Barrick Gold Corp., the world’s biggest producer by sales, agreed in principle with the Dominican Republic on changes to the lease for its Pueblo Viejo mine that would give more revenue to the government.
– Barrick Gold Corp. founder Peter Munk sees a successor in former Goldman Sachs Group Inc. President John Thornton as the world’s biggest gold miner tries to reverse a 54 percent plunge in market value in the past year.
Barrick Gold Corp. investors including Canada’s six biggest pension fund managers criticized as excessive a $11.9 million signing bonus paid to John Thornton, co-chairman of the world’s biggest gold producer.
Abel Martinez, pres. of Dominican Republic chamber of legislators, comments in statement. * Dominican President Danilo Medina said Feb. 27 that existing contract with Barrick at Pueblo Viejo mine is unacceptable and needs to be revised to provide more benefit to country * Medina says for every $100 of gold exports from Dominican Republic, Barrick receives $97; if contract can’t be revised, govt will back legislation to increase taxes on export earnings of mineral companies * NOTE: Pueblo Viejo $4b investment largest in nation’s history * Andy Lloyd, a Barrick spokesman, didn’t immediately respond to requests for comment made by phone and e-mail
Gold producers including Barrick Gold Corp. fell the most in more than four years as the metal slumped below $1,400 an ounce in the biggest decline in 33 years after dropping into a bear market last week.
Gold miners led by Barrick Gold Corp., the world’s largest, will likely accelerate spending cuts and trim high-cost output as the metal’s biggest plunge since 1980 threatens to make about 30 percent of production unprofitable.
Canada’s raw-materials stocks are forecast to extend their longest losing streak in more than 20 years, as companies such as Banro Corp. and Teck Resources Ltd. struggle with falling metals prices and concern China’s growth will slow.
The 10 biggest gold companies led by Barrick Gold Corp. spent more than $100 billion in the past 20 years buying new mines and projects around the globe. Now they’re feeling pressure to throw the strategy into reverse.