Barrick Gold Corporation – Page 33

Gold rally drives impressive results for Canadian miners – by Ian McGugan (Globe and Mail – July 28, 2016)

July 28, 2016

http://www.theglobeandmail.com/

A flurry of earnings results from three of Canada’s largest gold miners show that this year’s bullion boom is being reflected in major improvements across the industry’s bottom line.

After years of decline, the price of gold has jumped 25 per cent since January as investors have sought refuge from slumping yields on savings accounts and bonds.

The rush to precious metals has given mining stocks a powerful boost. Shares of Barrick Gold Corp. and Kinross Gold Corp. have more than doubled since the start of the year, while Agnico Eagle Mines Ltd. (up 98 per cent) has also achieved eye-popping gains. Results released after the market closed on Wednesday offer hope that more gains may be ahead, although it also hinted at some potential problems.

Higher prices drive major cash flow gains for Canada’s gold miners – by Peter Koven (Financial Post – July 28, 2016)

July 28, 2016

http://business.financialpost.com/

The return of the gold bull market in 2016 is driving massive cash generation for Canada’s largest miners of the metal.

The biggest producers reported second quarter results on Wednesday night. And while the results were mixed compared to analyst expectations, a key theme was stronger cash flow and improving margins.

Barrick Gold Corp., the world’s biggest gold miner, had adjusted earnings of US$158 million and a whopping US$274 million of free cash flow. Kinross Gold Corp. and Agnico Eagle Mines Ltd. also reported major improvements in cash flow generation.

Barrick Gold is considering selling its stake in Acacia, say sources – by John Tilak and Nicole Mordant (Business Day – July 26, 2016)

July 27, 2016

http://www.bdlive.co.za/

Reuters – THE world’s largest gold producer, Barrick Gold Corp, is weighing the sale of its majority stake in African unit Acacia Mining Plc and has approached several South African miners, according to sources familiar with the situation.

The potential sale would be part of Barrick’s broader strategy of selling noncore assets to reduce its debt load. The Toronto-based company offloaded stakes in several mines last year.

The talks are at an early stage and there is no assurance a deal will be done, the sources said. Barrick owns 64% of Acacia, a London-listed miner with three producing gold mines in Tanzania: Bulyanhulu, Buzwagi and North Mara. Much of the remainder of Acacia is widely held.

Gold producers’ big test: Time to end the restraint? – by Ian McGugan (Globe and Mail – July 25, 2016)

July 25, 2016

http://www.theglobeandmail.com/

It’s showtime for the hottest sector of the Canadian stock market. After markets close on Wednesday, four major gold producers – Agnico Eagle Mines Ltd., Barrick Gold Corp., Goldcorp Inc. and Kinross Gold Corp. – will roll out their second-quarter results within minutes of one another.

The flurry of reports will indicate how the industry is coping with an unexpected outbreak of prosperity and offer important clues about whether Canada’s biggest gold producers are prepared to open their wallets and start spending again.

Gold and gold stocks had stagnated for years before suddenly reversing course in January and reaching for the stratosphere. Each of the four big Canadian producers has gained at least 50 per cent since then. Barrick and Kinross have more than doubled, thanks to improving operations and a firmer gold price.

Barrick Says Becoming Debt-Free Within a Decade Is in Reach – by Danielle Bochove and Scott Deveau (Bloomberg News – July 8, 2016)

July 11, 2016

http://www.bloomberg.com/

Barrick Gold Corp., the largest miner of the metal, could be free of debt within a decade on bullion-price gains, cost cuts and asset sales, President Kelvin Dushnisky said.

The Toronto-based miner had about $9 billion in debt in the first quarter, down from a peak of $15.8 billion in the second quarter of 2013. Dushnisky said debt could fall to $5 billion in three years and zero within 10 years.

“That’s not unreasonable,” Dushnisky said in an interview on Bloomberg TV Canada. “Yet again, it’s gold-price dependent. We’ve been very clear, Barrick was the only company with an A-rated balance sheet for the longest time. Our intent is to be strong investment grade, and we’d like to be in the position where we have no corporate debt.”

Barrick Gold 2015 Responsibility Report – by President Kelvin Dushnisky (July 2016)

July 7, 2016

http://www.barrick.com/

Click here for the report: http://www.barrick.com/files/responsibility/Barrick-2015-Responsibility-Report.pdf

In many respects, 2015 was a transformational year for Barrick. We set out a clear vision to be the leading mining company focused on gold, and made significant organizational changes to achieve this.

My letter in Barrick’s 2015 Annual Report describes in detail these changes, and our progress.

What has remained unchanged is our belief that mining can provide stability and opportunity in an increasingly complex and dynamic world. We also remain convinced that the best way to achieve this is through partnerships—with our people, with the countries and communities where we operate, and with our shareholders.

For us, being a good partner means that the most important question we can ask is: how would we want things to go if positions were reversed?

Barrick Gold’s Thornton Named Silk Road Finance Corp. Chairman – by Cathy Kit Ching Chan (Boomberg News – July 2, 2016)

July 4, 2016

http://www.bloomberg.com/

Barrick Gold Corporation chairman John Thornton has been named chairman of Asian investment firm Silk Road Finance Corp., as the company seeks to tap the veteran banker’s global experience and boost its reach across Asia and Europe.

