Barrick Gold Corporation – Page 30

Goldcorp spends nearly $1 billion to get into Chilean joint venture with Barrick Gold – by Sunny Freeman (Financial Post – March 29, 2017)

March 29, 2017

http://business.financialpost.com/

Two Canadian gold giants, Barrick Gold Corp. and Goldcorp Inc., will form a partnership in Chile’s gold belt in a multi-faceted deal that will see Goldcorp commit nearly US$1 billion as miners look for creative solutions to find and fund new sources of growth.

Goldcorp will pay upfront costs of about US$445 million to get into a lucrative gold belt in a friendly mining jurisdiction through a complex series of deals involving four miners. A joint venture with Barrick will see the companies own and operate at least three properties in Chile’s Maricunga region with further investments largely funded by Goldcorp.

For Vancouver-based Goldcorp, the deal represents an opportunity to take a stake in one of the largest undeveloped gold projects in the world. Goldcorp’s stock fell 6.7 per cent to $20 in Toronto.

Investors have it wrong. The Barrick-Goldcorp-Kinross deal is a smart move – by Ian McGugan (Globe and Mail – March 29, 2017)

March 29, 2017

http://www.theglobeandmail.com/

The three-cornered deal announced on Tuesday by Barrick Gold Corp., Goldcorp Inc. and Kinross Gold Corp. is better than the market thinks it is.

While investors’ reaction was immediately and uniformly negative – Goldcorp stock plummeted and Barrick and Kinross shares both lost ground – the shuffle of assets seems like an eminently sensible transaction.

The agreement, which centres on the Cerro Casale gold and copper project in northern Chile, gives each of the companies something it values highly: cash for Kinross, new reserve potential for Goldcorp and a low-cost way to move forward a shelved project for Barrick. It also allows Goldcorp and Barrick to share the risk of developing a swath of Chile’s Maricunga gold belt, while letting the two companies spread expenses among a number of nearby projects.

Acacia Mining: Tanzania ban costs $1 mln daily in revenue – by Susan Taylor (Reuters U.S. – March 24, 2017)

March 28, 2017

http://www.reuters.com/

TORONTO – Acacia Mining is losing more than $1 million in revenue each day at two mines in Tanzania because of the country’s ban on exports of gold and copper concentrates, the London-listed company said on Friday.

Acacia, majority owned by Barrick Gold, said it can produce and store concentrate at its Bulyanhulu and Buzwagi mines beyond the end of April, but must assess how long that can continue if the ban remains.

“We are taking a range of actions to help manage this financial impact,” Acacia said in a statement, without specifying any measures. Acacia, the largest miner in Tanzania, said talks with government officials have failed to result in the ban being lifted.

Barrick, Goldcorp team up to develop one of world’s largest gold deposits in Chile – by Cecilia Jamasmie (Mining.com – March 28, 2017)

March 28, 2017

http://www.mining.com/

Canada’s Barrick (TSX, NYSE:ABX) and Goldcorp (TSX:G) (NYSE:GG), the world’s No.1 and No.3 producers of the precious metal by value, are teaming up to develop projects in northern Chile, particularly Cerro Casale, one of the world’s largest gold-copper deposits.

As part of the agreement, Barrick has sold a 25% stake in Cerro Casale to Goldcorp, which will result in a 50-50 joint venture focused on building gold mines in Chile’s prolific Maricunga belt.

The move, a fresh sign that miners are moving from cost-cutting to expanding operations and investing in exploration, also prompted Goldcorp to acquire Exeter Resource Corporation (TSX:XRC) for about $250 million. The takeover makes of Goldcorp the sole owner of the Caspiche gold-copper project, conveniently located only 10 km north of Cerro Casale.

Tribunal favours Barrick, Antofagasta in Pakistan lease denial case – by Cecilia Jamasmie (Mining.com – March 21, 2017)

March 22, 2017

http://www.mining.com/

A World Bank’s tribunal has ruled in favour of Tethyan Copper Co. (TCC), a joint venture between Barrick Gold (TSX, NYSE: ABX) and Antofagasta (LON:ANTO), in relation to the denial of a mining lease for the multi-billion-dollar Reko Diq copper and gold reserve in the Pakistani province of Balochistan.

The decision by the International Center for Settlement of Investment Disputes (ICSID), issued on Monday, confirms that Pakistan violated several provisions of its bilateral investment treaty with Australia, where Tethyan Copper is incorporated, Barrick said in a statement. The ruling also rejects Pakistan’s final defense against liability.

