Archive | Barrick Gold Corporation

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

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. Continue Reading →

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

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. Continue Reading →

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

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. Continue Reading →

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

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.” Continue Reading →

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

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. Continue Reading →

World’s 10 Top Producing Gold Mines – by Paul Ausick (247 – January 22, 2017)

From a peak of more than $1,900 in mid-2011, gold prices dropped below $1,100 in 2015 before rising to around $1,400 last summer. On Friday, the February delivery price settled at $1,210.20, up about $100 since mid-December. The price of gold generally rises in periods of inflation and periods of economic uncertainty.

This is certainly one of the latter and may be the beginning of one of the former. The consumer price index topped 2% last week, and November’s election of Donald Trump as the 45th U.S.

President has presented investors with plenty of uncertainty. A strong dollar also tends to weigh on the price of gold, and Trump has made clear his belief that the dollar is overvalued compared with the Chinese yuan. If the dollar sinks, interest in gold rises. Continue Reading →

What Mining Giants From Barrick to Teck Are Watching For In 2017 – by Danielle Bochove (Bloomberg News – December 22, 2016)

It’s been a turbulent year for miners, with metal prices starting near multi-year lows as executives drew from a common playbook: slashing spending, costs and debt. Then came Brexit and the U.S. election and gold and base metals diverged.

What does 2017 hold? Bloomberg asked the heads of some of the biggest producers including Barrick Gold Corp., Newmont Mining Corp. and Teck Resources Ltd. Opinions vary, but there’s broad agreement that gold faces near-term headwinds from the Fed; that industrial metals have bottomed out but the dizzying 2016 rally may falter; and that miners will begin to spend more, possibly on deals, while keeping an eye on balance sheets.

Barrick’s Kelvin Dushnisky: “If we see an opportunity to acquire something, to increase our margin, earnings, NAV, then we’ll consider it. But if it’s just a matter of adding to our production base, we’re not interested.” Continue Reading →

Barrick Gold subsidiary loses prospecting licence in Tanzania – by Geoffrey York (Globe and Mail – December 10, 2016)

JOHANNESBURG — Tanzania’s president has lashed out at a Canadian-owned mining company, ordering the cancellation of its prospecting licence at a site where thousands of small-scale miners were facing the threat of forcible removal.

“How do you kick out more than 5,000 people in favour of just one investor?” President John Magufuli told senior officials this week, according to Tanzanian media reports. “This is unacceptable.” He ordered his vice-president to cancel a licence held by a local subsidiary of Toronto-based Barrick Gold Corp. and said the small-scale miners should be allowed to stay.

The popular new president, an anti-corruption campaigner nicknamed “The Bulldozer” who was elected last year, has repeatedly criticized the foreign-owned mining companies in his East African country. He has accused them of “a lot of funny deals” to avoid taxes in Tanzania, the fourth-biggest gold producer in Africa. Continue Reading →

Barrick’s Munk Heads Top Ten Most Important Mining Men in Canadian History – by Stan Sudol

Melanie and Peter Munk

Melanie and Peter Munk

Four Americans Made the List!

A few months ago, my dear colleague Joe Martin, who is the Director of the Canadian Business & Financial History Initiative at Rotman and President Emeritus of Canada’s History Society, asked me a very simple question: who would be considered the most important individual in Canadian mining?

Considering Canada’s lengthy and exceptional expertise in the mineral sector, it was not an easy answer and I decided to research and create a top ten list of the most important mining men in Canadian history.

The lack of women on this list simply reflects the fact that for much of our history most women were not given the educational or social opportunities to excel in business, especially in a rough and male-dominated sector like mining. Times have changed, women are playing key roles in mining today and will definitely be included on this list in the future.

However, a few qualifiers need to be established. This is basically a list of mine builders not mine finders.  Building a company through takeovers and discoveries is one way but I am also focusing on individuals who have built corporate empires and/or who have developed isolated regions of the country with the necessary infrastructure for mines to flourish and create multi-generational jobs, shareholder wealth and great economic impact. Continue Reading →

Miners go green in hunt for cost efficiencies, using renewable energy sources in far-flung locations – by Sunny Freeman (Financial Post – November 29, 2016)

Mining companies are digging into renewable energy as a way to reduce costs and offset the impact of volatile conventional fuel prices as the world shifts to a low-carbon economy.

Industry executives gathered last week at the Energy and Mines World Congress in Toronto focused on how innovation in energy – which can comprise as much as one-quarter of operating expenses in remote locations – can make mines more cost-effective and environmentally sustainable. “I think we will be surprised at the speed at which mining companies will start to adopt these things,” said Adriaan Davidse, mining innovation leader at Deloitte.

