Barrick Gold Corporation – Page 35

Barrick closing Utah office and copper unit in cost-cutting effort – by Rachelle Younglai (Globe and Mail – September 18, 2015)

September 18, 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. is shutting a major American office and dismantling its copper unit, the company’s latest steps to cut costs and overhaul operations amid the slump in gold prices.

The closing of its Salt Lake City office along with the unwinding of its copper business will help the world’s biggest gold producer save $2-billion (U.S.) by the end of next year, the company said.

Four years of declining gold prices have forced a broad retreat at Barrick and battered the company’s share price. In addition to selling a slew of mines and non-core assets, Barrick recently reduced its dividend again and sold a stake in its top copper mine in Chile as well as part of one of its most profitable gold mines, in the Dominican Republic.

Barrick’s Salt Lake office, which employs about 110 staff, will close in November after supporting the miner’s core Nevada operations for nearly two decades. It follows the shutdown of Barrick’s Perth bureau and job cuts in its Santiago office.

Once booming, Nevada gold output falls to 1988 level – by Sean Whaley (Las Vegas Review Journal – September 12, 2015)

September 14, 2015

http://www.reviewjournal.com/

CARSON CITY — Gold production in Nevada fell to less than 5 million ounces in 2014, the first time since 1988 that output of the precious metal has dipped so low.

A new state Division of Minerals report shows 4.94 million ounces of the precious metal was taken from 30 Nevada mines in 2014. There was about 5.5 million ounces of gold produced in Nevada in 2013.

The peak year in recent memory was 1998, with just under 9 million ounces.

Richard Perry, administrator of the Division of Minerals, said it appears production has leveled off in the 5 million ounce range over the past five years. While production has fallen, Nevada mines still throw of gold valued at $5.5 billion, at $1,100 per ounce, he said.

“We need better gold prices to see more projects and new mining,” Perry said. The lower gold production is due largely to the price of gold, which hit a high of nearly $1,800 per ounce in 2012 but has dropped to about $1,100 as of Friday.

Fine tuning Barrick – by Kip Keen (Mineweb.com – August 20, 2015)

November 5, 2015August 20, 2015

http://www.mineweb.com/

A subtle shift in analyst perspective on the gold producer.

Broadly of course, Barrick’s stock has been pummeled by the bearish gold market that relatively speaking, tends to punish, and conversely reward, miners far more than the yo-yo-ing gold price. But more specifically, Barrick has also been punished, harder than some, for its past failings in acquisitions, strategies and appetite for debt.

This has made for one of those perversions of the market, at least in very simplistic terms, where in recent years Goldcorp, more the market darling, has exceeded Barrick by market cap despite Goldcorp doing half the production and the fact Barrick has longer life assets. As it stands, it is C$16.4 billion to C$12 billion Goldcorp market cap versus Barrick.

In evening out that playing field, Barrick’s John Thornton, Executive Chairman, has some ways to go. But he may be starting to make a little headway.

With much fanfare (at least from Barrick) the company outlined its back to the future strategy earlier this year. It’s a story of cuts and tweaking of management to, it’s hoped, increase efficiencies at operations. It’s also a story of mine sales and debt reduction.

Rehabilitation efforts bring new life to Hemlo – by Lindsay Kelly (Northern Ontario Business – August 18, 2015)

August 19, 2015

Established in 1980, Northern Ontario Business provides Canadians and international investors with relevant, current and insightful editorial content and business news information about Ontario’s vibrant and resource-rich North.

Reclamation work being done by Barrick Gold at its Hemlo property near Marathon has changed the landscape of the former mining operation. Where once there stood a headframe, access roads and outbuildings, there is now only a grassy plain, accented by native trees and inhabited by a variety of wildlife.

This is what nature after mining looks like in 2015.

“It kind of caught us off guard, because the (David Bell) mine is still beside an operating mine,” said Shane Hayes, Barrick’s mine closure co-ordinator at Hemlo. “The area has been rehabilitated so quickly, I’d be lying if I said we weren’t surprised at how quickly nature re-established itself.”

Three mines started up at the Hemlo site in the 1980s. The still-operational Williams Mine produced 206,000 ounces of gold in 2014, while David Bell closed that same year. A third mine, Golden Giant, closed in 2010. The bulk of the rehabilitation work to date has focused on David Bell.

UPDATE 2-Barrick scraps co-president structure in management shuffle – by Euan Rocha (Reuters U.S. – August 18, 2015)

August 18, 2015

http://www.reuters.com/

Aug 17 (Reuters) – Barrick Gold Corp said on Monday that Jim Gowans, a veteran miner and one of its co-presidents, was retiring and that he would not be replaced, as the miner moves to thin out its ranks and create a leaner operating structure.

