Barrick Gold to record up to $3B in asset writedowns

TORONTO - Barrick Gold shares were lower in pre-market trading, following its advance notice of a US$3-billion asset writedown.

Barrick (TSX:ABX) says it will be writing down the value of its stalled Pascua-Lama mining project on the border of Chile and Argentina and its Pueblo Viejo gold operation in Dominican Republic by a total of between US$1 billion and and US$1.2 billion.

See Full Article

It will also reduce the value of goodwill - an intangible asset related to some of its past acquisitions - by about US$1.8 billion.

The Toronto-based company - one of the world's largest gold producers - says it will provide an update on the writedowns on Feb. 17 when it reports detailed financial and operating results for the year ended Dec. 31.

The write downs are non-cash items that reflect the reduced long-term value of the assets.

Its shares closed in Toronto on Thursday at C$11.90 and in New York at US$8.32 before the announcement. The U.S.-listed shares were down three per cent from that level in extended trading before markets reopened Friday morning.

Barrick also announced Thursday that it produced about 6.12 million ounces of gold and 511 million pounds of copper last year, both within Barrick's expectations.

It got about US$1.105 per ounce on average for the gold sold in the fourth quartr and US$1,157 per ounce for the year. For the coming year, however, Barrick assumes its realized price for gold will drop to US$1,000 per ounce in 2016.



Advertisements

Latest Economic News

  • Federal government blocks sale of construction giant Aecon to Chinese interests

    Economic CBC News
    The federal government has blocked the sale of Canadian construction company Aecon Group Inc. to Chinese interests, the office of Innovation Minister Navdeep Bains has confirmed. The controversial deal between Aecon and China's CCCC International Holding Ltd., also known as CCCI, would have been worth $1.5 billion. Source
  • Feds block Aecon proposed takeover by Chinese group for national security reasons

    Economic CTV News
    OTTAWA - The federal government has blocked Chinese state-owned CCCC International Holding Ltd.'s proposed $1.5 billion takeover of construction firm Aecon Group Inc. for reasons of national security. More coming. Source
  • Feds block $1.5B takeover of Aecon by China-owned company over national security

    Economic CTV News
    OTTAWA -- The federal government has blocked the proposed $1.5-billion takeover of Aecon Group Inc. by a Chinese state-owned company for reasons of national security. After markets closed Wednesday, a spokesman for Economic Development Minister Navdeep Bains confirmed the government's decision to prevent CCCC International Holding Ltd. Source
  • Northern B.C. gas pipeline designed to supply LNG industry wins NEB approval

    Economic CTV News
    CALGARY -- The National Energy Board has approved construction of a natural gas pipeline originally intended to supply the Pacific NorthWest LNG export terminal near Port Edward, B.C., even though that $36-billion project was cancelled last July. Source
  • Strike at Caesars Windsor postpones Blink-182, Russell Peters shows

    Economic CTV News
    WINDSOR, Ont. - An ongoing strike at Caesars Windsor has postponed more concerts, this time appearances by artists including Blink-182 and Russell Peters. The southern Ontario tourist draw says it is postponing concerts and cancelling hotel reservations through June 16. Source
  • Ecuadorian Villagers lose fight to have Chevron Canada pay US$9.5 billion

    Economic CTV News
    TORONTO -- The Canadian subsidiary of U.S.-based oil giant Chevron Corp. cannot be held liable for a US$9.5-billion award a court in Ecuador ordered against the parent company in favour of Ecuadorian villagers, Ontario's top court ruled on Wednesday. Source
  • Research needed on impact of microplastics on B.C. shellfish industry: study

    Economic CTV News
    VICTORIA -- A new scientific study says more needs to be known about the impact on oyster farms of microplastic pollution that has been found in waters off Vancouver Island. The report's authors say it would be prudent to assess the extent to which shellfish ingest microbeads, microfibres and microfragments after the pollution was found in the Baynes Sound, Lambert Channel and in areas off Denman and Hornby islands. Source
  • CN to purchase hundreds of grain cars as transportation bill becomes law

    Economic CTV News
    MONTREAL -- Canadian National Railway is preparing to purchase hundreds of new grain hopper cars to get shipments moving after a bill that encourages railways to make investments to avert service disruptions became law Wednesday. Source
  • CN Rail locomotive engineers ratify five-year collective agreement

    Economic CTV News
    MONTREAL -- CN Rail says its 1,800 locomotive engineers in Canada have ratified a new five-year collective agreement. The Montreal-based railway says the contract with the Teamsters Canada Rail Conference (TCRC) includes annual wage and benefit improvements in line with the industry. Source
  • Uber puts brakes on self-driving car operation in Arizona

    Economic CBC News
    Uber is ending its operation of self-driving cars in Arizona more than two months after a woman was struck and killed by one of its vehicles. The company notified about 300 workers Wednesday that their positions would be terminated. Source