Santacruz Silver Mining reports fatality at Tres Amigos mine in Bolivia
Tres Amigos mine, a part of the Caballo Blanco Group of mines, has resumed operations after it was shut down following the incident.
The world’s biggest gold producer isn’t shying away from the realities of the gold market: Barrick CEO Jamie Sokalsky said on Thursday that his company will re-calculate its bullion reserves based on a gold price of $1,100, Reuters reported.
This is down from $1,500 at the beginning of 2013. The move – which could result in writedowns – will make some of Barrick Gold’s assets uneconomical to mine. Sokalsky called it a “conservative approach.”
Although the gold price dipped 28% in 2013, analysts had expected most miners to base their reserves on a $1,200 price.
The company will announce its new reserve estimate on February 13. Based on a $1,500 gold price, Barrick’s gold reserves were 140.2 million ounces.
“We are only going to produce ounces that earn a higher return, that generate cash flow, that meet return hurdles,” the CEO said, as reported by Bloomberg.
Analyst forecasts for the precious metal vary widely: Thomson Reuters GFMS’s survey released on Thursday predicted an average price comfortably above that level. Germany’s Commerzbank is predicting $1,400 an ounce. Meanwhile, HSBC recently reduced its target from $1,435 to $1,292. Barclays’ target is $1,205.
Sokalsky also said that the miner will record a further impairment charge at its suspended $8.5 billion Pascua Lama project in the Andes.
As the gold price gained on Thursday so did Barrick, rising by 2.7 on the New York exchange to trade at $19.31.
See also: Gandhi comments light fire under gold price
