real-time news and commentary for investors
Tuesday, Sep 24
At Denver Gold Show, Barrick offers view of strong production, below-peer costs
- Barrick Gold (ABX +1.7%) is higher after finishing its presentation at the Denver Gold Show, where it reaffirmed its production guidance at 7M-7.4M oz. with a $900-$975/oz. all-in sustaining cash cost well below its peer group; 60% of the production comes from just five mines (Briefing.com).
- ABX says it has no plans to build any new mines, which may mean lower production but it would be higher quality production.
- Says its focus is on cost reduction via lower 2013 budgeted capex and costs by ~$2B, significant improved 2013 guidance for all-in sustaining cash costs, progressing overhead and operational reviews.
- Still optimistic about the Pascua-Lama mine, expecting significant cash flow generation and operating costs in the first quartile of the industry cost curve.