Barrick Gold Corporation – Page 40

NEWS RELEASE: Barrick Named Mining Industry Leader by the Dow Jones Sustainability Index

September 15, 2014

TORONTO, September 15, 2014 — Barrick Gold Corporation has been named to the Dow Jones Sustainability World Index for the seventh consecutive year and has been ranked as the top performer in the mining industry category.

“We are honored to be included in this highly-respected index once again this year. Our goal is to be a responsible partner in resource development, ensuring our operations generate positive and sustainable benefits for all of our stakeholders, including governments, communities and investors,” said Co-President Kelvin Dushnisky.

“Achieving industry-leading social and environmental performance is a critical element of how we define operational excellence at Barrick,” said Co-President Jim Gowans. “This recognition is a testament to our people around the world, who make responsible mining a focus of what they do every day.”

Barrick was also included on the Dow Jones Sustainability North America Index for the eighth year in a row.
In 2013, Barrick contributed $15.2 billion in economic value-add to its host countries and communities through wages and benefits, royalties and taxes, local purchasing of goods and services and community investments. This included $7.1 billion in developing and emerging countries.

The Dow Jones Sustainability Index evaluates more than 3,000 companies annually using rigorous sustainability criteria to identify top performers.

UPDATE 1-Barrick scraps corporate development team, further cuts coming -sources – by Euan Rocha and Nicole Mordant (Reuters U.S. – August 27, 2014)

August 28, 2014

http://www.reuters.com/

Aug 26 (Reuters) – Barrick Gold Corp is eliminating its entire corporate development team and more cuts are in the works as the world’s top gold miner looks to trim costs, three sources familiar with the situation said on Tuesday.

The sources, who asked not to be named as they were not authorized to discuss the matter publicly, said Rick McCreary, the development team’s head, is leaving the company this week, with some others on the team set to depart next month.

The corporate development team’s main role was to identify and evaluate assets worth buying. McCreary, a former investment banker with CIBC, has led the team within Barrick since 2011.

A spokesman for Barrick declined to comment on whether the company was doing a wider round of cuts, which the sources said would be announced in the coming weeks. He confirmed, however, that the corporate development team was being restructured with some staff moving into other groups.

“The change reflects our focus on achieving operational excellence across the company, with an emphasis on optimizing our existing portfolio and further improving efficiency across our operations,” said Andy Lloyd, a spokesman for Barrick Gold.

Some staff from the corporate development team will stay on as part of a newly minted business development unit, while most others depart the company.

Deadly clashes continue at African Barrick gold mine – by Geoffrey York (Globe and Mail – August 27, 2014)

August 27, 2014

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

JOHANNESBURG — Police have killed more villagers in clashes at a controversial Tanzanian gold mine owned by a Barrick Gold Corp. subsidiary, despite the company’s pledges to reduce the violence, researchers say.

The researchers, including a law firm and two civil society groups, say they’ve received reports that as many as 10 people have been killed this year as a result of “excessive force” by police and security guards at the North Mara mine, owned by African Barrick Gold, a subsidiary of Toronto-based Barrick.

A spokesman for African Barrick confirmed to The Globe and Mail that “fatalities” have occurred in clashes at the mine site this year, but declined to estimate how many. It is up to the Tanzanian police to release the information, he said.

Tanzanian police have repeatedly refused to give any details on fatalities at the site. Dozens of villagers have been killed by police at the mine in the past several years, according to frequent reports from civil society groups. The company occasionally confirms some of the deaths, including a clash in which police killed five people in 2011.

The deadly clashes occur when villagers walk into the mine site in search of waste rock, from which small bits of gold can be extracted. Hundreds or even thousands of “intruders,” as they are known locally, can be involved.

Donlin gold mine brings hope of jobs — and fear of destruction – by Lisa Demer (Alaska Dispatch News – August 23, 2014)

August 25, 2014

http://www.adn.com/

DONLIN GOLD WORK CAMP — On a remote ridge in the big, open space between Bethel and Anchorage, where the land and minerals are owned by Alaska Native corporations, developers want to cut deep into the earth to extract microscopic bits of gold.

The Donlin Gold project is moving quietly forward. Backers are seeking key government permissions and trying to secure the trust of local residents.

Developers say the mine’s design will be the safest, most stable possible. A wealth of good jobs would open up in the cash-starved Western Alaska region if Donlin is developed, project sponsors say.

Still, the nature of large-scale gold mining incites anxiety and doubt among people who depend on the land and water as their sources of food.

