Barrick Gold Corporation – Page 33

Barrick CFO leaving to head up venture backed by Elliott Management – by Ian McGugan (Globe and Mail – March 18, 2016)

March 18, 2016

http://www.theglobeandmail.com/

The departure of a key executive from Barrick Gold Corp. highlights the large amount of capital rushing into a red-hot corner of the mining world.

Shaun Usmar, the highly regarded chief financial officer at Barrick, is leaving to head up a new venture backed by the U.S. hedge fund Elliott Management Corp. that will focus “on royalty, streaming and other forms of investments in the mining industry,” according to a Barrick press release issued after markets closed on Wednesday.

Elliott Management has earned a reputation for smart, aggressive investing and is fresh from a resounding victory in its 15-year battle over Argentine debt. The involvement of the high-profile hedge fund demonstrates the lush potential payoffs that a growing number of investors now see in providing cash-strapped miners with access to capital.

Barrick announces ‘drastic revision’ of Pascua-Lama, may add partner – by Cecilia Jamasmie (Mining.com – March 2, 2016)

March 2, 2016

http://www.mining.com/

Canada’s Barrick Gold (TSX, NYSE:ABX), which recently regained its status as the world’s most valuable producer of the precious metal, has began a “drastic revision” of its mothballed Pascua-Lama project in South America.

According to Chilean news outlet El Pulso (in Spanish), the company’s President Kelvin Dushnisky revealed that management is re-evaluating plans for the gold, silver and copper mine straddling the border of Chile and Argentina, adding that Barrick does not rule out a possible partnership to bring the project to completion.

The giant project in the Andes has been shuttered since 2013, when a Chilean court ordered the company to halt construction over environmental concerns. Later that year, Barrick shelved the project citing massive cost overruns and nose-diving bullion prices.

Barrick Chair Says Pay Problem Fixed as M&A Test Runs Begin – by Danielle Bochove (Bloomberg News – February 29, 2016)

February 29, 2016

http://www.bloomberg.com/

John Thornton looks on Barrick Gold Corp. as a patient finally ready for discharge from hospital and determined to abandon the fast living that landed it there.

In his first on-the-record interview in almost a year, the executive chairman of the world’s largest gold producer touched on all the hot-button issues — from his perspectives on acquisitions and disposals to the sprawl of his board to his own controversial pay packet.

Criticized for lacking industry experience, the 62-year-old banker-turned-miner could be forgiven if he chose to gloat: on his watch Barrick has transformed from market casualty to darling, culminating with a peer-beating 82 percent stock surge this year. A big-picture guy, he speaks in entire paragraphs from a mile above ground where the way forward is clear: it’s time for Barrick to get off the defensive, albeit cautiously.

Barrick Gold Chairman John Thornton Outlines Vision and Strategy at Investor Day

February 23, 2016

Remarks by Chairman John Thornton at Barrick’s Investor Day on February 22, 2016, broadcast live via webcast. You may also listen to a recording of the remarks.

Good morning everyone and thank you for joining us.

This will be a little bit unusual for me—I’m going to work off a script, so that it’s crystal clear what I want to get across, and we can hand it out to you later on if you don’t want to take notes.

This is our first investor day in five years. From now on we will have this day every other year or possibly even every year, depending on the circumstances, and whether or not you all are interested in it. This will be one of a number of steps we will take to be transparent and build trust with you.

Barrick Gold wants to show it’s a ‘discerning buyer’ with focus on value – by Ian McGugan (Globe and Mail – February 23, 2016)

February 23, 2016

http://www.theglobeandmail.com/

After a year in which it sold off assets at a furious pace to cope with massive debt, Barrick Gold Corp. is once again talking about possible acquisitions.

John Thornton, chairman of the Toronto-based gold producer, told attendees at the company’s first investor day in five years that he wants to show Barrick can make purchases that create value, not just debt.

“We will, over time, prove to you that we are not only discerning sellers. … We will demonstrate that we are also discerning buyers, capable of consistently creating per-share value for our owners,” Mr. Thornton told his audience in New York. He did not provide details on what type of potential acquisitions might be attractive.

Nevada might get huge investment from Barrick Gold – by Jennifer Robison (Las Vegas Review-Journal – February 23, 2016)

February 23, 2016

http://www.reviewjournal.com/

Nevada’s largest mining company is eyeing plans to invest big in its operations. Barrick Gold Corp. said Monday that it could spend $2.1 billion through 2020 expanding gold mines in Nevada and Peru, with about $1.4 billion of the investments set for the Silver State.

The biggest chunk — $1 billion — would go toward building an underground mine at Goldrush, a new deposit about 4 miles southeast of Barrick’s Cortez Hills operation near Elko. Once it starts producing in 2021, Goldrush could yield 440,000 ounces of gold each year. The deposit has an estimated 8.6 million ounces in gold resources.

Barrick is also evaluating expansion of underground mining at Turquoise Ridge, northeast of Winnemucca. The company would build a third production shaft at the site to nearly double annual gold production from 280,000 ounces to 500,000 ounces.

Barrick estimates $2 billion costs if Nevada, Peru projects proceed (Reuters U.S. – February 22, 2016)

February 22, 2016

http://www.reuters.com/

Barrick Gold Corp (ABX.TO) (ABX.N), the world’s largest gold miner, estimated spending of about $2 billion if it decides to proceed with projects in Nevada and Peru.

Barrick, releasing updated pre-feasibility and feasibility studies on the projects, also said on Monday it would redeem up to $750 million of notes to help cut debt by at least $2 billion this year.

The company’s U.S.-listed shares were down about 3 percent at $12.18 in premarket trading on Monday.

