Placer Dome Inc.
TSX : PDG
NYSE : PDG
ASX : PDG

Placer Dome Inc.

April 26, 2005 19:41 ET

Placer Dome announces first quarter 2005 results

(United States ("U.S.") dollars, in accordance with U.S. generally accepted accounting principles ("GAAP"))


VANCOUVER, April 26 - Placer Dome Inc. (NYSE, TSX, ASX: PDG)
announces first quarter earnings of $31 million ($0.07 per share). Before the
effect of the adoption of a new accounting policy related to accounting for
projected post closure personnel termination obligations, earnings were $45
million ($0.10 per share). During the quarter, Placer Dome produced 911,000
ounces of gold at cash costs of $275 per ounce. Mine operating earnings
totalled $104 million and cash from operations before changes in non-cash
working capital was $99 million for the quarter.

President and CEO Peter Tomsett said Placer Dome's first quarter
production was in line with expectations, with the majority of operations
meeting targeted output levels. "A number of our operations delivered
improvements in production and cost performance from the fourth quarter of
2004," he said. "However, cost pressures remain challenging."

Tomsett said Placer Dome's first quarter financial results showed
improvement from the previous quarter, with mine operating earnings up 33% and
cash from operations before changes in non-cash working capital up 50%. "We
expect performance to continue to trend upwards throughout the remainder of
the year."

MANAGEMENT'S DISCUSSION AND ANALYSIS
(United States ("U.S.") dollars, in accordance with U.S. generally
accepted accounting principles ("GAAP"))

Throughout this document, "Placer Dome" is defined to be collectively
Placer Dome Inc., its consolidated subsidiaries and its proportionate share of
unincorporated joint venture interests. Placer Dome's share is defined to
exclude minority shareholders' interests. The "Corporation" refers to Placer
Dome Inc. This Management's Discussion and Analysis ("MD&A") was made as of
April 26, 2005.

Highlights

Placer Dome's share of production was 911,000 ounces of gold in the first
quarter of 2005, a decrease of 2% over both the first and fourth quarters of
2004. Copper production was 91 million pounds, a decrease of 17% from the same
quarter in 2004 and 3% from the fourth quarter of 2004.

Consolidated net earnings in accordance with U.S. GAAP for the first
quarter of 2005 were $31 million ($0.07 per share), compared with $64 million
($0.16 per share) for the same period in 2004 and $39 million ($0.09 per
share) for the fourth quarter of 2004. Mine operating earnings were
$104 million for the quarter, a 34% decrease over the first quarter in 2004
and a 33% increase over the fourth quarter of 2004. Cash from operations
before the change in non-cash working capital was $99 million, a decrease of
28% from the same quarter in 2004 and an increase of 50% over the fourth
quarter of 2004.

Placer Dome's share of cash and total production costs per ounce of gold
for the quarter were $275 and $342, respectively, compared with $231 and $286
in the prior year period and $264 and $330 in the fourth quarter of the year.
Cash and total production costs per pound of copper for the period were $0.65
and $0.78, respectively, compared with $0.52 and $0.66, respectively, in the
prior year period and $0.64 and $0.82, respectively, in the fourth quarter of
2004.

<<
March 31
----------------
For the three
months ended
----------------
2005 2004
-------------------------------------------------------------------------
Financial ($ millions, except per share amounts)
Sales 491 508
Mine operating earnings
Gold 56 95
Copper 52 67
Other (4) (4)
-------------------------------------------------------------------------
104 158
-------------------------------------------------------------------------
Net earnings 31 64
Per share 0.07 0.16
Cash from operations 68 134
-------------------------------------------------------------------------
Operations - Gold (000s ozs)
Production (Placer Dome's share) 911 929
Production (consolidated) 889 905
Sales (consolidated) 889 915
Cash production costs ($/oz) (Placer Dome's share)(i) 275 231
Total production cost ($/oz) (Placer Dome's share)(i) 342 286
Sales price realized ($/oz) 416 398
London spot price ($/oz) 427 408
-------------------------------------------------------------------------
Operations - Copper (millions lbs)
Production 91 109
Sales 96 124
Cash production costs ($/lb)(i) 0.65 0.52
Total production cost ($/lb)(i) 0.78 0.66
Sales price realized ($/lb) 1.32 1.19
London spot price ($/lb) 1.48 1.24
-------------------------------------------------------------------------
(i) Cash and total production costs per ounce and pound are non-GAAP
measures that do not have any standardized meaning as prescribed
by GAAP and are therefore unlikely to be comparable to similar
measures presented by other entities. Please refer to the Non-GAAP
Measures section for further detail.
(ii) During the first quarter of 2005, Placer Dome changed its accounting
policy with respect to termination obligations, whereby the
liability accrued represents the obligation to date for all
employees at mine sites (see note 2 to the unaudited interim
consolidated financial statements for more details). The cumulative
effect of this change was a non-cash reduction in earnings on a
pre-tax and after-tax basis of $21 million and $14 million ($0.03
per share), respectively. The first quarter of 2004 earnings
included the effect of a change in accounting policy, with respect
to deferred stripping to exclude the recording of liabilities on
the balance sheet. The cumulative effect of this change through
December 31, 2003, was to increase earnings on an after-tax basis
by $4 million ($0.01 per share).

Outlook

Placer Dome's gold production guidance range for 2005 has been decreased
by 50,000 ounces to 3.6 to 3.7 million ounces. This is primarily the result of
lower forecast production from Porgera as a result of increased erosion and
slides on the west wall of Stage 5 of the open pit. Primarily as a result of
lower production at Porgera, gold cash and total costs are now forecast at
between $260 and $270 per ounce and $330 to $340 per ounce, respectively, an
increase from between $250 and $260 per ounce and $315 to $325 per ounce,
respectively. Placer Dome's copper production and cost guidance ranges remain
unchanged at 410 to 420 million pounds with cash and total costs of $0.60 to
$0.65 and $0.75 to $0.80 per pound, respectively.

Capital expenditures, excluding deferred stripping expenditures of
$35 million, remain forecast at $260 million. Exploration expenditures are
still forecast to be approximately $90 million in 2005.

The 2005 Canadian federal budget proposed phased in reductions of the
general corporate tax rate of 2% from January 1, 2008 through January 1, 2010
and the elimination of the federal corporate surtax effective January 1, 2008.
These changes are currently being debated within the Canadian House of Commons
and may or may not become law given the current minority government. Should
the changes be enacted, the estimated income tax impact to Placer Dome would
be a charge to deferred income tax expense of approximately $24 million and an
equivalent reduction in the deferred tax asset.

The Chilean House of Representatives has passed a tax bill proposing a 5%
tax on mine operating profits. At present, the bill is before the Chilean
Senate. If enacted, the tax would take effect in 2006. The impact of the
legislation on Placer Dome would depend on decisions regarding whether or not
Zaldivar would opt out of the tax protection currently provided by its DL600
investment contract. The La Coipa mine does not have DL 600 tax protection
and, as such, the tax, if approved, would have an impact on results. Placer
Dome would also have to consider the impact of the legislation on the
potential development of the Cerro Casale project.

Exploration and Development Projects

For details concerning mineral reserve and mineral resource estimates for
the exploration and development projects set out below, please refer to the
Corporation's mineral reserve and mineral resource tables and the notes
thereto contained in the Corporation's December 31, 2004 Renewal Annual
Information Form/Form 40-F.

The Cortez Hills project, on the 60% owned Cortez Joint Venture property,
encompasses a high-grade open pit exploration discovery made in 2003 combined
with an adjacent lower grade deposit known as the Pediment deposit. At
December 31, 2004, Placer Dome's share of proven and probable mineral reserves
was estimated at 4.4 million ounces. During the first quarter of 2005, work
continued on the feasibility study, with completion still expected in the
second half of 2005.

The Pueblo Viejo project contemplates the mining of a 15 million ounce
refractory gold mineral resource from an historic mining area in the Dominican
Republic. Placer Dome acquired 100% of the project through an agreement with
the Dominican government in 2002. Work continued on the feasibility study
which is anticipated to be completed in the second half of 2005.

The Cerro Casale project contemplates mining a large gold-copper porphyry
deposit in the Andean highlands in Chile. Cerro Casale is one of the world's
largest undeveloped gold and copper deposits with Placer Dome's 51% share of
measured and indicated mineral resources estimated at 13 million ounces of
gold and 3.3 billion pounds of copper at December 31, 2004. Work is underway
to complete an updated feasibility study expected in the second half of 2005.

The Donlin Creek project contemplates an open pit operation mining a
large refractory gold deposit in southwest Alaska. Placer Dome owns 30% of the
project and is earning an additional 40%. Placer Dome's share of the project's
measured and indicated gold mineral resource and inferred gold mineral
resource, assuming 70% ownership, is 7.8 million ounces and 10.0 million
ounces, respectively. During the quarter work continued on a pre-feasibility
study.

Placer Dome continues to focus on optimizing the use of its mines'
infrastructure by exploring to expand mineral reserves at existing operations.
During the first quarter of 2005, exploration expenditures totaled $18
million, $12 million of which related to existing mines with major focuses on
the Campbell and Kalgoorlie West operations. In addition to the mine site
focus, drill programs have been completed or are under way at 4 projects and
drill target definition is proceeding on a further 14 properties.

Detailed Review of Financial Results

Earnings
Consolidated net earnings in accordance with U.S. GAAP for the first
quarter of 2005 were $31 million ($0.07 per share), compared with $64 million
($0.16 per share) for the same period in 2004.

The first quarter of 2005 net earnings include the effect of the adoption
of a new accounting policy relating to accounting for post closure termination
obligations. The cumulative effect of this change was a non-cash decrease in
after-tax earnings of $14 million. In the first quarter of 2005, Placer Dome's
net earnings were impacted by unrealized non-hedge derivative after-tax losses
of $nil (2004 - $5 million).

Mine operating earnings for the first three months of 2005 were
$104 million, a decrease of 34% or $54 million from 2004 due to lower
contributions from both gold and copper.

Gold operating earnings decreased by 41% to $56 million in the first
quarter of 2005 compared with $95 million in 2004. Gold sales revenue for the
quarter was $365 million compared with $361 million in the prior year period,
reflecting an $18 per ounce increase in the average realized price, partially
offset by a decrease in sales volume due to decreased production. The increase
in the average realized sales price was primarily due to a 5% increase in the
average market price. Placer Dome's realized price was $416 per ounce of gold
versus a spot price average of $427 per ounce as Placer Dome delivered into
all positions that matured in the quarter. The decrease in production was due
to lower production at the Cortez, Kalgoorlie West and Porgera mines and the
cessation of production at Misima in the second quarter of 2004. This was
partially offset by the restart of the Golden Sunlight mine and higher
production from the Granny Smith, Campbell and North Mara mines.

