http://www.cbc.ca/news/business/
Barrick and Goldcorp cut dividend 60%, Barrick sells assets
With gold selling at a five-year low, Canada’s gold companies are selling off properties and cutting costs in an effort to stay profitable.
Barrick Gold Corp., the world’s largest gold producer, announced Wednesday it would cut its dividend by 60 per cent after reporting a $9-million loss in the second quarter. The dividend falls from five cents a share to two cents a share.
Barrick is racing to pay down debt and has been selling assets — $2.45 billion to date – to reduce costs.
The Toronto-based company said it plans a further $2 billion in cuts by 2016, including possible sale of its U.S. properties in Nevada and Montana.
Nor is Barrick the only gold company to cut its dividend. Goldcorp, which on July 30 reported net earnings of $65 million or 8 cents per share, also cut its dividend by 60 per cent.