Back to top

Analyst Blog

Barrick Gold Corporation (ABX - Analyst Report) announced that Pueblo Viejo Dominicana Corporation (PVDC) has reached an agreement in principle with the Government of the Dominican Republic regarding amendments to the Pueblo Viejo Special Lease Agreement. The Pueblo Viejo mine is operated by PVDC. Barrick owns about 60% of PVDC with Goldcorp Inc. (GG - Analyst Report) holding the balance.

The agreement in principle was reached after successful discussions between the local government and PVDC for about eight months. It preserves the economic value of the Pueblo Viejo mine. The agreement in principle will also address the fiscal objectives of the Dominican Republic.

If the proposed amendments are implemented, revenues to the government will increase through a number of proposed changes to the lease agreement.

Based on the proposed amendments, it is expected that that the estimated cash flows from the mine will be split equally between PVDC and the government from 2013 to 2016. Thus, tax revenues to the government will be about $2.2 billion over this period at a gold price of $1,600 per ounce.

The proposed amendments are subject to the negotiation of a Definitive Agreement, which will require the approval of the Boards of Barrick and Goldcorp along with the project lenders. The amendments will also require the approval of the Congress of the Dominican Republic.

The local government has also reaffirmed its commitment to facilitating the timely granting of permits and other requirements necessary for the ongoing operations at Pueblo Viejo.

Barrick, which is among the prominent players in the gold-mining industry along with Goldcorp., Kinross Gold Corporation (KGC - Analyst Report) and Newmont Mining Corporation (NEM - Analyst Report) currently retains a Zacks Rank #5 (Strong Sell).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.80 +7.04%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRE… EQM 98.14 +3.38%
WEATHERFORD… WFT 23.64 +3.10%