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Update: Barrick Gold Suspends Its Lumwana Mine As The Royalty Rate Spikes To 20%
- Barrick Gold just announced that it is suspending its Lumwana Mine in Zambia due to a high royalty rate.
- I had not anticipated this back in October.
- Barrick is de-risking which is a positive development, but this means less production and less cash flow going forward.
Update: Barrick Gold Completes Its JV Deal With Ma'aden For Its Saudi Arabian Jabal Sayid Copper Project
- Barrick Gold just finalized its JV with Ma'aden for its Jabil Sayid Project.
- I had anticipated this and lauded the consequent de-risking of this deal in a recent article.
- Barrick is not the best gold play out there by a long shot, but it may have reached a level where it offers compelling value.
Update: Barrick To Appoint Shaun Usmar As CFO
- Barrick Gold just announced that Shaun Usmar will take over as CFO starting February 18th.
- I had not anticipated this.
- Barrick has been shaking up management for years now, with improvements coming inconsistently, and I remain skeptical that this is a viable investment.
Update: Barrick Gold's Q3 Earnings Show Improvements
- Barrick Gold earned $125 million in the third quarter reflecting continued cost reduction and no major writedowns.
- I had anticipated that the company can earn a slight profit with gold prices where they are.
- Shares made a new multi-decade low on the day on weakness in the gold market; the selling is nearing an end.
Is It Finally Time To Buy Barrick Gold?
- Barrick shares are trading at 15 year lows in spite of the fact that the gold price has risen more than 4X in value.
- While there are reasons to believe that there is an opportunity in light of this there continue to be risks.
- Even if you decide Barrick is a good bet there are simply too many other good ones in the gold mining space without the aforementioned risks. .
- Thus I continue to avoid the stock even at the current valuation.
Update: Barrick To Eliminate Its Corporate Development Division
- Reuters just reported that Barrick intends to eliminate its corporate development division in order to cut costs.
- While a positive insofar as the company's corporate development has done a poor job -- as I pointed out last August -- this seems a bit drastic.
- Barrick is moving to operate without a CEO and without a corporate development division, which leaves a lot of uncertainty, meaning I am continuing to stay away.
Update: Barrick Gold's Earnings-The Losses Continue
- Barrick Gold reported a second quarter loss of $269 million, or adjusted net earnings of $159 million on revenue of $2.43 billion.
- Gold production fell substantially from 1.8 million ounces to 1.4 million ounces, although this was offset by higher copper production and lower operating costs.
- As I have been arguing the company continues to lose money as it writes down assets and as gold production falls, but the company is moving in the right direction.
- This earnings report is mixed, and I would rather look for opportunities elsewhere in the space.
Update: Barrick Gold Shakes Up Management, CEO Jamie Sokalsky To Step Down
- Barrick Gold announced that it would be shaking up its management and that CEO Jamie Sokalsky would be stepping down.
- Senior Executive VP Kelvin Dushnisky and Senior Executive VP and COO Jim Gowans will co-run the company.
- This shouldn't surprise readers of my past criticisms of Barrick's management for poor capital allocation.
- This is probably a move in the right direction, but I would be much happier with an outsider stepping in to lead the company. I'm staying away.
Update: Barrick Partners With Ma'aden To Develop Its Jabal Sayid Copper Project In Saudi Arabia
- Barrick Gold is selling half of its Jabal Sayid Copper Project in Saudi Arabia to Ma'aden--a company with expertise in the region.
- While I have been negative on the company given its over-emphasis on copper, I think this is an excellent move.
- It is not enough to get me behind the company, but it is a step in the right direction and evidence that Jamie Sokalsky can turn Barrick around.
- Barrick Gold Shakes Up Management, But I'm Still Not Buying
- Why The Market Loves Goldcorp And Hates Barrick Gold
- Barrick Gold Is Destroying Shareholder Value
- The Case For Shorting Barrick Gold