Wildfires erupt in Canada crude patch in threat to oil sands
One 7-acre fire is within about 6 miles of MEG Energy Corp.’s Christina Lake site, which produced almost 100,000 barrels a day in May.
Shares in Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) retreated nearly 1% in after hours trade on Wednesday after the company reported a small loss in its third quarter, and lowered its production guidance and upped its expected costs for the full year.
Barrick is now down 5.5% over the past week as investors weigh the impact of troubles at its Tanzanian unit. The Toronto-based company is now worth $18.4 billion in New York.
Barricks’ full-year gold production is now expected to be 5.3–5.5m ounces compared to 5.6–5.9m ounces at the start of the year
Barrick reported adjustments of $172 million in a tax provision relating to a framework agreement between its majority-owned Acacia Mining unit and the government of Tanzania.
Last week Barrick announced that Acacia would pay Tanzania $300 million and hand the government a 16% stake in three of its gold mines, to end the dispute. The gold producer has faced government pressure in Tanzania since March, when President John Magufuli imposed a ban on gold concentrate, which represents about a third of Acacia’s output.
Revenues during the third quarter declined to just under $2 billion, down 13.5% year on year. Barrick produced 1.24 million ounces of gold in the quarter to end-September at an all-in cost of $772 per ounce, up from $704 during the same period last year.
For the year Barrick upped the lower-end of its cost guidance and at the same time trimmed expected total production in 2017.
Barrick, the world’s largest gold miner in terms of output, now expects full year production of 5.3–5.5 million ounces, a second downward adjustment down from its outlook at the start of the year of a range of 5.6–5.9 million ounces.
All-in sustaining costs of between $740-$770 per ounce is predicted for the year. Higher all-in sustaining costs primarily reflect a planned increase in minesite sustaining capital expenditures at Barrick Nevada and Veladero according to the company.
Barrick produced 115m pounds of copper during the third quarter, a 15% improvement over 2016 but costs rose by more than 10% to to $2.24 per pound. The company narrowed its copper production guidance range to 420-440 million pounds but expects costs to rise further as a result of higher inputs at its Zambian operations.
2 Comments
PRINCE A D GAISIE
It is the ACACIA issues which is weighing on production targets of BARRICK and the earlier it is resolved the better for both BARRICK AND ACACIA. Interesting times in the Mining and Mineral industry with shakeups in the Mining in Africa as Leaders whi are electes are who want to challenge the STATUS QUO.
Ronald Burton II
No wonder. Look at that truck coming into the repair shop. They need to invest in some Komatsu 980E’s to boost their production. Komatsu……….The Leader in electric-drive haul trucks.