''Barrick will complete Pascua Lama Chile's Enviromental Requirements by December 2014,to
revive its US 8.5 billion Gold and Silver project''.
''The Pascua Lama project is situated immediately next to glaciers and on permanently frozen land and is therefore especially problematic. Roads enabling mine access have already had significant impact on glaciers and dust generated by stripping activities for the open pit have covered large glaciated areas leading to a work stoppage in late 2012.
The Pascua Lama development was originally budgeted at $3.3B - $3.6B. After a review in 2011 capex estimates were revised to $4.7B - $5.0B. The latest price tag estimated by Barrick during discussion Q2/2012 results on July 26 2012 was approaching $8B. In the aftermath of publication of Q2/2012 results Barrick's market capitalisation lost roughly 10% of ground when compared to Goldcorp. The timing of the most recent suspension at Pascua Lama coincided with a historic drop in gold spot price in the first half of April. Barrick's market capitalisation was reduced roughly 15% further than Goldcorp's during this period which we assume was directly attributable to the Pascua Lama suspension order.
Goldcorp has recently taken the number one ranking of the largest gold miner by market capitalisation from Barrick Gold. Many would argue that the Pascua Lama disaster was to blame for this shift in positions.
Repeated delays and ongoing court proceedings impact on capital expenditure and cause cost explosions. It was calculated that a further delay of the Pascua Lama project by one year would reduce the NPV of the project by 27% or $1.54 per share''.
Source AP and Seeking Alpha
revive its US 8.5 billion Gold and Silver project''.
''The Pascua Lama project is situated immediately next to glaciers and on permanently frozen land and is therefore especially problematic. Roads enabling mine access have already had significant impact on glaciers and dust generated by stripping activities for the open pit have covered large glaciated areas leading to a work stoppage in late 2012.
The Pascua Lama development was originally budgeted at $3.3B - $3.6B. After a review in 2011 capex estimates were revised to $4.7B - $5.0B. The latest price tag estimated by Barrick during discussion Q2/2012 results on July 26 2012 was approaching $8B. In the aftermath of publication of Q2/2012 results Barrick's market capitalisation lost roughly 10% of ground when compared to Goldcorp. The timing of the most recent suspension at Pascua Lama coincided with a historic drop in gold spot price in the first half of April. Barrick's market capitalisation was reduced roughly 15% further than Goldcorp's during this period which we assume was directly attributable to the Pascua Lama suspension order.
Goldcorp has recently taken the number one ranking of the largest gold miner by market capitalisation from Barrick Gold. Many would argue that the Pascua Lama disaster was to blame for this shift in positions.
Repeated delays and ongoing court proceedings impact on capital expenditure and cause cost explosions. It was calculated that a further delay of the Pascua Lama project by one year would reduce the NPV of the project by 27% or $1.54 per share''.
Source AP and Seeking Alpha
