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Barrick in Talks with Union at Veladero for Work Stoppage
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On May 29, Barrick Gold Corporation reported that an unplanned work stoppage, initiated by one of the unions representing employees at the Veladero mine in the San Juan province, Argentina, has ended. The work stoppage was initiated on May 28. The company is in talks with the union leadership to seek a timely solution to the situation.
Barrick also stated that it expects normal leaching operations to resume in the second half of Jun 2017, subject to necessary approvals from San Juan judiciary and regulatory authorities.
As a reminder, leaching activities have been restricted at Veladero since Mar 29 after a rupture was discovered in the pipelines carrying gold-bearing solution on the leach pad. However, the company promptly notified San Juan provincial authorities that all the solution was contained within the operating site and did not reach any watercourse or diversion channel.
Veladero accounted for almost 10% of Barrick’s total gold production in 2016. The company does not anticipate any material impact on Veladero’s 2017 production guidance due to the temporary suspension by the government of San Juan province, Argentina. Barrick estimates Veladero to produce 770,000 to 830,000 ounces of gold in 2017.
Barrick’s shares have declined around 13.4% over the past three months, underperforming the Zacks categorized Mining-Gold industry’s dip of 0.1%.
Barrick is expected to benefit from major exploration programs. The company remains focused on Nevada for growth opportunities. A significant portion of its exploration budget (80% of total exploration budget of $185-$225 million) for 2017 has been allocated to the Americas.
Moreover, Barrick has entered into a 50-50 joint venture with Goldcorp Inc. in the Maricunga district in Chile that will merge the Cerro Casale and Caspiche deposits into a single project. The combination will offer significant economy of scale and will allow both companies to leverage potential synergies in the Maricunga Gold Belt.
However, Barrick is exposed to a volatile gold pricing environment. The proposed tax-cuts and the fiscal stimulus provided by President, Donald Trump, are likely to spur economic activity and trigger inflation, prompting U.S. Federal Reserve to raise interest rates further this year. The prospects of additional rate hikes this year are likely to be a major headwind for gold in the near term.
Huntsman has an expected long-term earnings growth of 7%.
ArcelorMittal has an expected long-term earnings growth of 11.4%.
More Stock News: 8 Companies Verge on Apple-Like Run
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Barrick in Talks with Union at Veladero for Work Stoppage
On May 29, Barrick Gold Corporation reported that an unplanned work stoppage, initiated by one of the unions representing employees at the Veladero mine in the San Juan province, Argentina, has ended. The work stoppage was initiated on May 28. The company is in talks with the union leadership to seek a timely solution to the situation.
Barrick also stated that it expects normal leaching operations to resume in the second half of Jun 2017, subject to necessary approvals from San Juan judiciary and regulatory authorities.
As a reminder, leaching activities have been restricted at Veladero since Mar 29 after a rupture was discovered in the pipelines carrying gold-bearing solution on the leach pad. However, the company promptly notified San Juan provincial authorities that all the solution was contained within the operating site and did not reach any watercourse or diversion channel.
Veladero accounted for almost 10% of Barrick’s total gold production in 2016. The company does not anticipate any material impact on Veladero’s 2017 production guidance due to the temporary suspension by the government of San Juan province, Argentina. Barrick estimates Veladero to produce 770,000 to 830,000 ounces of gold in 2017.
Barrick’s shares have declined around 13.4% over the past three months, underperforming the Zacks categorized Mining-Gold industry’s dip of 0.1%.
Barrick is expected to benefit from major exploration programs. The company remains focused on Nevada for growth opportunities. A significant portion of its exploration budget (80% of total exploration budget of $185-$225 million) for 2017 has been allocated to the Americas.
Moreover, Barrick has entered into a 50-50 joint venture with Goldcorp Inc. in the Maricunga district in Chile that will merge the Cerro Casale and Caspiche deposits into a single project. The combination will offer significant economy of scale and will allow both companies to leverage potential synergies in the Maricunga Gold Belt.
However, Barrick is exposed to a volatile gold pricing environment. The proposed tax-cuts and the fiscal stimulus provided by President, Donald Trump, are likely to spur economic activity and trigger inflation, prompting U.S. Federal Reserve to raise interest rates further this year. The prospects of additional rate hikes this year are likely to be a major headwind for gold in the near term.
Barrick Gold Corporation Price and Consensus
Barrick Gold Corporation Price and Consensus | Barrick Gold Corporation Quote
Barrick currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked companies in the basic materials space include Huntsman Corporation (HUN - Free Report) and ArcelorMittal (MT - Free Report) . Both the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Huntsman has an expected long-term earnings growth of 7%.
ArcelorMittal has an expected long-term earnings growth of 11.4%.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>