East Bay- not sure if I mentioned WLF.TSX as my favourite junior-
Wolfden Resources is starting to hit new highs again- now $4.39 (cad) They have interests in 11 gold properties and a 100% owned interest in a copper/zinc property called High Lake-
They have joint ventures with Placer Dome, Bema Gold, Kinross and Teck Cominco, and Goldcorp has invested in them so they are well connected.
They plan to mine the High Lake property- it is located in Nunavut-
Have only 3 larger names. GG, NEM, PDG. But Gold is up to around $377... ==============================================================
Hi 'East Bay', Well, two out of three ain't bad...... <gg> FYI:
Placer Dome piles on debt Will almost double long-term debt to pay for miner, boost cash reserves
By Allan Robinson Wednesday, October 8, 2003
Placer Dome Inc. is almost doubling its long-term debt by borrowing $500-million (U.S.) to help pay for its July acquisition of East African Gold Mines Ltd. of Australia and to build up cash for future projects.
The debt, consisting of new debenture issues, which are being sold privately in the United States, will consist of $300-million in unsecured debt due in 2035 and a $200-million 20-year convertible debenture due in 2023. Investors in the convertible debenture will have an option to acquire an additional $30-million.
The new financings will bring Vancouver-based Placer Dome's long-term debt outstanding to about $1.12-billion, up from $607-million at Dec. 31, 2002.
At June 30, 2003, Placer Dome had shareholders' equity of $2.3-billion.
During the past year Placer Dome has completed two acquisitions and had exploration successes at its existing mines and other properties, said company president Jay Taylor in a recent report. "We are delivering on our commitment to invest in and develop quality assets."
Placer Dome expects to produce about 3.6 million ounces of gold during 2003, up from 2.8 million ounces in 2002, as a result of recent acquisitions.
Mr. Taylor plans to increase production to about 4 million ounces of gold by the end of 2006, a spokeswoman said.
Placer Dome has about eight to 10 projects that will require capital and it wants to have the financial flexibility to undertake new projects, she said.
Three large undeveloped gold projects are the Pueblo Viejo in the Dominican Republic, Aldebaran in Chile and Donlin Creek in Alaska.
Gold mining companies are taking advantage of low interest rates and they have balance sheets with much less debt than other industries, said John Ing, president of Maison Placements Canada Inc. "At one time, the balance sheets of gold mining companies were relatively pristine because of the volatility and [cyclic nature] of the mining industry," he said.
Low interest rates have made gold hedging strategies less profitable, although project financing remains an ideal option for gold mining companies, Mr. Ing said.
The proceeds from the debt will be used to pay off the short-term borrowings incurred to acquire East African Gold, which cost $255-million. Another $30-million to $50-million will be used to expand East African Gold's North Mara open pit gold mine and the balance will be used for working capital, the spokeswoman said.
The North Mara mine in Tanzania is expected to produce about 220,000 ounces of gold for a cash cost of about $200 an ounce.
The latest financings by Placer Dome follows the $200-million sale of 6.37-per-cent debentures in May, due, and used to pay off other debt. During the first half of 2003, the company also redeemed $185-million of preferred shares.
The company's credit rating has been left unchanged, but New York-based Moody's Investors Service said that Placer Dome's debt is now at a "level higher than recent historical levels" and it "has also taken advantage of current favourable capital market opportunities to increase liquidity beyond what appears to be required to meet currently anticipated cash uses."
At June 30, 2003, the company had $235-million in cash and short-term investments. It also has a $685-million line of credit available.
Moody's said that Placer Dome's gross-debt-to-capital is about 35 per cent. By comparison, Barrick Gold Corp. of Vancouver has a debt-to-capital ratio of 22 per cent.
The shares of Placer Dome fell 2 cents (Canadian) yesterday to $17.98, giving the company a total market capitalization of $7.3 billion.
Market Data 
Markets 
AI
