Barrick Gold (ABX)

swissaustrian

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ABX ousted it's CEO today because of weak stock performance. :flail:
He is going to be replaced by the CFO.
Bad timing imho as the stock has recently turned arround.
The news dragged on all big gold miners today.
(I can't post a link, I'm on the road)
 

pmbug

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From SRSrocco:
BIG TROUBLE FOR BARRICK AT PASCUA LAMA??

Pascua Lama is one of Barrick’s largest gold and silver mines that is slated to be in commercial production by mid 2013. Harvey Organ believes Pascua Lama should have been in commercial production several years ago, but problems associated with Glaciers have kept them from doing so.

There has been on ongoing debate about the Glacier and water issues in both Chile and Argentina as it pertains to Barrick’s mining operation of Pascua Lama.

I also believe there is bad news coming out of Pascua Lama. Again, this represents 25% of Barrick’s gold reserves and if Pascua Lama is not allowed to go commercial, it would be disastrous for Barrick’s stock price, balance sheet and contractual obligation to supply Silver Wheaton 170-200 million ounces of silver.

If Pascua Lama is unable to mine gold and silver without threatening the glaciers in both Argentina and Chile, Barrick will have to go into the futures markets and purchase silver to deliver to Silver Wheaton at its contractual price of $3.90 an ounce.
...
More (a lot more and definitely worth your time to read): http://www.silverdoctors.com/barricks-200-million-ounce-silver-problem/
 

pmbug

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Good follow up to sa's OP:
The fall of Aaron Regent as CEO of world No. 1 gold miner, Barrick Gold last week highlights the unenviable task facing top management of a major mining company these days - and of gold company CEOs in particular.

Barrick, like the other gold majors, is having a tough time maintaining, or increasing, its gold production as to do so nowadays requires what might be considered increasing risk taking requiring developing massive mining projects in increasingly hostile geographical, technical and political environments to replace depletion in existing mining operations. ...
More: http://www.mineweb.com/mineweb/view/mineweb/en/page33?oid=153201&sn=Detail
 

bushi

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"Only when we kill the last buffalo, and poison the last river, and catch the last fish, people will realize that they cannot eat money". That is re: endangering glaciers, and in general, resource depletion causing increasingly destructive methods required to tap these deteriorating natural reserves.
 

69mach351

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"Only when we kill the last buffalo, and poison the last river, and catch the last fish, people will realize that they cannot eat money". That is re: endangering glaciers, and in general, resource depletion causing increasingly destructive methods required to tap these deteriorating natural reserves.
Probably one of the more interesting quotes I have read today. Everyone is out to get theirs. Screw everyone else I guess!
 

rblong2us

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we appear to be hardwired for short term gain and only a few seem able to reflect on the long term consequences of this .........

Logically we would appear to be the root cause of our demise.

Yet we are also wired to hang onto hope n change (-:
 

swissaustrian

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ABX today is beeing dragged down by GG's lower production guidance for 2012, down 2.5% (GG now 9%)
 

swissaustrian

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I don't know what to make of that:

SGTreport has released an interview with Chilean miner Jorge Lopehandia, in which Lopehandia makes shocking claims against Barrick Gold Corporation, the world largest gold producer. Jorge alleges that Barrick Gold used unethical and potentially illegal actions in the attempt to strip control of Jorge’s Chilean mine claims at Pascua Lama in Chile.

The allegations, if true, could not only end Barrick’s quest for gold on the Pascua Lama property (one of the largest gold reserves on earth), it could bankrupt Barrick altogether, and potentially help release the price of gold from the clutches of the precious metals price fixing cartel. Jorge claims that Barrick, in cahoots with criminal bank HSBC, has sold millions of ounces of Pascua Lama gold into the market, while to date, never having mined a single ounce of gold from the property.

Exclusive SGTReport interview regarding Lopehandia’s shocking claims against Barrick Gold is below:
 

pmbug

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...

Wouldn't be the first casualty of the gold rigging game. /Jon Corzine
 

swissaustrian

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Seems like a Chilean court has decided against Barrick. There's certainly going to be more details in the comming hours:
BRIEF-Barrick comments on Chilean court suspension of its controversial Pascua-Lama project
(Reuters) - Barrick Gold Corp : * Comments on chilean court suspension of its controversial pascua-lama project * Says has not been notified of the decision by the court * Says impossible for it to comment on its content or implications, at this

time * Says once notified, it will review the matter in detail and respond to the

actions
http://www.reuters.com/article/2013...ype=RSS&feedName=governmentFilingsNews&rpc=43
 

pmbug

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This could be huge news if Jorge Lopehandia's claims are true. Could it be an explanation for the huge COMEX inventory drop?

Edit: I'd also like an update on SRSRocco's note from last June about the contractual obligation of silver for Silver Wheaton.
 

swissaustrian

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This is obviously another court case about environmental issues:
"A Chilean court temporarily suspended the construction of Barrick Gold Corp's (ABX.TO, ABX) Pascua-Lama gold and silver mine after indigenous communities protested the controversial project was destroying glaciers and harming water supply," according to a Reuters story.

