Barrick Says Cost of Pascua-Lama May Jump to $8 Billion |
| Bloomberg - Jul 26, 2012 |
Barrick Gold Corp. (ABX), the world’s biggest producer of the metal, said the estimated cost of building a mine in the Andes may jump to about $8 billion because the project is more complex than it had anticipated.
Pascua-Lama, located at an elevation of 3,800 to 5,200 meters (12,468 to 17,061 feet) on the border between Chile and Argentina, will cost about 50 percent to 60 percent more than top end of a previously estimated range of $4.7 billion to $5 billion, Toronto-based Barrick said today in a statement. Initial output is now expected in mid-2014 instead of mid-2013.
Barrick Chief Executive Officer Jamie Sokalsky is revising costs and reviewing the company’s other development projects after taking over last month from Aaron Regent, who was fired. Barrick raised Pascua-Lama’s cost estimate by $1.4 billion a year ago. The latest increase is “outrageous” and suggests “a lack of controls,” said George Topping, an analyst at Stifel Nicolaus & Co. in Toronto.
“You have to question at what point did they know about this and whether they actually should be proceeding with it at this point,” Topping, who recommends buying the shares, said today in a telephone interview.
Read Full Article from Bloomberg
- Posted: 2012-07-26 16:57:26
| More Stock Investor Place Company News |
 |
|
|
|
| Stock Investor Place Company News Archive |
|
|
|
