Barrick Gold Corp (TSE:ABX) agrees property earn-in for ATAC’s Orion Project

Barrick Gold Corp (TSE:ABX, Mkt cap 30.86B, Div/yield 0.04/0.59, EPS 0.75, Shares 1.17B) and ATAC Resources Ltd have entered into a property earn-in agreement, ATAC said on Monday.

According to the Yukon-based exploration company, the agreement allows Barrick to acquire an interest in the central portion of ATAC's Rackla Gold Property, known as the Orion Project.

TSE:ABX Barrick Gold

Barrick Gold Corp (TSE:ABX) agrees property earn-in for ATAC’s Orion Project

Barrick will potentially invest a total of up to $63.3m, including a private placement of $8.3m and a two-stage, $55m exploration earn-in option to acquire up to 70% of the Orion Project.

The Rackla Gold Property covers 1,742 square kilometres in east-central Yukon. In all, it comprises three projects:

1. The Osiris Project, located at the east end of the property, covers 302 square kilometres and hosts the Osiris, Conrad, Ibis and Sunrise drill confirmed Carlin-type gold discoveries;

2. The Rau Project, located at the west end of the property, covers 660 square kilometres and hosts the Tiger Gold Deposit in addition to other early-stage carbonate-replacement style gold and base metal targets; and

3. The Orion Project, located in the central portion of the property, covers 780 square kilometres and is the only project subject to the Barrick agreement. The Orion Project hosts the Orion and Anubis drill confirmed Carlin-type gold discoveries in addition to eight other early stage Carlin-type gold prospects.

"We view the earn-in agreement and related private placement with the world's largest gold producer as a significant endorsement of the Rackla Gold Property, the ATAC exploration team and the Yukon as a region with world-class gold potential," commented ATAC's president and CEO Graham Downs. "The placement funds, together with access to Barrick's expertise will help accelerate ATAC's exploration and development work over the entire Rackla Gold Property."

Barrick Gold Corp (TSE:ABX) is a Toronto  based gold mining company. The Company is engaged in the production and sale of gold and copper, as well as related activities, such as exploration and mine development. The Company operates in segments: eight individual gold mines, Acacia and Pascua-Lama project. The remaining operating segments have been grouped into two other categories: its remaining gold mines and its two copper mines. The Company sells its production in the world market through the distribution channels: gold bullion is sold in the gold spot market; gold and copper concentrate is sold to independent smelting companies, and copper cathode is sold to various manufacturers and traders. The Company has 14 producing gold mines, located in Canada, the United States, Peru, Argentina, Australia, the Dominican Republic and Papua New Guinea. It also holds a 63.9% equity interest in Acacia Mining plc (Acacia) that owns gold mines and exploration properties in Africa.
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TSE:ABX – Barrick Gold and Antofagasta win arbitration case over Pakistan mining project

Toronto-based gold mining company Barrick Gold Corp (TSE:ABX, Mkt cap 30.93B, Div/yield 0.04/0.60, EPS 0.75, Shares 1.17B) and its joint venture partner Antofagasta have won a dispute over a multibillion-dollar mining project in Pakistan.

TSE:ABX Barrick Gold Antofagasta win arbitration case  Pakistan

TSE:ABX – Barrick Gold and Antofagasta win arbitration case over Pakistan mining project

Barrick said last week that an arbitration tribunal of the World Bank's International Center for Settlement of Investment Disputes (ICSID) had ruled in favour of Tethyan Copper Co. (TCC), a joint venture between Barrick and London-listed Antofagasta, in relation to the denial of a mining lease for the Reko Diq copper and gold reserve in the Balochistan province in southwestern Pakistan.

The two companies took the Pakistani government to the ICSID tribunal after they were denied a mining lease for the Reko Diq project in 2011.

According to Barrick, the tribunal rejected Pakistan's final defence against liability, and confirmed that the country had violated several provisions of its bilateral investment treaty with Australia, where TCC is incorporated.

Next, the tribunal will consider submissions from the parties before determining the size of the damages to be paid to TCC. A ruling on damages is expected in 2018.

A feasibility study by TCC showed that Reko Diq was one of the world's largest undeveloped copper and gold deposits, with a potential mine life of over 50 years.

It was expected to require an initial capital investment of more than $3bn, but estimates suggest the open pit mine project would yield 200,000 tons of copper and 250,000 ounces of gold a year, contained in 600,000 tons of concentrate, mining news website Mining.com reported.

