| 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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Royal Gold Inc.
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PRODUCER |
CODE : RGLD |
ISIN : US7802871084 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Royal Gold is based in United states of america. Royal Gold produces gold, copper, lead, silver and zinc in Argentina, in Bolivia, in Burkina Faso, in Canada, in Chile, in Guinea, in Mexico, in Nicaragua and in USA, develops copper, gold, lead, silver and zinc in Australia, in Burkina Faso, in Canada and in Chile, and holds various exploration projects in Argentina, in Bulgaria, in Canada and in Finland. Its main assets in production are BALD MOUNTAIN in USA, LIMON, LEEVILLE MINING COMPLEX and GOLDSTRIKE OPEN PIT in Nicaragua, DON MARIO (CERRO PELADO) and ROBINSON (NEVADA) in Bolivia, EL CHANATE, PEÑASQUITO, WHARF, MARIGOLD, DOLORES MINE, MULATOS MINE -ESTRELLA and GOLDSTRIKE UNDERGROUND in Mexico, SIGUIRI in Guinea, TAPARKO in Burkina Faso, MARTHA MINE in Argentina, ANDACOLLO HYPOGENE, TOQUI and ANDACOLLO in Chile and WILLIAMS, TWIN CREEKS, PIPELINE MINING COMPLEX and TROY in Canada, its main assets in development are GOLD HILL and PASCUA LAMA in Chile, HOLT MINE & MILL and PINE COVE (MINGS BIGHT) in Canada, BALCOOMA in Australia and BOUROUM in Burkina Faso and its main exploration properties are CANADIAN MALARTIC (QUEBEC), GOLDSTRIPE WILLA, MANHATTAN (WHITE CAPS) and CAMP BIRD MINE in Canada. Royal Gold is listed in Canada, in Germany and in United States of America. Its market capitalisation is US$ 9.2 billions as of today (€ 8.3 billions). Its stock quote reached its lowest recent point on February 28, 1992 at US$ 0.03, and its highest recent level on September 19, 2024 at US$ 140.41. Royal Gold has 65 455 293 shares outstanding. |