz
     ------------------------------------------------------------------------
     Direct mining expenses                180         175         160
     Stripping and mine development
      adjustment                           (22)        (18)        (16)
     Third party smelting, refining and
      transportation                         1           1           1
     By-product credits                     (1)         (2)         (2)
     ------------------------------------------------------------------------
     ------------------------------------------------------------------------
     Cash operating costs                  158         156         143
     ------------------------------------------------------------------------
     Royalties                               3           4           5
     Production taxes                        2           1           3
     ------------------------------------------------------------------------
     ------------------------------------------------------------------------
     Total cash costs                      163         161         151
     ------------------------------------------------------------------------
     Depreciation                           42          34          38
     Depletion and amortization (1)         32          36          23
     Reclamation and mine closure            7           9           8
     ------------------------------------------------------------------------
     ------------------------------------------------------------------------
     Total production costs                244         240         220
     ------------------------------------------------------------------------
 
     (1) Includes the amortization of deferred stripping costs.
 
 
 
                             REVIEW OF OPERATIONS
                        (in accordance with U.S. GAAP)
 
                                         -----------------------------------
                                              For the three months ended
                                         -----------------------------------
                                         March 31   December 31   March 31
                                           2001        2000        2000(1)
     -----------------------------------------------------------------------
     Production and sales volumes
     Gold (000's ozs.)
       Group's share production            694         760         786
       Consolidated production             707         768         811
       Consolidated sales                  802         723         844
     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        $352        $355
       London spot price                  $264        $269        $290
       Group's share cash cost            $163        $161        $151
       Group's share total cost           $244        $240        $220
     Copper ($/lb.)
       Price realized (2) - 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          $0.58       $0.68       $0.64
     -----------------------------------------------------------------------
 
     (1) 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.
     (2) Copper price realized includes final sales settlement adjustments.
 
     Review of Operations
 
     Consolidated net earnings in accordance with U.S. GAAP for the first
 quarter of 2001 were $16 million ($0.05 per share), compared with $29 million
 ($0.09 per share) in the first quarter of 2000. Excluding unusual items as
 noted below, consolidated net earnings were $35 million ($0.11 per share) for
 the first quarter compared with $49 million ($0.15 per share) in the prior
 year period. Return on net assets ("RONA") for the first three months of the
 year was 1.8% compared with 3.5% for the prior year period (return on net
 assets is defined as pre-tax earnings adjusted for the inclusion of equity
 earnings of associates and exclusion of long-term financing charges divided by
 net assets). Excluding unusual items, RONA was 2.7% for the current quarter
 compared with 3.9% in the prior year quarter.
 
                                     ---------------------------------------
                                       For the three months ended March 31
                                     ---------------------------------------
                                           2001                    2000
                                            $                       $
     -----------------------------------------------------------------------
     Net earnings                           16                      29
     Unusual items, net of tax
        Merger and restructuring costs       -                       2
        (Gain) loss on common share
         investments                         -                      (8)
        Unrealized non-hedge derivative
         losses                             19                       9
        Change in accounting policies        -                      17
     -----------------------------------------------------------------------
     Earnings before unusual items          35                      49
     -----------------------------------------------------------------------
     Per common share                     0.11                    0.15
     -----------------------------------------------------------------------
 
     Sales revenue of $341 million for the first three months of 2001 was $42
 million lower than the 2000 period. Gold sales revenue in the first quarter of
 2001 decreased by 13% to $260 million compared with the 2000 period due to a
 5% 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 30% to $93 million in the first quarter
 of 2001, compared with $133 million in the 2000 period. Gold operating
 earnings for the quarter were $73 million compared with $116 million in the
 prior year, a decline of 37% reflecting a $28 per ounce decrease in the
 average realized price and a $24 per ounce increase in total production costs.
 Consolidated gold production in the first quarter of 2001 was down 13% to
 707,000 ounces compared with 811,000 ounces in the prior year period with
 seven of the eleven 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 8% and 11% to $163 and $244,
 respectively, compared with $151 and $220 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 $21 million, $3 million higher than the prior year period due to
 a 9% 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 $0.58, respectively, compared with $0.45 and $0.64 per pound,
 respectively, in 2000.
 
