Archive | Barrick Gold Corporation

Tribunal favours Barrick, Antofagasta in Pakistan lease denial case – by Cecilia Jamasmie ( – March 21, 2017)

A World Bank’s tribunal has ruled in favour of Tethyan Copper Co. (TCC), a joint venture between Barrick Gold (TSX, NYSE: ABX) and Antofagasta (LON:ANTO), in relation to the denial of a mining lease for the multi-billion-dollar Reko Diq copper and gold reserve in the Pakistani province of Balochistan.

The decision by the International Center for Settlement of Investment Disputes (ICSID), issued on Monday, confirms that Pakistan violated several provisions of its bilateral investment treaty with Australia, where Tethyan Copper is incorporated, Barrick said in a statement. The ruling also rejects Pakistan’s final defense against liability.

The case dates back to 2011, when the provincial government of Balochistan rejected TCC’s application for a mining licence at the remote Reko Diq site, near the Afghan-Pakistan border, even though the firm had been awarded a licence for exploration in the area in 2006. Continue Reading →

Endeavour, Acacia talks break down – by Staff (Mining Journal – March 22, 2017)

Two months after announcing they were in discussions about a possible merger, Acacia Mining (LN:ACA) and Endeavour Mining (CN:EDV) have called it quits, deciding a joint Africa-focused gold mining proposition is not in the best interest of shareholders.

The combination, which would have seen Acacia’s Tanzania operations joined with Endeavour’s West Africa assets, had been heralded as the first major piece of gold M&A in 2017 and got analysts and bankers, alike, very excited at the prospect of further corporate transactions.

In separate statements, the two said they had agreed to terminate discussions, with shareholder value seemingly the main sticking point. The deal was initially seen as a way for Barrick Gold (CN:ABX) to more than halve its 64% Acacia stake to a 30% level. Continue Reading →

PDAC 2017: What’s wrong with hedging? – by Trish Saywell (Northern Miner – March 14, 2017)

Barrick Gold (TSX: ABX; NYSE: ABX) pioneered gold hedging more than two decades ago, but the company endured sharp criticism when the strategy became a liability, and management eventually closed out its fixed-price hedge book at a significant cost in 2009.

The pros and cons of hedging remain the subject of debate to this day, and the topic came up during a discussion at the recent Prospectors & Developers Association of Canada convention in Toronto, when a participant asked a panel of bankers whether they thought the practice was a useful tool for the industry.

Egizio Bianchini of BMO Capital Markets — who prefaced his remarks by pointing out that BMO has the smallest commodity desk of all the banks represented on the panel, making him “the least conflicted” to answer the question — responded with an emphatic yes. Continue Reading →

Barrick Gold Corp is exploring selling part or all of one of its flagship mines in Peru, sources say (Financial Post/Reuters – March 17, 2017)

TORONTO — Barrick Gold Corp, the world’s biggest gold producer, is exploring options for its Lagunas Norte mine in Peru, including the sale of part or all of the asset, three people with knowledge of the matter told Reuters.

Barrick, which is working with Toronto Dominion Bank , may prefer to hold 50 percent of Lagunas Norte, but it was unclear if the company wanted to keep control of the open-pit mine as operator, the people added.

The mine could be worth about $1.4 billion, according to industry experts, based on about two times the net asset value ascribed to high-quality gold mines. A Credit Suisse analyst put the mine’s NAV at $711 million. Continue Reading →

Chile’s Supreme Court casts shadow over Barrick’s plans to restart Pascua-Lama – by Cecilia Jamasmie  ( – March 15, 2017)

Plans by Barrick Gold (TSX, NYSE:ABX) to revive its Pascua Lama gold, silver and copper project straddling the border between Chile and Argentina may once again be postponed after Chile’s Supreme Court revoked this week a temporary closure permit granted by the country’s mining regulator Sernageomin in 2015.

Such decision sought to relax certain requirements for Barrick to obtain a new environmental licence for the project, which the top court qualified as an irresponsible measure.

“It authorizes the temporary closure of Pascua-Lama mining operations, without having the necessary measures in place to ensure the physical and chemical stability of the water sources affected by the project,” the judge said according to local paper Diario Financiero (in Spanish). “[Sernageomin also failed to previously determine] the extent of the damage caused by the project through its innumerable environmental violations,” it added. Continue Reading →

Tanzania export ban threatens merger of Barrick subsidiary, Endeavour Mining – by Geoffrey York (Globe and Mail – March 15, 2017)

JOHANNESBURG – A Tanzanian export ban has cast a shadow of doubt over a potential $4-billion (U.S.) merger between a Barrick Gold Corp. subsidiary and Toronto-listed Endeavour Mining Corp.

Toronto-based Barrick has been hunting for a buyer for its African subsidiary, Acacia Mining. The possible Endeavour deal could reduce its majority stake in Acacia to a minority holding, but the deal might now be delayed or scuttled by Tanzania’s unexpected move to freeze the export of gold and copper ore. Acacia and Endeavour had confirmed their “preliminary discussions” in January. A merger would create an African mining giant, with mines in five African countries.

But on March 3, the Tanzanian government announced the export ban. “It is expected that all the companies and individuals who were exporting concentrates and mineral ores to foreign countries for beneficiation (processing, smelting or refining) will immediately stop and start doing such activities within the country,” the announcement said. Continue Reading →

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 →