UPDATE: Barrick Gold Drops 8% to 52-Week Low as Concerns Over Pascua-Lama's Suspension Continue to Circle


Barrick Gold Corp. ( ABX ) shares continue to experience downside, and are down 8.1% at $22.73, after earlier hitting a 52-week low of $22.60 in late afternoon trading.

The company's stock has fallen under pressure since the April 10th announcement that the company was suspending construction at its Pascua-Lama gold and silver project, in response to a court order from Chilean authorities.

Citing a court source, a Reuters report said the case may not be resolved for months, and may go as far as the Supreme Court before a judgment is rendered. The delay also threatens to increase the start-up cost for the project, which has already been subject to cost overruns.

Less than a year ago, ABX raised the price tag to get Pascua-Lama up and running to over $8-billion. When the company launched the project back in 2009 they expected the project would cost $3 billion. A significant portion of higher costs were attributed to a year-long delay in building the mine. When asked about the potential impact of the suspension, Barrick released this statement: "It is too early to assess the impact, if any, on the overall capital budget and schedule of the project."

Co-owners of the mine have also seen their stock slide following the suspension. Silver Wheaton ( SLW ) shares are down 5.6%, Royal Gold ( RGLD ) shares are down 4.2% in today's session.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: ABX , RGLD , SLW

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