     Canada
 
     In Canada, gold production decreased by 26,283 ounces, or 15% to 154,113
 ounces, in the first three months of 2001 compared with the corresponding
 period in 2000. At the Campbell Mine, first quarter production decreased by
 41% to 38,422 ounces compared with 65,661 ounces in the prior year period.
 This was due lower mill throughput and grades resulting from the re-sequencing
 of mining areas caused by rock mechanics problems and seismic activity
 experienced in the second half of 2000. As well, production was curtailed by a
 planned 10-day shut down of the mill to replace the ball mill bull gear. As a
 result, cash and total costs per ounce increased to $281 and $363,
 respectively, compared with $157 and $214, respectively, in the year-earlier
 period. At the Dome Mine, operations in the first quarter of 2001 benefited
 from higher grades leading to a 6% increase in gold production to 76,203
 ounces and a corresponding decline in unit total costs to $274 per ounce
 compared with 2000. Gold production at the Musselwhite Mine was 39,488 ounces
 in the first quarter of 2001, a decrease of 7% from the corresponding period
 in 2000 due to a 12% decline in head grade partially offset by a 6% increase
 in mill throughput. Cash and total costs increased to $186 and $256 per ounce,
 respectively, compared to $154 and $226 per ounce, respectively, from the
 prior year period.
     At this time, 2001 production at the Campbell Mine is expected to be
 reduced by about 15%, or slightly below 200,000 ounces, compared to 2000 due
 to the re-engineering and re- scheduling of production caused by the seismic
 activity in late 2000. Unit cash and total production costs are expected to
 rise by 25% and 20%, respectively, compared to 2000. A complete revision of
 Campbell's life of mine plan has been initiated which is expected to be
 completed by the third quarter of this year. At the Musselwhite Mine,
 production in 2001 is expected to be marginally higher than 2000 but unit cash
 costs are expected to rise by about 5%. At the Dome Mine, production in 2001
 is expected to be 5% higher than 2000 with proportionately lower unit cash and
 total production costs.
 
     United States
 
     In the United States, gold production in the first three months of 2001
 decreased by 4% to 255,189 ounces compared with the corresponding period in
 2000. At the Cortez Mine, Placer Dome's share of production from the Pipeline
 deposit in the first quarter of 2001 and 2000 was 154,749 ounces and 187,105
 ounces (excluding roast ore sales of 22,357 ounces and nil), respectively, 17%
 lower than the year-earlier period due to lower grades and mill throughput
 partially offset by higher recovery. While unit cash costs of $47 per ounce
 was at the same level as 2000, unit non-cash costs increased to $103 per ounce
 from $61 per ounce reflecting higher stripping costs associated with Stage 3
 production, resulting in total production costs of $150 per ounce for the
 current quarter. Production at the Golden Sunlight Mine increased by 4% to
 53,189 ounces in the first quarter of 2001 compared with the year-earlier
 period due to a combination of higher grades, mill throughput and recovery.
 Cash and total costs decreased to $94 and $233 per ounce, respectively,
 compared with $111 and $283 per ounce, respectively, from the prior year
 period. At the Bald Mountain Mine, production was 24,894 ounces for the first
 quarter, a decrease of 7% compared to the year-earlier period. Cash and total
 costs per ounce were $256 and $386 per ounce, respectively, compared with $286
 and $381, respectively, in the prior year period.
     In 2001, Placer Dome's share of production from Cortez is expected to
 increase by about 17% from 2000 due to a full year of roast ore sales and an
 increase in heap leach production. Roast ore sales are anticipated to account
 for about 13% of Cortez's overall production. Also, production from the South
 Pipeline deposit is expected to commence in July. Unit cash and total
 production costs are expected to rise by about 20% and 18%, respectively,
 compared with 2000 due to higher costs associated with South Pipeline. At the
 Golden Sunlight Mine, with slightly more than a year of mine life remaining,
 gold production in 2001 is expected to be 18% lower than 2000 due to lower
 grades, and unit costs are expected to be proportionately higher. Currently,
 Golden Sunlight is in the process of renegotiating its power contract which
 expires on June 30, 2001. Should an affordable power source not be found,
 Golden Sunlight may shut down earlier than planned and adjustments to the
 carrying value of certain assets may be required. Production and costs at the
 Bald Mountain Mine in 2001 are expected to be at 2000 levels.
     At the Getchell Mine, development of the N Zone is progressing in
 accordance with plan. Efforts in 2001 are focused on further delineation of
 the N Zone and completion of a pre-feasibility study. An exploration drilling
 program outside the current area of interest is not contemplated at the
 present time. In the first three months of 2001, a total of $11 million (2000 -
 $32 million) was expended at Getchell, comprising of $5 million (2000 - $15
 million) on capital development, $5 million (2000 - $7 million) on standby
 costs and $1 million (2000 - $10 million) on exploration. Capital expenditures
 on development and drilling are expected to total $26 million in 2001, and
 additional property and exploration expenses are expected to total $20 million
 and $4 million, respectively. Placer Dome expects to undertake a final,
 detailed feasibility study in 2002.
 