Placer Dome's share of cash and total production costs per ounce for the
period were $275 and $342, respectively, compared with $231 and $286 in the
prior year period. The increase in cash costs per ounce was due to the
appreciation of the South African rand, the Canadian and Australian dollars,
the Papua New Guinean kina and the Chilean peso against the U.S. dollar
(cumulatively $7 per ounce), increased global energy prices, higher input
commodity costs and various mine site specific issues, partially offset by a
positive $5 million contribution from Placer Dome's currency hedging program.

Copper operating earnings of $52 million in the first quarter of 2005
were 22% lower than 2004. Copper sales revenue for the quarter was
$124 million compared with $145 million in the 2004 period, reflecting a 23%
decrease in sales volumes and a negative contribution of $19 million from
Placer Dome's copper hedging program, partially offset by a 19% increase in
the average market price. Consolidated copper production in the first quarter
of 2005 was 90.6 million pounds (41,100 tonnes), down 17% from the prior year
period due to lower production at the Osborne and Zaldivar mines. Placer
Dome's share of cash and total production costs per pound of copper for the
period were $0.65 and $0.78, respectively, compared with $0.52 and $0.66,
respectively, in 2004. The increase in unit production costs primarily
reflects the lower production levels, appreciation of the Chilean peso against
the U.S. dollar, higher input costs and higher energy and shipping costs.

Cash from Operations
Cash from operations was $68 million in the first quarter of 2005,
compared with $134 million in the corresponding period in 2004. Excluding the
impact of non-cash working capital, cash from operations was $99 million in
the first quarter of 2005, compared with $137 million in the prior year
period. The decrease of 28% primarily reflects a decrease in cash mine
operating earnings, partially offset by an increase in investment and other
business income.

Expenditures on property, plant and equipment in the first three months
of 2005 amounted to $57 million, a decrease of $12 million compared with the
corresponding prior period. The expenditures included $10 million primarily
for mobile equipment and development at Cortez, $8 million at North Mara
primarily for pre-stripping of the Gokona pit, $7 million at Porcupine for the
Pamour pit and underground development at Hoyle Pond and $5 million at South
Deep for underground development and infrastructure.

Financing activities in the first three months of 2005 included net debt
additions of $6 million and an increase of $11 million in restricted cash. In
the first quarter of 2004, financing activities included proceeds of
$15 million on the exercise of common share options and $1 million of net debt
additions. Consolidated short and long-term debt balances at March 31, 2005,
were $1,273 million, compared with $1,267 million at December 31, 2004.

On March 31, 2005, consolidated cash and short-term investments amounted
to $1,037 million, an increase of $6 million from the beginning of the year.
Of the consolidated balance of cash and short-term investments, $1,024 million
was held by Placer Dome and its wholly owned subsidiaries. In addition to cash
and short-term investments, Placer Dome had $133 million of restricted cash,
primarily related to the North Mara demand loan, which requires cash to be
placed on deposit with the lender in an amount equal to drawdowns.

Forward Sales and Options
During the first quarter of 2005, Placer Dome reduced the maximum
committed ounces under its precious metals sales program by 0.3 million ounces
to 8.7 million ounces. Committed ounces were reduced during the period by
delivering into forward sales contracts. This represents maximum committed
ounces as a percentage of reserves at December 31, 2004 of just under 15% at
an average expected realized price of approximately $394 per ounce for
delivery over 12 years. Looking forward, Placer Dome expects to reduce its
maximum committed ounces to 7.5 million by December 31, 2005 by delivering
into maturing contracts. This would represent a cumulative decrease in maximum
committed ounces of approximately 16% for the year. See note 7 of the
unaudited interim consolidated financial statements for detailed allocation of
the metals sales and currency programs.

On March 31, 2005, based on spot prices of $427.50 per ounce for gold,
$7.18 per ounce for silver and an Australian to U.S. dollar ("AUD/USD")
exchange rate of $1.2937, the mark-to-market value of Placer Dome's precious
metal sales program was negative $698 million, a decrease of $77 million from
the negative $775 million at December 31, 2004 (at the then spot prices of
$438 per ounce of gold, $6.80 per ounce of silver and an AUD/USD exchange rate
of $1.2814). The amount reflects the value that would have been paid to
counterparties if the contracts were closed out on March 31, 2005 under
prevailing market conditions without allowance for market illiquidity.

The period-over-period change in the mark-to-market value of Placer
Dome's precious metals sales program and the reconciliation to the unrealized
mark-to-market value are detailed as follows:

---------
$ million
-------------------------------------------------------------------------
Mark-to-market value at December 31, 2004 (775)
Cash value cost 12
Change in spot price ($427.50 / oz. versus $438.00 / oz.) 83
Accrued contango 34
Change in the AUD/USD exchange rate, volatility, interest
rates and gold lease rates (52)
-------------------------------------------------------------------------
Mark-to-market value at March 31, 2005 (698)
Provision included in Deferred Commodity and Currency Sales
Contracts and Derivatives liability relating primarily to the
value of the AurionGold and East African Gold precious metal
hedge books remaining from the acquisitions by Placer Dome 160
-------------------------------------------------------------------------
Net unrealized mark-to-market value at March 31, 2005 (538)
-------------------------------------------------------------------------

The net unrealized mark-to-market value of negative $538 million reflects
the income statement effect that Placer Dome could expect to incur had it
closed out its contracts at March 31, 2005 under metal price, foreign exchange
rates, interest rates and volatilities prevailing at that time. This amount is
the mark-to-market balance of negative $698 million less the remaining amount
of the deferred commodity derivative provision of $160 million recorded on
Placer Dome's balance sheet at March 31, 2005 primarily related to the fair
value of the AurionGold and East African Gold precious metal hedge books on
the dates that Placer Dome acquired control of those companies.

The mark-to-market and unrealized mark-to-market amounts are not
estimates of future losses which depend on various factors including contango
and interest rates, gold lease rates and the then prevailing spot price.

The copper sales program mark-to-market value of forward and option
contracts on March 31, 2005, was negative $28 million based on a spot copper
price of $1.546 per pound (December 31, 2004 - negative $38 million based on
a spot copper price of $1.488 per pound). The currency derivative program's
mark-to-market on March 31, 2005 was positive $44 million based on an AUD/USD
foreign exchange rate of 1.2937 and a Canadian to U.S. dollar foreign exchange
rate of $1.2096 (December 31, 2004 - positive $51 million based on an AUD/USD
foreign exchange rate of 1.2814 and a Canadian to U.S. dollar foreign exchange
rate of $1.2036), respectively.

Other Income Statement Items
Costs related to general and administrative, exploration, technology,
resource development and other totalled $49 million in the first quarter of
2005, $4 million greater than in the prior year period. The $2 million
increase in exploration was due to additional mine site exploration primarily
in the Kalgoorlie region and precious metals exploration activity in South
Africa. The increase in general and administration costs was primarily due to
the weakening U.S. dollar and costs associated with increased corporate
activities.

Pre-tax non-hedge derivative losses in the first three months of 2005
were $1 million (2004 - loss of $7 million). Included in this amount are net
unrealized non-cash losses of $nil (2004 -$5 million).

Investment and other business income for the first three months of 2005
was $22 million (2004 - $2 million). The 2005 balance includes insurance
recoveries of $6 million, gains on the disposal of assets of $3 million and an
increase in interest income of $5 million due to higher cash balances. The
2004 balance included foreign exchange losses of $5 million.

Interest and financing expenses were $23 million and $19 million in the
first quarter of 2005 and 2004, respectively. The increase relates to higher
average debt levels in the 2005 period.

The effective tax rate during the period decreased to 25% compared to 36%
in the prior year period. This decrease was primarily due to the reversal of
previously booked tax contingencies which were no longer required. On
April 21, 2005 the Supreme Court of Canada granted leave for the Ontario
Ministry of Finance to appeal a decision by the Ontario Court of Appeal which
reversed a reassessment of a subsidiary of the Corporation for Ontario mining
taxes. Management is of the view that Placer Dome will ultimately prevail,
accordingly, Placer Dome has not recorded a liability for this contingency.
See note 8(c) to the unaudited interim consolidated financial statements for
more details.

The first quarter 2005 net earnings include the effect of a change in
accounting policy with respect to termination obligations, whereby the
liability accrued represents the obligation to date for all employees at mine
sites (see note 2 to the unaudited interim consolidated financial statements
for more details). The cumulative effect of this change was a non-cash
reduction in earnings on a pre-tax and after-tax basis of $21 million and
$14 million ($0.03 per share), respectively. The first quarter of 2004
earnings included the effect of a change in accounting policy, with respect to
deferred stripping to exclude the recording of liabilities on the balance
sheet. The cumulative effect of this change through December 31, 2003, was to
increase earnings on an after-tax basis by $4 million ($0.01 per share).

Share Capital
As at April 22, 2005, the Corporation had 436,498,366 common shares
outstanding. As at the same date, it had $230 million in convertible
debentures outstanding, none of which were in a position to be converted on
April 22, 2005. If conversion were possible, the total number of common shares
the Corporation would have to issue on conversion on that date would be
10,991,631. As at April 22, 2005, the Corporation had 14,856,464 share options
outstanding under its stock based incentive plans. If all of these options
were exercised on that date, the Corporation would have to issue 14,856,464
common shares.

Recent Accounting Pronouncements
On March 30, 2005, the Financial Accounting Standards Board ("FASB")
ratified the consensus of the Emerging Issues Task Force ("EITF") of the FASB
Issue 04-6 that stripping costs incurred during the production phase of a mine
are variable production costs that should be included in the costs of the
inventory produced during the period that the stripping costs are incurred.
This consensus is effective for the first reporting period in fiscal years
beginning after December 15, 2005, with early adoption permitted. The
consensus can be adopted either prospectively through a cumulative-effect
adjustment or retrospectively by restating prior period financial statements.

Placer Dome currently capitalizes stripping costs incurred during the
production phase of a mine to the deferred stripping account. Amortization,
which is calculated using the units of production method based on recovered
ounces of gold or pounds of copper, is charged to cost of sales as gold or
copper is produced and sold, using a stripping ratio calculated as the ratio
of total tonnes of rock to be moved to total ounces of gold or total pounds of
copper expected to be recovered over the life of open pits. This policy
results in the expensing of stripping costs over the lives of the open pits as
gold or copper is produced and sold. At March 31, 2005, Placer Dome's deferred
stripping amount on its unaudited interim consolidated balance sheet was
$180 million. In addition to this, smaller deferred stripping balances were
present in various product inventory accounts such as metal in circuit and ore
stockpiles.

