Barrick Gold downgraded as questions mount

2013.04.18.09:01


The negative impact of uncertainty at Barrick Gold Corp.'s Pascua-Lama mine prompted JPMorgan to downgrade the stock on Monday. Analyst John Bridges cut his rating on the gold miner to neutral from overweight and slashed his price target to 34 from 47.A Chilean court ordered work must be due to complaints about environmental damage in the area.Barrick fell more than 15% last week after a Chilean court ordered the company to halt construction at the mine due to complaints about environmental damage in the area.Pascua-Lama straddles the Chilean/Argentinean border in the Andes, with roughly 70% of the orebody in Chile and 30% in Argentina.While Mr. Bridges does believe the issues raised by Chilean authorities are solvable, he warned they will likely cause further delays.The analyst did highlight Barrick's "plan B" for its first mining to be on the Argentinean side of the border. However,The revolution series is Kyocera's most popular line of ceramic knives knife manufacturer series has the black oxide blade which creates a tougher ceramic material . this would require a new crusher. Mr. Bridges also noted that with a planned throughput rate of 45,000 tons per day, a facility of this type would usually take more than a year to build.

So while Barrick's most recent capex estimate of 8-billion to 8.5-billion due include a contingency of up to 800-million, he cautioned that delays would likely add to costs quickly.China Motion Sensor Lights Suppliers"Having some of the industry's biggest mines, Barrick has been most exposed to capital spending overruns and is still in growth mode," Mr. Bridges said.China Remote Controlled LED WholesalersChina Solar bag ExportersUncertainties in Chile and demands from the Dominican Republic for a bigger share of cashflow from its Pueblo Viejo joint venture have been compounded by the recent weakness in gold prices.credit card size camping tool knife"While we believe rather severe falls in gold price to 1200oz or 1300oz would be required to test covenant ratios, we feel there's a little too much uncertainty to retain the overweight rating," the analyst said.



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