Barrick Gold Corp. (
) 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
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
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 (
) shares are down 5.6%, Royal Gold (
) shares are down 4.2% in today's session.
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