Barrick Gold Co Arranges for $900 Ounce for Gold

Shares of Barrick Gold Corporation fell farther after hours after dropping almost 4% in regular trading on Wednesday after the gold miner, the planet 's biggest in relation to output, cut its dividend by 60% despite reporting a smaller second quarter loss.

The market value of Barrick is worth some $8 billion in New York and is down 50% over the past three months. That compares to a $64 billion capitalization when gold was at $1,900 in 2011.

Barrick cuts its gold production outlook to between 6.1m - 6.4m oz as it disposes of assets including 50% of its Zaldivar copper mine in Chile for $1 billion, the Cowal mine in Australia for $550 million in cash and $298 million for its Porgera mine to handle its crippling debt-load of more than $13 billion.

The organization declared added disposals on Wednesday declaring that in the the next couple of weeks, it's going to begin a procedure to sell Gold Sun assets, Round Mountain, Spring Valley, Ruby Hill, Hilltop and its Bald Mountain in Montana and Nevada.

Other noteworthy characteristics of prognosis and the quarter contain capex reductions and additional price, but the $250 million debt decrease is some way off the goal of $3 billion in 2015 of Mr Thornton.

  • Business reported a net loss of $9 million ($0.01 per share) in the second quarter; adjusted net earnings were $60 million($0.05 per share).

  • Free cash flow was $26 million and operating cash flow was $525 million.

  • Creation in the 2nd quarter was 1.45 million oz of gold at all in keeping up prices (AISC) of $895 per oz.

  • Total-year gold production is currently anticipated to be 6.1-6.4 million oz, representing the impact of asset sales.

  • All in keeping up price guidance for 2015 has been reduced to $840-$880 per oz.

  • Overall debt reduced by about $250 million in first half.

  • $2.45 billion in asset sales and joint ventures declared to date.

  • Targeting $2 billion in costs that are reduced by the end of 2016 around the firm.

  • Other expenses and capital reduced by $240 million in the 2nd quarter.

  • Lowered quarterly dividend to two cents per share.

  • Scenario planning finished for gold costs down to $900 per oz.

  • On course to reach about $50 million in economies cost G&A in 2015, surpassing initial $30 million goal for the year. Targeting $90 million in annualized savings in 2016, up from initial goal of $70 million.

  • Finished Preliminary Economic Evaluations on jobs with the potential to substantially extend mine life at Pueblo Viejo and Lagunas Norte.

The scenario planning in the amount of gold drop for a $200 an ounce contain these strategies and more divestments:

  • Fix life-of-mine strategies to optimize short term free cash flow

  • Set higher-price operations on upkeep and temporary care

  • Defer stripping tasks

  • Close or divest mines which don't match with capital allotment targets

  • Raise cutoff levels

  • Reduce mining/processing rates

  • Additionally reduce G&A and investigation

  • Additionally reduce keeping up capital

  • Process higher-level stockpiles