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Barrick Gold Corporation

Barrick shares tumble as gold miner sounds cautious tone – by Josh O’Kane (Globe and Mail – April 26, 2017)

http://www.theglobeandmail.com/

Barrick Gold Corp. shares slid 11 per cent Tuesday as investors reacted to the gold miner’s first-quarter results, which missed production and earnings estimates and revealed higher operating costs.

The world’s largest gold producer late Monday reported first-quarter net income of $889-million (U.S.) and adjusted net earnings of $162-million, or 14 cents a share, versus the analyst consensus estimate of 20 cents a share.

At the company’s annual meeting Tuesday, president Kelvin Dushnisky highlighted Barrick’s new era of caution, including cost savings through new joint ventures and debt reduction – having paid down $178-million in the first quarter.

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Barrick’s bad day: Shares fall 10% as investor confidence shaken by third cyanide spill at Argentine mine – by Sunny Freeman (Financial Post – April 26, 2017)

http://business.financialpost.com/

Barrick Gold Corp.’s third cyanide spill in two years at its Argentine operation was among a number of environmental and social concerns that took centre stage at its annual general meeting Tuesday, the stock’s worst day in six months.

Barrick president Kelvin Dushnisky told shareholders that a cyanide pipeline rupture on Mar.28 at its Veladero mine posed no risk to people or the environment.

“However, this was the third incident at Veladero leach pad in the last 18 months and that is completely unacceptable,” Dushnisky said. “These incidents weaken our partnerships and the trust that underpin them.”

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Barrick plummets on triple-whammy disappointment – by Danielle Bochove (Globe and Mail/Bloomberg – April 25, 2017)

http://www.theglobeandmail.com/

Barrick Gold Corp. plunged after the world’s biggest bullion producer missed estimates on earnings and production — as well as costs after expenses increased at mines in Argentina and Nevada.

Reporting only its second earnings miss in seven consecutive quarters, the Toronto-based miner also said it expects to produce less gold this year after selling half of its Veladero mine in Argentina. Even as the company plans to sell the stake to a Chinese partner, costs jumped at the mine, and for the company overall. Shares fell 9.7 per cent at 11:08 a.m. in Toronto.

Barrick will need a strong performance in the coming quarters to meet guidance as the company kept its forecasts at other mines largely unchanged, Evan Kurtz, a Morgan Stanley analyst in New York, said in a note to clients.

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Investors look for financial restraint as good times roll for gold miners – by Josh O’Kane (Globe and Mail – April 23, 2017)

http://www.theglobeandmail.com/

With Canada’s biggest gold miners back in the mode of making deals and striking partnerships, analysts will be watching the companies’ self-discipline as first-quarter financials start rolling in.

Last year was a period of recovery for gold producers: balance sheets got better, gold prices were healthy and rising and share prices climbed. The S&P/TSX global gold index went up 50 per cent in 2016, and it’s up another 12 per cent so far this year.

In the past, strong gold markets have led to a round of mergers, acquisitions and mine-building, followed by a painful reckoning. Investors haven’t forgotten, so free cash flow, cost savings and debt reduction remain in their sights as precious-metal miners mull new projects in their march out of the commodity slump.

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Tanzanian gold miner Acacia to review operations if export ban persists (Reuters Africa – April 20, 2017)

http://af.reuters.com/

LONDON (Reuters) – Tanzanian gold producer Acacia Mining will have to review its mining operations if the government’s ban on gold and copper ore exports remains in place, a senior executive said on Thursday.

Shares in Acacia, which is majority owned by Barrick Gold, briefly touched a six-week low, paring losses by 0900 GMT to trade down 3.7 percent after it said first-quarter core profits rose 25 percent to $82 million but cashflow was reduced by $36 million in part due to the ban.

The government halted the export of unprocessed ore on March 3, following President John Magufuli’s call for the construction of more gold smelters in the country, Africa’s fourth-largest gold producer.

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Shandong No Longer Pursuing Barrick’s Super Pit Stake – by by Scott Deveau and Linly Lin (Bloomberg News – April 19, 2017)

https://www.bloomberg.com/

Shandong Tyan Home Co. said it has ended talks to acquire Barrick Gold Corp.’s stake in its Kalgoorlie Super Pit mine in Australia because of recent tightened controls in China on outbound investment.