Thornton, 62, was one of the founding partners advising the establishment of Silk Road and will oversee the company’s strategy, said chief executive officer Li Shan by phone. “He is one of the best bankers in the world,” Li said. “He helped build Goldman Sachs’ Asia and its European business and has a very good understanding of the belt and road environment.”

Chinese President Xi Jinping launched the “One Belt, One Road” infrastructure program in 2013, aiming to deepen China’s economic ties across Asia. The program includes plans to build a “New Silk Road” network of roads, railways, pipelines and ports from Asia to Europe, and will include providing legal services, facilitating capital flows and promoting the Chinese yuan’s internationalization along the route.

Barrick Gold Corp needs to consider buying big assets again – J.P. Morgan – by Jonathan Ratner (Financial Post – June 16, 2016)

June 16, 2016

http://business.financialpost.com/

Barrick Gold Corp. needs to “think big” when it comes to acquisitions, with a new report suggesting now is the time to refill its project pipeline to avoid steep production declines in the coming years.

“Barrick is the world’s largest gold miner and – like a supertanker – has to move early to avoid bad outcomes,” John Bridges at J.P. Morgan told clients on Thursday.

The analyst noted that while Barrick’s improving share price could allow it to buy some smaller miners, it also needs to look for large mines, albeit ones that don’t add too much stress from an operational perspective.

“Now is probably the time to think about reserve replacement,” Bridges said, noting that roughly a third of Barrick’s reserves are at projects with no current mine building plans.

After five lean years, gold miners gear up for growth – by Nicole Mordant and Susan Taylor (Reuters U.S. – June 8, 2016)

June 8, 2016

http://www.reuters.com/

VANCOUVER/TORONTO – For the first time in five years, Barrick Gold and other bullion miners are getting ready to expand, breaking from their monologue on cutting costs and debt because of tumbling gold prices.

Backed by healthier balance sheets, a 17 percent rise in the price of gold since January to $1,244 an ounce and new investors, miners from Canada to Australia and South Africa are studying ways to raise production.

At the world’s biggest gold miner, growth was not a priority in recent years, said Rob Krcmarov, Barrick’s vice president of exploration and growth, as the company sold assets to reduce its $14 billion debt by 40 percent. “Now some of our investors are starting to ask us: what is next?,” Krcmarov said. Barrick created a “growth committee” in March to evaluate in-house projects, exploration opportunities and acquisitions.

Hemlo Mine reduces emissions by 24 percent, captures Canadian industry award (Barrick Beyond Borders – May 2016)

June 6, 2016

http://barrickbeyondborders.com/

Barrick’s Hemlo mine has been recognized by Canada’s Department of Natural Resources for its innovative energy conservation program. The northern Ontario-based mine received a Canadian Industry Program for Energy Conservation (CIPEC) Leadership Award for implementing a project that reduced greenhouse gas emissions by 24 percent and lowered energy consumption by 10 percent between 2013 and 2015. The award was presented at a ceremony Tuesday in Niagara Falls, Ontario, hosted by CIPEC through Natural Resources Canada and the Excellence in Manufacturing Consortium.

“Congratulations to Barrick Gold Corporation on their CIPEC Leadership Award,” says Kim Rudd, Parliamentary Secretary to the Minister of Natural Resources. “Their vision for responsible mining and use of new technologies to improve energy efficiency are cutting-edge. I commend them on their extraordinary Hemlo mine that is helping to drive down energy consumption, cost and emissions.”

Hemlo was able to drive down energy consumption and greenhouse gas emissions by optimizing its underground ventilation system, says Andrew Baumen, the mine’s General Manager.

Barrick pays $140m to settle Pascua-Lama lawsuit – by Frik Els (Mining.com – May 31, 2016)

June 1, 2016

http://www.mining.com/

Barrick Gold (TSX, NYSE:ABX) has agreed to pay $140 million to resolve a US class-action lawsuit that accused the world’s largest gold producer of distorting facts related to its mothballed $8.5 billion Pascua-Lama project in South America.

Barrick confirmed the agreement disclosed in papers filed on Tuesday in Manhattan federal court, adding that the settlement is insured. In a statement the Toronto-based company said it “continues to believe that the claims alleged by the lead plaintiffs in the litigation are unfounded, and under the terms of the settlement agreement, the company has not accepted any charges of wrongdoing or liability.”

The lawsuit covers investors who acquired Barrick stock between May 7, 2009 and May 23, 2013. Shares in the company lost 44% of its value over that time period, with a large chunk of the losses coming in April and May that year. The class action alleged Barrick shareholders lost billions of dollars as a result of the company’s “misrepresentations and failures” regarding Pascua-Lama.

Billionaire George Soros buys US$263.7 million stake in Barrick Gold – by John Shmuel (Financial Post – May 17, 2016)

May 17, 2016

http://business.financialpost.com/

Soros Fund Management made a big bet on Barrick Gold Corp. in the first quarter, scooping up a US$263.7 million stake in the miner. The fund, chaired by billionaire investor George Soros, disclosed that it now owns 19.4 million shares in Barrick, making it Soros’ largest U.S.-listed holdings and giving him a 1.7 per cent stake in the miner.

The bet on gold and Barrick has certainly been profitable. Barrick’s stock is up 138 per cent this year, making it one of the best performers on the TSX.

Barry Allan, senior mining analyst at Mackie Research Capital Corporation, said that the acquisition is part of the big move back into gold miners that has become one of the hottest rallies of the year. Many managers on Bay Street had emptied out of Barrick and other gold names over the past couple of years, leaving the companies heavily undervalued.