Seeking Alpha

Barrick Gold suspends Pascua-Lama construction

  • In its Q3 earnings report, Barrick Gold (ABX) says it is temporarily suspending all construction activity at its Pascua-Lama project on the Chile-Argentina border.
  • The move allows ABX to conserve capital and reduce its capital spending guidance for 2014 by $1B, but it also throws the future of the $8.5B project into question.
  • The news overshadows otherwise better than expected earnings, gold production of 1.85M oz. at all-in cash costs of $916/oz. - in line with the prior quarter and among the lowest costs in the industry - and a promise of another $500M in annual savings by developing a “flatter operating model.”
  • Gold production for the full year is seen near the low end of its prior guidance of 7M-7.4M oz., but copper production guidance is raised to 520M-550M lbs. from 500M-540M due to improvements at its Lumwana mine in Zambia.
  • Shares -1.8% premarket.
From other sites
Comments (1)
  • filipo
    , contributor
    Comments (4195) | Send Message
     
    That temporary suspending might easily become a shut down that lasts a few years.
    31 Oct 2013, 03:12 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs