Barrick Gold launches project review as costs rise, net earnings decline in Q2

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In this photo taken March 20, 2012, a truck drives along a hill of Pueblo Viejo mine run by a joint venture of Canadian companies Barrick Gold and Goldcorp, in the Sanchez Ramirez province Dominican Republic. THE CANADIAN PRESS/AP, Manuel Diaz

TORONTO – Barrick Gold Corp. (TSX:ABX) says it has launched a review of its mines and projects to determine which ones offer enough return on the investment.

The move comes as the world’s largest gold producer was affected by lower gold production and higher operating costs in the second quarter.

The company reported net earnings fell to US$750 million, or 75 cents per share in the three months ended June 30. That’s down from $1.16 billion, or $1.16 per share, a year ago.

The results missed analyst expectations by 18 cents per share, according to average estimates from Thomson Reuters.

The company also says costs are expected to rise at its Pascua Lama project on the border between Argentina and Chile.

Barrick now sees an increase of 50 to 60 per cent in capital costs from the top-end of its previous estimate, which was for $5 billion.

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