The world’s biggest gold producer can’t catch a break. Shares in Barrick Gold Corp. fell 6.3 per cent on Thursday, amid a broad market selloff in the gold sector, after it released weaker-than-expected financial results Wednesday evening, and it failed to provide any new details on a geopolitical stalemate in Tanzania.
Thursday’s session was the second significant selloff in Barrick shares this week and its worst single-day performance in nine months. The pain in the gold sector wasn’t confined to Barrick.
Goldcorp Inc. lost 5.9 per cent of its value on Thursday, its worst showing in almost a year, after it posted a $131-million net loss in the second quarter. Agnico Eagle Mines Ltd. also had a bad day in the stock market, losing 4.9 per cent of its value, after its quarterly results also fell short of estimates.
Of the three major Canadian gold companies though, Barrick is the one that can least afford to slip up. The Toronto-based senior gold miner has lost one-fifth of its market value this year, materially underperforming both Agnico and Goldcorp.
In a note to clients, RBC Dominion Securities Inc. analyst Stephen Walker called Barrick’s second-quarter results “noisy,” after it unveiled a number of one-time charges that swung the firm to a $94-million net loss.
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