Placer Dome is currently evaluating the impact of this consensus.
On April 15, 2005, the U.S. Securities and Exchange Commission ("SEC")
announced that it would provide for a phased-in implementation process for
FASB Statement No. 123®, Share-Based Payment ("SFAS 123®"). The SEC would
require that registrants adopt SFAS 123®'s fair value method of accounting
for share-based payments to employees no later than the beginning of the first
fiscal year beginning after June 15, 2005. Placer Dome now plans to adopt
SFAS 123® effective January 1, 2006.

Canadian GAAP

Pursuant to an exemption order obtained from Canadian securities
regulatory authorities in July 2003, Placer Dome was permitted to file its
annual and quarterly consolidated financial statements prepared in US GAAP
rather than Canadian GAAP provided that, among other things, the notes to the
first two sets of annual financial statements filed after the date of the
order and the notes to the interim financial statements filed during such
period include a reconciliation highlighting the material differences between
such financial statements prepared in accordance with US GAAP as compared to
the financial statements being prepared in Canadian GAAP, as well as a
management's discussion and analysis focusing on these differences. In
accordance with the terms of the order, Placer Dome is no longer required to
include the reconciliation in the notes to its interim financial statements.
Pursuant to the Regulations under the Canada Business Corporations Act, Placer
Dome will be required to include the reconciliation between US GAAP and
Canadian GAAP described above in the notes to its annual financial statements
for the financial year ended December 31, 2005. After such date, Placer Dome
will no longer be required to include this reconciliation in the notes to its
annual financial statements.

Review of Mining Operations

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PRODUCTION AND OPERATING SUMMARY
-------------------------------------------------------------------------
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For the three months ended March 31
-------------------------------------------------------------------------
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Placer Dome's Share
Placer Mine ----------------------------------
Dome's share operating Millfeed
Mine (% of mine earnings (000s Grade Recovery
production) (1) tonnes) (g/t,%) (%)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
GOLD
Canada
Campbell 100% 2005 $ 3 118 15.5 95.8
2004 $ 1 98 14.4 95.6
-------------------------------------------------------------------------
Musselwhite 68% 2005 2 242 6.0 95.5
2004 2 248 5.0 94.6
-------------------------------------------------------------------------
Porcupine 51% 2005 6 548 3.1 92.1
2004 6 502 3.7 91.6
-------------------------------------------------------------------------
United States
Bald
Mountain(3) 100% 2005 (1) 360 1.1 -
2004 2 216 1.3 -
-------------------------------------------------------------------------
Cortez(3)(4) 60% 2005 28 5,332 1.1 -
2004 31 6,074 1.2 -
-------------------------------------------------------------------------
Golden
Sunlight(5) 100% 2005 (1) 529 1.5 72.3
2004 1 - - -
-------------------------------------------------------------------------
Turquoise
Ridge(6) 75% 2005 (2) 91 13.1 91.0
100% 2004 4 106 14.6 93.9
-------------------------------------------------------------------------
Australia
Granny Smith 100% 2005 (7) 974 3.3 92.2
2004 (4) 1,041 1.7 89.2
-------------------------------------------------------------------------
Henty 100% 2005 4 74 16.7 96.3
2004 3 73 13.8 96.0
-------------------------------------------------------------------------
Kalgoorlie West 100% 2005 (3) 709 2.5 95.6
2004 7 794 3.1 96.2
-------------------------------------------------------------------------
Kanowna Belle 100% 2005 (3) 429 4.0 88.7
2004 5 473 3.9 89.5
-------------------------------------------------------------------------
Osborne(7) 100% 2005 - 387 0.7 84.7
2004 - 375 1.0 82.7
-------------------------------------------------------------------------
Papua New Guinea
Misima(8) 80% 2004 3 1,137 0.7 87.4
-------------------------------------------------------------------------
Porgera 75% 2005 33 1,112 5.4 91.3
2004 36 1,196 6.2 88.2
-------------------------------------------------------------------------
Chile
La Coipa(9) 50% 2005 6 852 1.0 81.8
2004 5 797 1.4 82.4
-------------------------------------------------------------------------
South Africa
South Deep 50% 2005 (6) 261 5.5 97.1
2004 (3) 258 5.7 97.3
-------------------------------------------------------------------------
Tanzania
North Mara 100% 2005 6 692 3.1 91.5
2004 6 499 3.3 93.4
-------------------------------------------------------------------------
Metal hedging
loss 2005 (8)
2004 (10)
-------------------------------------------------------------------------
Currency
hedging gain 2005 5
2004 5
-------------------------------------------------------------------------
TOTAL GOLD 2005 $ 56
2004 $ 95
-------------------------------------------------------------------------
COPPER
Osborne(7) 100% 2005 3 387 2.0 94.0
2004 10 375 2.9 96.4
-------------------------------------------------------------------------
Zaldivar(3) 100% 2005 68 4,146 0.9 -
2004 65 4,544 1.4 -
-------------------------------------------------------------------------
Metal hedging
loss 2005 (19)
2004 (8)
-------------------------------------------------------------------------
TOTAL COPPER 2005 $ 52
2004 $ 67
-------------------------------------------------------------------------
Other(11) 2005 (4)
2004 (4)
-------------------------------------------------------------------------
CONSOLIDATED MINE
OPERATING 2005 $ 104
EARNINGS(1) 2004 $ 158
-------------------------------------------------------------------------


-------------------------------------------------------------------------
-------------------------------------------------------------------------
PRODUCTION AND OPERATING SUMMARY
-------------------------------------------------------------------------
-------------------------------------------------------------------------
For the three months Estimated annual 2005/
ended March 31 Actual 2004
----------------------------------------------------
Placer Placer Dome's Share
Dome's ----------------------------------------------------
Share Production Cost per Cost per
(% of -------------- unit(2) Production unit(10)
mine (ozs, % ($/oz, $/lb) (ozs, ($/oz, $/lb)
Mine production) 000s lbs) change Cash Total 000s lbs) Cash Total
-------------------------------------------------------------------------
-------------------------------------------------------------------------
GOLD
Canada
Campbell 100% 2005 59,379 +37% 299 371 200,000 285 365
2004 43,206 295 376 209,045 276 344
-------------------------------------------------------------------------
Musselwhite 68% 2005 45,929 +23% 294 378 165,000 275 355
2004 37,413 289 369 163,386 269 345
-------------------------------------------------------------------------
Porcupine 51% 2005 55,049 +2% 251 315 185,000 255 335
2004 53,984 243 312 201,710 236 310
-------------------------------------------------------------------------
United States
Bald
Mountain
(3) 100% 2005 12,051 -7% 421 460 90,000 330 380
2004 12,912 211 232 46,685 349 379
-------------------------------------------------------------------------
Cortez
(3)(4) 60% 2005 132,245 -22% 172 210 515,000 185 225
2004 169,507 150 190 630,801 162 201
-------------------------------------------------------------------------
Golden
Sunlight
(5) 100% 2005 11,777 +431% 412 505 90,000 300 405
2004 2,219 - - 2,419 - -
-------------------------------------------------------------------------
Turquoise
Ridge(6) 75% 2005 34,889 -18% 361 397 150,000 310 350
100% 2004 42,494 260 267 126,921 343 352
-------------------------------------------------------------------------
Australia
Granny
Smith 100% 2005 94,275 +89% 372 496 350,000 310 420
2004 49,812 372 461 267,267 354 440
-------------------------------------------------------------------------
Henty 100% 2005 35,317 +12% 187 289 110,000 210 335
2004 31,578 198 302 143,064 170 283
-------------------------------------------------------------------------
Kalgoorlie
West 100% 2005 56,590 -30% 391 470 270,000 350 430
2004 80,318 292 340 262,553 335 418
-------------------------------------------------------------------------
Kanowna
Belle 100% 2005 54,192 -3% 377 478 245,000 280 360
2004 55,625 264 331 237,291 254 316
-------------------------------------------------------------------------
Osborne(7) 100% 2005 7,510 -24% - - 40,000 -
2004 9,863 - - 41,630 -
-------------------------------------------------------------------------
Papua New
Guinea
Misima(8) 80% 2004 22,240 296 303 40,522 275 281
-------------------------------------------------------------------------
Porgera 75% 2005 181,519 -6% 213 245 600,000 265 305
2004 193,237 180 213 764,809 192 228
-------------------------------------------------------------------------
Chile
La Coipa(9) 50% 2005 21,920 -25% 258 323 100,000 245 325
2004 29,117 220 297 90,932 231 300
-------------------------------------------------------------------------
South Africa
South Deep 50% 2005 45,467 -1% 478 549 215,000 370 435
2004 45,857 427 472 214,293 394 437
-------------------------------------------------------------------------
Tanzania
North Mara 100% 2005 63,026 +28% 248 319 290,000 230 320
2004 49,420 245 301 208,484 230 289
-------------------------------------------------------------------------
Metal
hedging
loss 2005
2004
-------------------------------------------------------------------------
Currency
hedging gain 2005 (6) (6)
2004 (6) (6)
-------------------------------------------------------------------------
3,600,000 - 260- 330-
TOTAL GOLD 2005 911,135 -2% 275 342 3,700,000 270 340
2004 928,802 231 286 3,651,812 240 298
-------------------------------------------------------------------------
COPPER
Osborne(7) 100% 2005 16,256 -29% 1.10 1.26 80,000 0.91 1.04
2004 22,983 0.65 0.76 87,404 0.69 0.84
-------------------------------------------------------------------------
Zaldivar
(3) 100% 2005 74,330 -13% 0.55 0.68 332,000 0.55 0.68
2004 85,850 0.49 0.64 325,406 0.51 0.66
-------------------------------------------------------------------------
Metal
hedging
loss 2005
2004
-------------------------------------------------------------------------
410,000 - 0.60- 0.75-
TOTAL COPPER 2005 90,586 -17% 0.65 0.78 420,000 0.65 0.80
2004 108,833 0.52 0.66 412,810 0.55 0.70
-------------------------------------------------------------------------
Other(11) 2005
2004
-------------------------------------------------------------------------
CONSOLIDATED
MINE 2005
OPERATING
EARNINGS(1) 2004
-------------------------------------------------------------------------

Notes to the Production and Operating Summary:

(1) Mine operating earnings 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 U.S., exclude the pro-rata share of La Coipa, a
non-controlled incorporated joint venture. Mine operating earnings
comprises sales, at the spot price, less cost of sales including
reclamation costs, depreciation and depletion for each mine, in
millions of U.S. dollars.
(2) Components of Placer Dome's share of cash and total production costs
in accordance with the Gold Institute Standard:

----------------
For the
three months
ended March 31
----------------
2005 2004
$/oz $/oz
--------------------------------------------------------------------
Direct mining expenses 275 219
Stripping and mine development adjustment (17) (6)
Third party smelting, refining and transportation 1 1
By-product credits (1) (2)
--------------------------------------------------------------------
--------------------------------------------------------------------
Cash operating costs per ounce 258 212
--------------------------------------------------------------------
Royalties 15 15
Production taxes 2 4
--------------------------------------------------------------------
--------------------------------------------------------------------
Total cash costs per ounce 275 231
--------------------------------------------------------------------
Depreciation 35 34
Depletion and amortization 25 17
Reclamation and mine closure 7 4
--------------------------------------------------------------------
--------------------------------------------------------------------
Total production costs per ounce 342 286
--------------------------------------------------------------------

(3) Recovery percentage is difficult to accurately measure at heap leach
operations.