The mine site is 10 miles from the Kuskokwim River near a salmon-producing stream, Crooked Creek. The project would disturb rock and soils laden with arsenic, mercury and other heavy metals; use cyanide in the production of the gold; bring barges loaded with diesel and other supplies upriver daily in ice-free months; and create a 2-mile-long, 1-mile-wide open pit where the hilltop used to be.

In focus: Pascua Lama remains in legal limbo – by Fermín Koop (Buenos Aires Herald – August 18, 2014)

August 18, 2014

http://www.buenosairesherald.com/

Barrick says project has slowed due to the company’s debts, lower gold prices

With more than US$5 million spent so far in what has long been described as one of the first bi-national mining projects in the world, Barrick Gold continues with its foot firmly on the brakes in Pascua Lama hoping to resolve its legal limbo in Chile as soon as possible while it seeks out new investors to join the project.

Even as Barrick likes to tout the potential benefit of the project for both Chile and Argentina, environmental groups continue to call for the cancellation of the mine’s environmental permits due to the potential risks the project could have on the area’s rivers and glaciers, which they say have already been affected.

“The project has not been abandoned, we temporarily decreased the pace of construction. It was impossible to keep working at a quick pace considering the company registered a US$10.37 billion loss last year and the price of gold dropped a lot,” a Barrick official in Buenos Aires told the Herald. “Plus, the legal issues in Chile led to the suspension of the construction there.”

Located in the Andes Mountains on the border between Argentina and Chile, Pascua Lama is an open pit mining project of gold, silver, copper and other minerals. It contains estimated deposits of 18 million ounces of gold and 676 million ounces of silver, with 75 percent of the deposits in Chile and 25 percent in Argentina.

NEWS RELEASE: Barrick Responsibility Report Now Available

August 13, 2014

TORONTO, ONTARIO–(Marketwired – Aug 12, 2014) – Barrick Gold Corporation has published its latest annual Responsibility Report, which provides a detailed overview of the company’s corporate responsibility performance. The report is available at barrickresponsibility.com. This is the 12th year that Barrick has published a Responsibility Report.

“Barrick’s priority is to achieve operational excellence, and that goal extends to every area of the company, especially to operate safely and responsibly,” says Peter Sinclair, Senior Vice President of Corporate Affairs. “We know that a culture of innovation, transparency and continuous improvement is essential to achieve this priority, and this report provides an important way to communicate our performance and progress in this regard.”

Highlights from the 2013 Report include:

Community

Significant economic contribution to host countries and communities. In 2013, this contribution totaled $15.2 billion, including $11.1 billion in the purchase of local and national goods and services, $1.7 billion in taxes and royalties, and $2.3 billion in wages and benefits.

$7.1 billion of the company’s total economic contribution went to developing and emerging countries in 2013, providing significant economic opportunities to these countries and host communities.

Door still open for mega-merger between Newmont Mining and Barrick Gold – by Peter Ker (The Age-Business Day – August 7, 2014)

August 7, 2014

http://www.theage.com.au/business

A $US35 billion ($37.6 billion) merger of global goldmining companies Newmont Mining and Barrick Gold may not be dead, after the chief executive of Newmont told an audience in Melbourne that he would not “close the door” on a future deal.
The two North American gold companies conducted merger talks earlier this year but the deal fell over in April amid reports they had disagreed over how to handle their respective Australian assets.

While neither company is listed in Australia, a merged entity would wholly own the nation’s biggest goldmine, Boddington, and the nation’s second-biggest goldmine, Kalgoorlie’s Super Pit, as well as other smaller assets.
When asked if he had shut the door on the proposed deal, Mr Goldberg indicated a revival of the deal was not impossible.

“I wouldn’t shut the door on it – we are focusing on running our business as effectively and efficiently as we can going forward and we will see what happens,” he said.

“Clearly we overlap and we work together, [the Super Pit] is an example, and we have a joint venture in Nevada and I wouldn’t close the door on it at all.” But he said he had not heard from Barrick since April.

During a presentation to the Melbourne Mining Club on Thursday, Mr Goldberg said the deal had failed because there were not enough “redundancies” between the two companies.

Gold miners report weaker-than-expected earnings; Barrick names two new directors – by Peter Koven (National Post – July 30, 2014)

July 31, 2014

The National Post is Canada’s second largest national paper.

Canada’s gold miners maintain they are operating well and continuing to find ways to cut costs. However, their second quarter earnings still fell below expectations.

Barrick Gold Corp., Kinross Gold Corp. and Agnico-Eagle Mines Ltd. all had positive things to report as they released Q2 results on Wednesday evening. Notably, Barrick lowered its cost guidance for the year, while Agnico raised its production guidance. But the stocks dropped in after-market trading as each result was slightly below consensus analyst estimates.

