-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CvPmU9AlZYLsoFNwyzTxl+y+/3w6WENjghSa8KKj8PPccdlUfABm9oMNzA7bAmVn Di7GOgLEIreTiFftwm5sfA== 0000819996-02-000018.txt : 20020830 0000819996-02-000018.hdr.sgml : 20020830 20020830152336 ACCESSION NUMBER: 0000819996-02-000018 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020830 FILED AS OF DATE: 20020830 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PLACER DOME INC CENTRAL INDEX KEY: 0000819996 STANDARD INDUSTRIAL CLASSIFICATION: GOLD & SILVER ORES [1040] IRS NUMBER: 000000000 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09662 FILM NUMBER: 02754257 BUSINESS ADDRESS: STREET 1: 1055 DUNSMUIR ST STE 1600 STREET 2: PO BOX 49330 BENTALL POSTAL STATION CITY: VANCOUVER BC CANADA STATE: A1 BUSINESS PHONE: 6046827082 MAIL ADDRESS: STREET 1: 1600-1055 DUNSMUIR ST STREET 2: PO BOX 49330 BENTALL STATION CITY: VANCOUVER STATE: A1 ZIP: V7X1P1 6-K 1 hedge6-k.txt HEDGE POSITION REDUCED NEWS RELEASE ================================================================================ Page 1 of 6 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 6 - K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 OF THE SECURITIES EXCHANGE ACT OF 1934 For the month of August, 2002 PLACER DOME INC. Suite 1600, 1055 Dunsmuir Street P.O. Box 49330, Bentall Postal Station Vancouver, British Columbia Canada V7X 1P1 Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F Form 40-F |X| ------- ------- Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes No |X| ------- ------- ================================================================================ FORM 6-K EXHIBIT INDEX EXHIBIT PAGE NO. ------- -------- 1. News Release dated August 29, 2002 3 -2- [PLACER DOME INC. LOGO] PLACER DOME REDUCING GOLD HEDGE POSITION BY 20% (ALL AMOUNTS IN $US) THURSDAY, AUGUST 29, 2002 VANCOUVER, CANADA--Placer Dome Inc. announced today that it is reducing the level of its committed ounces by 20% from the 8.5 million ounces of gold reported as at June 30, 2002. The recent volatility in the gold price has afforded Placer Dome the opportunity to reduce its call commitments for the years 2003 and 2004 at an anticipated net cost of about $2/oz, or approximately $2 million. By December 31, 2002 Placer Dome expects its committed ounces to total 6.8 million at an expected realized gold price in excess of $400/oz. This level of committed ounces would represent less than 40% of Placer Dome's average expected production over the next five years, or 15% of currently published reserves. For 2003, Placer Dome expects to have in excess of 90% of its production uncommitted. According to Placer Dome Executive Vice-President and CFO Rex McLennan: "Through our pro-active management we will continue to maintain the most effective forward sales program in the industry. We are positive in our outlook for gold and reducing our committed ounces will increase the already significant upside for our shareholders." Placer Dome's forward sales program contributed $54 million to earnings in the first half of 2002 and as of June 30, 2002 had a positive mark-to-market value of $223 million. -3- Subsequent to the expected reduction in committed ounces, Placer Dome's pro forma consolidated gold sales program is expected to consist of the following as of September 30, 2002:
---------------------------------------------------------------------------- 2002 2003 2004 2005 2006 2007 2008+ TOTAL FROM 2003 - ------------------------------------------------------------------------------------------------------------ Gold (000's ounces): - ------------------------------------------------------------------------------------------------------------ Fixed forward contracts Amount 163 570 445 697 498 230 400 2840 Average price (I) ($/oz.) 408 423 410 352 336 352 364 374 Fixed interest floating lease rate contracts Amount - - 110 148 317 517 2234 3326 Average price (I) ($/oz.) - - 350 483 427 443 482 466 Call options sold and cap agreements (ii) Amount 375 0 240 230 180 100 200 950 Average price ($/oz.) 329 0 330 365 359 367 394 361 Call options purchased (iii) Amount 108 395 - - - - - 395 Average price ($/oz.) 439 460 - - - - - 460 - ------------------------------------------------------------------------------------------------------------ Total committed Amount 430 175 795 1075 995 847 2834 6721 - ------------------------------------------------------------------------------------------------------------ Put options purchased (ii) Amount 212 635 240 - - - - 875 Average price ($/oz.) 290 301 300 - - - - 299 - ------------------------------------------------------------------------------------------------------------ Put options sold Amount 370 835 395 80 80 - - 1390 Average price 270 270 266 250 250 - - 267 - ------------------------------------------------------------------------------------------------------------
(i) Forward sales contracts include: a) Fixed forward contracts - a sales contract where the interest rate and gold lease rate of the contract are fixed to the maturity of the contract. The average price is based on the price at the maturity of the contract. b) Fixed interest floating lease rate contracts - a sales contract which has the U.S. dollar interest rate fixed to the maturity of the contract. Gold lease rates are reset at rollover dates ranging from 3 months to 3 years. The average price reflects the expected value to maturity of the contracts based on assumed gold lease rates. (ii) Put and call options and cap agreements are disclosed based on the intended delivery date of the option. The expiry date of the option may differ from the intended delivery date. The average price is based on the exercise price of the options. Cap agreements and put options, representing approximately 9% of 2003 production, can be extended to 2004 at the counterparty's option. The option expires before December 31, 2002. (iii) All call options were purchased in conjunction with a forward sale of the same amount and maturity. Therefore, the amount of call options purchased offsets the committed ounces of the corresponding forward sale. The combined instrument has the same economic substance as a purchased put option. However, the separate instruments may involve more than one, and different, counterparties. -end- FOR FURTHER INFORMATION: In North America: Brenda Radies (604) 661-1911 On the Internet: www.placerdome.com -4- 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. -5- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. PLACER DOME INC. (Registrant) Date: August 29, 2002 By: /s/ GEOFFREY P. GOLD ------------------------------- Geoffrey P. Gold Vice-President, Associate General Counsel and Assistant Secretary -6- -----END PRIVACY-ENHANCED MESSAGE-----