The report said: "The northern court of Copiapo will analyze the communities' complaints of "environmental irregularities" against the project, which has already been plagued by soaring costs and stiff opposition from environmental groups."

Read more: http://www.nasdaq.com/article/marke...lumps-to-fresh-yr-lows-cm235436#ixzz2Q4JtlOdR
 

pmbug

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Temporary can be a long time. Long enough to force them the cover obligations they aren't prepared to cover. This could get interesting.

:popcorn:
 

swissaustrian

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Barrick's response:
TORONTO, ONTARIO--(Marketwired - Apr 10, 2013) - Barrick Gold Corporation (ABX)(ABX.TO) (Barrick or the "company") is aware of media reports indicating that a Chilean court has issued a preliminary injunction pending a full hearing, halting construction activities on the Chilean side of the Pascua-Lama project. The company has not yet been formally notified of the court order and will assess the potential implications once it has received official notification.

Construction activities in Argentina, where the majority of Pascua-Lama's critical infrastructure is located, including the process plant and tailings storage facility, are not affected.
http://finance.yahoo.com/news/pascua-lama-preliminary-injunction-chile-151030068.html
 

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This project isn't supposed to be coming online till 2014 so i think there is a bit of an overreaction to this news. ABX makes up 12% of the GDX and this news (along with the gold price action) is weighing on all the shares.
 

pmbug

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Read post #8 and then read this:
Barrick Gold Corp. (ABX) founder Peter Munk sees a successor in former Goldman Sachs Group Inc. (GS) President John Thornton as the world’s biggest gold miner tries to reverse a 54 percent plunge in market value in the past year.

“I searched the world for a successor,” Munk, the 85- year-old chairman of Barrick, said yesterday in an e-mailed statement. “I am delighted I found John. I am confident he will take Barrick to a new level as a global player.”
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Thornton remains a professor and director of Tsinghua University’s global leadership program. He’s also chairman of the board of trustees of Washington-based Brookings Institution, sits on the boards of HSBC Holdings Plc, Ford Motor Co. and China Unicom (Hong Kong) Ltd. and has served as a director of Intel Corp. and News Corp.

Thornton, also a member of the international advisory board of China Investment Corp., the nation’s sovereign wealth fund, is one of the top foreign experts on China, said Dominic Barton, the London-based managing director of McKinsey & Co.
...
http://www.bloomberg.com/news/2013-04-23/barrick-gold-at-20-year-low-turns-to-thornton.html
 

pmbug

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Facing sliding prices for gold and its shares, as well as a shareholder revolt on executive pay, the top brass at Barrick Gold Corp. vowed Wednesday to cut costs and take a hard look at the company’s operations.

Executives of the world’s biggest gold mining company revealed plans to cut at least $500 million (U.S.) from spending on major projects this year, and may consider suspending work at its troubled Pascua-Lama development in South America.
...
Last week, institutional investors, including the Canada Pension Plan Investment Board, the Ontario Municipal Employees Retirement System, and Ontario Teachers Pension Plan, expressed concern over an $11.9 million signing bonus awarded by Barrick to co-chairman John Thornton.
...
The bonus, paid last June, was used to purchase Barrick shares which are held in trust for Thornton’s children and are subject to a holding period, according to the company’s latest management proxy circular.

“John was prepared to give up his other options. Believe me he was a highly desirable well-known commodity,” Barrick founder and chairman Peter Munk told shareholders. “When we paid the kind of money we paid John to buy Barrick shares with, we had to secure him.”
...
Barrick said it would cut its capital spending by $500 million and reduce exploration spending by $100 million.

Work on the Pascua-Lama silver and gold development in the Andes mountains was suspended by an appeals court in Chile amid environmental concerns. Barrick said it will work to address the regulatory concerns.

“We’re serious about disciplined capital allocation,” Sokalsky told shareholders. “That means we need to consider all options, including the possibility of suspending the project.”
...
More: http://www.thestar.com/business/201...ts_to_counter_price_drops_in_gold_copper.html
 

pmbug

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Barrick Gold is considering suspending the Pascua Lama project or developing a smaller pit on the Argentinian side of the project, among other options, Barrick officials announced Wednesday.
...
Meanwhile, Barrick reported production of 1.8 million ounces of gold during the first quarter at all-in sustaining cost of $919 per ounce. This compared to first-quarter 2012 production of 1.88 million ounces of gold at an all-in sustaining cost of $909 per ounce.

The company also reported copper production of 127 million pounds during the first quarter of the year at fully allocated costs of $3 per pound. This compares to first-quarter 2011 copper production of 117 million pounds at fully allocated costs of $2.68 per pound.

Barrick reaffirmed 2013 gold production guidance of 7 million to 7.4 million ounces of gold with full year all-in sustaining cost guidance being reduced from the previous $1,000 to $1,100 per ounce to the new guidance of $950-$1050 per ounce.
...
http://www.mineweb.com/mineweb/content/en//mineweb-gold-news?oid=187605&sn=Detail
 
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