Barrick’s earnings were highlighted by the surprise announcement that it is naming two new directors, one of whom is a longtime associate of chairman John Thornton.

Michael Evans was a Canadian gold medalist in rowing in 1984, and was formerly vice chairman at Goldman Sachs. He worked closely with Mr. Thornton in their Goldman days, and his appointment will likely fuel further speculation that Mr. Thornton is consolidating his power at Barrick . Some investors already believe that is the case following the gold miner’s move to replace chief executive Jamie Sokalsky with two co-presidents earlier this month.

The other new director is Brian Greenspun, a prominent publishing and telecommunications tycoon in Nevada, which remains Barrick’s most important mining jurisdiction.

A year after brutal losses, Canada’s gold miners expected to see return to stable ground – by Peter Koven (National Post – July 30, 2014)

July 30, 2014

The National Post is Canada’s second largest national paper.

One year ago, the gold mining sector reported its most appalling quarterly earnings ever. A steep decline in the price of gold caught the industry off-guard in the spring of 2013, prompting some miners to report record writedowns and net losses in the second quarter. Barrick Gold Corp. led the way with an absurd quarterly loss of US$8.56-billion, the second biggest in Canadian history.

The senior gold miners are now set to report their latest Q2 results over the next two days. But thanks in part to the measures they took a year ago, their earnings should be a lot less noisy and a lot less troubled.

“I’m not looking for any big dislocations in this quarter,” Mackie Research Capital Barry Allan said. “Not a lot of ‘Oh my God, where did that come from?’”

When gold plunged 26% in April and May of 2013, the whole industry shifted focus. Instead of chasing production growth (as they had for many years while prices were rising), miners turned their attention to cost reductions and capital spending cuts.

At the time, the cost reduction announcements were overshadowed by some of the more ridiculous writedowns. But those moves are bearing fruit today.

The senior gold miners reported significant year-over-year reductions in all-in sustaining costs in the first quarter of 2014.

Investors unclear on Barrick’s future direction amid CEO shakeup – by Rachelle Younglai (Globe and Mail – July 29, 2014)

July 29, 2014

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

On the eve of the first full meeting of Barrick Gold Corp.’s new board, investors are in the dark about the gold giant’s strategy.

Barrick’s new chairman John Thornton said he wants the miner, the world’s biggest gold producer, to be the “leading gold company” and a “leader” in copper. But what that means is unknown.

“I don’t think they have been clear, and I don’t think they have made up their minds yet,” said Michael Sprung, president of Sprung Investment Management, which has held Barrick shares for about five years.

The miner’s game plan has come under scrutiny after Mr. Thornton got rid of the company’s chief executive role. Instead, the company will have two co-presidents and the company’s chief financial officer will work closely with Mr. Thornton to develop strategy, he said. Barrick CEO Jamie Sokalsky will be leaving in September, just two years into his tenure.

The management shakeup will lead to further changes at Barrick, which is already in flux after a turbulent year. Directors who had served on the board with former chairman and founder Peter Munk since the beginning faced pressure to leave, and merger talks with Colorado-based gold company Newmont Mining Corp. blew up, with each side blaming the other for the collapse.

African Barrick Gold: Better as she goes! – by Lawrence Williams (Mineweb.com – July 25, 2014)

July 25, 2014

http://www.mineweb.com/

African Barrick has achieved a seventh successive quarterly fall in AISC and has improved its guidance on both gold output and costs after another positive quarter’s financial and operating results.

LONDON (MINEWEB) – The measures being taken to bring African Barrick Gold (ABG) – Barrick Gold’s London quoted African gold mining arm – back towards decent profitability seem to be working and while there are still some hiccups – notably a fall in grades at its flagship Bulyanhulu gold mine – its Q2 production results showed substantial further improvement beating most analysts’ consensus with gold output of 178,000 ounces at all in sustaining costs (AISC) of US$1105 an ounce.

This compares with production of 168,000 ounces in Q1 and 164,000 ounces in Q2 2013 – while AISC have shown the best improvements down from $1404 an ounce a year earlier. Consequently it is upping its production guidance for the year and maintaining its guidance on cash and all in sustaining costs.

CEO Brad Gordon was obviously pleased with the latest figures, commenting “We are pleased to report strong results for H1 2014, with increased production and continued cost discipline enabling the business to return to cash generation.. We have now delivered our seventh successive reduction in quarterly all-in sustaining costs (AISC) as we continue to drive operational improvements through the business”.