     Australia and Papua New Guinea
 
     Operations in Australia and Papua New Guinea contributed 260,006 ounces
 to consolidated gold production in the first three months of 2001, a drop of
 74,329 ounces or 22% compared to the year-earlier period. At the Porgera Mine,
 first quarter production at 90,975 ounces was higher than expected, though 11%
 lower than the year earlier period due to a 17% decline in grades partially
 offset by a 9% improvement in recovery. Cash and total production costs per
 ounce of $163 and $270, respectively, were about $5 per ounce higher than the
 prior year period. At the Misima Mine, as it approaches the end of its mine
 life, gold production decreased by 35,639 ounces or 42% to 49,506 ounces in
 the first quarter compared with the year-earlier period due to lower grades,
 mill throughput and recovery. Cash and total costs per ounce for the quarter
 were $203 and $226, respectively, compared with $163 and $216 from the prior
 year period. At the Granny Smith Mine, production in the first quarter was
 43,435 ounces, 44% lower than the prior year period due to a 49% decline in
 grades. Cash production costs per ounce increased to $275 compared with $166
 in the year-earlier period, due to the impact of the lower production and
 deeper mining at the Sunrise pit pushback. At the Kidston Mine, consolidated
 gold production in the first quarter of 2001 of 64,260 ounces was 6% higher
 than the prior year period due to higher recovery. Cash and total production
 costs declined by about 20% to $182 and $251 per ounce, respectively. At the
 Osborne Mine, copper production in the first quarter of 2001 was 26.6 million
 pounds (12,080 tonnes), in line with production in the prior year period. Cash
 and total production costs per pound, net of by-product credits for gold
 produced, at $0.54 and $0.65, respectively, were 17% and 23% lower than the
 respective costs in the year-earlier period.
     In 2001, production at the Porgera Mine is expected to be 23% lower than
 2000 due to the depletion of open pit Stage 3 ore by mid-year and the
 transition to Stage 4 production. Accordingly, unit cash costs are expected to
 rise compared with the prior year. At the Granny Smith Mine, production in
 2001 is expected to further decline by 8% from 2000 levels due to lower head
 grade from the Sunrise pit and lower throughput as a result of an increase in
 ore hardness. Unit cash costs are expected to rise by about 25%. In 2001, it
 is expected that mining operations at the Misima and Kidston mines will be
 completed by the end of April and mid-year, respectively, due to the depletion
 of ore. However, Misima has low-grade ore stockpiles remaining to be processed
 and it is expected that milling will continue into 2004. Misima's production
 in 2001 is expected to decline by 25% from 2000. Total production cost per
 ounce is expected to be 15% lower than 2000 due to lower operating costs
 resulting from a reduction in labour and cost reduction measures, as well as
 lower depreciation associated with the ceased mining activity. At the Kidston
 Mine, production in 2001 is expected to be 60% lower than 2000 and total
 production cost per ounce is anticipated to be approximately 6% higher. In
 2001, copper production from the Osborne Mine is expected to be in line with
 2000. Total production costs per pound are expected to be lower than 2000 as
 an expected increase in cash cost is offset by lower depreciation resulting
 from the write-down recorded in 2000.
 