In the latest reshuffle, Kelvin Dushnisky, who has served as co-president with Gowans for a year, has been named as president and will continue to report to Executive Chair John Thornton, a former Goldman Sachs executive.

Toronto-based Barrick said Gowans would step down as co-president immediately, but stay on as an adviser to the chairman until he retires at the end of the year.

Analysts said the exit of Gowans, who has four decades of industry experience, leaves a void of first-hand mining know-how in Barrick’s senior ranks.

“The loss of a senior executive with the mining experience of Jim Gowans does reduce the ‘bench strength’ of the overall management team,” noted Barclays analyst Farooq Hamed in a note to clients on Monday.

Barrick Gold Corp shakes up management structure, drops co-president model- by Peter Koven (National Post – August 17, 2015)

August 17, 2015

The National Post is Canada’s second largest national paper.

Barrick Gold Corp. is scrapping its unusual “co-president” management structure less than a year after it went into effect.

Co-president Kelvin Dushnisky has been appointed Barrick’s sole president, the company said Monday morning. Until now, Dushnisky was sharing the president duties with Jim Gowans. Barrick announced that Gowans will retire at the end of this year, which was a surprise.

A couple of other management appointments were made in conjunction with these moves. Chief of staff Richard Williams has been named chief operating officer and will report directly to Dushnisky. Williams is a very unconventional choice for a COO, as he has a military background rather than a technical mining background. However, he will be assisted by Basie Maree, a mining veteran who was promoted to chief technical officer.

“As we work to accelerate Barrick’s return to the lean, decentralized model that drove the company’s early success, the time is right to put a structure in place that supports this vision,” chairman John Thornton said in a statement.

Moody’s downgrades Barrick credit to lowest investment grade rating – by Rachele Younglai (Globe and Mail – August 13, 2015)

August 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.

Moody’s Investors Service downgraded Barrick Gold Corp.’s credit to the lowest investment grade rating, a blow to the company that is on track to reduce its debt by $3-billion (U.S.) this year.

Barrick is rapidly selling mines to reduce its $13-billion debt load. But Moody’s said Barrick’s debt is still too high given the weak gold price.

“Material organic debt reduction is unlikely and production will start declining in the next several years,” Darren Kirk, Moody’s senior credit officer, said in a statement announcing the downgrade.

Moody’s changed the miner’s outlook to “stable” from “negative” and downgraded Barrick’s debt to one notch above junk status, a risky rating that would increase the company’s borrowing costs.

Embattled Barrick selling assets to cut debt, reduce costs – by Lisa Wright (Toronto Star – August 7, 2015)

August 7, 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.

Gold miner cuts dividend and will shave another $2 billion from operations in pursuit of profitability.

Just about everything is for sale or on the chopping block – except for a handful of core mines – as Barrick Gold Corp. fights to stay atop the gold mining industry amid crippling debt and a tanking bullion price that has dragged its stock down to 26-year lows.

“If you have interested parties, be in contact with us please,” company co-president Kelvin Dushnisky said with a slight chuckle when an analyst asked on Thursday’s conference call if the miner’s equipment was up for sale at its now dormant Pascua-Lama site in Chile.

The Toronto-based gold miner said it will now target spending cuts across its operations at $2 billion before the end of 2016 — a move that tacks an extra $1 billion of cuts onto a previously announced target to lower expenses and improve productivity.

Canadian gold mine companies pull back with bullion at 5-year low – by Susan Noakes (CBC News Business – August 06, 2015)

August 6, 2015

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.

Barrick Deepens Cutbacks as Metal Meltdown Erodes Earnings – by Danielle Bochove (Bloomberg News – August 5, 2015)

August 6, 2015

http://www.bloomberg.com/

Barrick Gold Corp., the world’s largest producer of the metal, is intensifying efforts to strengthen its balance sheet as slumping metal prices squeeze margins.

The Toronto-based miner cut dividends, lowered its output forecast and is preparing to sell more U.S. assets as it targets $2 billion expenditures cutbacks by 2016, according to its second-quarter earnings report distributed after the close of trading Wednesday.

Barrick reported adjusted earnings that missed analysts’ estimates as previous measures to trim expenses and streamline operations failed to offset the price slide. Shares rose 1.6 percent at 9:30 a.m. in Toronto.

“We remain focused on improving productivity and driving down costs to ensure we can continue to generate free cash flow in the current gold price environment,” Barrick wrote.

Gold miners are battling to lower costs and debt levels after prices slumped to five-year lows as dollar gains and the prospect of higher U.S. interest rates reduce demand for alternative investments as an inflation hedge.