Tanzania: Red Tape Dogs Tanzania’s Leading Gold Mining Firm – by Henry Lyimo (All Africa.com – July 22, 2014)

July 22, 2014

http://allafrica.com/

African Barrick Gold (ABG) is negotiating with the government to recover a whopping US$ 65 million (about 107.9bn/) as Value Added Tax (VAT) refunds accumulated over years due to overly bureaucratic procedures for refunding.

The firm enjoys special VAT relief as part of various tax incentives and exemptions extended to investors in the mining sector. ABG is Tanzania’s largest gold producer and one of the five largest gold producers in Africa.

It currently operates three producing mines in the country — Bulyanhulu, Buzwagi and North Mara, as well as several exploration projects at various stages of development in Tanzania and Kenya.

The company listed on the London Stock Exchange and Dar es Salaam Stock Exchange (DSE) and is a constituent of the FTSE 250 Index. ABG is a unit of Barrick Gold Corporation, the largest gold mining company in the world, with its headquarters in Toronto, Ontario, Canada.

Tanzania is currently the fourth largest gold producer after South Africa, Ghana and Mali. The ABG Chief Executive Officer, Brad Gordon said they were in negotiations with the government to address the problem that is making procurement of local supplies expensive.

“The amount accumulated is very high and it seems its recovery would take long time.

Wary investors slow to warm to Barrick Gold’s latest shakeup – by Euan Rocha (Reuters U.S. – July 21, 2014)

July 21, 2014

http://www.reuters.com/

(Reuters) – Worried they are being given the cold shoulder by an imperious leadership, shareholders of Barrick Gold Corp, the world’s biggest gold miner, are taking a “show me” approach to the company’s latest management shakeup.

Barrick said last week that Chief Executive Jamie Sokalsky will leave the company in September. He will be replaced by two co-presidents, a move that concentrates power in the hands of Executive Chairman John Thornton, a man handpicked for the job by Peter Munk, who founded the company and ran it his way for decades.

“The concern in this situation is that the person setting the strategy does not listen to the shareholders, who are the real owners of the company,” said Chris Mancini, an analyst at Gabelli Gold Fund, which owns more than 2.4 million shares in Barrick according to Thomson Reuters data.

“There was a concern within the market that Mr. Munk was not listening to shareholders…And so if Mr. Thornton also doesn’t listen to shareholders that could be a problem again.”

Munk stepped down as chairman in April in the face of investor criticism, and with the exit of Sokalsky, Thornton is now both more free and under greater pressure to map out a clear strategy to cut Barrick’s lofty debt levels, boost profits and eventually raise dividends.

Barrick Gold CEO Jamie Sokalsky steps down, replaced by co-presidents – by Lisa Wright (Toronto Star – July 17, 2014)

July 17, 2014

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Management shakeup puts new board chairman John Thornton’s stamp on miner following recent departure of company founder Peter Munk.Management shakeup puts new board chairman John Thornton’s stamp on miner following recent departure of company founder Peter Munk

After two years spent overhauling ailing Barrick Gold Corp., president and CEO Jamie Sokalsky will step down in September as part of sweeping changes to the miner’s management structure.

The announcement Wednesday that two co-presidents will soon share the helm comes just 10 weeks after the departure of Barrick founder Peter Munk, and is clearly new board chairman John Thornton’s first big stamp on the leadership of the world’s biggest gold miner, analysts say.

“He was brought in to bring change, and he’s bringing change,” said John Ing, president of Maison Placements Canada.
Eliminating the role of CEO may also leave the door open for the resumption of merger talks with Newmont Mining Corp., Barrick’s biggest rival, said TD Securities mining analyst Greg Barnes in a note to clients.

Barrick shakeup signals more changes ahead – by Ian McGugan (Globe and Mail – July 17, 2014)

July 17, 2014

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

The unusual new management structure at Barrick Gold Corp. signals two things – that John Thornton is now clearly in command of the world’s largest gold miner, and that more changes lie ahead.

The company announced Wednesday that president and CEO Jamie Sokalsky will be resigning in September, after only two years in the post. He was a favourite of company founder Peter Munk and his departure suggests that Mr. Thornton, who was named chairman only three months ago, is eager to put his own stamp on the company.

The question is precisely what form that stamp will take. One possibility is that Barrick will attempt to reopen merger talks with Newmont Mining Corp. of Colorado. Discussions between the two mining giants blew up in April, with both sides slinging accusations at each other.

Another possibility is that Barrick will strike a deal in China, a country where Mr. Thornton has extensive contacts from his days as chairman of Goldman Sachs Asia and as a business professor at Tsinghua University in Beijing.