(4) The Cortez mine processes material by way of carbon-in-leach ("CIL")
and heap leaching.

-----------------------------------
For the three months ended March 31
-----------------------------------
Millfeed Produc-
(000's Grade Recovery tion
tonnes) (g/t) (%) (ozs)
--------------------------------------------------------------------
Carbon in leach
2005 494 4.8 87.9 64,381
2004 469 6.1 88.9% 82,073
--------------------------------------------------------------------
Heap leach
2005 4,813 0.7 Note 3 62,308
2004 5,547 0.8 Note 3 78,124
--------------------------------------------------------------------
Sale of carbonaceous ore
2005 25 7.3 87.3 5,556
2004 58 5.9 85.2% 9,310
--------------------------------------------------------------------
--------------------------------------------------------------------
Total
2005 5,332 1.1 Note 3 132,245
2004 6,074 1.2 Note 3 169,507
--------------------------------------------------------------------

(5) Production from Golden Sunlight was suspended in December 2003 and
recommenced when ore was delivered to the mill from stage 2B in
January 2005.

(6) Production from Turquoise Ridge relates to third party ore sales.
The mine's cash and total cost per ounce balances do not include the
cost of processing the ore and are not included in Placer Dome's
cash and total cost per ounce balances.

(7) Osborne produces copper concentrate with gold as a by-product.
Therefore, gold unit costs are not applicable.

(8) Silver is a by-product at the Misima mine. For the three months
ended March 31, 2004, Misima produced 117,000 ounces of silver.
Mining was completed at Misima in May 2001, but processing of
stockpiled ore continued until May 2004.

(9) Gold and silver are accounted for as co products at La Coipa. 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. The equivalent ounces of gold produced at
La Coipa were 33,970 ounces and 40,550 ounces for the three months
ended March 31, 2005 and 2004 respectively. At La Coipa, production
for silver was 0.7 million ounces for the three months ended
March 31, 2005 and 0.7 million ounces for the prior year period.

(10) Estimated 2005 annual unit costs for the Canadian, Australian, Papua
New Guinean, Chilean and South Deep mines are based on Canadian and
Australian dollar, Papua New Guinean kina, Chilean peso and South
African rand exchange rates to the U.S. dollar of 1.2048, 1.2821,
3.00, 600, and 6.00 to 1, respectively. Any change from these
exchange rates would have an impact on the unit costs. At March 31,
2005 these exchange rates were 1.2096, 1.2965, 3.08, 584, and 6.25
to 1, respectively.

(11) Pursuant to SFAS 109 - Accounting for Income Taxes, on business
acquisitions, where differences between assigned values and tax
bases of property, plant and equipment acquired exist, Placer Dome
grosses up the property, plant and equipment values to reflect the
recognition of the deferred tax liabilities for the tax effect of
such differences. Other mine operating earnings includes a charge of
$4 million in the three months ended March 31, 2005 (2004 -
$2 million) related to the amortization of the property, plant and
equipment allocation. The amortization of these amounts includes
$1 million (2004 - nil) for Kalgoorlie West, $1 million (2004 -
$1 million) for Porgera, $1 million (2004 - $1 million) for North
Mara and $1 million (2004 - nil) for Henty.


Review of Mining Operations
Canada
On average, the Canadian dollar appreciated 7% against the U.S. dollar in
the first quarter of 2005 compared to the first quarter of 2004.

Production at the Campbell mine in the first three months of 2005
increased by 37% over the prior year period. The increase was the result of
improved mine productivity, mill throughput and headgrade. Cash costs per
ounce were similar to the prior year period as the impact of the increased
production was offset by the appreciation of Canadian dollar, increased
development activity, higher maintenance expenses and costs related to the
implementation of the SAP enterprise resource planning system which went live
in April of 2005. Cash costs during the first quarter were 16% below those of
the fourth quarter of 2004, but above annual guidance for 2005. Costs are
expected to decrease over the remainder of 2005 primarily due to an
anticipated reduction in maintenance expenditures. The mine's Reid shaft will
be taken out of service for maintenance for approximately five days during the
second quarter, this may result in an adverse impact on quarterly production.

At the Musselwhite mine, Placer Dome's share of production for the first
quarter was 23% higher than the prior year period and 5% higher than the
fourth quarter of 2004 as the underground mine delivered 4,000 tonnes per day
to the mill. Grades during the quarter were improved due to the combination of
no lower grade open pit material being needed to meet mill capacity, higher
than expected grades from the PQ Deeps development and stope sequencing. Cash
costs per ounce were approximately the same as the prior year period as the
increased production offset the appreciation of the Canadian dollar and
increased short-term development activities and other operating costs. Cash
costs were marginally above those of the fourth quarter of 2004 and are
expected to decline over the remainder of 2005 due primarily to a reduction in
contractor costs.

Placer Dome's share of production in the first quarter for the Porcupine
Joint Venture was approximately the same as the prior year period as higher
throughput due to the mill expansion completed in the fourth quarter of 2004
was offset by lower grades resulting from the closure of the Dome underground
mine in May of 2004. Following the mill expansion, production in the first
quarter of 2005 was 21% greater than in the fourth quarter of 2004. Cash costs
per ounce were slightly higher than the first quarter of 2004 due to the
continued appreciation of the Canadian dollar, partially offset by lower
operating costs. Overburden removal at the Pamour pit continued throughout the
quarter, with gold production expected to commence in the third quarter of
this year to coincide with the closure of the Dome open pit.

United States
Placer Dome's share of production from the Cortez mine in the first three
months of 2005 decreased by 22% compared with the 2004 period. This was due
primarily to planned lower grades in the CIL process and planned lower
production from the heap leach operations due to decreased tonnes placed on
the leach pads as a result of a higher stripping ratio in the quarter. Cash
costs per ounce were 15% higher than in the prior year period, primarily due
to the lower production, but 5% below those of the fourth quarter of 2004.

Placer Dome's share of production from Turquoise Ridge in the first three
months of 2005 was 18% lower than the prior year period due to lower
shipments. This was due to stockpile buildup at the end of 2003 as compared to
the fourth quarter of 2004. Ounces mined during the first quarter of 2005 were
7% higher than the prior year period due to a doubling of production from the
Turquoise Ridge mine, partially offset by a 17% reduction in ounces from the
Getchell mine. Production from the Turquoise Ridge mine is expected to
continue to increase throughout 2005. Cash costs per ounce, excluding the cost
of processing, were 39% higher than the period year period due to increased
contractor, consultant and input prices. Cash costs per ounce were $45 below
the fourth quarter of 2004, but still in excess of 2005 guidance. Cost
experience in the first quarter, partially offset by the anticipated
production increases from first quarter levels, has resulted in cash and total
costs per ounce forecasts for 2005 increasing to $310 and $350 per ounce from
$280 and $300 per ounce, respectively.

Australia and Papua New Guinea

At the Porgera mine, Placer Dome's share of production in the first three
months of 2005 was 6% below prior year first quarter levels and 11% below that
of the fourth quarter of 2004. Production decreased due to impacts on the
mining schedule from increased erosion and slides on the west wall of the open
pit. The issue affected access to higher-grade stage 5 ore and impacted mining
rates. Cash costs per ounce were $213 or 18% higher than the first quarter of
2004, primarily due to the decrease in production, the appreciation of the
Papua New Guinean kina and higher fuel prices.

The mine has been experiencing minor failures of the west pit wall since
2002. To date the impacts have been manageable without a significant impact on
production. Due to heavy rainfall conditions in the first quarter of 2005, the
failures have accelerated and are having a more significant impact on
production as material falling into the pit requires removal to access mining
faces and is restricting access to certain areas. The situation is being
evaluated to determine a long-term solution and this study will be completed
by June. In the interim, temporary measures have been taken to direct as much
surface water as possible away from these areas. Based on estimated impacts
and pending the completion of the evaluation, Placer Dome has decreased its
share of forecast production for 2005 by 120,000 ounces to 600,000 ounces and
increased its forecast cash and total costs per ounce to $265 and $305 from
$255 and $295, respectively. This issue is expected to have no impact on
reserves.

At the Granny Smith mine, production for the first quarter was 89% above
that of the prior year period. This was primarily due to higher than planned
grades, mill throughput and recoveries during the first quarter of 2005.
Results for the first quarter of 2004 were negatively impacted by the
processing of low-grade stockpiled ore. As a result of the positive production
experience, 2005 forecast production has been increased by 25,000 ounces to
350,000 ounces. Cash costs per ounce were similar to the comparative prior
year period as the impact of the increased production was offset by higher
fuel prices, maintenance costs, stripping costs and underground trial mining
costs. Cash costs per ounce decreased $27 from the fourth quarter of 2004, but
remain above 2005 annual guidance. Ongoing cost reduction efforts, including a
reduction in rental equipment and staffing levels, a decrease in stripping
activity and the increased production estimate have combined to result in no
change in previously forecast cash and total costs per ounce. During the
quarter work continued on the Wallaby underground with a feasibility study
expected to be completed in the third quarter of 2005.

Production from Kalgoorlie West during the quarter was 30% below that of
the prior year period primarily due to lower mined grades and decreased
throughput as a result of the closure of the Kundana mill in 2004, but similar
to the fourth quarter of 2004. Cash costs per ounce in the quarter increased
by 34% compared to the prior year period due to the lower production levels
and stripping costs for several small open pit mines which will be mined later
in 2005. Cash costs per ounce were marginally below those of the fourth
quarter of 2004, but remain above 2005 forecast levels. As a result of higher
grades encountered at Raleigh North during development and contributions from
the above mentioned small open pit mines, the production forecast for 2005 has
been increased by 20,000 ounces to 270,000 ounces with no change to previously
forecast cash and total costs per ounce.

At the Kanowna Belle mine, production for the three months ended
March 31, 2005 was in line with the comparative prior year period but 18%
below the fourth quarter of 2004. Positive production experience for much of
the period was offset by the failure of two stopes due to ground control
issues. Cash costs per ounce of $377 were approximately 45% higher than the
first and fourth quarters of 2004 due primarily to additional costs associated
with the stope failures and processing of higher cost stockpiled ore to
replace the deferred underground feed. During the quarter, additional
development work was carried out to open up stopes in other areas to ensure
flexibility in the mine plan over the remainder of 2005. There is no change to
previously forecast production and unit cost guidance.

