Barrick Gold Corp. plans to reduce net debt by at least US$2 billion this year as the world’s largest producer of the metal seeks to shore up its balance sheet following three annual declines in the price of gold.
Barrick may sell additional non-core assets and create new joint ventures and partnerships, the Toronto-based company said Wednesday in a statement reporting a fourth-quarter net loss. In 2015, the miner reduced its debt by US$3.1 billion.
Barrick has been aggressively working to cut debt and streamline its operations around roughly half a dozen mines in the Americas. President Kelvin Dushnisky said last month he intends to structure operations to be sustainable “at virtually any foreseeable gold price.”
“The company’s liquidity position is strong and continues to improve, with robust cash flow generation, and modest near- term debt repayment obligations,” the company said in the statement.
Barrick said its net loss in the quarter narrowed to US$2.62 billion, or US$2.25 a share, from US$2.85 billion, or US$2.45, a year earlier. Earnings excluding impairment charges of US$2.6 billion and other one-time items were 8 cents a share, topping the 6- cent average of 22 estimates compiled by Bloomberg.
Gold futures fell 8 percent from a year earlier to average US$1,104.58 an ounce in the fourth quarter. The price has risen 14 percent in 2016 following three annual losses.
Earlier this year, Barrick regained its status as Canada’s biggest gold miner by market value by surpassing Vancouver-based Goldcorp Inc. It is the third-best-performing stock on the Standard & Poor’s/TSX Composite Index this year.
