Evolution Mining climbs to 4-year high on upbeat Q2 production, bullion prices
The company reported a quarterly group gold production of 194,793 ounces, compared with 161,073 ounces a year earlier.
Saudi Arabian mining fund Manara Minerals is set to buy a 10%-20% stake in the Reko Diq copper-gold project in Pakistan being co-developed by Barrick Gold (NYSE: GOLD) (TSX: ABX) for about $500 million to $1 billion, the Financial Times reported on Tuesday.
The FT report said, citing unnamed sources, that Manara would acquire the interest from the Pakistan government, which, together with the province of Balochistan, owns half of the project.
The report comes after Barrick said on Monday that it wouldn’t reduce its 50% stake in Reko Diq. The project, according to the Canadian miner, is projected to generate approximately $74 billion in free cash flow over the next 37 years, based on consensus long-term prices.
Speaking to local media, Barrick chief executive Mark Bristow said an initial estimated capital expenditure of $5.5 billion will be allocated to develop the first phase of the mine. During this phase, Reko Diq is expected to produce 200,000 tonnes of copper concentrate and 250,000 oz. of gold annually.
Bristow said that the starter mine is scheduled for completion by 2029. A second phase, requiring an additional investment of $3.5 billion, is projected to double production.
Barrick has long maintained that Reko Diq is one of the world’s largest undeveloped copper-gold prospects. It boasts a high copper grade of 0.53%, meaning that for every tonne of ore mined, about 5 kg of copper can be extracted.
Once the expansion is complete, the mine is expected to process over 90 million tonnes of ore annually.
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