The management of Placer Dome's Kalgoorlie operations -- Kalgoorie West
and Kanowna Belle -- is being realigned with all operations under one general
manager and all regional development responsibilities including exploration,
project development and joint venture and third party relationships under a
separate general manager. As a result of this management change, commencing in
the second quarter, the reporting for Kalgoorlie West and Kanowna Belle will
be consolidated in a single Kalgoorlie operation.

At the Osborne mine, copper and gold production in the first quarter of
2005 were 16.3 million pounds and 7,510 ounces, a decrease of 29% and 24%,
respectively, from the prior year period due primarily to lower grades. Cash
costs per pound of copper (Osborne produces copper concentrate with gold as a
by-product) of $1.10 were 69% above prior period levels due to the decreased
production and maintenance and development costs. Previously issued production
and unit cost guidance remains unchanged due primarily to anticipated higher
grades for the remainder of 2005.

South Africa and Tanzania
At the South Deep mine, Placer Dome's share of production for the first
quarter of 2005 was 45,467 ounces, similar to the prior year comparative
period, but 24% below that of the fourth quarter of 2004. The first quarter of
2005 was a challenging one for the mine as it encountered a number of
infrastructure related problems, many of which were related to power outages
due to lightning strikes. The problems were principally associated with
pumping infrastructure contained in the older South Shaft complex. Pump
failures and water column failures caused flooding in certain sections of the
mine and restricted production. In total during the quarter 25 days of
production were impacted to some degree by these issues. Steps are being taken
to make the operation less susceptible to power and water recirculation
failures. Unit cash costs increased by 12% compared to the prior year period
primarily due to a 12% appreciation in the rand relative to the U.S. dollar.
Relative to the fourth quarter of 2004, unit cash costs increased dramatically
due to the production shortfalls. As a result of first quarter performance,
Placer Dome's share of forecast production for 2005 has been decreased by
15,000 ounces to 215,000 ounces and forecast cash and total costs per ounce
have been increased to $370 and $435 per ounce from $350 and $400 per ounce,
respectively.

Production from the North Mara mine during the quarter was 28% greater
than in the prior year period due primarily to increased throughput as a
result of the mill expansion completed in the fourth quarter of 2004. Cash
costs per ounce were similar to the first quarter of 2004 as the impact of the
increased production was offset by higher fuel and steel costs and startup
costs associated with the transfer to owner mining from contract mining.
Development of the Gokona pit commenced in the first quarter of 2005 with
production scheduled to commence in the fourth quarter. Due to redirecting
mining equipment to Gokona for development activities, production will be
largely from stockpiles until scheduled delivery of mining equipment for
Gokona. The 2005 production guidance of 290,000 ounces at cash and total costs
of $230 and $320 per ounce is dependent on delivery and fabrication schedules
for identified second hand mining equipment for the Gokona pit. Should these
schedules not be met, production and unit cost guidance would be negatively
impacted.

Chile
At the Zaldivar mine, copper production for the first quarter of 2005 was
74.3 million pounds, a decrease of 13% from the prior year period due to
mining in a lower grade section of the pit and operational problems in the ore
conveying and stacking systems resulting in less tonnes being placed on the
leach pad. Cash costs per pound during the period were $0.55, an increase of
12% from the prior year period due to lower production and higher fuel, tire
and acid costs.

Non-GAAP Measures

Placer Dome has included certain non-GAAP performance measures throughout
this document. These non-GAAP performance measures do not have any
standardized meaning prescribed by GAAP and, therefore, are unlikely to be
comparable to similar measures presented by other companies. Placer Dome
believes that, in addition to conventional measures, prepared in accordance
with U.S. GAAP, certain investors use this information to evaluate Placer
Dome's performance and its ability to generate cash flow for use in investing
and other activities. Accordingly, they are intended to provide additional
information and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with GAAP. Set out below are
definitions for these performance measures and reconciliations of the non-GAAP
measures to reported GAAP measures.

Unit costs
A reconciliation of costs per ounce of gold produced, calculated in
accordance with the Gold Institute Standard, and costs per pound of copper
produced to the Cost of Sales and Depreciation and Depletion is included
below:

---------------------------------------------------------------
For the three month ended March 31
---------------------------------------------------------------
2005 2004
---------------------------------------------------------------
Gold Copper Gold Copper
---------------------------------------------------------------
Cost Cost Cost Cost
of Depre- of Depre- of Depre- of Depre-
Sales ciation Sales ciation Sales ciation Sales ciation
-------------------------------------------------------------------------
Reported 319 68 - - 287 63 - -
Copper (64) (12) 64 12 (66) (17) 66 17
Corporate(ii) 1 (4) - - (2) (4) - -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Related to
metals
produced 256 52 64 12 219 42 66 17
Add La Coipa 9 3 - - 8 3 - -
Deduct
minority
interest - - - - (2) - - -
By-product (1) - (3) - (2) - (5) -
Reclamation (6) 6 (1) 1 (4) 4 - -
Ore sales
costs (13) - - - (13) - - -
Inventories 1 - (3) (1) (4) (2) (8) (2)
Other (iii) (5) (2) 2 - - 1 4 -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
241 59 59 12 202 48 57 15
-------------------------------------------------------------------------
Production
reported(i) 911 911 91 91 929 929 109 109
Osborne
gold ozs. (8) (8) - - (10) (10) - -
Ore sales
ozs. (40) (40) - - (52) (52) - -
Golden
Sunlight ozs. - - - - (2) (2) - -
La Coipa au
equivalents
ozs. 12 12 - - 11 11 - -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Production
base for
calculation 875 875 91 91 876 876 109 109
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Unit
costs(i) 275 67 0.65 0.13 231 55 0.52 0.14
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(i) Gold production is in thousands of ounces, and unit costs for gold
are in $/oz. Copper production is in millions of pounds, and unit
costs for copper are in $/lb.
(ii) Corporate depreciation includes the amortization of tax gross ups
(see note 4(b)(iii) to the interim unaudited consolidated financial
statements).
(iii) Other consists of management fees and unusual costs such as
significant severance or costs incurred during a temporary mine
shut down, which are excluded from the determination of unit costs
and smelting charges which are netted against sales revenue but
included in the determination of unit costs.



PLACER DOME INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(millions of U.S. dollars, except share and
per share amounts, U.S. GAAP)
(unaudited)

-----------------
For the
three months
ended March 31
-----------------
2005 2004
$ $
-------------------------------------------------------------------------
Sales (note 4) 491 508
Cost of sales 319 287
Depreciation and depletion 68 63
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Mine operating earnings (note 4(b)) 104 158
-------------------------------------------------------------------------
General and administrative 17 15
Exploration 18 16
Resource development, technology and other 14 14
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Operating earnings 55 113
-------------------------------------------------------------------------
Non-hedge derivative loss (1) (7)
Investment and other business income 22 2
Interest and financing expense (23) (19)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings before taxes and other items 53 89
-------------------------------------------------------------------------
Income and resource tax provision (13) (32)
Equity in earnings of associates 5 3
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Net earnings before the cumulative effect of changes
in accounting policies 45 60
-------------------------------------------------------------------------
Changes in accounting policies (note 2) (14) 4
-------------------------------------------------------------------------
Net earnings 31 64
-------------------------------------------------------------------------
Comprehensive income 37 36
-------------------------------------------------------------------------
Per common share
Net earnings (and diluted net earnings) before the
cumulative effect of changes in accounting policies 0.10 0.15
Net earnings 0.07 0.16
Diluted net earnings 0.07 0.15
Dividends 0.05 0.05
-------------------------------------------------------------------------
Weighted average number of common shares (millions)
Basic 436.4 412.1
Diluted 450.3 416.8
-------------------------------------------------------------------------
(See accompanying notes to the unaudited interim
consolidated financial statements)



PLACER DOME INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(millions of U.S. dollars, U.S. GAAP)
(unaudited)

-----------------
For the
three months
ended March 31
-----------------
2005 2004
$ $
-------------------------------------------------------------------------
Operating activities
Net earnings 31 64
Add (deduct) non-cash items
Depreciation and depletion 68 63
Deferred stripping adjustment (10) (9)
Unrealized loss on derivatives - 5
Deferred reclamation 5 3
Deferred income and resource taxes (4) 10
Changes in accounting policies (note 2) 14 (4)
Other items, net (5) 5
-------------------------------------------------------------------------
Cash from operations before change in non-cash
working capital 99 137
Change in non-cash operating working capital (31) (3)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cash from operations 68 134
-------------------------------------------------------------------------
Investing activities
Property, plant and equipment (57) (69)
Short-term investments (1) (1)
Other, net (1) 3
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(59) (67)
-------------------------------------------------------------------------
Financing activities
Short-term debt 7 -
Restricted cash (11) -
Long-term debt and capital leases financing
Borrowings - 5
Repayments (1) (4)
Common shares issued 1 15
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(4) 16
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Increase in cash and cash equivalents 5 83
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Cash and cash equivalents
Beginning of period 1,017 550
-------------------------------------------------------------------------
-------------------------------------------------------------------------
End of period 1,022 633
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(See accompanying notes to the unaudited interim
consolidated financial statements)



PLACER DOME INC.
CONSOLIDATED BALANCE SHEETS
(millions of U.S. dollars, U.S. GAAP)
(unaudited)

ASSETS

-----------------
March December
31 31
2005 2004
$ $
-------------------------------------------------------------------------
Current assets
Cash and cash equivalents 1,022 1,017
Short-term investments 15 14
Restricted cash 133 122
Accounts receivable 142 138
Income and resource tax assets 95 97
Inventories (note 5) 244 248
-------------------------------------------------------------------------
-------------------------------------------------------------------------
1,651 1,636
-------------------------------------------------------------------------
Investments 56 50
Other assets (note 6) 176 173
Deferred commodity and currency sales contracts
and derivatives 49 54
Income and resource tax assets 418 400
Deferred stripping 180 170
Goodwill 454 454
Property, plant and equipment
Cost 4,853 4,791
Accumulated depreciation and depletion (2,260) (2,184)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
2,593 2,607
-------------------------------------------------------------------------
5,577 5,544
-------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY

-----------------
March December
31 31
2005 2004
$ $
-------------------------------------------------------------------------
Current liabilities
Accounts payable and accrued liabilities 265 268
Income and resource taxes liabilities 25 27
Short-term debt 120 113
Current portion of long-term debt and capital leases 45 45
-------------------------------------------------------------------------
-------------------------------------------------------------------------
455 453
-------------------------------------------------------------------------
Long-term debt and capital leases 1,108 1,109
Reclamation and post closure obligations 274 251
Income and resource tax liabilities 274 265
Deferred commodity and currency sales contracts
and derivatives 214 223
Deferred credits and other liabilities 72 79
Commitments and contingencies (notes 7 and 8)
Shareholders' equity 3,180 3,164
-------------------------------------------------------------------------
-------------------------------------------------------------------------
5,577 5,544
-------------------------------------------------------------------------
(See accompanying notes to the unaudited interim
consolidated financial statements)



PLACER DOME INC.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(millions of U.S. dollars, except share amounts, U.S. GAAP)
(unaudited)

-----------------
For the
three months
ended March 31
-----------------
2005 2004
$ $
-------------------------------------------------------------------------
Common shares(i), beginning of period 2,522 2,023
Exercise of options 1 15
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Common shares, end of period 2,523 2,038
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Accumulated other comprehensive loss,
beginning of period (15) (35)
Unrealized gain on securities 4 1
Unrealized gain (loss) on derivatives
Copper (6) (30)
Currency - 4
Reclassification of (gain) loss on derivatives
included in net earnings
Copper 11 1
Currency (3) (4)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Accumulated other comprehensive loss, end of period (9) (63)
-------------------------------------------------------------------------
Contributed surplus, beginning of period 69 66
Stock-based compensation - 1
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Contributed surplus, end of period 69 67
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Retained earnings, beginning of period 588 345
Net earnings 31 64
Common share dividends (22) (21)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Retained earnings, end of period 597 388
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Shareholders' equity 3,180 2,430
-------------------------------------------------------------------------
(i) Authorized and issued share capital:
Preferred shares - unlimited shares authorized, no par value, none
issued.
Common shares - unlimited shares authorized, no par value, issued and
outstanding at March 31, 2005 - 436,494,540 shares (December 31,
2004 - 436,395,449 shares).