NEWS RELEASE: Barrick Announces Sale of 50 Percent of Zaldívar Mine, Formation of New Partnership with Antofagasta Plc

July 30, 2015

TORONTO, July 30, 2015 — Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) (“Barrick” or the “company”) today announced that it has reached an agreement to sell a 50 percent interest in the Zaldívar copper mine in Chile to Antofagasta Plc (“Antofagasta”) for a total consideration of $1.005 billion in cash, forming a new partnership with one of the world’s leading copper companies.

“The sale of 50 percent of Zaldívar is consistent with our strategy to create long-term value for our shareholders. By selling a stake in this non-core asset, we strengthen our balance sheet while maintaining significant exposure to a strong cash-generating operation,” said Kelvin Dushnisky, Co-President of Barrick. “Following a highly competitive auction process, we are pleased to reach an agreement with the ideal partner for Zaldívar. Antofagasta has an outstanding track record of building and operating mines in Chile, and we see this as the first step in an ongoing, collaborative partnership. There are many potential opportunities to benefit from Antofagasta’s experience as Barrick evaluates development projects in the future.”

“We are enthusiastic about partnering with Barrick at Zaldívar. Together, we believe that we are well positioned to enhance the long-term value of the Zaldívar operation through our collective best practices,” said Diego Hernandez, CEO of Antofagasta. “We have consistently been impressed with the workforce at Zaldívar, and look forward to partnering with them. We also look forward to exploring other opportunities to collaborate with Barrick in the future.”

UPDATE 1-Zambia power cuts hit Canada’s First Quantum, Barrick – by Chris Mfula (Reuters U.S. – July 28, 2015)

July 28, 2015

http://www.reuters.com/

(Reuters) – Power cuts in north-western Zambia, Africa’s second-biggest copper producer, have affected production at mines run by Canada’s First Quantum Minerals and Barrick Gold, an industry body said on Tuesday.

Zambian power utility Zesco Ltd is limiting power it supplies to customers, including mining companies, after water levels at its hydro-electric plants dropped due to drought.

“Power was reduced to both First Quantum Minerals and Lumwana over the weekend,” Jackson Sikamo, President of the Zambian Chamber of Mines said.

Lumwana is Barrick’s open-pit copper mine.

First Quantum said in a statement its Kansanshi mine, smelter and its greenfield Sentinel project were running at reduced capacities.

Fresh bloodletting among gold mining stocks – by Frik Els (Mining.com – July 27, 2015)

July 28, 2015

http://www.mining.com/

Hedge funds bet record 340 tonnes the gold price will continue to fall as bears rip into majors – Barrick falls to 1989 level, Goldcorp at 11-year low

Renewed fears about Chinese equity markets after the worst points loss in Shanghai for eight years gave the gold price a lift on Monday.

But the metal continues to trade close to five-year lows after settling at $1,093, up only $7.40 from Friday’s close. An earlier move above the psychologically important $1,100 level turned out to be brief. A return to its recent dip below $1,180 would represent a 50% retracement of the metals 12-year bull run.

The gold market has turned overwhelmingly bearish with so-called managed money investors such as hedge funds going short – placing bets that the gold price will decline – to the tune of 12.1m ounces or 340 tonnes, a new record high.

According to the Commodity Futures Trading Commission’s Commitment of Traders data for the week to July 21, large speculators now hold a net short position for the first time since at least 2006, when the data was first being tracked.

Gold stocks crash – Barrick plummets to 25-year low – by Frik Els (Mining.com – July 17, 2015)

July 17, 2015

http://www.mining.com/

On Friday, the price of gold dropped to the lowest level since April 2010 after the Fed said the world’s largest economy favours a rate rise this year which boosted the dollar and Chinese disclosure about its gold holdings disappointed the market.

Futures contracts in New York with August delivery dates were trading at $1,131.20 an ounce in afternoon trade, down more than 1% from yesterday’s close in a second day of losses.

The gold market has turned overwhelmingly bearish with large gold futures investors such as hedge funds slashing long positions – betting on a rising price – to less than 1m ounces, the lowest in at least nine years. At the same time speculators’ short positions – bets that gold could be bought cheaper in the future – jumped to all-time record highs.

Gold’s weakness led to a brutal sell-off among the world’s top gold miners. More than 22m Barrick shares changed hands as the share tumbled 5% to the lowest since 1990.

The sell-off was led by Barrick Gold Corp (NYSE:ABX, TSE:ABX), the world’s top producer of the metal, which tumbled 5% to the lowest in USD terms since 1990. More than 22m shares changed hands, double the usual daily volume for the share.