Analysts at Credit Suisse have lowered their target price on
shares of Barrick Gold Corporation (
) to $38 from $40, while maintaining their Outperform rating on the
"On April 10th Barrick announced that it is suspending
construction on the Chilean side of Pascua while working to address
environmental and other regulatory requirements to the satisfaction
of the Chilean authorities," said Credit Suisse. "Barrick stated
that it is too early to assess the impact, if any, on the overall
capital budget and schedule of the project: Barrick's current
capital budget is $8.0 to $8.5B, with $4.2B spent to December 31,
2012. Additionally, Barrick has budgeted $0.25-$0.325B for
"Projects-infrastructure" capital at Pascua in 2013. Barrick's
current target for first production is H2/14."
The firm added "Construction activities in Argentina are not
affected, where the majority of Pascua-Lama's critical
infrastructure is located, including the process plant and tailings
storage facility. The major operations on the Chilean side are
construction of the tunnel to the plant and construction of the
primary crusher. ABX has already suspended pre-stripping of the pit
on the Chilean side due to dust control issues."
Shares of ABX are up 1.3% to $24.78, in the low end of a 52-week
range of $24.26 - $43.30.
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