Amid rapid improvements in renewable technologies, wind and solar prices have fallen dramatically in recent years and are expected to keep dropping. In many parts of the world —especially in remote locations – the alternative energy solutions are becoming cheaper than conventional sources. Continue Reading →

Barrick mulls Kalgoorlie bid of roughly $1.3 billion by China’s Minjar: sources – by John Tilak and Susan Taylor (Reuters Canada – November 24, 2016)

TORONTO (Reuters) – Barrick Gold is reviewing the financial backing behind an approximately $1.3 billion bid for its stake in Australia’s Kalgoorlie mine by Minjar Gold, a unit of Shanghai-listed Shandong Tyan Home, two sources told Reuters.

Toronto-based Barrick, the world’s largest gold producer, is studying the offer for the 50 percent stake to ensure Minjar has adequate resources and support to complete the transaction, said the sources, who declined to be identified as the matter is private. Barrick declined to comment.

Little-known Minjar has trumped offers by Australian, Chinese and Canadian companies for the asset, the sources said.Newmont Mining, Barrick’s joint venture partner at Kalgoorlie and mine operator, has said it was interested in buying the remaining stake, but price has been a sticking a point. Continue Reading →

Soros More Than Doubles Stake in Barrick Gold as Shares Drop – by Luzi-Ann Javier (Bloomberg News – November 14, 2016)

After selling most of his stock in Barrick Gold Corp. in the second quarter, billionaire investor George Soros more than doubled his remaining holding in the mining company.

Soros Fund Management LLC bought 1.78 million Barrick shares in the third quarter, taking total holdings to 2.85 million, according to a regulatory filing.

The fund rebuilt its stake in Barrick, one of the world’s two largest gold producers, after selling 94 percent of its holdings in the second quarter to cash in on the stock’s best first-half performance ever. Continue Reading →

The world’s hardest working gold mines – by Frik Els ( – November 3, 2016)

Gold’s stellar run this year has not only breathed new life into the exploration sector, but prompted producing mines to maximize output to make the most of higher prices.

It takes years to get a new mine into operation, expansion projects are not completed in a few months and reviving mines under care and maintenance is not a quick task. But confidence in gold’s prospects, planning, timing (and a healthy dose of luck) meant that the mines on our list hit their stride just as gold was entering an upswing.

The list below is based on a compilation from the GFMS team at Thomson Reuters plus data provided by’s sister company IntelligenceMine. The ranking compares gold ounces produced (not gold-equivalent ounces) by existing and new mines during the first six months of 2016 with the same period last year (Q3 production figures were not available for all the mines). Continue Reading →

Automation becoming more prevalent in mining, says executive (CBC News Sudbury – November 03, 2016)

Automation is the key to the future of innovation in the industry, experts say

Mining companies are starting to transform how they operate, namely by embracing automation in underground work, according to a senior executive at Barrick Gold.

Michelle Ash, the senior vice president of transformation and innovation for the Toronto-based mining company spoke at the mining innovation summit in Sudbury, Ont., which wrapped up Tuesday. The wear and tear on the componentry is significantly less,” she said of the use of automated equipment underground.

“We’ve seen that in our Hemlo Mine, where trucks have gone in for their major rebuild at 20,000 hours and … everything is almost pristine.” A number of components didn’t even need to be replaced, she added. Continue Reading →

New water treatment plants help secure a positive legacy (Barrick Beyond Borders – October 20, 2016)

Water treatment plants at the Pierina mine in Peru are an important part of the mine’s closure plan

As part of its mine closure obligations, Barrick’s Pierina mine has built two new water treatment plants to safeguard local water quality. The Peru-based mine, which is winding down operations after 18 years, also built a cyanide detoxification plant to treat cyanide contained in the site’s heap leach pad.

“Cyanide is often used to leach gold contained inside ore, and this was the case at Pierina,” says Jorge Lobato, Environmental and Closure Manager at Pierina. “Even when operations at Pierina come to an end, cyanide will be present in the solutions from the heap leach pad and must be treated. The cyanide detoxification plant will operate until all cyanide has been consumed or destroyed on site.”

Pierina is located about 185 miles north of Lima in a high precipitation region of Peru. Average annual rainfall is 1,200 millimeters which, combined with natural conditions of the area, make conditions ripe for acid rock drainage. Acid rock drainage refers to the acidification of water that occurs when sulfide-based ore is exposed to air and water. Continue Reading →