TORONTO, ONTARIO -- (Marketwired) -- 11/23/15 -- All amounts expressed in US dollars
Barrick Gold Corporation (NYSE: ABX)(TSX: ABX) ("Barrick" or the "company") today announced that a mechanical issue at the Pueblo Viejo mine in the Dominican Republic is expected to result in reduced production at the operation until mid-January 2016. Pueblo Viejo is a joint venture owned by Barrick (60 percent) and Goldcorp Inc. (40 percent).
Two of three electric motors at the mine's oxygen plant experienced an unexpected failure on November 19 and have been shipped to a specialized facility in the United States for repair. One motor remains operational. The plant provides the oxygen required for the autoclave processing facility that treats Pueblo Viejo's refractory ore. Until the damaged motors are repaired, the autoclave facility will operate at a reduced capacity. The cause of the motor failure is currently under investigation.
Taking into account the potential impact of lower production from Pueblo Viejo in the fourth quarter, and based on our current rate of production, Barrick now expects to produce 6.0-6.15 million ounces of gold in 2015 at all-in sustaining costs of $830-$870 per ounce.
Current estimates indicate repairs can be completed with units back in service by mid-January. While repairs are underway, Pueblo Viejo is bringing forward maintenance activities previously scheduled for January to optimize the processing downtime. Pueblo Viejo has Property and Machinery Breakdown Insurance, including Business Interruption coverage, which is triggered after 30 days.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Certain information contained in this press release, including any information as to our strategy, projects, plans or future financial or operating performance constitutes "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "expect", "will", "potential", "estimate", "indicate", "can" and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements with respect to production rates and related guidance, cash flow forecasts and projected capital, operating and exploration expenditures. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Barrick in light of management's experience and perception of current conditions and expected developments, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements.
Such factors include, but are not limited to: fluctuations in the spot and forward price of gold, copper or certain other commodities (such as silver, diesel fuel, natural gas and electricity); changes in mineral production performance, exploitation and exploration successes; diminishing quantities or grades of reserves; operating or technical difficulties in connection with mining or development activities, including disruptions in the maintenance or provision of required infrastructure and information technology systems; increased costs, delays, suspensions and technical challenges associated with the construction of capital projects; the speculative nature of mineral exploration and development; failure to comply with environmental and health and safety laws and regulations; timing of receipt of, or failure to comply with, necessary permits and approvals; the impact of inflation; fluctuations in the currency markets; changes in U.S. dollar interest rates; changes in national and local government legislation, taxation, controls or regulations and/or changes in the administration of laws, policies and practices, expropriation or nationalization of property and political or economic developments in Canada, the United States, the Dominican Republic and other jurisdictions in which the company does or may carry on business in the future; damage to the company's reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to the company's handling of environmental matters or dealings with community groups, whether true or not; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; litigation; contests over title to properties, particularly title to undeveloped properties, or over access to water, power and other required infrastructure; employee relations; increased costs and risks related to the potential impact of climate change and the availability and increased costs associated with mining inputs and labor. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion, copper cathode or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us.
Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements. Barrick disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
INVESTOR CONTACTS: Angela Parr
Vice President, Investor Relations
+1 416 307-7426
Vice President, Investor Communications
+1 416 307-5107
MEDIA CONTACT: Andy Lloyd
Senior Vice President, Communications
+1 416 307-7414