Barrick Gold Corporation (USA) (NYSE:ABX) has been gaining a lot of attention from investors, as data from China shows weaker than expected exports, for September. Analysts at TheStreet believe that investors believe gold to be a relatively safer bet, given the current scenario. Moreover, the Feds meeting was held last month and is scheduled to be held again in December. Minutes from the previous meeting have suggested that Feds are divided on the decision to hike gold prices, in the next meeting. Analysts are predicting another bullish run in Gold. Read more about how this small company could provide large returns on your investment HERE.
The company itself has been very active and recently announced that it had resumed operations at its Veladero mines, in Argentina. The operations had been suspended since September 15, after a pipe was damaged due to falling ice. In addition to this ABX has been considering the sale of its stake in Kalgoorlie Super Pit mine. The sale could raise as much as $1 billion.
The Veladero Mines
Barrick had revealed that the damaged pipe at the mines was used to carry process solution, in the leach pad area, some of which had now flown out. However, the company was successful in limiting the leak to the mining area and returned to the leach pad. As such, environmental impacts from the leak were prevented. Following the incident, ABX made adjustments to its operations, so as to prevent such an incident from happening again. The new changes were successfully implemented and approved by the San Juan provincial authorities. The company has reassured its investors that the suspension period would not have a major impact on the company’s gold production for the FY2016, but it continues to assess the impact.
The Kalgoorlie Stake
It has been reported that ABX has already caught the attention of Kinross Gold Corp and Zijin Mining Group Co, with reports of the possible sale. Some Australian miners have also started to analyze the mine and are expected to make bids, prior to the end of October, 2016. It should be noted here that Barrick has been actively disposing its assets, following a 3-year consistent decline in gold prices. Even though things are starting to improve, the company seems to be sticking to its original strategy.