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Barrick Gold Corporation

Barrick Gold cuts 2017 compensation for top two executives – by Susan Taylor (Reuters Canada – March 23, 2018)

https://ca.reuters.com/

TORONTO (Reuters) – Barrick Gold Corp, the world’s largest producer of bullion, cut the 2017 compensation for its top two executives to reflect a challenging “shareholder experience” and operations at some mines.

Shares in the Canadian miner declined 15 percent last year, even as the price of gold gained 11 percent. In 2017 Barrick had a third cyanide spill in 18 months at its Veladero mine in Argentina and struggled under an export ban for its Acacia Mining unit in Zambia that is still not resolved.

The Toronto-based company cut the 2017 long-term bonus for Executive Chairman John Thornton by 18 percent to $4.3 million. That reduced his total compensation to $7.7 million, down 9.4 percent from $8.5 million in 2016.

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Canadian miners struggle with wave of African tax increases – by Niall McGee and Geoffrey York (Globe and Mail – March 22, 2018)

https://www.theglobeandmail.com/

A wave of African tax increases is engulfing some of Canada’s biggest mining companies, leaving them scrambling to negotiate with newly assertive governments that have lost patience with traditional tax deals.

First Quantum Minerals Ltd. is the latest Canadian company to be hit with a massive tax bill. Zambian authorities have told the company to pay an additional US$8-billion in taxes and penalties for failing to pay proper duties on imported supplies over the past five years.

First Quantum’s chief executive, Philip Pascall, admitted on Wednesday that he had been completely blindsided by the shock announcement. “I literally heard about this the day before yesterday,” he told investors in a conference call as he tried to mollify their concerns.

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Barrick’s Porgera JV suffers PNG earthquake setback; Moody’s boosts ratings – by Henry Lazenby (MiningWeekly.com – March 4, 2018)

http://www.miningweekly.com/

VANCOUVER (miningweekly.com) – Canadian miner Barrick Gold has reported significant damage to the power plant that supplies electricity to the Porgera joint venture, following a 7.5 magnitude earthquake that struck Papua New Guinea (PNG) on February 26.

However, the NYSE- and TSX-listed miner said it does not expect the Porgera JV’s 2018 guidance of 4.5-million to 5-million ounces of gold to be affected at this stage.

No employees or contractors were injured because of the incident. Barrick said it is supporting its subsidiary Barrick Niugini (BNL) to protect the safety of those at site, and in the local communities, as recovery efforts get under way.

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The world’s top 10 largest gold mining companies – 2017 – by Frik Els (Mining.com – February 28, 2018)

http://www.mining.com/

According to the World Gold Council primary gold production hit another record in 2017 after nine years of growth in output, albeit at a much slower pace.

Global gold production totalled roughly 105m troy ounces in 2017. Output is up 525 tonnes or nearly 17m ounces since the start of the decade.

The top 10 listed, non-state owned gold miners are responsible for nearly 30% of global output. The ranks of the top producing companies have stayed remarkably stable, but the next few years will shake-up the industry’s top tier.

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CORRECTED-Miners report some infrastructure damage after Papua quake (Reuters U.K. – February 26, 2018)

https://uk.reuters.com/

MELBOURNE, Feb 27 (Reuters) – Miners in northwest Papua New Guinea reported some damage to infrastructure following a powerful magnitude 7.5 earthquake that hit on Monday, as projects in the resource-rich region assess the impact on their operations.

Barrick Gold Corp said a power station that supplies its Porgera gold mine had been damaged, while Ok Tedi Mining Ltd said a landslip had blocked a road and damaged pipelines to its copper and gold mine in the Star Mountains.

The PNG government said it had sent disaster assessment teams to the rugged Southern Highlands about 560 km (350 miles) northwest of the capital, Port Moresby, following the quake early on Monday and a series of aftershocks.

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Barrick Vows Not to Grow for Growth’s Sake – by Danielle Bochove (Bloomberg News – February 22, 2018)

https://www.bloomberg.com/

Barrick Gold Corp. managed to cling to the title of world’s largest miner in 2017, but Executive Chairman John Thornton made it clear he won’t be pressuring the troops to repeat that this year.

With rival Newmont Mining Corp. breathing down its neck, Barrick won’t be giving in to the temptation of seeking growth for growth’s sake. Thornton said Barrick looked at a “number of external opportunities” in 2017 and passed on all of them.

In mining, history shows that when times are good, companies overpay for “mediocre assets and invest in projects with low returns,” he said Thursday at the company’s Investor Day in Toronto. “At Barrick, this will not happen.”

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Barrick Gold focuses on discipline after merger misstep – by Niall McGhee (Globe and Mail – February 23, 2018)

https://www.theglobeandmail.com/

As it continues to deal with repercussions from an ill-fated copper deal in Africa, don’t expect Barrick Gold Corp. to rush into any major mergers and acquisitions deals any time soon.

“When times are good, companies overpay for mediocre assets and invest in projects with low returns,” said executive chairman John Thornton in a webcast to investors on Thursday.

“At Barrick, this will not happen. We are putting in place the discipline to make certain this is the case.” Mr. Thornton said that Barrick had examined a number of external M&A opportunities last year, but passed.

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Barrick clings to top gold miner title as Newmont falls short by only 125 gold bars – by Danielle Bochove (Bloomberg/Financial Post – February 22, 2018)

http://business.financialpost.com/

But Newmont reiterated its outlook that exceeds Barrick’s forecasted output for the next four years

A gap of about 50,000 ounces — or about 125 gold bars — is all that stands in the way of Newmont Mining Corp. from claiming the title of world’s biggest gold miner.

The Greenwood Village, Colorado-based miner said Thursday its 2017 gold production was 5.27 million ounces, ending the year in a near dead-heat with industry leader Barrick Gold Corp., which produced 5.32 million ounces.

