Archive | Canada Mining

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.” Continue Reading →

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. Continue Reading →

Finland takes top spot for mining-friendly investment – by Henry Lazenby (MiningWeekly.com – February 23, 2018)

http://www.miningweekly.com/

VANCOUVER (miningweekly.com) – Finland has ousted Saskatchewan as the top international jurisdiction for mining investment, Canada’s Fraser Institute announced on Thursday.

Canada’s leading independent think-tank, the Fraser Institute, administers its Annual Survey of Mining Companies and ranks jurisdictions around the world based on a combination of their geological attractiveness for minerals and metals and their policy attractiveness.

“Rich mineral reserves, competitive taxes, efficient permitting procedures and certainty around environmental regulations will still attract significant investment – even with slumping commodity prices,” said senior director of energy and natural resource studies Kenneth Green. Continue Reading →

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. Continue Reading →

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. Continue Reading →

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. Continue Reading →

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. Continue Reading →

Sound policy, low risk key to attracting mining investment – by Henry Lazenby (MiningWeekly.com – February 16, 2018)

http://www.miningweekly.com/

VANCOUVER (miningweekly.com) – Gobal equity markets have been extremely volatile in recent weeks, extending a frantic sell-off of US stocks, which culminated in the steepest plunge for the Dow Jones Industrial Average in six-and-a-half years.

While commodities were not spared from the rout, American multinational investment banking and financial services firm Citigroup says now is the time for investors to add positions in metals.

According to Citigroup, demand-led inflationary pressures are a boon for real assets like commodities, as they raise the cost of production and support higher prices, while they are bearish for assets such as bonds. Continue Reading →

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. Continue Reading →

A look behind Sherritt’s double financing victory – by Barry Critchley (Financial Post – February 15, 2018)

http://business.financialpost.com/

The Canadian resource company bought back $121.223M of three classes of debt at an aggregate cost of $110.331M plus accrued interest

It looks like a classic win-win, now that the second part of a financing package unveiled one month back by Sherritt International has closed: the issuer raised more equity than originally intended and bought back more debt than anticipated — and at a slightly lower price.

Wednesday, Sherritt announced it had bought back $121.223 million of three classes of debt at an aggregate cost of $110.331 million plus accrued interest. Under normal circumstances, that debt was set to mature over the period of 2021-2025. Because of the buy-back the company now has about $600 million of debt outstanding — down from $720 million previously.

Sherritt bought the debt back through a modified Dutch auction: prior to the auction, it posted maximum prices; asked holders to submit their proposals, indicated those proposals “must be less or equal to the maximum price,” and then picked the so-called market-clearing price. Continue Reading →

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. Continue Reading →

What it means to be a miner in the 21st century – by David Garofalo (Globe and Mail – February 15, 2018)

https://www.theglobeandmail.com/

David Garofalo is the CEO of Goldcorp Inc.

The mining industry has traditionally been a laggard when it comes to innovation. The 21st-century economy, however, dominated by emerging technologies like electric vehicles, green energy sources and ever-more advanced mobile devices, is demanding creative approaches to efficiently delivering the raw materials that will fuel modern economies.

Canadian mining is seeing a real drive to innovate that is bolstering our ability to get materials to global markets as efficiently and cost-effectively as possible. And it’s changing what it means to work in mining.

New technologies are enabling workers to make quicker, more informed decisions at the front lines of operations. Advancements in artificial intelligence and machine learning are giving geologists more options and the data to understand existing deposits differently, along with tools to make new discoveries. Increased automation is removing workers from the riskiest parts of the mine, making our mines safer as we strive for zero harm. Continue Reading →

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. Continue Reading →

Sherritt narrows headline loss as cost savings, higher metal prices boost bottom line – by Henry Lazenby (MiningWeekly.com – February 14, 2018)

http://www.miningweekly.com/

VANCOUVER (miningweekly.com) – Canadian diversified miner Sherritt International has narrowed its headline loss for the 12 months ended December 31, as lower costs and higher commodity prices boosted the bottom line.

The Toronto-based miner, which produces nickel, cobalt and oil in Cuba, and nickel and cobalt at the Ambatovy mine, in Madagascar, reported an adjusted net loss of C$317.1-million, or C$1.07 a share outstanding, compared with an adjusted net loss of C$427.9-million, or C$1.46 a share outstanding, for 2016.

Net earnings for the period, including a C$629-million gain related to the Ambatovy Joint Venture (JV) restructuring, were C$293.8-million, or C$0.99 a share outstanding, up from a net loss of C$378.9-million, or C$1.29 a share outstanding, in 2016. Revenue for the period fell 22% to C$54.8-million. Continue Reading →

Editorial: New environmental assessment rules proposed for Canada – by John Cumming (Northern Miner – February 13, 2018)

http://www.northernminer.com/

On Feb. 8 Canada’s Environment and Climate Change Minister Catherine McKenna introduced the 341-page Bill C-69, which seeks to comprehensively alter the current federal legislation guiding the environmental review and regulation of large resource projects in Canada, such as pipelines, oilsands extraction and mines.

Bill C-69 is named An Act to enact the Impact Assessment Act and the Canadian Energy Regulator Act, to amend the Navigation Protection Act and to make consequential amendments to other Acts. The tortuous title is a first hint as to how much extra regulatory burden will be added to an already cumbersome and slow permitting process for major resource projects in Canada.

The heart of the bill is the Impact Assessment Act (IAA), which would replace the Canadian Environmental Assessment Act put in place in 2012 by the previous Conservative-led government in a bid to streamline environmental permitting by reducing duplication of efforts by provincial and federal regulators. Continue Reading →