Even Morgan analysts expect gold to rise

Section:

http://biz.yahoo.com/djus/020829/1700000692_1.html

VANCOUVER, B.C. (Dow Jones) -- Placer Dome Inc.
is cutting its gold hedge position by 20 percent
from the 8.5 million ounces of gold reported as
at June 30.

Placer said in a press release that the recent
volatility in gold prices has afforded it the
opportunity to reduce its call option commitments
for 2003 and 2004 at an anticipated net cost of
about $2 an ounce, or about $2 million.

Placer expects its committed ounces to total 6.8
million at an expected realized gold price of more
than $400/oz by Dec. 31. The mining company said
this level of committed ounces would represent
less than 40 percent of its average expected
production over the next five years, or 15
percent of currently published reserves.

For 2003, Placer said, it expects to have
more than 90 percent of its production
uncommitted.

Placer said, "We are positive in our outlook
for gold and reducing our committed ounces
will increase the already significant upside
for our shareholders."

The company said its forward sales program
contributed $54 million to earnings in the
first half of 2002 and as of June 30 had a
positive mark-to-market value of $223 million.

As reported, Placer had net income of $85
million in the first half of 2002.