(see accompanying notes to the unaudited interim
consolidated financial statements)



PLACER DOME INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
(all tabular amounts are in millions of U.S. dollars, U.S. GAAP)

1. Basis of Presentation
The accompanying unaudited interim consolidated financial statements
have been prepared in accordance with U.S. generally accepted
accounting principles ("GAAP"). They do not include all of the
disclosures required by GAAP for annual financial statements. In the
opinion of management, the adjustments considered necessary for fair
presentation, all of which are of a normal and recurring nature, have
been included in these financial statements. Operating results for
the three months ended March 31, 2005 are not necessarily indicative
of the results that may be expected for the full year ending
December 31, 2005 or future operating periods. For further
information, see Placer Dome's consolidated financial statements,
including the accounting policies and notes thereto, included in the
Annual Report and Annual Information Form/Form 40-F for the year
ended December 31, 2004.

Pursuant to an exemption order obtained from Canadian securities
regulatory authorities in July 2003, Placer Dome was permitted to
file its annual and quarterly consolidated financial statements
prepared in US GAAP rather than Canadian GAAP provided that, among
other things, the notes to the first two sets of annual financial
statements filed after the date of the order and the notes to the
interim financial statements filed during such period include a
reconciliation highlighting the material differences between such
financial statements prepared in accordance with US GAAP as compared
to the financial statements being prepared in Canadian GAAP, as well
as a management's discussion and analysis focusing on these
differences. In accordance with the terms of the order, Placer Dome
is no longer required to include the reconciliation in the notes to
its interim financial statements. Pursuant to the Regulations under
the Canada Business Corporations Act, Placer Dome will be required to
include the reconciliation between US GAAP and Canadian GAAP
described above in the notes to its annual financial statements for
the financial year ended December 31, 2005. After such date, Placer
Dome will no longer be required to include this reconciliation in the
notes to its annual financial statements.

On March 30, 2005, the Financial Accounting Standards Board ("FASB")
ratified the consensus of the Emerging Issues Task Force ("EITF") of
the FASB Issue 04-6 that stripping costs incurred during the
production phase of a mine are variable production costs that should
be included in the costs of the inventory produced during the period
that the stripping costs are incurred. This consensus is effective
for the first reporting period in fiscal years beginning after
December 15, 2005, with early adoption permitted. The consensus can
be adopted either prospectively through a cumulative-effect
adjustment or retrospectively by restating prior period financial
statements.

Placer Dome currently capitalizes stripping costs incurred during the
production phase of a mine to the deferred stripping account.
Amortization, which is calculated using the units of production
method based on recovered ounces of gold or pounds of copper, is
charged to cost of sales as gold or copper is produced and sold,
using a stripping ratio calculated as the ratio of total tonnes of
rock to be moved to total ounces of gold or total pounds of copper
expected to be recovered over the life of open pits. This policy
results in the expensing of stripping costs over the lives of the
open pits as gold or copper is produced and sold. At March 31, 2005,
Placer Dome's deferred stripping amount on its unaudited interim
consolidated balance sheet was $180 million. In addition to this,
smaller deferred stripping balances were present in various product
inventory accounts such as metal in circuit and ore stockpiles.

Placer Dome is currently evaluating the impact of this consensus.

On April 15, 2005, the U.S. Securities and Exchange Commission
("SEC") announced that it would provide for a phased-in
implementation process for FASB Statement No. 123®, Share-Based
Payment ("SFAS 123®"). The SEC would require that registrants adopt
SFAS 123®'s fair value method of accounting for share-based
payments to employees no later than the beginning of the first fiscal
year beginning after June 15, 2005. Placer Dome now plans to adopt
SFAS 123® effective January 1, 2006.

Certain amounts for 2004 have been reclassified to conform with the
current period's presentation.

2. Changes in Accounting Policies
Effective January 1, 2005, Placer Dome changed its accounting policy
with respect to termination obligations, whereby the liability
accrued will represent the obligation to date for all employees at
mine sites. The amount of the liability is subject to re-measurement
at each reporting period. This differs from the current practice,
which involves accruing for the estimated termination costs through
annual charges to earnings over the estimated life of the mine. The
cumulative effect of the change in policy on the balance sheet at
January 1, 2005 was to increase Deferred credits and other
liabilities by $21 million with a one time after-tax charge to net
earnings of $14 million ($0.03 per share).

During the second quarter of 2004, Placer Dome changed its accounting
policy, retroactive to January 1, 2004, with respect to deferred
stripping to exclude the recording of liabilities on the balance
sheet. Previously, Placer Dome had, at December 31, 2003, a liability
in deferred stripping relating to its share of the Cortez joint
venture on Placer Dome's consolidated balance sheet. This change was
made as a result of deliberations by the EITF at its July 1, 2004
meeting which concluded that a deferred stripping liability did not
meet the definition of a liability under FASB Concept Statement
No. 6. The cumulative effect of this change through December 31,
2003, was to increase earnings on an after-tax basis by $4 million
($0.01 per share).

3. Business Acquisition
On July 23, 2003, the Corporation completed the acquisition of 100%
of the shares of East African Gold Mines Limited ("East African
Gold"). The purchase price for the acquisition totalled $255 million,
comprised of $252 million in cash and approximately $3 million in
direct costs incurred by Placer Dome. In addition to this $3 million,
East African Gold accrued in its pre acquisition results charges
relating to the transaction totalling approximately $7 million. A
portion of the purchase price was paid from cash and short term
investments with the majority of the purchase price initially being
financed. In addition to this consideration, the acquisition included
East African Gold's loan for project financing of $43 million at the
date of acquisition. The transaction provides Placer Dome with the
North Mara open pit gold mine in Northern Tanzania and surrounding
land packages. The results of operations of East African Gold have
been included in the accompanying financial statements since July 23,
2003.

The acquisition was accounted for using the purchase method whereby
assets acquired and liabilities assumed were recorded at their fair
market values as of the date of acquisition. The excess of the
purchase price over such fair value was recorded as goodwill. During
the second quarter of 2004, Placer Dome finalized the purchase price
equation. Net earnings for the first quarter of 2004 were not
restated as the effect on the post acquisition period was not
material.

4. Business Segments

Substantially all of Placer Dome's operations are within the mining
sector. Due to the geographic and political diversity, Placer Dome's
mining operations are decentralized whereby Mine General Managers are
responsible for achieving specific business results within a
framework of global policies and standards. Country corporate offices
provide support infrastructure to the mines in addressing local and
country issues including financial, human resource and exploration
support. Major products are gold and copper produced from mines
located in Canada, the U.S., Australia, Papua New Guinea, South
Africa, Tanzania and Chile.

(a) Product segments
Sales by
metal segment
-----------------
For the
three months
ended March 31
-----------------
2005 2004
$ $
-----------------------------------------------------------------
Gold 365 361
Copper 124 145
Other 2 2
-----------------------------------------------------------------
-----------------------------------------------------------------
491 508
-----------------------------------------------------------------


(b) Segment sales revenue and mine operating earnings (loss)

-----------------------------------
Mine Operating
Sales Earnings
-----------------------------------
For the three months ended March 31
-----------------------------------
2005 2004 2005 2004
$ $ $ $
-----------------------------------------------------------------
Canada
Campbell 22 21 3 1
Musselwhite 19 15 2 2
Porcupine 22 22 6 6
-----------------------------------------------------------------
-----------------------------------------------------------------
63 58 11 9
-----------------------------------------------------------------
United States
Bald Mountain 6 5 (1) 2
Cortez 57 61 28 31
Golden Sunlight(i) 4 2 (1) 1
Turquoise Ridge 12 15 (2) 4
-----------------------------------------------------------------
-----------------------------------------------------------------
79 83 24 38
-----------------------------------------------------------------
Australia
Granny Smith 39 21 (7) (4)
Henty 14 12 4 3
Kalgoorlie West 23 38 (3) 7
Kanowna Belle 23 25 (3) 5
Osborne 27 34 3 10
-----------------------------------------------------------------
-----------------------------------------------------------------
126 130 (6) 21
-----------------------------------------------------------------
Papua New Guinea
Misima(ii) - 13 - 3
Porgera 80 78 33 36
-----------------------------------------------------------------
-----------------------------------------------------------------
80 91 33 39
-----------------------------------------------------------------
South Africa
South Deep 19 18 (6) (3)
-----------------------------------------------------------------
-----------------------------------------------------------------
Tanzania
North Mara 31 21 6 6
-----------------------------------------------------------------
Chile
Zaldivar 120 125 68 65
-----------------------------------------------------------------
-----------------------------------------------------------------
Metal hedging loss (27) (18) (27) (18)
Currency hedging gain - - 5 5
Amortization of tax gross up(iii) - - (4) (2)
Stock-based compensation - - 1 (1)
Other - - (1) (1)
-----------------------------------------------------------------
-----------------------------------------------------------------
491 508 104 158
-----------------------------------------------------------------

(i) Production from Golden Sunlight was temporarily suspended
in December 2003 and recommenced when ore was delivered
from Stage 2B in January 2005.
(ii) Processing of ore ceased at Misima in May 2004.
(iii) Pursuant to SFAS 109 - Accounting for Income Taxes, on
business acquisitions, where differences between assigned
values and tax bases of property, plant and equipment
acquired exist, Placer Dome grosses up the property, plant
and equipment values to reflect the recognition of the
deferred tax assets and liabilities for the tax effect of
such differences. The amortization of these amounts
includes $1 million (2004 -$1 million) for Porgera,
$1 million (2004 - $1 million) for North Mara, $1 million
(2004 - nil) for Kalgoorlie West, and $1 million (2004 -
nil) for Henty.