     South Africa
 
     At the 50%-owned South Deep Mine, Placer Dome's share of production for
 the first quarter of 2001 was 37,798 ounces, 21% higher than the prior year
 period due primarily to higher grades. Cash and total production costs for the
 quarter of $198 and $231 per ounce, respectively, were 21% and 16% lower than
 2000 due to the impact of favourable exchange rate effects and productivity
 improvements. On March 30, 2001, the National Union of Mineworkers, one of
 four unions at South Deep, initiated strike action over a dispute on holiday
 scheduling. The dispute was settled after a 4-day strike and operations have
 returned to normal.
     In 2001, Placer Dome's share of production from the South Deep Mine is
 expected to increase by 48% due to higher throughput resulting from the start
 of bulk mechanized mining in September 2000 and higher grades. Total unit cost
 of production is anticipated to be 7% lower than 2000 as a result of the
 increase in production, efficiency improvements, and exchange rate effects.
 
     Chile
 
     At the 50%-owned La Coipa Mine (which is equity accounted for), the
 Corporation's share of production in the first three months of 2001 was 15,625
 ounces of gold and 1.4 million ounces of silver compared with 9,807 ounces and
 1.5 million ounces, respectively, in the prior year. Cash costs per equivalent
 ounce of gold decreased to $183 compared with $213 in the year-earlier period,
 reflecting the increase in gold production. At the Zaldivar Mine, copper
 production in the first quarter of 2001 declined by 9% to 73.2 million pounds
 (33,210 tonnes) compared with the 2000 period due to lower grades and
 recovery. Unit cash costs increased by 5% to $0.41 per pound while non-cash
 costs declined by $0.04 per pound to $0.15 per pound due to reserve additions
 in 2000, resulting in total costs of $0.56 per pound for the quarter compared
 with $0.58 per pound in the prior year.
     In 2001, production at La Coipa Mine will come from three separate pits
 and stockpiled ore. Ladera Farellon will be depleted in the first quarter,
 Farellon Bajo will commence production in the year and will be depleted by
 yearend, and Coipa Norte Stages 3 and 4 will be in development and providing
 ore throughout the year. It is anticipated that the processing of stockpiled
 ore will account for approximately 30% of La Coipa's 2001 production. Due to
 the nature of the ore bodies, Placer Dome's share of gold production is
 expected to decline by 47% while silver production is expected to increase by
 11% compared with 2000. Unit cash costs are expected to rise by about 3%. In
 2001, copper production from the Zaldivar Mines is expected to be at a level
 similar to 2000. Zaldivar will continue the dynamic stacking/leaching project
 started in 1999 to improve stacking efficiencies and recovery performance.
 Zaldivar's unit cash production costs are expected to rise by about 7%
 primarily due to costs associated with the removal of spent ore from the leach
 pads and to commence the second phase of stacking/leaching. However, this
 increase is expected to be offset by lower unit depreciation due to reserve
 additions 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 20% from $35 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
 merger and restructuring costs that followed from the restructuring process
 which commenced in 1999.
     Non-hedge derivative losses for the first quarter of 2001 were $28
 million compared with $16 million in the 2000 period. Most of this amount was
 from net unrealized paper losses of $22 million and $15 million for the 2001
 and 2000 periods, respectively, from mark-to-market value changes on metals
 option and foreign currency forward and option contracts covering future
 periods. The negative impact in the quarter for both years primarily reflect a
 weakening of the Australian and Canadian dollar relative to the U.S. dollar
 during the period.
     Investment and other business income in the first three months of 2001
 were $5 million compared with $12 million in the year-earlier period. The
 amount in 2000 included an $8 million gain on the disposal of the
 Corporation's common share investment in Vengold Inc.
     Interest and financing expenses were $17 million and $20 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 32% and 37% 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 41%. 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.
     Effective January 1, 2000, Placer Dome adopted Staff Accounting Bulletin
 ("SAB") No. 101 of the U.S. Securities and Exchange Commission which provides
 guidance on the recognition, presentation, and disclosure of revenues in
 financial statements. This was applied retroactively from January 1, 2000 with
 an adjustment totalling $17 million (net of income taxes of $5 million) being
 recorded in the first quarter of that year. The adjustment resulted from SEC's
 clarification on their view of when gold is considered to be in a saleable
 form. (See note 2 to the consolidated financial statements for further
 information.)
     Effective January 1, 2001, Placer Dome adopted U.S. Financial Accounting
 Standards Board Statement of Financial Accounting Standards No. 133,
 "Accounting for Derivative Instruments and Hedging Activities" ("SFAS 133")
 which establishes accounting and reporting standards for derivative
 instruments. 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 that 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).
 
