Bloomberg reported that Barrick Gold Corp. (TSX:ABX) has begun reviewing its assets with the aim of being stricter on capital allocation and cash flow after costs for its Pascua-Lama project were about 60 percent higher than expected.
As quoted in the market news:
“I think it’s the company adopting what shareholders were looking for,” said David Christensen, CEO of ASA Ltd. in San Mateo, California, which manages $600 million and invests in precious metals companies. “[CEO Jamie Sokalsky] was preaching to the choir.”
Barrick dropped 4.2 percent to C$33.04 in Toronto yesterday after reporting the higher cost of Pascua-Lama and posting second-quarter profit that was lower than expected. The shares have declined 29 percent this year. The shares declined 1.9 percent today to C$32.40 at 10:00 a.m.