Barrick Gold Corporation (USA) (NYSE:ABX) has announced that it would bear $2 billion on costs, if the management decides to proceed with its plans in Nevada and Peru. The company also announced that it expects to cut debt by $2 billion, during the current year, through redemption of $750 million notes. The announcement came after ABX reported EPS of $0.3 for its FY2015. However, $3.1 billion in after-tax impairment charges resulted in the company recording a net loss of $2.25 per share.

Barrick Gold conducted a pre-feasibility study on its Goldrush project in Nevada and life extension of the Lagunas Norte project in Peru. The study revealed a capital spending of $1 billion, initially, on the construction of the Nevada project in 2020. Added to this, the company expects to extend the life of its project in Peru, by about 9-years, at a cost of $640 million.

In return, the Neveda project is expected to produce 440,000 ounces of gold per year, at a sustaining cost of $665 per ounce. Furthermore, Barrick Gold also intends to invest in its current Turquoise Ridge project in Nevada, to boost production. The production boost would require up to $325 million.

Currently, ABX expects to continue producing gold at 4.5 million ounces, through 2020. Additionally, the company is also working to reduce its large debt and has successfully repaid $3 billion in 2015, through sale of non-core assets. However, a total of $9.77 billion still remain. In its FY2015 report, Barrick Gold announced that it produced a total of 6.12 million ounces of gold during the year. The company also reported lower than expected sustaining costs of $831 per ounce. ABX also announced that it has shifted its business model to focus more on assets with the greatest prospect for growth and profitability.

Barrick Gold Corporation (USA) (NYSE:ABX) reached a close at $12.82, after having a trade volume of 200 and gaining 2.11% in its share value, during the February 22 session.