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CORRECTED-Barrick estimates $2 bln costs if Nevada, Peru projects proceed

Published 2016-02-22, 12:14 p/m
© Reuters. CORRECTED-Barrick estimates $2 bln costs if Nevada, Peru projects proceed
GOLD
-

(Corrects headline and text throughout to make clear that the
figures are based on pre-feasiblity and feasibility studies and
that the company has not made final decisions on construction)
Feb 22 (Reuters) - Barrick Gold Corp ABX.TO ABX.N , the
world's largest gold miner, estimated spending of about $2
billion if it decides to proceed with projects in Nevada and
Peru.
Barrick, releasing updated pre-feasibility and feasibility
studies on the projects, also said on Monday it would redeem up
to $750 million of notes to help cut debt by at least $2 billion
this year.
The company's U.S.-listed shares were down about 3 percent
at $12.18 in premarket trading on Monday.
Barrick said a pre-feasibility study estimated $1 billion in
initial capital spending on its Goldrush project in Nevada,
based on a start of construction in 2020.
The project would produce 440,000 ounces of gold a year,
with all-in sustaining costs of $665 per ounce.
Another pre-feasibility study estimated that $640 million
would be needed to extend the life of the Lagunas Norte project
in Peru by about nine years.
The Toronto-based miner said a feasibility study showed $300
million to $325 million would be required to boost production at
its Turquoise Ridge mine in Nevada.
The proposed Cortez project in the state, which is in the
pre-feasibilty stage, would require an estimated $153 million,
with a construction start in 2019-2020.
Barrick said it expected to maintain annual production of at
least 4.5 million ounces of gold through 2020.
The company, which has one of the highest debt loads of any
gold miner, has been selling its non-core assets and had cut
debt by $3 billion last year.
The miner had outstanding debt of about $9.77 billion as of
Dec. 31.

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