Barrick said a pre-feasibility study estimated $1 billion in initial capital spending on its Goldrush project in Nevada, based on a start of construction in 2020.

How a crash in metals prices has made 2016 a great year to build a mine – by Peter Koven (Financial Post – February 22, 2016)

February 22, 2016

http://business.financialpost.com/

Earlier this month, Stornoway Diamond Corp. said something that would have been unimaginable a few years ago — its mine is being built ahead of schedule and under budget.

“You can imagine we’re sticking our necks out by saying that, so we have to be pretty confident it’s the case,” Stornoway chief executive Matt Manson said in an interview. “And we are.”

The Montreal-based firm, which is building Quebec’s first diamond mine, moved the completion date up by five months to the end of 2016. It also slashed the construction cost estimate by more than $35 million to $775.4 million.

During the commodity boom, capital cost blowouts became so routine in the mining industry that they became a running joke.

More cuts coming, Barrick says, amid bullion rally – by Lisa Wright (Toronto Star – February 19, 2016)

February 19, 2016

http://www.thestar.com/

Barrick Gold Corp. shares soared Thursday as the Toronto mining giant pledged further cost cuts and debt slashing amid a mini-rally in the bullion price.

“There’s still a lot of heavy lifting to be done” to tackle the company’s debt load, said Barrick president Kelvin Dushnisky on a conference call with analysts.

The world’s largest gold miner may sell additional non-core assets and create new joint ventures and partnerships, following another fourth-quarter net loss, he said.

But the company plans an additional $2 billion in debt reduction this year and $5 billion in reductions in the mid term. In 2015, the miner reduced its total debt by $3.1 billion to $10 billion.

Gold at $1,500 is “very achievable”: Barrick president Kelvin Dushnisky (Business Network News – February 18, 2016)

February 19, 2016

http://www.bnn.ca/

The president of the world’s largest gold producer says the $1,500 per ounce call from a recent HSBC report is “very achievable,” as the precious metal enters the early stages of a new bull market.

“I think the fundamentals are really going to show support for the gold price,” said Barrick Gold Corp.’s (ABX.TO 0.00%) Kelvin Dushnisky in an interview with BNN.

Gold futures rallied Thursday as mounting concerns about the stability of global markets and low inflation tapered expectations that the U.S. Federal Reserve will raise its key lending rate in March.

Barrick Keeps Eye on Debt With New $2 Billion Reduction Target – by Danielle Bochove (Bloomberg News – February 18, 2016)

February 18, 2016

http://www.bloomberg.com/

Barrick Gold Corp. intends to keep debt in its crosshairs with a plan to cut at least $2 billion this year as the world’s largest producer of the metal seeks to shore up its balance sheet following three annual gold-price declines.

The miner reduced total debt by $3.1 billion last year to $10 billion through measures that included asset sales and cost cuts. In 2016, it may sell additional non-core assets and create new joint ventures and partnerships to help meet its new debt-reduction target, the Toronto-based company said Wednesday in a statement.

“In the medium term, we aim to reduce our debt to below $5 billion,” the company said in the statement. “Philosophically, our goal is to have no debt at all.”

Barrick Gold looks to keep momentum with US$2 billion debt reduction target for 2016 – by Peter Koven (National Post – February 18, 2016)

February 18, 2016

http://business.financialpost.com/

Barrick Gold Corp. has set aggressive new targets for debt and cost reduction as it looks to continue momentum after a largely successful 2015.

However, the Toronto-based mining giant also offered up declining production guidance over the next few years. That underscores the challenges facing the entire gold mining industry, which has been on fire this year as prices have jumped.

Barrick said on Wednesday night that it expects to cut its debt load by “at least” US$2 billion in 2016 after reducing it by more than US$3 billion last year. That would take the overall debt down to US$8 billion and eliminate a lot of lingering concerns about Barrick’s balance sheet, which got over-leveraged because of a disastrous $7.3-billion copper acquisition in 2011.

Barrick Gold Corp is back on top as Canada’s best-performing stock and the world’s most valuable gold company – by Danielle Bochove (Financial Post/Bloomberg News – January 29, 2016)

January 29, 2016

http://business.financialpost.com/

Barrick Gold Corp. has surged to become Canada’s best-performing stock as a two-month rally in the precious metal gives added lift to the company’s turnaround efforts.

Barrick’s shares are up 29 per cent this year in Toronto, making it the best-performing stock on the Standard & Poor’s/TSX Composite Index. It’s also overtaken its two biggest competitors, Goldcorp Inc. and Newmont Mining Corp., in market capitalization, allowing it to reclaim the title of the world’s most valuable gold company.

“Guys like me, on the street, we had given Goldcorp the crown in the senior sector,” Barry Allan, an analyst with Mackie Research Capital Corp., said by phone from Toronto. “And Barrick actually pulled some rabbits out of a hat. Not enough to get them to nirvana but they were seriously making some hard moves and some hard calls.”

Barrick Sees Up to $3 Billion in Impairments on Lower Gold – by Danielle Bochove (Bloomberg News – January 22, 2016)

January 22, 2016

http://www.bloomberg.com/

Barrick Gold Corp., the world’s largest producer of the metal, said it may book as much as $3 billion in impairment charges as a prolonged gold slump forces it to revise its price assumptions for 2016.

A preliminary review shows potential goodwill impairment charges of about $1.8 billion, and asset impairment charges in the range of $1 billion to $1.2 billion, the Toronto-based company said Thursday in a statement. The asset impairments are primarily related to the stalled Pascua-Lama project on the Chile-Argentina border and the Pueblo Viejo mine in the Dominican Republic.

The company lowered its gold price assumption to $1,000 an ounce for 2016 and to $1,200 long term.