The case dates back to 2011, when the provincial government of Balochistan rejected TCC’s application for a mining licence at the remote Reko Diq site, near the Afghan-Pakistan border, even though the firm had been awarded a licence for exploration in the area in 2006.

Endeavour, Acacia talks break down – by Staff (Mining Journal – March 22, 2017)

March 22, 2017

http://www.mining-journal.com/

Two months after announcing they were in discussions about a possible merger, Acacia Mining (LN:ACA) and Endeavour Mining (CN:EDV) have called it quits, deciding a joint Africa-focused gold mining proposition is not in the best interest of shareholders.

The combination, which would have seen Acacia’s Tanzania operations joined with Endeavour’s West Africa assets, had been heralded as the first major piece of gold M&A in 2017 and got analysts and bankers, alike, very excited at the prospect of further corporate transactions.

In separate statements, the two said they had agreed to terminate discussions, with shareholder value seemingly the main sticking point. The deal was initially seen as a way for Barrick Gold (CN:ABX) to more than halve its 64% Acacia stake to a 30% level.

PDAC 2017: What’s wrong with hedging? – by Trish Saywell (Northern Miner – March 14, 2017)

March 21, 2017

http://www.northernminer.com/

Barrick Gold (TSX: ABX; NYSE: ABX) pioneered gold hedging more than two decades ago, but the company endured sharp criticism when the strategy became a liability, and management eventually closed out its fixed-price hedge book at a significant cost in 2009.

The pros and cons of hedging remain the subject of debate to this day, and the topic came up during a discussion at the recent Prospectors & Developers Association of Canada convention in Toronto, when a participant asked a panel of bankers whether they thought the practice was a useful tool for the industry.

Egizio Bianchini of BMO Capital Markets — who prefaced his remarks by pointing out that BMO has the smallest commodity desk of all the banks represented on the panel, making him “the least conflicted” to answer the question — responded with an emphatic yes.

Barrick Gold Corp is exploring selling part or all of one of its flagship mines in Peru, sources say (Financial Post/Reuters – March 17, 2017)

March 17, 2017

http://business.financialpost.com/

TORONTO — Barrick Gold Corp, the world’s biggest gold producer, is exploring options for its Lagunas Norte mine in Peru, including the sale of part or all of the asset, three people with knowledge of the matter told Reuters.

Barrick, which is working with Toronto Dominion Bank , may prefer to hold 50 percent of Lagunas Norte, but it was unclear if the company wanted to keep control of the open-pit mine as operator, the people added.

The mine could be worth about $1.4 billion, according to industry experts, based on about two times the net asset value ascribed to high-quality gold mines. A Credit Suisse analyst put the mine’s NAV at $711 million.

Chile’s Supreme Court casts shadow over Barrick’s plans to restart Pascua-Lama – by Cecilia Jamasmie (Mining.com – March 15, 2017)

March 15, 2017

http://www.mining.com/

Plans by Barrick Gold (TSX, NYSE:ABX) to revive its Pascua Lama gold, silver and copper project straddling the border between Chile and Argentina may once again be postponed after Chile’s Supreme Court revoked this week a temporary closure permit granted by the country’s mining regulator Sernageomin in 2015.

Such decision sought to relax certain requirements for Barrick to obtain a new environmental licence for the project, which the top court qualified as an irresponsible measure.

“It authorizes the temporary closure of Pascua-Lama mining operations, without having the necessary measures in place to ensure the physical and chemical stability of the water sources affected by the project,” the judge said according to local paper Diario Financiero (in Spanish). “[Sernageomin also failed to previously determine] the extent of the damage caused by the project through its innumerable environmental violations,” it added.

Tanzania export ban threatens merger of Barrick subsidiary, Endeavour Mining – by Geoffrey York (Globe and Mail – March 15, 2017)

March 15, 2017

http://www.theglobeandmail.com/

JOHANNESBURG – A Tanzanian export ban has cast a shadow of doubt over a potential $4-billion (U.S.) merger between a Barrick Gold Corp. subsidiary and Toronto-listed Endeavour Mining Corp.

Toronto-based Barrick has been hunting for a buyer for its African subsidiary, Acacia Mining. The possible Endeavour deal could reduce its majority stake in Acacia to a minority holding, but the deal might now be delayed or scuttled by Tanzania’s unexpected move to freeze the export of gold and copper ore. Acacia and Endeavour had confirmed their “preliminary discussions” in January. A merger would create an African mining giant, with mines in five African countries.

But on March 3, the Tanzanian government announced the export ban. “It is expected that all the companies and individuals who were exporting concentrates and mineral ores to foreign countries for beneficiation (processing, smelting or refining) will immediately stop and start doing such activities within the country,” the announcement said.

