Jan. 22, 2014, 3:36 PM
- HSBC cuts its 2014 price target for gold to $1,292/oz. from $1,435 and its 2015 forecast to $1,310 from $1,395, downgrading Barrick Gold (ABX -2.1%), Yamana Gold (AUY -2.6%) and African Barrick Gold (ABGLF, ABGLY) in the process.
- ABX may benefit this year from new mine plans which could radically improve near term cash flow, but this likely will come at the expense of reserves and mine life, the firm says in cutting shares to Underweight with a $16.50 price target (from $19.60).
- AUY enjoys low average costs but the firm believes this is more than factored in, and cites the relatively small production base and concerns about long-term sustainability of profitability at El Penon in lowering shares to Underweight with an $8.20 target (from $9.60).
Dec. 4, 2013, 6:39 PM
- Barrick Gold (ABX) confirms Peter Munk will step down from its board at the 2014 annual meeting, expected around April, and co-chairman John Thornton will become sole chairman at that time.
- Thornton tells WSJ that ABX will focus on establishing long-term relationships with Chinese partners but has no current plans to sell its Pascua Lama project or its majority stake in African Barrick Gold (ABGLF, ABGLY), two sources of trouble for the miner in recent years.
- Thornton also says ABX would consider increasing its exposure to copper and silver over time, depending on the price of those metals, dampening rumors that the company wants to sell out of its copper projects.
Sep. 24, 2013, 3:32 PM
- More on Barrick Gold (ABX +1.4%) at the Denver Gold Forum: Jamie Sokalsky says the miner is in talks on further asset sales, especially mines that are relatively high cost, have shorter mine lives and limited opportunity to expand through exploration; some of its remaining assets in Australia fit that profile, the CEO says. (earlier)
- Though some analysts have suggested ABX should spin off assets instead of selling them into a tough market, Sokalsky says more spinoffs are not on the agenda, due to tax considerations and administrative requirements.
- On African Barrick (ABGLF.PK, ABGLY.PK), Sokalsky says he is focused on improving operations there and not on a quick sale, and that ABX does not have a timetable for selling its stake.
Sep. 23, 2013, 2:24 PM
- Barrick Gold (ABX +0.5%) plans to cut regional managers and move oversight of operations to its head office, in a restructuring designed to make mines more accountable for controlling costs and increasing cash flow, FT reports.
- Gold miners around the world are cutting costs and rethinking expansion plans as falling gold prices this year have made many mines unprofitable; ABX already has cut one-third of head office staff, cut $2B from its capital budget for this year, sold mines in Australia and will look at further sales or closures as it focuses on its largest, lowest-cost mines.
- As ABX retrenches, talk of divesting its 74% stake in African Barrick (ABGLF.PK, ABGLY.PK) is coming up again; CEO Brad Gordon says the company could be independent in 12-18 months if ABX seeks a sale, but "they are not sellers at the current price."
Aug. 21, 2013, 8:21 AM
- African Barrick Gold (ABGLF.PK, ABGLY.PK) names 30-year industry veteran Bradley Gordon as its new CEO, succeeding Greg Hawkins, who has resigned to pursue other opportunities.
- African Barrick was under pressure well before the gold price rout earlier this year, hit by illegal mining, power generation problems and strikes.
- The company initiated a review of its operations earlier this year after its parent, Barrick Gold (ABX), failed to sell it.
Jul. 30, 2013, 9:51 AM
- Barrick Gold's (ABX -1.8%) African Barrick subsidiary is sued in a U.K. court by a group of Tanzanian villagers who allege the miner was complicit in the killing of six locals by police over the last three years as they looked for gold at or around the North Mara mine.
- The news comes as ABX looks to sell its controlling 74% stake in African Barrick amid a declining gold price and high debt burden.
Jul. 5, 2013, 11:48 AM
Nomura thinks gold prices have reached a near-term equilibrium, making it a good time to try for a bounce in gold mining stocks (GDX). As a result, its analysts upgrade Randgold (GOLD -6%) to Neutral from Reduce, African Barrick to Buy from Reduce, and Polymetal to Buy from Neutral. But the firm doesn't expect the good times to last, as it sees sellers dominating again by Q4 and sending gold prices down.| Jul. 5, 2013, 11:48 AM | 3 Comments
May 3, 2013, 2:13 PM
As cheaper gold makes South African mines unprofitable to operate, Goldman Sachs slaps Sell ratings on AngloGold (AU -1.2%) and Sibanye (SBGL -5.1%) due to their high exposure to the country. The firm also thinks attempts to reduce costs by reducing labor or closing mines could be met with strikes or government interference. Goldman's best rating - Neutral - is saved for Randgold (GOLD -0.2%).| May 3, 2013, 2:13 PM
Apr. 29, 2013, 11:39 AM
Gold miners (GDX) have been smacked by plunging gold prices, but Citigroup and HSBC think they have further to fall. Citi worries about AngloGold (AU) because negative free cash flow would hit its "already stretched balance sheet," but Harmony Gold (HMY) has the balance sheet to weather similar problems; Gold Fields (GFI) is its sector favorite. HSBC cuts GFI, Agnico Eagle (AEM) and many others.| Apr. 29, 2013, 11:39 AM | 1 Comment
Jan. 8, 2013, 3:57 AM
African Barrick Gold (ABGLF.PK) plummets 21% in London after parent company Barrick Gold (ABX) ends talks to sell the unit, in which it owns 74%, to state-owned China National Gold. Barrick Gold "will only proceed with opportunities that generate acceptable value," CEO Jamie Sokalsky said. African Barrick, which is worth $1.4B, will now conduct a review of its operations in order to improve returns. (PR)| Jan. 8, 2013, 3:57 AM