5. Inventories

Inventories comprise the following:

-----------------
March December
31, 31,
2005 2004
$ $
---------------------------------------------------------------------
Metal in circuit 95 102
Ore stockpiles 105 103
Materials and supplies 87 83
Product inventories 31 31
---------------------------------------------------------------------
---------------------------------------------------------------------
318 319
Long-term portion of ore stockpiles (74) (71)
---------------------------------------------------------------------
---------------------------------------------------------------------
Inventories 244 248
---------------------------------------------------------------------

6. Other Assets

Other assets consist of the following:

-----------------
March December
31, 31,
2005 2004
$ $
---------------------------------------------------------------------
Sale agreement receivable(i) 68 66
Long-term ore stockpiles (note 5) 74 71
Debt issue costs and discounts 17 17
Pension asset 15 15
Other 11 13
---------------------------------------------------------------------
---------------------------------------------------------------------
185 182
Current portion of other assets (9) (9)
---------------------------------------------------------------------
---------------------------------------------------------------------
176 173
---------------------------------------------------------------------

(i) In December 2000, Compania Minera Zaldivar completed the sale of
some of its water rights for a sum of $135 million, receivable
in fifteen equal annual installments of $9 million commencing
July 1, 2001. On a discounted basis, this resulted in a pre-tax
gain of $76 million and a corresponding receivable being recorded
in 2000. Imputed interest on the receivable is being accrued
monthly.

7. Consolidated Metals Sales and Currency Programs
At March 31, 2005, based on the spot prices of $427.50 per ounce for
gold, $7.18 per ounce for silver and $1.546 per pound for copper, an
Australian to U.S. dollar ("AUD/USD") exchange rate of $1.2937, the
mark-to-market values of Placer Dome's precious metal and copper
sales programs were negative $698 million and negative $28 million,
respectively. The precious metal mark-to-market does not take into
the account the $160 million liability in Deferred commodity and
currency sales contracts and derivatives as at March 31, 2005
primarily representing the remaining provision booked on acquisition
for the fair value of the AurionGold and East African Gold metal
hedge books. For the currency program, the mark-to-market value of
Placer Dome's currency forward and option contracts on March 31,
2005, was approximately positive $44 million (based on an AUD/USD
foreign exchange rate of $1.2937 and a Canadian to U.S. dollar
foreign exchange rate of $1.2096), all of which has been recognized
through earnings or other comprehensive income.

Gains and losses on Placer Dome's gold and silver forward contracts
and cap agreements are recognized in sales revenue on the initial
intended delivery date, except in instances where Placer Dome chooses
to deliver prior to that date, in which case they are recognized on
delivery. Placer Dome's copper forward contracts are accounted for as
cash flow hedges with the change in fair values recorded each period
in other comprehensive income and subsequently reclassified to sales
revenue on the contract forward date. Changes in the fair values of
all other metals financial instruments are recorded each period in
earnings in the non-hedge derivative gain (loss) line.


At March 31, 2005, Placer Dome's consolidated metal sales program
consisted of:

-------------------------------------------------------
2005 2006 2007 2008 2009 2010 2011+ Total
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Gold (000's ounces):
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Forward contracts
sold(i)
Fixed contracts
Amount 888 1,239 1,260 1,013 347 246 461 5,454
Average price
($/oz.) 341 344 373 394 411 410 474 378
Fixed interest
floating lease
rate
Amount - - - 197 772 285 625 1,879
Average price
($/oz.) - - - 356 430 420 485 439
A$ forward
contracts
Amount - 11 21 - - - - 32
Average price
($/oz.) - 475 489 - - - - 484
-------------------------------------------------------------------------
Total 888 1,250 1,281 1,210 1,119 531 1,086 7,365
Forward contracts
sold
A$ forward contracts
purchased (75) - - - - - - (75)
-------------------------------------------------------------------------
Total
Forward contracts 813 1,250 1,281 1,210 1,119 531 1,086 7,290
-------------------------------------------------------------------------
Call options sold
and cap
agreements(ii)
Amount 258 219 115 200 20 40 20 872
Average price
($/oz.) 360 357 363 394 500 500 500 380
A$ contracts
Amount 38 - - - - - - 38
Average price
($/oz.) 388 - - - - - - 388
-------------------------------------------------------------------------
Total
Call option sold
and cap
agreements 296 219 115 200 20 40 20 910
-------------------------------------------------------------------------
Total
Firm committed
ounces(iii) 1,109 1,469 1,396 1,410 1,139 571 1,106 8,200
-------------------------------------------------------------------------
Contingent call
options sold(iv)
Knock-in
(up and in)
Amount 81 52 - - - - 64 197
Average price
($/oz.) 394 387 - - - - 362 382
Average barrier
level ($/oz.) 432 425 - - - - 425 428
Knock out (down
and out)
Amount 38 37 64 52 115 29 - 335
Average price
($/oz.) 411 429 439 453 431 476 - 437
Average barrier
level ($/oz.) 360 395 383 370 380 387 - 379
-------------------------------------------------------------------------
Total
Maximum
committed
ounces(v) 1,228 1,558 1,460 1,462 1,254 600 1,170 8,732
-------------------------------------------------------------------------
Put options
purchased(vi)
Amount 542 546 362 179 159 103 99 1,990
Average price
($/oz.) 408 416 440 405 397 432 416 417
-------------------------------------------------------------------------
Put options
sold(vii)
Amount 60 80 - - - - - 140
Average price
($oz.) 250 250 - - - - - 250
-------------------------------------------------------------------------

Contingent call options purchased not included in the above table
total 53,000 ounces at an average price of $435 per ounce.


-----------------------------------------
2005 2006 2007 2008 2009 Total
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Silver (000's ounces):
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Fixed forward contracts(i)
Amount - 1,200 - - - 1,200
Average price ($/oz) - 6.25 - - - 6.25
Call options sold (ii)
Amount 1,300 3,632 1,050 820 550 7,352
Average price ($/oz) 5.25 9.01 9.11 8.98 8.75 8.34
-------------------------------------------------------------------------
Total committed amount 1,300 4,832 1,050 820 550 8,552
-------------------------------------------------------------------------
Put options purchased(vi)
Amount 1,800 3,820 1,050 820 550 8,040
Average price ($/oz) 5.21 6.40 6.89 7.25 7.25 6.34
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Copper (millions of pounds):
--------------------------------------
--------------------------------------
Fixed forward contracts(i)
Amount 11,754
Average price ($/lb.) 1.05
Call options sold(ii)
Amount 66,139
Average price ($/lb.) 1.14
--------------------------------------
Total committed amount
Amount 77,713
Average price ($/lb.) 1.13
--------------------------------------
Put options purchased(vi)
Amount 66,139
Average price ($/lb.) 1.03
--------------------------------------

(i) Forward sales contracts - Forward sales establish a selling price
for future production at the time they are entered into, thereby
limiting the risk of declining prices but also limiting potential
gains on price increases. The types of forward sales contracts
used include:
a) Fixed forward contracts - a deliverable sales contract,
denominated in U.S. dollars, where the interest rate and metal
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 deliverable
sales contract, denominated in U.S. dollars, which has the
U.S. dollar interest rate fixed to the maturity of the
contract. Gold lease rates are reset at rollover dates ranging
from 3 months to 4 years. The average price reflects the
expected value to maturity of the contracts based on assumed
gold lease rates.
c) Australian dollar forward contracts - a deliverable sales
contract denominated in Australian dollars that has been
converted to U.S. dollars at an exchange rate of 1.2937. On a
portion of these contracts, the gold lease rates have been
fixed to maturity. The remaining contracts include a lease
rate allowance or are floating at market rates.
Forward sales that are offset by call options purchased are
combined with the call option purchased and included in put
options purchased. Please refer to item (vi).
(ii) Call options sold and cap agreements - Call options sold by the
Corporation provide the buyer with the right, but not the
obligation, to purchase production from the Corporation at a
predetermined price on the exercise date of the option. Cap
agreements represent sales contracts requiring physical delivery
of gold at the prevailing spot price or the cap option price at
the expiry date of the contract. 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. Call options denominated in Australian dollars
have been converted to U.S. dollars at an exchange rate of
1.2937.
(iii) Firm committed ounces - Firm committed ounces is the total of
forward sales and call options and cap agreements sold net of
call options purchased. It does not include any contingent
option commitments, whether bought or sold.
(iv) Contingent call options sold - Contingent call options sold are
option contracts denominated in Australian dollars that have been
converted to U.S. dollars at an exchange rate of 1.2937. These
contracts are similar to standard call options except that they
are extinguished or activated when the gold price reaches a
predetermined barrier. Contingent options are path-dependent
since they are dependent on the price movement of gold during
the life of the option or within specified time frames.
Knock-out options consist of down and out options and up and out
options. A down and out option will expire early if the gold
price trades below the barrier price within specified time frames
whereas an up and out option will expire early if the gold price
trades above the barrier price within specified time frames.
Knock-in options consist of up and in and down and in options. An
up and in option will come into existence if the gold price
trades above the barrier price within specified time frames
whereas a down and in option will come into existence if the gold
price trades below the barrier price within specified time
frames.
As of March 31, 2005, the positions disclosed as contingent call
options sold have not been extinguished (knocked out) or
activated (knocked in) as the gold price has not traded above or
below the barrier levels during the specified time frames. In the
event these positions are activated they will be reclassified to
call options sold.
(v) Maximum committed ounces - Maximum committed ounces is the total
of firm committed ounces and contingent call options sold. This
total represents the maximum committed ounces in each period,
provided the contingent call options sold are not extinguished or
are activated and the contingent call options purchased are not
activated.
(vi) Put options purchased - Put options purchased by the Corporation
establish a minimum sales price for the production covered by
such put options and permit the Corporation to participate in any
price increases above the strike price of such put options.
Certain positions disclosed as put options are a combination of a
purchased call option and 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 is referred to as a synthetic put.
(vii) Put options sold - Put options sold by the Corporation are sold
in conjunction with a forward sales contract or with the purchase
of a higher strike put option. A put option sold gives the put
buyer the right, but not the obligation, to sell gold to the put
seller at a predetermined price on a predetermined date.

