Barrick Gold Corporation – Page 34

Slow Suffocation of the US Mining Space – by Christopher Ecclestone (Investorintel – January 19, 2016)

January 20, 2016

The old adage about the frog in the boiling water slowly getting cooked without jumping out is a good metaphor for the mining industry in the US over the last 12 months.

While the big story in commodity circles has been the oil price decline, a far more potent force has been the currency moves. The rampant US dollar has “saved” the bacon of many a miner in Australia, Canada, South Africa and elsewhere while brutally pressure-cooking those that are focused on the mining space in the US.

The chart above sourced from US Global Investors shows the last twelve months’ move in the gold price in various currencies. The USD gold price is clearly the laggard while Brazil has been stellar. It’s a pity there are not more Brazilian gold mining opportunities on offer. Ironically the strength of the Real for the preceding five years meant that Brazil was not such a good place for junior explorers to spend their drilling dollar.

Gold miners say output has peaked as losses reshape the industry – by James Wilson (Financial Times – January 17, 2016)

January 18, 2016

http://www.ft.com/

Gold output has peaked in this commodities cycle, according to mining industry leaders and analysts who say few big projects will reach the point of production amid falling prices.

The lack of new assets and declining output at existing mines is expected to curb gold supply, a glimmer of hope for surviving producers of the precious metal in an industry coming to terms with a rush of investment when prices were far higher.

Kelvin Dushnisky, president of Barrick Gold, the world’s largest gold miner by annual output, said: “Falling grades and production levels, a lack of new discoveries, and extended project development timelines are bullish for the medium and long-term gold price outlook.”

Anatomy of a corporate makeover – by Kelvin Dushnisky (Barrick: Beyond Borders – January 03, 2016)

January 4, 2016

http://barrickbeyondborders.com/

This article first appeared in the January/February 2016 issue of Policy Magazine.

As the gold mining industry grapples with one of the most challenging metal price environments in recent memory, Barrick President Kelvin Dushnisky tells how his company is responding by fundamentally changing the way it operates, transitioning to a decentralized business model and reclaiming the qualities that made it the world’s leading gold producer.

Known historically for being a lean, nimble company that thinks outside the box while consistently generating wealth for its shareholders, Dushnisky writes that Barrick is on its way to becoming that company again.

More than 30 years ago, when gold was out of favor and its prospects dim, Peter Munk saw an opportunity and started a gold company. Barrick Gold Corporation went public in May 1983, and quickly took on many of the characteristics that made Peter a Canadian business icon.

20 years and counting: Donlin Gold reaches major milestone; long path to production remains – by Shane Lasley (Mining News – December 13, 2015)

December 11, 2015

http://www.petroleumnews.com/miningnewsnorth/index.shtml

After 20 years of exploration and permitting, the Donlin Gold project is on the downhill side of gaining the permits needed to develop a mine at the 39-million-ounce gold deposit in the Yukon-Kuskokwim region of Southwest Alaska.

On Nov. 25, the U.S. Army Corp. of Engineers released a draft Environmental Impact Statement for what will likely be among the largest gold-producing mines on the planet.

The Donlin Gold Mine being considered in the draft EIS includes a 53,500-metric-ton-per-day mill that is expected to produce an average of 1.1 million ounces of gold annually at a cash-cost of US$585 per ounce for 27 years. During its first five years of operation, the mine is designed to extract 1.5 million oz. of gold annually at a cash-cost of US$409 per ounce.

Barrick sells $720-million of Nevada assets as it copes with low gold prices – by Ian McGugan (Globe and Mail – November 13, 2015)

November 13, 2015

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

Barrick Gold Corp. has sold several Nevada properties for $720-million (U.S.) in a flurry of transactions that underline how the gold industry is reshaping itself to deal with falling prices for the precious metal.

Kinross Gold Corp. of Toronto is the major purchaser of the assets. It will pay Barrick $610-million for its Bald Mountain mine and for its half interest in the Round Mountain mine. Kinross already owns the other half of the Round Mountain property.

In addition, Waterton Precious Metals Fund II of Toronto will pay $110-million to Barrick for its Ruby Hill mine and for a 70-per-cent interest in the Spring Valley project.

The deals demonstrate the impact of falling gold prices. Over the past four years, the metal has tumbled from $1,900 an ounce to below $1,100 an ounce.