Toronto-based Barrick began the process to sell its stake in the mine, a 50-50 joint venture with Newmont Mining Corp., last year. Talks between Barrick and Minjar Gold Pty, a Shandong Tyan subsidiary, stalled in February after the buyer faced delays securing financing for a $1.3 billion bid, people with knowledge of the matter said at the time.

“The company is no longer pursuing this project,” Shandong Tyan said in an exchange filing, citing both the tightened controls on outbound investment and foreign exchange.

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China’s Shandong Tyan says talks over on bid for Barrick’s Kalgoorlie – by Susan Taylor (Reuters U.S. – April 19, 2017)

http://www.reuters.com/

TORONTO – Shanghai-listed Shandong Tyan Home (600807.SS) said on Wednesday its negotiations with Barrick Gold Corp (ABX.TO) to buy the Canadian operator’s 50-percent stake in Kalgoorlie mine have ended without a deal, citing new capital and acquisition rules in China.

Toronto-based Barrick had been reviewing the financial backing behind an approximate $1.3 billion bid for its stake in Kalgoorlie mine by Minjar Gold, a unit of Shandong Tyan, Reuters reported in November. Barrick, the world’s largest gold producer, declined to comment on the matter. It reports first-quarter financial results on April 24.

In February, Barrick President Kelvin Dushnisky said “advanced negotiations with a proposed buyer,” were under way and Barrick would be “happy sellers” at the right price. “We’re also very happy to continue to own that asset,” he said.

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Mining investments herald ‘a new day’ for Yukon economy: analyst (CBC News North – April 12, 2017)

http://www.cbc.ca/

John Ing says major mining companies with money to invest are looking to replenish their mineral reserves

A mining analyst says money pouring into Yukon mineral exploration projects bodes well for the territory’s economy. “It’s a new day from the standpoint of exploration. It’s healthy,” said John Ing, chief executive officer of Maison Placements Canada Inc., an investment office in Toronto.

Barrick Gold announced earlier this week that it wants to initially invest more than $8 million in ATAC Resources’s Orion project, 55 kilometres east of Keno City. The multi-phased deal could reach a total investment of more than $63 million for exploration.

That follows recent announcements from Goldcorp Inc., Newmont Mining and Agnico Eagle Mines about plans to invest in the territory. Ing says major mining companies have reduced their costs and now have money to invest. He said they’re also looking to replenish their reserves.

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Barrick needs to reassure investors after Veladero mine mishaps – by Nicole Mordant and Susan Taylor (Reuters U.S. – April 12, 2017)

http://www.reuters.com/

TORONTO – Barrick Gold must take steps to safeguard investor confidence by ensuring there are no more operating mishaps at its mines after a third incident in 18 months at its big Argentina mine, analysts said.

Argentine regulators told Barrick last week that it must overhaul environmental and operating processes at its Veladero mine, where operations have been partially suspended, after a cyanide solution spill on March 28.

“We are absolutely committed to making Veladero a mine that all of our stakeholders can be proud of and our resolve has not wavered,” Barrick spokesman Andy Lloyd said on Tuesday. Veladero is Argentina’s largest gold mine and Barrick’s third largest contributor to output. Veladero’s income was $220 million in 2016, up 2 percent from 2015. Revenue in 2016 was $685 million, down from $720 million in 2015.

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Barrick Gold invests $8.3M in Yukon gold project, with potential for more (CBC North News – April 10, 2017)

http://www.cbc.ca/news/canada/north/

Investment could potentially reach $63.3 million, Atac Resources says

The world’s largest gold mining company is investing $8.3 million into a Yukon gold project, Atac Resources announced Monday.

B.C.-based Atac Resources, which owns the Rackla Gold project about 55-kilometres east of Keno City, said it signed a property earn-in agreement with Barrick Gold. That means Barrick can acquire an interest in Atac’s Rackla Gold property.

The potential total investment could reach $63.3 million, Atac said. That money would be spent on additional exploration investment by Barrick as the Rackla project progresses. Under the agreement, Barrick can increase its shares in Atac to 19.9 per cent up from the 9.2 per cent it currently owns. Atac announced in January it would spend $10 million on exploring the 1,742-square-kilometre site this year.