As growth plans return at gold miners, are investors being set up for disappointment? – by Ian McGugan (Globe and Mail – February 17, 2017)

February 17, 2017

http://www.theglobeandmail.com/

Canada’s leading gold companies are once again turning their attention to new projects, as resilient bullion prices and healthier balance sheets fuel guarded optimism.

The shift in emphasis was clear as senior executives discussed earnings reports with analysts on Thursday. A year ago the talk was all about cutting costs, selling assets and expanding free cash flow, but miners are now stressing growth opportunities too.

Agnico Eagle Mines Ltd. said it was planning to invest more than $1.2-billion (U.S.) in two mines in Canada’s North. Goldcorp Inc. reiterated its commitment to expanding its production by 20 per cent over the next five years.

Barrick Gold Corp earnings beat expectations on lower production costs, boosts quarterly dividend – by Sunny Freeman (Financial Post – February 16, 2017)

February 16, 2017

http://business.financialpost.com/

TORONTO — Barrick Gold Corp. raised its dividend Wednesday after fourth-quarter earnings beat analysts’ expectations as it lowered its cost of producing gold closer to its US$700 target. The Toronto-based mining giant, which reports in U.S. dollars, reported net income of $425 million, or 36 cents per share.

After adjustments, net income for the quarter was $255 million, or 22 cents a share — a 180 per cent jump from the $91 million, or eight cents per share it earned in the fourth quarter of 2015. Analysts were expecting earnings of $227 million, or 20 cents per share.

The company credited increases in realized gold and copper prices and lower costs of sale for the improvements. “Barrick’s operations delivered progressively-stronger performance over the course of 2016, with three consecutive quarters of improved all-in sustaining cost guidance and gold production at the high end of our annual production forecast,” the company said in a statement.

Barrick Sale of Super Pit Stake to China Buyer Stalls – by Brett Foley, Scott Deveau and Danielle Bochove (Bloomberg News – February 8, 2017)

February 9, 2017

https://www.bloomberg.com/

Barrick Gold Corp.’s plan to sell its stake in the Kalgoorlie Super Pit mine to a Chinese bidder has stalled, as the buyer faces delays securing financing for the $1.3 billion deal, people with knowledge of the matter said.

Minjar Gold Pty, a unit of property developer Shandong Tyan Home Co., is also still seeking Chinese regulatory clearance for the purchase, according to the people. Barrick is awaiting an outcome and remains interested in selling to Minjar, which outbid other suitors by a large margin, the people said, asking not to be identified because the information is private.

Barrick may still decide to re-enter talks with other buyers or keep its 50 percent stake in the Western Australia asset, which is the country’s largest open-pit gold mine, the people said.

Barrick subsidiary Acacia attempts to repair relationship with Tanzania – by Geoffrey York (Globe and Mail – February 7, 2017)

February 7, 2017

http://www.theglobeandmail.com/

CAPE TOWN, SOUTH AFRICA – Accused of tax evasion and excessive profits in an impoverished African region, a Canadian-owned mining company is trying to patch up its tense relationship with the Tanzanian government by paying taxes ahead of schedule and spending $2-million (U.S.) on advertising to showcase its investments.

Acacia Mining, a subsidiary of Toronto-based Barrick Gold Corp., has faced a growing barrage of verbal attacks from political leaders and media commentators in Tanzania, where it owns three gold mines. And on some issues, the company acknowledges that its critics may have a valid point.

“Governments, probably rightly, don’t think they’re getting a fair share of the wealth,” Acacia chief executive Brad Gordon said in an interview on Monday. “So we need to get smarter about how that wealth is distributed. I just think we need to look at the distribution of that wealth and how taxes are paid.”

Barrick Gold Corp. production falls due to mine sales, costs also down – by Sunny Freeman (Financial Post – January 26, 2017)

January 26, 2017

http://business.financialpost.com/

Barrick Gold Corp.’s annual gold production in 2016 fell by nearly 10 per cent and copper production was down about 19 per cent compared to the year before, largely due to the company’s decision to sell off some non-core mines, the company announced Wednesday.

The Toronto-based mining giant said it produced about 5.5 million ounces of gold at its 16 gold mines — which was at the high end of its 5.25 to 5.55 million ounce guidance. But that was short of the 6.1 million ounces mined in 2015.

Production was impacted by the sale of some of its smaller mines such as Cowal, Round Mountain, Bald Mountain, Ruby Hill and the sale of half its interest in Porgera, the company said. Still, production at its core mines, including Cortez and Goldstrike, rose slightly from 2015.