| Barrick: What Will Drive Increased Recoveries for Pueblo Viejo? | |
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Barrick Gold Is on Track to Meet Its Guidance for 2015 (Continued from Prior Part) Pueblo Viejo
The Pueblo Viejo mine is a joint venture between Barrick Gold Corporation (ABX) at 60% and Goldcorp (GG) at 40%.
Barrick’s 60% share of production from Pueblo Viejo for 3Q15 was 172,000 ounces at all-in sustaining costs (or AISC) of $554 per ounce. Pueblo Viejo’s production was slightly below expectations mainly due to lower gold grades and recoveries. AISC was also negatively affected by lower silver recoveries due to scheduled autoclave maintenance, lime boil limitations, and unscheduled maintenance on the limestone grinding circuit.
Silver recoveries to improve
Management expects silver recoveries to improve going forward from 60% currently to 80%, owing to the addition of two lime boil tanks in November. The company’s guidance for Pueblo Viejo’s production is 625,000–675,000 ounces at an AISC of $540–$590 per ounce for 2015. This implies higher production at lower costs for 4Q15 due to higher grades and improved recoveries.
Streaming agreement
Recall from our previous report on Barrick Gold that the company had announced a gold and silver streaming agreement with Royal Gold (RGLD) on August 5.
The stream involves production linked to Barrick’s 60% interest in the Pueblo Viejo mine. Royal will pay cash upfront totaling $610 million plus make ongoing cash payments for gold and silver that’s delivered under the agreement. This agreement monetizes Pueblo Viejo’s value in a weak price environment. Increasing silver recoveries at Pueblo Viejo will be quite significant in this context, as under the streaming agreement, silver will be delivered based on a fixed recovery rate of 70%.
Royal Gold forms 5% of the Market Vectors Gold Miners ETF (GDX) while SPDR Gold Trust (GLD) provides exposure to physical gold prices.
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PRODUCTEUR |
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CODE : RGLD |
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ISIN : US7802871084 |
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Royal Gold est une société basée aux Etats-Unis D'Amerique. Royal Gold est productrice d'or, d'argent, de cuivre, de plomb et de zinc en USA, au Burkina Faso, au Canada, au Chili, au Mexique, au Nicaragua, en Argentine, en Bolivie et en Guinee, en développement de projets d'argent, de cuivre, d'or, de plomb et de zinc au Burkina Faso, au Canada, au Chili et en Australie, et détient divers projets d'exploration au Canada, en Argentine, en Bulgarie et en Finlande. Ses principaux projets en production sont BALD MOUNTAIN en USA, LIMON, LEEVILLE MINING COMPLEX et GOLDSTRIKE OPEN PIT au Nicaragua, DON MARIO (CERRO PELADO) et ROBINSON (NEVADA) en Bolivie, EL CHANATE, PEÑASQUITO, WHARF, MARIGOLD, DOLORES MINE, MULATOS MINE -ESTRELLA et GOLDSTRIKE UNDERGROUND au Mexique, SIGUIRI en Guinee, TAPARKO au Burkina Faso, MARTHA MINE en Argentine, ANDACOLLO HYPOGENE, TOQUI et ANDACOLLO au Chili et WILLIAMS, TWIN CREEKS, PIPELINE MINING COMPLEX et TROY au Canada, ses principaux projets en développement sont GOLD HILL et PASCUA LAMA au Chili, HOLT MINE & MILL et PINE COVE (MINGS BIGHT) au Canada, BALCOOMA en Australie et BOUROUM au Burkina Faso et ses principaux projets en exploration sont CANADIAN MALARTIC (QUEBEC), GOLDSTRIPE WILLA, MANHATTAN (WHITE CAPS) et CAMP BIRD MINE au Canada. Royal Gold est cotée au Canada, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 6,7 milliards (6,3 milliards €). La valeur de son action a atteint son plus bas niveau récent le 28 février 1992 à 0,03 , et son plus haut niveau récent le 14 novembre 2024 à 140,51 . Royal Gold possède 47 442 200 actions en circulation. |