Barrick Gold Corp estimates it will spend US$2 billion on Nevada, Peru projects if they proceed

February 22, 2016

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Barrick Gold Corp, the world’s largest gold miner, estimated spending of about US$2 billion if it decides to proceed with projects in Nevada and Peru.

Barrick, releasing updated pre-feasibility and feasibility studies on the projects, also said on Monday it would redeem up to US$750 million of notes to help cut debt by at least US$2 billion this year.

The company’s U.S.-listed shares were down about 3 per cent at US$12.18 in premarket trading on Monday.

Barrick said a pre-feasibility study estimated US$1 billion in initial capital spending on its Goldrush project in Nevada, based on a start of construction in 2020.

The project would produce 440,000 ounces of gold a year, with all-in sustaining costs of US$665 per ounce.

Another pre-feasibility study estimated that US$640 million would be needed to extend the life of the Lagunas Norte project in Peru by about nine years.

The Toronto-based miner said a feasibility study showed US$300 million to US$325 million would be required to boost production at its Turquoise Ridge mine in Nevada.

The proposed Cortez project in the state, which is in the pre-feasibilty stage, would require an estimated US$153 million, with a construction start in 2019-2020.

Barrick said it expected to maintain annual production of at least 4.5 million ounces of gold through 2020.

The company, which has one of the highest debt loads of any gold miner, has been selling its non-core assets and had cut debt by US$3 billion last year.

The miner had outstanding debt of about US$9.77 billion as of Dec. 31.

© Thomson Reuters 2016

Category: General