"We are pleased with this decision and now the damages phase of the arbitration can begin," said Iván Arriagada, CEO of Antofagasta. "We expect that, at the conclusion of this phase, Tethyan will receive an award entitling it to the fair market value of the project at the time that the mining lease application was denied."

Barrick Gold Corp (TSE:ABX) is a Toronto  based gold mining company. The Company is engaged in the production and sale of gold and copper, as well as related activities, such as exploration and mine development. The Company operates in segments: eight individual gold mines, Acacia and Pascua-Lama project. The remaining operating segments have been grouped into two other categories: its remaining gold mines and its two copper mines. The Company sells its production in the world market through the distribution channels: gold bullion is sold in the gold spot market; gold and copper concentrate is sold to independent smelting companies, and copper cathode is sold to various manufacturers and traders. The Company has 14 producing gold mines, located in Canada, the United States, Peru, Argentina, Australia, the Dominican Republic and Papua New Guinea. It also holds a 63.9% equity interest in Acacia Mining plc (Acacia) that owns gold mines and exploration properties in Africa.
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Barrick Gold – Q1 results prove ‘Barrick is back,’ says chairman

Barrick Gold Corp. (TSE:ABX) Higher-than-expected first-quarter earnings, a share price that has doubled since the start of the year and a lower all-in sustaining cost guidance for 2016 has given Barrick Gold Corp.’s chairman John Thornton the opportunity to declare: “Barrick is back.”

Barrick Gold back

Barrick Gold – Q1 results prove ‘Barrick is back,’ says chairman

The turnaround in fortunes will come as welcome relief for Barrick’s directors and senior management, the Financial Post reports.

At last year’s meeting, shareholders were up in arms over Thornton’s compensation. Prior to that, the Toronto-based company were forced to deal with the aftermath of its failed attempt to merge with Newmont Mining Corp. In 2013, meanwhile, there was yet another controversy over Thornton’s pay.

However, some might now argue that Thornton is worth every penny that has been paid to him. In shaking up the senior management team, shrinking the head office and increasing co-operation between mine managers, the former Goldman Sachs executive has ensured a strong set of operating results.

On Tuesday, the company reported better-than-expected first-quarter earnings of US$127 million (on an adjusted basis) and lowered all-in sustaining cost guidance for 2016 by as much as 8% (to between US$760 and US$810 an ounce).

The solid performance has restored investors’ faith in Barrick, too, but Thornton acknowledged that there is more work to be done – especially when it comes to reducing debt.

“This is just the beginning,” he said. “We do not believe in victory laps. We set the bar higher and go back to work.”

Barrick has made a good start, announcing on Tuesday that it reduced debt by US$842 million in the first quarter, meaning it’s well on its way to its target of US$2 billion by the end of 2016.

Barrick Gold Corp. is a Toronto  based gold mining company. The Company is engaged in the production and sale of gold and copper, as well as related activities, such as exploration and mine development. The Company operates in segments: eight individual gold mines, Acacia and Pascua-Lama project. The remaining operating segments have been grouped into two other categories: its remaining gold mines and its two copper mines. The Company sells its production in the world market through the distribution channels: gold bullion is sold in the gold spot market; gold and copper concentrate is sold to independent smelting companies, and copper cathode is sold to various manufacturers and traders. The Company has 14 producing gold mines, located in Canada, the United States, Peru, Argentina, Australia, the Dominican Republic and Papua New Guinea. It also holds a 63.9% equity interest in Acacia Mining plc (Acacia) that owns gold mines and exploration properties in Africa.
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Barrick Gold revealed as Canada’s best-performing stock in 2016

Barrick Gold Corp.(TSE:ABX, Mkt cap 16.04B, P/E – , Div/yield 0.03/0.77, EPS -3.67, Shares 1.17B) shares have soared by 29% this year in Toronto, making it Canada’s best-performing stock, the Financial Post reports.

Barrick revealed best-performing stock

Barrick revealed as Canada’s best-performing stock in 2016

The Standard & Poor’s/TSX Composite Index also reveals that Barrick has overtaken its two biggest competitors, Goldcorp Inc. and Newmont Mining Corp., in market capitalization, allowing it to win back the title of the world’s most valuable gold company.

