Barrick Gold Corporation (USA) (NYSE:ABX) to sell its Australian Mine

Posted In Markets - By John Anderson On Wednesday, November 6th, 2013 With 0 Comments

Dallas, Texas 11/06/2013 (ustradevoice) – Barrick Gold Corporation (USA) (NYSE:ABX) which was once thought to one of the largest gold mining companies in the world is facing a lot of issues. One issue that the gold mining company is facing is that some of its gold mines are no longer profitable.  The company is now planning to sell its Australian mine which is no longer profitable for it.

Since September 2011, the prices of gold have fallen down very considerably to $1920 per ounce. The fall in the price of gold has affected the output prices of the mining companies and Barrick has also been affected by it. The fall in the prices of Gold has resulted in a significant drop in its revenues and a fall in the prices of its shares which has resulted in the fall of its market capitalization.

Due to the fall in the prices of Gold the company has dropped all its plans of expansion as the drop has made most of its mines unprofitable. Its management has decided to slash its operational costs by shutting down its non profitable mines.

The company is also planning to not only sell its Australian mines but also planning a cut in its administrative staff at the head quarters to just one third of the original numbers. The company is also looking at other mines that are not profitable for it. The mines in Australia that it is planning to sell are located in Western Australia and are Kanowna Belle and Plutonic.

In other news the huge public share offering from the company was becoming hard to sell as of gold price have fallen and the company has announced the stoppage of work at an important new project.

The company had earlier announced that it was going to issue $3.45 billion worth of common shares at $18.35 a share. It was seen as a move by it to cut down its load of heavy loans.

About the Author

- John Anderson is a native of Florida and has received a masters in broadcast journalism from the Medill School of Journalism at Northwestern University.

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