At March 31, 2005, Placer Dome's consolidated foreign currency
program consists of:

-----------------------------------
2005 2006 2007 Total
---------------------------------------------------------------------
Australian Dollars (millions USD)
Fixed forward contracts
Amount 40.8 37.1 5.0 82.9
Average rate (AUD/USD) 1.8301 1.9167 1.5713 1.8533
Put options sold
Amount - 17.0 5.5 22.5
Average rate (AUD/USD) - 1.5957 1.6538 1.6099
---------------------------------------------------------------------
Total committed dollars
Amount 40.8 54.1 10.5 105.4
Average rate (AUD/USD) 1.8301 1.8159 1.6145 1.8014
---------------------------------------------------------------------
Call options purchased
Amount 58.5 23.5 12.0 94.0
Average rate (AUD/USD) 1.3543 1.5098 1.6430 1.4300
---------------------------------------------------------------------
Canadian Dollars (millions USD)
Call options purchased
Amount 49.5 - - 49.5
Average rate (CAD/USD) 1.2358 - - 1.2358
---------------------------------------------------------------------

Fixed forward contracts establish an exchange rate of U.S. dollar to
the operating currency of the region at the time they are entered
into, thereby limiting the risk of exchange rate fluctuations.

Put options sold by the Corporation provide the buyer with the right,
but not the obligation, to purchase U.S. dollars from the Corporation
at a predetermined exchange rate on the exercise date of the options.

Call options purchased by the Corporation establish a minimum
exchange rate for converting U.S. dollars to the operating currency
of the region for the amount hedged, but permit the Corporation to
participate in any further weakness of the hedged currency.

8. Commitments and Contingencies
(a) At March 31, 2005, Placer Dome has outstanding commitments of
approximately $30 million under capital expenditure programs.

(b) The 2005 Canadian federal budget proposed phased in reductions of
the general corporate tax rate of 2% from January 1, 2008 through
January 1, 2010 and the elimination of the federal corporate
surtax effective January 1, 2008. These changes are currently
being debated within the Canadian House of Commons and may or may
not become law given the current minority government. Should the
changes be enacted, the estimated income tax impact to Placer
Dome would be a charge to deferred income tax expense of
approximately $24 million and an equivalent reduction in the
deferred tax asset.

(c) In September 2002 Placer Dome Canada Limited ("PDC") lost a tax
appeal in the Ontario Superior Court related to a reassessment of
Ontario mining taxes for the 1995 and 1996 taxation years. On the
basis of the decision, Ontario mining tax and related interest
increased by approximately $1 million for the years in question.
Late in the fourth quarter of 2002 Placer Dome (CLA) Limited
("PDCLA"), the successor to PDC through amalgamation, was
reassessed with respect to the same issue for the 1997 and 1998
taxation years. Ontario mining tax and related interest increased
by approximately $16 million for these two taxation years. PDC
and PDCLA paid all taxes and related interest up to and including
the 1997 taxation year by December 31, 2002 and paid the 1998
reassessment liability early in January 2003. In the third
quarter of 2003, PDCLA was reassessed with respect to the same
issue for 1999. Ontario mining tax and related interest increased
by approximately $20 million for the 1999 taxation year. The 1999
reassessment liability was paid in the fourth quarter of 2003.
The Corporation filed an appeal of the decision to the Ontario
Court of Appeal in 2003. On August 31, 2004, the Ontario Court of
Appeal ruled in Placer Dome's favour in reversing the Ontario
Superior Court decision. On April 21, 2005 the Supreme Court of
Canada granted leave for the Ontario Ministry of Finance to
appeal the Ontario Court of Appeal's decision. Management is of
the view that Placer Dome will ultimately prevail, accordingly,
Placer Dome has not recorded a liability for this contingency.
Placer Dome also expects to be reimbursed for previously made
cash payments totalling $37 million plus interest.

(d) In addition to the above, reference is made to note 18 to the
Consolidated Financial Statements included in the Annual Report
and Annual Information Form/Form 40-F. Placer Dome is subject
to various investigations, claims and legal and tax proceedings
covering a wide range of matters that arise in the ordinary
course of business activities. Each of these matters is subject
to various uncertainties and it is possible that some of these
matters may be resolved unfavourably to Placer Dome. The
Corporation has established accruals for matters that are
probable and can be reasonably estimated. Management believes
that any liability that may ultimately result from the resolution
of these matters in excess of amounts provided will not have a
material adverse effect on Placer Dome's financial position or
results of operations.

9. Stock-Based Compensation
The Corporation follows the disclosure-only provisions of SFAS
No. 123, "Accounting for Stock-based Compensation", for stock options
granted to employees and directors. Had compensation cost for these
grants been determined based on the fair value at the grant date
consistent with the provisions of SFAS No. 123, the Corporation's net
earnings and net earnings per share would have been adjusted to the
pro forma amounts indicated below:

----------------------
For the three months
ended March 31
----------------------
2005 2004
$ $
---------------------------------------------------------------------
Net earnings - as reported 31 64
Net earnings - pro forma 27 61
Net earnings per share - as reported 0.07 0.16
Net earnings per share - pro forma 0.06 0.15
---------------------------------------------------------------------

Placer Dome has three share option plans under which common shares
are reserved for issuance to employees and directors. At March 31,
2005, there were 9.8 million vested and 5.0 million unvested stock
options outstanding.

10. Pension Plans
Pension expenses are comprised of:

----------------------
For the three months
ended March 31
----------------------
2005 2004
$ $
---------------------------------------------------------------------
Defined benefit plans:
Service costs (benefits earned during the
period) 2 2
Interest costs on projected benefit
obligations 2 2
Expected return on plan assets (1) (2)
Amortization of experience losses 1 1
---------------------------------------------------------------------
Total defined benefit plans 4 3
Defined contribution plans 1 1
---------------------------------------------------------------------
---------------------------------------------------------------------
Total pension expense 5 4
---------------------------------------------------------------------


Vancouver-based Placer Dome Inc. operates 17 mines in seven countries.
The Corporation's shares trade on the Toronto, New York, Swiss and Australian
stock exchanges and Euronext-Paris under the symbol PDG.

Placer Dome will host a conference call to discuss first quarter results
at 7:00am PDT/10:00am EDT on Wednesday, April 27. North American participants
may access the call at 1-800-731-1043. International participants please dial
1-212-346-6604. The call will also be webcast on the Placer Dome website at
www.placerdome.com/investors/webcasts.html.

FORWARD-LOOKING STATEMENTS
This report contains "forward-looking statements" that were based on
Placer Dome's expectations, estimates and projections as of the dates as of
which those statements were made. These forward-looking statements include,
among other things, statements with respect to Placer Dome's business
strategy, plans, outlook, long-term growth in cash flow, earnings per share
and shareholder value, projections, targets and expectations as to reserves,
resources, results of exploration (including targets) and related expenses,
property acquisitions, mine development, mine operations, mine production
costs, drilling activity, sampling and other data, recovery improvements,
future production levels, capital costs, costs savings, cash and total costs
of production of gold, copper and other minerals, expenditures for
environmental matters and technology, projected life of our mines, reclamation
and other post closure obligations and estimated future expenditures for those
matters, completion dates for the various development stages of mines, future
gold and other mineral prices (including the long-term estimated prices used
in calculating Placer Dome's mineral reserves), the percentage of production
derived from mechanized mining, currency exchange rates, debt reductions, and
the percentage of anticipated production covered by forward sale and other
option contracts or agreements. Generally, these forward-looking statements
can be identified by the use of forward-looking terminology such as
"anticipate", "project", "target", "believe", "estimate", "expect", "intend",
"should" and similar expressions. Forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that may cause Placer
Dome's actual results, level of activity, performance or achievements to be
materially different from those expressed or implied by such forward-looking
statements, including:

- uncertainties and costs related to Placer Dome's exploration and
development activities, such as those associated with determining
whether gold or other mineral reserves exist on a property;
- uncertainties related to feasibility studies that provide estimates of
expected or anticipated economic returns from a mining project;
- uncertainties related to expected production rates, timing of
production and the cash and total costs of production and milling;
- uncertainties related to the future development or implementation of
new technologies, research and development and, in each case, related
initiatives and the effect of those on our operating performance;
- uncertainties related to the accuracy of our reserve and resource
estimates and our estimates of future production and future cash
and total costs of production;
- uncertainties related to unexpected judicial or regulatory
proceedings;
- changes in, and the effects of, the laws, regulations and government
policies affecting our mining operations, particularly laws,
regulations and policies relating to:
- mine expansions, environmental protection and associated
compliance costs arising from exploration, mine development,
mine operations and mine closures;
- expected effective future tax rates in jurisdictions in which
our operations are located;
- the protection of the health and safety of mine workers; and
- mineral rights ownership in countries where our mineral deposits
are located, including the effect of the Mineral and Petroleum
Resources Development Act (South Africa);
- changes in general economic conditions, the financial markets and
in the demand and market price for gold, copper and other minerals
and commodities, such as diesel fuel, electricity and other forms
of energy, and fluctuations in exchange rates, particularly with
respect to the value of the U.S. dollar, Canadian dollar,
Australian dollar, Papua New Guinean kina, South African rand and
Chilean peso
- the effects of forward selling instruments to protect against
fluctuations in gold and copper prices and exchange rate movements
and the risks of counterparty defaults;
- changes in accounting policies and methods we use to report our
financial condition, including uncertainties associated with
critical accounting assumptions and estimates;
- geopolitical uncertainty and political and economic instability
in countries which we operate; and
- labour strikes, work stoppages, or other interruptions to, or
difficulties in, the employment of labour in markets in which
we operate mines, or environmental hazards, industrial accidents
or other events or occurrences that interrupt the production of
minerals in our mines.

A discussion of these and other factors that may affect Placer Dome's
actual results, performance, achievements or financial position is contained
in the filings by Placer Dome with the U.S. Securities and Exchange Commission
and Canadian provincial securities regulatory authorities. This list is not
exhaustive of the factors that may affect our forward-looking statements.
These and other factors should be considered carefully and readers should not
place undue reliance on such forward-looking statements. Placer Dome does not
undertake to update any forward-looking statements that are incorporated by
reference herein, except in accordance with applicable securities laws.
>>
%SEDAR: 00002304E

Contact Information

  • Investor Relations:
    Greg Martin
    (604) 661-3795
    Meghan Brown
    (604) 661-1577
    or
    investor_relations@placerdome.com

    Media Relations:
    Gayle Stewart
    (604) 661-1911

    Toll-free within North America
    (800) 565-5815

    On the internet:
    www.placerdome.com

    For enquiries related to shares, transfers and dividends please contact:
    CIBC Mellon Trust Company
    Toll-free within North America
    (800) 387-0825

    Collect calls accepted from outside North America
    (416) 643-5500

    Head Office
    Suite 1600, Bentall IV,
    1055 Dunsmuir Street,
    (PO Box 49330, Bentall Postal Station)
    Vancouver, British Columbia
    Canada V7X 1P1
    Tel: (604) 682-7082
    Fax: (604) 682-7092