     Financial Condition, Liquidity and Capital Resources
 
     Cash flow from operations increased $9 million to $121 million in the
 first quarter of 2001 compared with the corresponding period in 2000. The
 increase of 8% primarily reflects a decrease in the investment in non-cash
 working capital, partially offset by lower sales revenues and higher cash
 production costs for gold. The net decline in non-cash working capital
 primarily reflects a drawdown of product inventory due to the timing of sales
 and changes in the terms of certain sales contracts.
     Expenditures on property, plant and equipment in the first three months
 of 2001 amounted to $53 million, an increase of $3 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
 $877 million, compared with $878 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 dividends of
 $19 million (2000 - $16 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.
 
     Forward Sales, Options and Other Commitments
 
     Placer Dome enters into financial agreements with major international
 banks and other international financial institutions in order to manage
 underlying revenue and cost exposures arising from fluctuations in commodity
 prices, foreign currency exchange rates and interest rates. Contracts include
 forward sales and options, which, with the exception of call options, commit
 counterparties to prices payable at a future date. Specific limits are set as
 a declining percentage of planned production in each of the next 15 years.
 These limits are set out in policies approved by the Board of Directors. Under
 its programs, Placer Dome has established the minimum prices it expects to
 receive (or pay) in the future for a portion of metal sales (and foreign
 currency production costs), through a combination of forward sales contracts
 and options.
     As at March 31, 2001, Placer Dome's forward and option contracts for
 precious metals consisted of the following, for delivery over the next 14
 years (See the table "Consolidated Metals Sales Program" in the notes for
 detailed allocations):
 
     -------------------------------------------------------------------------
                                            Quantity         Average Price
                                        (millions of ozs )      ($/oz.)
     -------------------------------------------------------------------------
     Gold
       Forward contracts (1)                   6.3               $468
       Call options sold                       1.3               $359
       Total committed ounces                  7.6               $449
 
     Silver
       Forward contracts (1)                   2.6              $6.12
       Call options sold                       1.7              $7.92
       Total committed ounces                  4.3              $6.84
       Put options purchased                   3.2              $5.53
     -------------------------------------------------------------------------
 
 
     (1)    Forward contracts include fixed forward, spot deferred and fixed
            interest floating lease rate forward contracts. For average prices
            realized: fixed forward contracts are based on the price at the
            maturity of the contract; spot deferred contracts are based on an
            assumed contango rate to the maturity of the contract. Fixed
            interest floating lease rate forward contracts are contracts where
            the interest rate is fixed and the metal borrowing cost is
            floating. For the above average prices realized there is an
            assumed lease rate to the maturity of the contract.
 
     On March 31, 2001, based on the spot gold price of $259 per ounce and a
 spot silver price of $4.32 per ounce, the mark-to-market value of Placer
 Dome's precious metals forward and option contracts position was approximately
 $625 million (December 31, 2000 - $500 million).
     As at March 31, 2001, Placer Dome's forward and option contracts for
 copper consisted of the following, for delivery over the next 9 months (See
 the table "Consolidated Metals Sales Program" in the notes for detailed
 allocations):
 
 
     -------------------------------------------------------------------------
                                            Quantity         Average Price
                                        (millions of lbs)       ($/lb)
     -------------------------------------------------------------------------
     Copper
       Forward contracts                      20.4              $0.89
       Call options sold                      29.2              $0.93
       Total committed pounds                 49.6              $0.91
       Put options purchased                  21.5              $0.84
     -------------------------------------------------------------------------
 
     For copper, the Corporation's mark-to-market value on its copper forward
 and option contracts on March 31, 2001 was approximately $4 million based on a
 spot copper price of $0.76 per pound, (December 31, 2000 - cost of $2
 million).
     As at March 31, 2001, Placer Dome's currency forward and option contracts
 consisted of the following for delivery over the next 3 years:
 
     -------------------------------------------------------------------------
                                 Maturity Period    Quantity    Average Price
                                  (to the year)    (millions      (per US$)
                                                    of US$)
     -------------------------------------------------------------------------
     Canadian dollars
       Fixed forward contracts        2003           $60           $1.4975
       Call options purchased         2003           $42           $1.4919
       Put options sold               2003           $46           $1.5500
 
