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UPDATE 1-Barrick expects to take up to $3 bln in impairment charges

Published 2016-01-21, 06:33 p/m
© Reuters. UPDATE 1-Barrick expects to take up to $3 bln in impairment charges
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Jan 21 (Reuters) - Barrick Gold Corp ABX.TO , the world's
biggest gold producer, said it expects to take charges of up to
$3 billion following an annual accounting impairment review.
The company said it may have to take a goodwill impairment
charge of about $1.8 billion, and asset impairment charges of
$1.0-$1.2 billion, based on its preliminary analysis.
The asset writedown is primarily related to its Pascua-Lama
mining project, on the border of Chile and Argentina, and its
Pueblo Viejo project in Dominican Republic.
Barrick also said it met its $3 billion debt reduction
target through non-core asset sales.
Pueblo Viejo, which is jointly owned by Barrick and rival
Canadian producer Goldcorp Inc G.TO , in November faced
mechanical problems resulting in reduced production in operation
until mid-January 2016.
The Pascua-Lama project, which was suspended in 2013, has
been facing complications from Chile's environmental regulator
SMA.
The company said on Thursday it assumes gold price of $1,000
per ounce for 2016 and a long-term gold price of $1,200 per
ounce, for impairment testing purposes.
Barrick estimated 2015 gold production of 6.12 million
ounces of gold, in line with its expectations of 6-6.15 million
ounces.
The company said 2015 copper production was estimated at 511
million pounds, also in line with its expectations of 480-520
million pounds.
Barrick said realized gold price for the full-year is
expected at $1,157 per ounce and copper price is expected at
$2.37 per pound.


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