TORONTO - Barrick Gold (LON:0R22) Corporation (NYSE:GOLD)(TSX:ABX), a major mining company with a market capitalization of $27.7 billion and an impressive "GREAT" financial health score according to InvestingPro, is currently unable to export gold from its Loulo-Gounkoto mining complex in Mali due to an interim attachment order on the gold stock at the site, which has disrupted normal operations. The company has described the order as unwarranted and in violation of established dispute resolution processes.
The situation has escalated to the point where Barrick's president and CEO, Mark Bristow, has indicated that if the issue remains unresolved within the next week, the company will be forced to temporarily suspend operations at the mining complex. Despite these challenges, the company maintains strong fundamentals with an 11% revenue growth and a healthy current ratio of 2.65, indicating robust liquidity. This suspension would affect the local economy, including the 8,000 employees and numerous local service providers.
Barrick has initiated arbitration through the International Centre for the Settlement of Investment Disputes (ICSID) to address the disagreements. Concurrently, the company is negotiating with the Mali government to reach a memorandum of agreement that aims to resolve the disputes and potentially increase the state's share of benefits from the mining complex.
Adding to the complexity of the situation, several of Barrick's Malian employees have been detained on what the company considers unfounded charges. Barrick is actively working to secure their release and ensure their well-being, emphasizing the safety and rights of its workforce as a critical priority.
The company has a long-standing partnership with Mali, contributing to the country's economic and social development for nearly three decades. For investors seeking detailed analysis, InvestingPro reveals that Barrick Gold has maintained dividend payments for 38 consecutive years, currently offering a 2.51% yield, and is trading below its Fair Value. Bristow expressed a commitment to dialogue with the Malian government to secure a resolution that allows the Loulo-Gounkoto complex to continue as a key economic contributor to the country.
This news is based on a press release statement from Barrick Gold Corporation.
In other recent news, Barrick Gold Corporation has refuted allegations by the Malian Ministry of Mines and Finance Ministry, insisting they have met all commitments under an agreement with the government. The disagreement pertains to the distribution of benefits from the Loulo-Gounkoto mining complex. Barrick Gold has been actively negotiating with the Malian government, with an agreement in progress that will detail resolution terms and future partnership principles. The company has made a payment of FCFA 50 billion (US$85 million) to the Malian government as part of these ongoing negotiations.
Moreover, Barrick Gold Corporation is projecting a 30% increase in gold-equivalent ounce production from its current assets by the end of this decade. This anticipated growth is attributed to the acquisition of high-quality assets through the merger with Randgold (LON:RRS) and the commencement of operations at Goldrush in Nevada. Additionally, two major copper projects, the Reko Diq project in Pakistan and the Lumwana Super Pit project in Zambia, are scheduled to begin production in 2028, further strengthening the company's copper business. These developments illustrate Barrick Gold's emphasis on organic growth and value creation from its existing portfolio.
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