     Australian dollars
       Fixed forward contracts        2004          $134           $1.8811
       Call options purchased         2004          $178           $1.3976
       Put options sold               2004          $106           $1.4945
     -------------------------------------------------------------------------
 
     Based on March 31, 2001 foreign exchange rates C$/US$1.5774, A$/US$2.0367
 and Rand/US$8.0100 should the Corporation have closed out its currency forward
 and option contracts, the cash cost would have been approximately $40 million
 (cost at December 31, 2000 - $11 million).
 
     Outlook
 
     Consolidated gold and copper production for 2001 is targeted at
 approximately 2.9 million ounces and 430 million pounds, respectively. Cash
 and total production costs for gold are expected to be about $165 and $240 per
 ounce, respectively.
     In 2001, Placer Dome's share of capital expenditures are anticipated to
 be about $290 million, including $26 million at Getchell related to the N Zone
 development, $69 million at South Deep for the shaft, mill and underground
 development, $39 million at Granny Smith for development of the Wallaby
 deposit, $37 million at Zaldivar for the dynamic leach pad project, and $68
 million on deferred stripping at the Cortez and Porgera mines. Exploration
 expenditures for 2001 are budgeted at approximately $50 million with $28
 million allocated to mine sites and $22 million on global exploration
 priorities. Placer Dome also plans to spend approximately $29 million on
 technology.
 
     Canadian GAAP
 
     The Corporation also prepares a management's discussion and analysis and
 interim financial statements in accordance with Canadian generally accepted
 accounting principles ("GAAP") as included in note 7 to the consolidated
 financial statements.
 
 
                       PRODUCTION AND OPERATING SUMMARY
 
     -------------------------------------------------------------------------
                                                Placer Dome's Share(1)
                        Placer           -----------------------------------
                     Dome's share        Millfeed  Cost per
         Mine           of mine   three   (000's    tonne    Grade   Recovery
                      production  months  tonnes)   milled (g/t/%)(2)   (%)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     GOLD
     Canada
     Campbell            100%      2001     119      117      10.6     94.5
                                   2000     126      112      16.9     96.0
     -----------------------------------------------------------------------
     Dome                100%      2001   1,055       20       2.5     89.1
                                   2000   1,082       20       2.3     91.5
     -----------------------------------------------------------------------
     Musselwhite          68%      2001     221       46       5.9     94.9
                                   2000     208       46       6.7     95.7
     -----------------------------------------------------------------------
     -----------------------------------------------------------------------
     United States
     Bald Mountain       100%      2001     887       11       1.3     65.9
                                   2000     869       12       1.1     67.3
     -----------------------------------------------------------------------
     Cortez(5)            60%      2001     492       54      10.1     91.6
                                   2000     524       39      12.2     86.0
     -----------------------------------------------------------------------
     Golden Sunlight     100%      2001     584       21       3.5     81.3
                                   2000     573       25       3.4     80.9
     -----------------------------------------------------------------------
     -----------------------------------------------------------------------
     Papua New Guinea
     Misima               80%      2001   1,078        8       1.3     89.0
                                   2000   1,231       12       1.8     93.6
     -----------------------------------------------------------------------
     Porgera              50%      2001     722       34       4.6     79.7
                                   2000     728       37       5.5     73.3
     -----------------------------------------------------------------------
     -----------------------------------------------------------------------
     Australia
     Granny Smith         60%      2001     625       20       2.4     90.8
                                   2000     575       24       4.7     89.7
     -----------------------------------------------------------------------
     Kidston              70%      2001   1,191        9       1.3     86.9
                                   2000   1,295       10       1.3     80.1
     -----------------------------------------------------------------------
     Osborne(6)          100%      2001     363        -       1.2     81.7
                                   2000     370        -       0.9     76.6
     -----------------------------------------------------------------------
     -----------------------------------------------------------------------
     Chile
     La Coipa(7)          50%      2001     785       14       0.8     81.5
                                   2000     716       15       0.5     79.8
     -----------------------------------------------------------------------
     South Africa
     South Deep           50%      2001     144       61       8.4     97.4
                                   2000     140       61       7.1     97.5
     -------------------------------------------------------------------------
     Metals hedging revenue        2001
                                   2000
     -------------------------------------------------------------------------
     Total gold                    2001
                                   2000
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     COPPER
     Osborne(6)          100%      2001     363       48       3.5     95.7
                                   2000     370       59       3.4     95.5
     -------------------------------------------------------------------------
     Zaldivar            100%      2001   4,152       10       1.1     71.7
                                   2000   4,062       12       1.2     75.2
     -------------------------------------------------------------------------
     Metals hedging revenue        2001
                                   2000
     -------------------------------------------------------------------------
     Total copper                  2001
                                   2000
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Other                         2001
                                   2000
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     CONSOLIDATED MINE             2001
     OPERATING EARNINGS(4)         2000
     -------------------------------------------------------------------------
 
