Barrick Gold Corporation
) has announced that it is halting construction work at the
Pascua-Lama mine in Chile after a Chilean court issued a
preliminary injunction citing environmental concerns.
Barrick's Pascua-Lama mine overlaps the border of Chile and
Argentina and the court ruled in favor of indigenous communities
who complained that the project threatens their water supply.
Construction activities in Argentina, where the majority of
Pascua-Lama's critical infrastructure is located, will not be
affected. Barrick also said that it is currently working to
address the environmental and other regulatory issues as required
by the Chilean authorities.
Barrick's shares fell roughly 8.4% to close at $24.46 yesterday.
Barrick, which is one of the prominent gold mining companies
Newmont Mining Corporation
AngloGold Ashanti Limited
Kinross Gold Corporation
), released its fourth quarter 2012 results in Feb 2012.
Barrick's adjusted earnings (excluding one-time items) fell to
$1.11 per share in the fourth quarter from $1.17 per share in the
year-ago quarter, but exceeded the Zacks Consensus Estimate of
On a reported basis, Barrick slipped to a loss of $3.06 billion
or $3.06 per share compared with profit of $0.96 billion or 96
cents per share in the year-ago quarter. The bottom line was hit
by tax impairment charges of $4.2 billion, mainly related to the
company's copper business.
Barrick's revenues jumped 11.4% year over year to $4,189 million
in the reported quarter and exceeded the Zacks Consensus Estimate
of $4,044 million. Average realized price of gold increased 3%
year over year to $1,714 per ounce. C1 cash cost of copper
increased 5.6% year over year to $2.07 per pound.
Barrick expects to produce 7-7.4 million ounces of gold in 2013
at total cash costs of $610-$660 per ounce. Copper production in
2013 is expected to increase to 480-540 million pounds, primarily
reflecting improved production from Lumwana. Total C1 cash costs
are expected to be in the range of $2.10-$2.30 per pound.
Currently, Barrick retains a Zacks Rank #3 (Hold).
BARRICK GOLD CP (ABX): Free Stock Analysis
ANGLOGOLD LTD (AU): Free Stock Analysis
KINROSS GOLD (KGC): Free Stock Analysis
NEWMONT MINING (NEM): Free Stock Analysis
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