Barrick Updates Investment Community
March 28 2006 - 4:26PM
Business Wire
All figures in US dollars Barrick Gold Corporation
(NYSE:ABX)(TSX:ABX)(LSE:BGD)(SWX:ABX)(EURONEXT PARIS:ABX) provided
an update today for the investment community regarding its 2006
outlook, the Cowal project and Placer Dome transaction. Greg
Wilkins, President and CEO, participated in a conference today
hosted by National Bank Financial. The Company expects gold
production of 8.6 to 8.9 million ounces and copper production of
approximately 350 million pounds in 2006. Total cash costs are
expected to be in the range of $275 - $290 per ounce of gold and
$0.75 per pound of copper, excluding purchase accounting
adjustments related to copper inventories. Barrick expects its
first quarter gold production to be lower than the remaining
quarters of the year due to planned mine sequencing. Its first
quarter will also not reflect a full quarter of results from Placer
Dome's operations. Barrick will consolidate Placer Dome's results
from January 20th, 2006, the date upon which it gained control. At
the conference, Mr. Wilkins noted that with construction of its
Cowal project almost complete, ore is planned to be fed to the mill
this week and the operation is expected to commence production in
April. The Cowal mine is the fourth new mine that Barrick has built
in the past year. The acquisition of Placer Dome was completed on
March 15th, and the Company anticipates the closing of the
agreement to sell certain assets to Goldcorp Inc. to occur in May.
The Company is also making steady progress with its integration
plan regarding Placer Dome's assets, people and projects and is
targeting at least $200 million of annual synergies from 2007
onwards. Mr. Wilkins also said at the conference that Barrick
anticipates its exploration spending to be approximately $150-$160
million for 2006. Nevada is the focus of its 2006 exploration
activities. Barrick's vision is to be the world's best gold company
by finding, acquiring, developing and producing quality reserves in
a safe, profitable and socially responsible manner. FORWARD-LOOKING
INFORMATION Certain information contained in this Information
Update, including any information as to our future financial or
operating performance, constitutes "forward-looking statements".
All statements, other than statements of historical fact, are
forward-looking statements. The words "believe", "expect",
"anticipate", "contemplate", "target", "plan", "intends",
"continue", "budget", "estimate", "may", "will", "schedule" and
similar expressions identify forward-looking statements.
Forward-looking statements are necessarily based upon a number of
estimates and assumptions that, while considered reasonable by us,
are inherently subject to significant business, economic and
competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements. Such factors include,
but are not limited to: fluctuations in the currency markets (such
as the Canadian and Australian dollars versus the U.S. dollar);
fluctuations in the spot and forward price of gold or certain other
commodities (such as copper, silver, diesel fuel and electricity);
changes in U.S. dollar interest rates or gold lease rates that
could impact the mark to market value of outstanding derivative
instruments and ongoing payments/receipts under interest rate swaps
and variable rate debt obligations; risks arising from holding
derivative instruments (such as credit risk, market liquidity risk
and mark to market risk); changes in national and local government
legislation, taxation, controls, regulations and political or
economic developments in Canada, the United States, Dominican
Republic, Australia, Papua New Guinea, Chile, Peru, Argentina,
Tanzania, South Africa, Russia or Barbados or other countries in
which we do or may carry on business in the future; business
opportunities that may be presented to, or pursued by, us; our
ability to successfully integrate acquisitions, including the
Placer Dome acquisition; operating or technical difficulties in
connection with mining or development activities; the speculative
nature of gold exploration and development, including the risks of
obtaining necessary licenses and permits; diminishing quantities or
grades of reserves; adverse changes in our credit rating; and
contests over title to properties, particularly title to
undeveloped properties. In addition, there are risks and hazards
associated with the business of gold exploration, development and
mining, including environmental hazards, industrial accidents,
unusual or unexpected formations, pressures, cave-ins, flooding and
gold bullion losses (and the risk of inadequate insurance, or
inability to obtain insurance, to cover these risks). Many of these
uncertainties and contingencies can affect our actual results and
could cause actual results to differ materially from those
expressed or implied in any forward-looking statements made by, or
on behalf of, us. Readers are cautioned that forward-looking
statements are not guarantees of future performance. All of the
forward-looking statements made in this Information Update are
qualified by these cautionary statements. Specific reference is
made to Barrick's most recent Form 40-F/Annual Information Form on
file with the US Securities and Exchange Commission and Canadian
provincial securities regulatory authorities for a discussion of
some of the factors underlying forward-looking statements. We
disclaim any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise. Barrick Gold Corporation (PARIS:ABX)
(NYSE:ABX) (TSX:ABX) (Swiss:ABX) (LSE:BGD)
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