 
     -------------------------------------------------------------------------
                                                 Placer Dome's Share(1)
                                         -------------------------------------
                                            Production     Cost  Cost   Mine
                                         ----------------  per   per    oper-
                        Placer                             oz/lb oz/lb  ating
                      Dome's share                         cash  total  earn-
         Mine           of mine    three   (oz/lbs)  %     (2,3) (2,3)  ings
                       production  months    (2)    change              (4)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     GOLD
     Canada
     Campbell            100%      2001    38,422   -41%    281   363    (2)
                                   2000    65,661           157   214     6
     -------------------------------------------------------------------------
     Dome                100%      2001    76,203    +6%    216   274    (1)
                                   2000    72,227           224   293    (1)
     -------------------------------------------------------------------------
     Musselwhite          68%      2001    39,488    -7%    186   256     -
                                   2000    42,508           154   226     2
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     United States
     Bald Mountain       100%      2001    24,894    -7%    256   386    (3)
                                   2000    26,904           286   381    (2)
     -------------------------------------------------------------------------
     Cortez(5)            60%      2001   177,106    -5%     47   150    21
                                   2000   187,105            47   109    31
     -------------------------------------------------------------------------
     Golden Sunlight     100%      2001    53,189    +4%     94   233     2
                                   2000    51,310           111   283    (2)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Papua New Guinea
     Misima               80%      2001    39,605   -42%    203   226     2
                                   2000    68,116           163   216     7
     -------------------------------------------------------------------------
     Porgera              50%      2001    90,975   -11%    163   270     -
                                   2000   102,664           157   265     4
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Australia
     Granny Smith         60%      2001    43,435   -44%    275   284     3
                                   2000    77,938           166   176    21
     -------------------------------------------------------------------------
     Kidston              70%      2001    44,982    +6%    182   251     1
                                   2000    42,391           238   306    (1)
     -------------------------------------------------------------------------
     Osborne(6)          100%      2001    11,830   +47%      -     -     -
                                   2000     8,030             -     -     -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Chile
     La Coipa(7)          50%      2001    15,625   +59%    183   272     -
                                   2000     9,807           213   289     -
     -------------------------------------------------------------------------
     South Africa
     South Deep           50%      2001    37,798   +21%    198   231     1
                                   2000    31,110           252   274     -
     -------------------------------------------------------------------------
     Metals hedging revenue        2001                                  49
                                   2000                                  51
     -------------------------------------------------------------------------
     Total gold                    2001   693,552   -12%    163   244  $ 73
                                   2000   785,771           151   220  $116
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     COPPER
     Osborne(6)          100%      2001    26,629    +2%   0.54  0.65     3
                                   2000    26,103          0.65  0.84    (1)
     -------------------------------------------------------------------------
     Zaldivar            100%      2001    73,225    -9%   0.41  0.56    18
                                   2000    80,806          0.39  0.58    19
     -------------------------------------------------------------------------
     Metals hedging revenue        2001                                   -
                                   2000                                   -
     -------------------------------------------------------------------------
     Total copper                  2001    99,854    -7%   0.44  0.58  $ 21
                                   2000   106,909          0.45  0.64  $ 18
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Other                         2001                                  (1)
                                   2000                                  (1)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     CONSOLIDATED MINE             2001                                $ 93
     OPERATING EARNINGS(4)         2000                                $133
     -------------------------------------------------------------------------
 
     Notes to the Production and Operating Summary
 
     (1)    Figures represent Placer Dome's share of the results of mines
            owned by the Corporation and its subsidiaries and a pro-rata share
            of joint ventures. All dollar amounts are in U.S. currency.
 
