Barrick Gold Corporation
Midway Gold Corp.
) that it has made $38 million of expenditures on the Spring
Valley project in Nevada. This entitles Barrick to earn a 70%
interest in the project. Spring Valley is a large,
porphyry-hosted gold system, which is a mineable open pit.
Barrick made the expenditures a year ahead of the scheduled
requirements in the earn-in agreement. Midway, on the other hand,
will evaluate its option to retain a 30% interest in the project
along with Barrick, or dilute to a 25% interest in exchange for a
full carry to production.
Midway Gold, an emerging gold producer, is on track to launch its
first million-ounce project in 2014. The company's core assets
are focused in Nevada, a prolific gold producer and a stable
mining jurisdiction. Barrick is the world's largest gold producer
and operates mines and advanced exploration and development
projects in four continents with large land positions on some
prolific and prospective mineral trends.
Barrick recently released its third-quarter 2013 results. The
company's adjusted earnings (excluding one-time items) fell to 58
cents per share in the quarter from 88 cents in the year-ago
quarter, but surpassed the Zacks Consensus Estimate of 50
On a reported basis, net earnings were $172 million or 17
cents per share, a roughly 73% decline from $649 million or 65
cents a share registered in the year-ago quarter. Lower realized
gold and copper prices, higher interest expense and higher income
tax expense led to the decrease in earnings.
Revenues dropped around 12% year over year to $2,985 million
in the reported quarter but exceeded the Zacks Consensus Estimate
of $2,973 million. Average realized price of gold decreased 20%
year over year to $1,323 per ounce.
Gold production rose to 1.85 million ounces in the quarter
from 1.78 million ounces a year ago. Copper production increased
to 139 million pounds from 112 million pounds in the prior-year
Currently, Barrick carries a Zacks Rank #3 (Hold).
Other companies in the gold mining industry with favorable
Zacks Rank are
Lake Shore Gold Corp.
Pretium Resources Inc.
). Both hold a Zacks Rank #2 (Buy).
BARRICK GOLD CP (ABX): Free Stock Analysis
LAKE SHORE GOLD (LSG): Free Stock Analysis
PRETIUM RES INC (PVG): Free Stock Analysis
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