However, Newmont reiterated its outlook that exceeds Barrick’s forecasted output for the next four years. Goldberg has increasingly highlighted his company’s growth prospects to investors, as well as Newmont’s commitment to lure investors away from ETFs with high dividends.

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Newmont-Barrick Race for Top Gold Crown Comes Down to a Decimal – by Danielle Bochove (Bloomberg News – February 21, 2018)

https://www.bloomberg.com/

Gold geeks will have to wait for Newmont Mining Corp. to disclose one more decimal place to see if it overtook Barrick Gold Corp. as the world’s biggest bullion producer.

On Wednesday, the Greenwood Village, Colorado-based company said it produced 5.3 million ounces of gold last year, essentially tying the output of Toronto-based Barrick, which last week reported 5.32 million ounces.

Whether that’s enough for it to squeak ahead of Barrick depends on the rounding. A spokesman for Newmont, Omar Jabara, said the more precise number will be given Thursday when the company posts fourth-quarter earnings and updates its production guidance.

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Tanzania’s new mining law will compel foreign companies to boost local financial firms – by Abdi Latif Dahir (Quartz Africa – February 2, 2018)

https://qz.com/

Tanzania is set to overhaul its extractive industry after the government passed a new law that posits strict guidelines for foreign companies.

The new law gives companies three months to comply with the regulations, while also making them apprise the government of how they are enacting these changes.

As part of reform, the government wants to enhance the competitiveness of local mining and financial institutions by setting minimum employment levels and in-country spend for foreign firms, while also providing a structural monitoring and reporting system that ensures companies deliver on these objectives.

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Exclusive: Acacia, China miners in talks over Tanzania gold deal – sources – by Nicole Mordant and John Tilak (Reuters U.S. – February 16, 2018)

https://www.reuters.com/

VANCOUVER/TORONTO (Reuters) – China’s Shandong Gold Mining Co Ltd and Zijin Mining Group Co Ltd are in separate talks with Acacia Mining Plc to form a joint venture for the London-listed company’s gold mines in Tanzania, three people familiar with the matter told Reuters.

Acacia’s majority shareholder, Barrick Gold Corp, is involved in the discussions, the people said. Acacia, caught in a near year-long tax dispute with the government of Tanzania, has also has held talks with state-owned China National Gold Group about such a partnership, two of the people said, although it was not clear if those talks are ongoing.

Shares in London-listed Acacia, which were down around 3 percent, rebounded after the Reuters report to trade up as much as 3.4 percent. They closed down 0.9 percent, at 162.95 pence.

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Barrick mulls selling copper business as it faces lower production, higher costs – by Niall McGhee (Globe and Mail – February 16, 2018)

https://www.theglobeandmail.com/

Barrick Gold Corp. is contemplating getting out of the copper business. President Kelvin Dushnisky said a sale of the copper assets is a possibility, although the company is not running a sales process at this time.

“Would we consider divestment in some point in time? Yes,” Mr. Dushnisky said in an interview with The Globe and Mail.

Barrick acquired its copper assets primarily through its US$7.3-billion purchase of Equinox Minerals Ltd. in 2011. The high-priced acquisition, timed shortly before a global slump in metals prices, proved to be a financial disaster, as Barrick wrote down the value of these assets by US$3.8-billion less than two years later.

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Agnico Eagle CEO bullish on Canada as rivals falter overseas – by Gabriel Friedman (Financial Post – February 16, 2018)

http://business.financialpost.com/

Gold prices are rising after a prolonged period of sluggish performance, but not all gold producers will be able to use 2018 to grow — as three earnings announcements released this week by senior Canadian gold companies demonstrated.

Barrick Gold Corp., the world’s largest producer, cut its 2018 production outlook to 4.5 million to 5 million ounces whereas Goldcorp Inc., at nearly half the size, kept its production outlook unchanged at 2.5 million ounces. Meanwhile, the smallest of the pack Agnico Eagle Mines Ltd., increased its production guidance to 1.53 million ounces.

The different growth outlooks not only reflect the difference in size between the companies, but also varying approaches to risk management — whether related to the geography of operations, the approach to acquisitions and explorations or other aspects of management.

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Barrick Cuts Gold Output Forecast for Eighth Potential Drop – by Danielle Bochove (Bloomberg News – February 15, 2018)

https://www.bloomberg.com/

Barrick Gold Corp., the bullion producer that once towered over rivals, continues to shrink. The Toronto-based miner is predicting its eighth straight decline in annual production as it takes less gold out of the ground at its main mines.

The company expects to produce 300,000 fewer ounces in 2018 than it had previously forecast. It now projects total production will be 4.5 million to 5 million ounces this year, compared with a previous forecast of 4.8 million to 5.3 million ounces. Total gold output in 2017 was 5.32 million ounces.

Barrick also raised its forecast for all-in-sustaining costs to a range of $765 to $815 an ounce this year, compared with previous guidance of $710 to $770.

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Barrick sees drop in gold production ahead, putting its No. 1 spot at risk – by Niall McGee (Globe and Mail – February 15, 2018)

https://www.theglobeandmail.com/

Barrick Gold Corp. is on track to lose its long-held crown as the world’s largest gold producer after forecasting production for this year that will likely fall short of U.S. competitor Newmont Mining Corp.

In a release announcing its fourth-quarter results after the markets closed on Wednesday, Toronto-based Barrick said it expects to produce between 4.5 million to 5 million ounces of gold in 2018. In December, Newmont predicted that its 2018 gold production will be between 4.9 million to 5.4 million ounces.

While Colorado-based Newmont had already passed Barrick in terms of market capitalization, it had lagged Barrick in production.

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