NEWS RELEASE: Barrick Announces Sale of Non-Core Assets for $720 Million (November 12, 2015)

November 12, 2015

http://www.barrick.com/

TORONTO, November 12, 2015 — Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) (“Barrick” or the “company”) today announced that it has entered into agreements to sell a number of non-core assets in Nevada for $720 million in cash, including 100 percent of the Bald Mountain mine, 100 percent of the Ruby Hill mine, Barrick’s 50 percent interest in the Round Mountain mine and the company’s 70 percent interest in the Spring Valley project.

Including these transactions, Barrick has announced asset sales, joint ventures and partnerships worth $3.2 billion since the start of 2015. The company is on track to meet its stated debt reduction target of $3 billion for 2015, which, when completed, will represent a 23 percent reduction in total debt since the start of the year.

“The sale of these assets is consistent with our strategy to create long-term value for our shareholders by strengthening the balance sheet and further focusing our portfolio on core mines that will drive free cash flow growth,” said Barrick President Kelvin Dushnisky.

Upbeat gold miners report stronger results – by Lisa Wright (Toronto Star – October 30, 2015)

October 30, 2015

The Toronto Star has the largest circulation in Canada. The paper has an enormous impact on federal and Ontario politics as well as shaping public opinion.

Barrick, Goldcorp increase production, cut costs in third-quarter

There was a funny sound that hasn’t been heard in several years on Barrick Gold Corp.’s latest earnings conference call: optimism.

Battered by one of the worst bear markets ever for metals, the Toronto-based gold giant reported a second straight quarter of positive cash flow and that it’s well on the way to meeting its massive debt reduction target of $3 billion (U.S.) this year.

“We’re getting Barrick back into a position of financial strength,” said company president Kelvin Dushnisky, who was audibly more upbeat on a call with analysts Thursday. “We’ve really started to deliver,” he said.

Barrick posts loss, but makes headway on debt – by Ian McGugan (Globe and Mail – October 29, 2015)

October 29, 2015

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

TORONTO — Barrick Gold Corp. swung to a loss in the third quarter, but reported strong progress in reducing its mountain of debt and paring production costs as it grapples with a challenging market for precious metals.

The world’s largest gold producer said it lost $264-million (U.S.) or 23 cents a share in the quarter, largely as a result of writing down the carrying value of Zaldivar, its South American copper mine, by $452-million. Revenue was $2.32-billion.

The paper loss was outweighed by an impressive performance in reducing both costs and debt. Earnings excluding one-time items were 11 cents a share, beating the seven cents a share that analysts had expected.

“Overall, it was a very good quarter,” said Sid Subramani, an analyst at Veritas, an independent investment researcher in Toronto.

El Nino halts Papua New Guinea gold mine-Barrick – by James Regan (Reuters U.S. – October 19, 2015)

October 20, 2015

http://www.reuters.com/

Oct 19 Operations at the Porgera gold mine in Papua New Guinea have been suspended due to drought conditions, part owner Barrick Gold said on Monday, the latest mine in the Asia-Pacific to be disrupted by El Nino-induced dry weather.

Production had been halted due to low levels of water in the mine’s reservoir, used in processing the raw ore, operator Barrick (Niugini) Ltd said in a statement to Reuters.

“Some water-intensive production activities at the mine have been temporarily suspended during this extended dry season, and we are using this opportunity to bring forward some scheduled maintenance activities,” it said.

“The very unusual extended dry conditions that we have seen in recent months have meant that our supplies of production water have run very low, and we have made the decision to shut down our milling and processing plants for the time being to conserve our water supplies.”

BARRICK GOLD NEWS RELEASE: Processing Restrictions at Veladero Lifted

September 25, 2015

http://www.barrick.com/

TORONTO, September 25, 2015 — Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) (Barrick or the “company”) today announced that restrictions on processing activities at the Veladero mine in San Juan province, Argentina, have been lifted.

A local court previously restricted the addition of new reagents to the mine’s heap leach circuit following the failure of a valve on a pipe carrying cyanide solution at the leach pad, which led to a release of solution.

The safety of people and the environment has been the company’s top priority since the faulty valve was detected. Barrick immediately implemented a comprehensive downstream water monitoring program. This monitoring, as well as testing results from an independent third-party laboratory, have confirmed that there are no risks to the health of downstream communities as a result of this incident.

