Placer hit by hedging losses

By Bernard Simon in Toronto
Monday, February 20, 2006
Posted: 01:25 PM EST (18:25 London)

Placer Dome (NYSE:PDG) , the Canada-based gold and copper miner in the throes of being acquired by Barrick Gold (NYSE:ABX) , was hit in the final quarter of its independent existence by sizeable hedging losses and a jump in gold operating costs.

Costs related to the Barrick takeover also contributed to pushing Placer's net fourth-quarter earnings down to $22m, or five cents a share, from $39m, or nine cents, a year earlier.

Barrick is set to move ahead early next month with decisions on the staffing and structure of the enlarged company. One of its challenges is to imbue Placer's operations with a more entrepreneurial culture and a greater sense of urgency.

Source : FT