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Thornton Joins Barrick Top Brass in Argentina After Rupture – by Danielle Bochove and Jonathan Gilbert (Bloomberg News – April 10, 2017)

https://www.bloomberg.com/

Barrick Gold Corp. Executive Chairman John Thornton flew to Argentina after authorities threatened to rescind the license for the Veladero mine on the same day the company agreed to sell half the asset.

Thornton joined President Kelvin Dushnisky, Chief Operating Officer Richard Williams and Chief Financial Officer Catherine Raw in meetings with local managers in Buenos Aires as the world’s top gold producer deals with the fallout from the third incident involving cyanide solution in two years.

“It underscores how seriously the company and the management team takes this issue,” Andy Lloyd, a spokesman for Barrick, said by telephone from Toronto. On Thursday, Barrick announced a $960 million deal with China’s Shandong Gold Group for a 50 percent stake in Veladero.

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Argentina tells Barrick to overhaul Veladero gold mine – by Caroline Stauffer and Susan Taylor (Reuters U.S. – April 7, 2017)

http://www.reuters.com/

BUENOS AIRES/TORONTO – Argentina mining officials told Barrick Gold Corp it must overhaul environmental and operating processes at its Veladero mine, following last week’s cyanide solution spill, while the country’s environment ministry asked for a total suspension of operations, according to statements on Friday.

National and provincial officials told Barrick executives at a Thursday meeting that the Canadian company’s ongoing business in the country hinges on a new working plan for the open pit mine, the country’s energy minister said.

A pipe carrying cyanide solution ruptured at the open pit mine on March 28, the third incident at the mine in 18 months involving cyanide-bearing solution. A Barrick spokesman said the meetings were constructive.

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China’s Shandong in advanced talks to buy half of Barrick’s Veladero mine: sources – by John Tilak and Nicole Mordant (Reuters U.S. – April 5, 2017)

http://www.reuters.com/

TORONTO/VANCOUVER – China’s Shandong Gold Mining Co Ltd (600547.SS) is in advanced talks to buy a 50 percent stake in Barrick Gold Corp’s (ABX.TO) (ABX.N) Veladero gold mine in Argentina, people familiar with the process told Reuters even as the Canadian miner grappled with a pipe rupture at the site.

Barrick is no longer in discussions with China’s Zijin Mining Group Co Ltd (601899.SS) about the Veladero mine stake sale, the sources said. A sale could fetch more than $1 billion, they added.

Veladero, one of Barrick’s five core mines, was the site of a pipe rupture last week – the third incident in 18 months at the mine involving cyanide-bearing solution. In the wake of the incident, the government of Argentina’s San Juan province, where Veladero is located, said on Wednesday it has rejected a work plan presented by Barrick.

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UPDATE 1-Argentine province to suspend some Barrick activities -report (Reuters Africa – March 30, 2017)

http://af.reuters.com/

BUENOS AIRES/TORONTO, March 30 (Reuters) – Argentina’s San Juan province ordered Barrick Gold Corp to suspend some activities at its Veladero mine after a pipe carrying gold-bearing solution ruptured on the leach pad, state-run news agency Telam reported on Thursday.

Reuters could not immediately reach the provincial government to confirm the report. A spokesman for Barrick said the Toronto-based company was confirming its understanding of the order.

Barrick said on Wednesday that a monitoring system at the mine had detected a rupture on the pipe on Tuesday night. The issue was “quickly corrected,” it added, following procedures to contain and mitigate the situation. All solution was contained within the operating facility and there was no impact to people or the environment, Barrick said in the statement.

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Goldcorp-Barrick Partnership Shows Miners Tip-Toeing to Growth – by Danielle Bochove (Bloomberg News – March 28, 2017)

 

https://www.bloomberg.com/

n the dark days of the commodities meltdown, mining companies turned to partnerships to lower costs and survive. Now, as prices recover, they’re hooking up for growth — or at least the possibility of it. Canada’s two biggest gold miners, Barrick Gold Corp. and Goldcorp Inc., are teaming up to develop a gold-copper deposit in Chile as part of a complex chain of transactions.

The cultures of the two companies are, in many ways, opposites. Where Goldcorp has been focused on boosting production, Barrick has repeatedly stressed that its priority is improving cash flow through better margins.

Barrick’s latest joint venture with Goldcorp means it’s off the hook for the initial development costs associated with a large project in the Maricunga mineral belt, in exchange for handing over control of part of the asset.

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