     (2)    Gold grades are shown as grams per tonne; copper grades are shown
            as a percentage. Gold production is shown as ounces while copper
            production is shown as thousands of pounds. Costs for gold are
            shown per ounce while costs for copper are shown per pound.
 
     (3)    Calculated in accordance with the Gold Institute Standard. Total
            cash production costs includes direct mining expenses, stripping
            and mine development adjustments, third party smelting, refining
            and transportation costs, by-product credits, royalties and
            production taxes. Total production costs comprises total cash
            production cost plus depreciation, depletion and reclamation
            provisions.
 
     (4)    Figures represent 100% of the results of mines owned by the
            Corporation and its subsidiaries and a pro-rata share of joint
            ventures. "Consolidated operating earnings", (and the related sub-
            totals), in accordance with accounting principles generally
            accepted in the United States, exclude the pro-rata share of La
            Coipa, an incorporated joint venture. Mine operating earnings
            comprise sales, at the spot price, less cost of sales including
            reclamation costs, depreciation and depletion for each mine, in
            millions of United States dollars.
 
     (5)    For the three months ended March 31, 2001, included in gold
            production is 22,357 ounces (March 31, 2000-nil) related to the
            sale of refractory ore, the effect of which has been excluded from
            the determination of unit cash and total production costs.
 
     (6)    Osborne produces copper concentrate with gold as a by-product.
 
     (7)    Gold and silver are accounted for as co-products at La Coipa Mine.
            Gold equivalent ounces are calculated using a ratio of the silver
            market price to gold market price for purposes of calculating
            costs per equivalent ounce of gold. At La Coipa, Placer Dome's
            share of production for silver was 1.4 million ounces for the
            first quarter of 2001 and 1.5 million ounces for the prior year
            period.
 
                               PLACER DOME INC.
                      CONSOLIDATED STATEMENTS OF EARNINGS
             (millions of United States dollars, except share and
                         per share amounts, U.S. GAAP)
                                  (unaudited)
 
                                         -------------------------------------
                                              For the three months ended
                                         -------------------------------------
                                          March 31   December 31    March 31
                                            2001        2000     2000 (note 2)
                                             $           $           $
     -------------------------------------------------------------------------
     Sales (note 3(a))                       341         337         383
     Cost of sales                           178         168         181
     Depreciation and depletion               70          78          69
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Mine operating earnings (note 3(b))      93          91         133
     -------------------------------------------------------------------------
     General and administrative               10          11          10
     Exploration                               8          16          15
     Technology, resource development
      and other                               10          28          10
     Merger and restructuring costs            -           1           3
     Write-downs of mining interests           -         261           -
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Operating earnings (loss)                65        (226)         95
     -------------------------------------------------------------------------
     Non-hedge derivative gains (losses)     (28)          8         (16)
     Investment and other business income      5          95          12
     Interest and financing expense          (17)        (17)        (20)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Earnings (loss) before taxes and
      other items                             25        (140)         71
     -------------------------------------------------------------------------
     Income and resource taxes                (8)         59         (26)
     Equity in earnings (loss)
      of associates                            1          (7)          2
     Minority interests                       (2)         (1)         (1)
     Change in accounting policies
      (note 2)                                 -           -         (17)
     -------------------------------------------------------------------------
     -------------------------------------------------------------------------
     Net earnings (loss)                      16         (89)         29
     -------------------------------------------------------------------------
     Comprehensive income (loss)              17         (90)         29
     -------------------------------------------------------------------------
     Per common share
        Net earnings (loss)                  0.05       (0.27)       0.09
        Diluted net earnings (loss)          0.05       (0.27)       0.09
        Dividends                            0.05           -        0.05
     -------------------------------------------------------------------------
     Weighted average number of common
      shares (millions)
        Basic                               327.6       327.6       327.5
        Diluted                             327.6       327.6       327.5
     -------------------------------------------------------------------------
 
       (See accompanying notes to the consolidated financial statements)
 
 SOURCE Placer Dome Inc.