The ascendency up the Index has not been straight forward for Barrick, with more than US$3-billion worth of asset sales having taken place, while it has also worked hard to formulate joint ventures and aggressively cost cuts.

Those efforts saw the company achieve its target of cutting its US$13.1-billion debt by $3 billion in 2015, setting it on course to put itself in a position where it can withstand much lower gold prices than those seen today.

“It’s great to see that our shareholders are starting to recognize the progress that we’ve made but, make no mistake, there’s a lot of lifting we have to do in 2016,” Barrick President Kelvin Dushnisky said in a phone interview Wednesday.

He added that the primary objective this year will continue to be to cut operating costs and improve productivity as a means to further reduce the company’s debt.

Dushnisky would not be drawn on any debt-reduction targets for 2016 until it posts its fourth-quarter earnings on Feb. 17. However, he was prepared to say that the US$3-billion debt reduction last year “wasn’t the final step – that was the first step.”

Barrick Gold Corporation is a Toronto based gold mining company. The Company is engaged in the production and sale of gold and copper, as well as related activities, such as exploration and mine development. The Company operates in segments: eight individual gold mines, Acacia and Pascua-Lama project. The remaining operating segments have been grouped into two other categories: its remaining gold mines and its two copper mines. The Company sells its production in the world market through the distribution channels: gold bullion is sold in the gold spot market; gold and copper concentrate is sold to independent smelting companies, and copper cathode is sold to various manufacturers and traders. The Company has 14 producing gold mines, located in Canada, the United States, Peru, Argentina, Australia, the Dominican Republic and Papua New Guinea. It also holds a 63.9% equity interest in Acacia Mining plc (Acacia) that owns gold mines and exploration properties in Africa.
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Barrick Gold Corp reports another quarter of positive cash flow

Barrick Gold Corp.(TSE:ABX, Mkt cap 11.71B, P/E – , Div/yield 0.03/1.04, EPS -3.01, Shares 1.16B) has reported positive cash flow for the second straight quarter after a long period of negative cash flow, the Financial Post reports.

Barrick Gold Corp report positive cash flow

Barrick Gold Corp. reports another quarter of positive cash flow

As well as posting solid third quarter earnings, the world’s biggest gold producer also reported to having reduced its cost guidance in the period and said it is edging ever closer to its US$3 billion debt reduction target for 2015.

Adjusted net income in the third quarter exceeded the average analyst estimate at US$131 million, or 11 cents a share.

Barrick’s free cash flow was up from US$26 million in Q2 to US$256 million (not counting a streaming sale), while the net loss in the quarter was US$264 million, due to an impairment tied to the Zaldivar mine.

The results suggest that the company is pressing on under Chairman John Thornton, in spite of the weak gold marker, the FT notes. Since becoming chairman last year, he has sought to shed non-core assets and replace most of the management team.

Thornton aims to streamline Barrick back into profit and eliminate the strategic errors that crippled its balance sheet. By cutting its overall debt in the first nine months of the year from US$13.1 billion to US$11.2 billion, it indicates the company is headed in the right direction.

“As we move into 2016 and beyond, we will continue to take prudent steps to strengthen our balance sheet, balancing debt repayments with investments in profitable production that will drive growth in free cash flow,” the miner said in a statement.

However, investors are said to still be concerned about the firm’s balance sheet, as well as the health of the gold market.

Barrick Gold Corp is a Canadian gold mining company with headquarters in Toronto. The Company is engaged in the production and sale of gold and copper, as well as related activities, such as exploration and mine development. The Company operates in segments: eight individual gold mines, Acacia and Pascua-Lama project. The remaining operating segments have been grouped into two other categories: its remaining gold mines and its two copper mines. The Company sells its production in the world market through the distribution channels: gold bullion is sold in the gold spot market; gold and copper concentrate is sold to independent smelting companies, and copper cathode is sold to various manufacturers and traders. The Company has 14 producing gold mines, located in Canada, the United States, Peru, Argentina, Australia, the Dominican Republic and Papua New Guinea. It also holds a 63.9% equity interest in Acacia Mining plc (Acacia) that owns gold mines and exploration properties in Africa.
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The opinions expressed here are ours alone. They are provided for information purposes only and are not tailored to the needs of any particular individual or company, are not an endorsement, recommendation, or sponsorship of any entity or security, and do not constitute investment advice. We strongly recommend that you seek advice from a qualified investment advisor before making any investment decision.