Barrick expects declines in 2013 year-end reserves, production

|About: Barrick Gold Corporation (ABX)|By:, SA News Editor

Barrick Gold (ABX) CEO Jamie Sokalsky says the miner's year-end 2013 reserves and production will fall after the year saw gold's biggest annual price decline since 1981.

ABX will re-calculate its reserves at a gold price of $1,100/oz., down from $1,500 a year ago, resulting in a decrease in its reserve base.

Along with focusing on more profitable mines, gold production will be lower this year because of asset sales, the closing of its Pierina mine in Peru and reduced output from the Cortez gold mine in the U.S., Sokalsky says; the Zaldivar copper mine in Chile also is expected to produce less in 2014.

ABX expects to record another writedown on its Pascua-Lama project, and is looking at other possible asset-value reductions, according to Sokalsky.