These findings are consistent with independent water testing results released by other third parties in San Juan province, including the Public Health Department and the state water distribution company.

Gold stocks explode higher – Barrick up 11% – by Frik Els (Mining.com – September 24, 2015)

September 25, 2015

http://www.mining.com/

On Thursday, the price of gold spiked higher after turmoil on world equity markets and global economic fears sparked a return to safe-haven buying.

Futures contracts in New York with December delivery dates jumped 2% to a high of $1,156 an ounce – gold’s best level in a month.

After weeks of lacklustre trade ahead of the US Federal Reserve interest rate decision, volumes on Comex shot up to twice the daily average on Thursday with just under 20 million ounces traded.

With fundamentals pointing to further upside potential for the metal, gold investors piled into mining stocks in massive volumes. The world’s top gold mining stocks gained steadily during the day and traded at their highs at the close on Thursday.

Barrick Gold Corp (NYSE:ABX, TSE:ABX) jumped 10.8% with more than 33 million shares changing hands, 12 million more than already high post-Fed interest.

Barrick’s cyanide spill five times larger – by Herald Staff (Buenos Aires Herald – September 24, 2015)

September 24, 2015

http://www.buenosairesherald.com/

Company’s own new figures show leak had been massively underestimated

The amount of cyanide solution that spilled from Barrick Gold’s Veladero mine in San Juan province is almost five times more than previously believed, the company acknowledged yesterday as a second federal prosecutor moved to investigate national and provincial officials and mining executives amid growing environmental concerns.

By Barrick’s own estimates, approximately 1,072 cubic metres (1.072 million litres) of cyanide solution made it into the Potrerillos River, due to a valve failure and a sluice gate being left open on September 12.

Previous upper estimates of the spill had been in the realm of 224,000 litres. The Canadian multinational chalked up the revised number to the pinpointing of the approximate time of the valve failure, believed to be around 8pm. The cyanide solution is used to leach gold from processed rocks, a common method for the extraction of gold from ore.

Despite the revised estimate, Barrick insists the spill will not lead to any health risks for area residents.

Miners turn to alternative finance to cut debt as downturn grinds on – by Nicole Mordant (Reuters U.S. – September 21, 2015)

September 21, 2015

http://www.reuters.com/

DENVER – A niche form of mining industry finance is emerging as the new go-to funding for miners bowed by debt, another sign of the sector’s distress as it plods through the fourth year of a commodities’ downturn.

Glencore, the world’s third-biggest miner, is in talks to raise more than $1 billion in so-called “streaming” deals, coming on the heels of transactions by No.1 gold producer Barrick Gold and diversified miner Teck Resources .

More such deals are expected as shareholders, ratings agencies and lenders pressure miners to slash debt amid a gloomy commodity price outlook and as other debt-cutting tools such as asset sales, dividend cuts and share issues are not enough.

Until now so-called “streaming” finance – upfront funds for miners in exchange for a portion of a mine’s future output – has most commonly been used by mid-sized miners with limited access to capital to fund mine builds.

That the world’s biggest miners are now prepared to do deals that see them giving up a portion of their future production, earnings and cashflow to cut debt is a reflection of their limited options.

Barrick says strong interest in U.S. gold asset sale – by Nicole Mordant (Reuters U.S. – September 20, 2015)

September 21, 2015

http://www.reuters.com/

There has been strong interest in a package of six U.S. gold assets that Barrick Gold Corp (ABX.TO) wants to sell, a senior Barrick executive said on Sunday, adding that he expects a deal to close before year end.

The interest has been largely from North American-based miners, Barrick President Kelvin Dushnisky said.

Denver-based Newmont Mining Corp (NEM.N) and Toronto-based Kinross Gold Corp (K.TO) are likely buyers of the assets, an investment banking source said, speaking on condition of anonymity. Kinross declined to comment and Newmonth could not immediately be reached for comment.

As part of its plan to cut at least $3 billion in debt this year, Barrick, the world’s biggest gold producer, last month said it would sell six of its U.S. gold mines and projects: Bald Mountain, Round Mountain, Spring Valley, Ruby Hill, Hilltop and Golden Sunlight assets.

“We just started it (the sale) but already the level of interest is extremely high,” Dushnisky told Reuters in an interview at the Denver Gold Forum, an annual gold industry conference.