Over the last twelve months Barrick Gold has reduced its debt load substantially and its stock price has more than tripled since last September. Barrick has sold assets throughout the world, negotiated streaming deals and walked away from joint ventures.
Cortez, on one of the world’s most highly-prospective mineral trends was protected. With nearly one million ounces of gold produced in 2015, at an all-in sustaining costs of $603 per ounce, and more than 11 million ounces of proven and probable gold reserves Cortez appears to be that most cherished jewel which is not to be shared with anyone. It is a bread and butter asset helping the top gold producer getting back on its feet.
This can only be of benefit to Coral Gold Resources $CLH $CLHRF which sits at the north end of the Pipeline mine and near its highly valued infrastucture. Barrick walked away from its Coral Gold joint venture last year, as part of their cost cutting measures, after drilling only three deep holes. It is my understanding that debt reduction was at the top of the list and was the only justification for abandoning the JV after spending only a small fraction of its budget. Still, the importance of brownfield exploration has kept the line of communication open between the two companies.
Now that $ABX is in much better shape who knows what might happen in the days to come? Coral Gold, a strategic play with a near-surface inferred resource of approximately 3 million ounces of gold and exploration potential deep in the lower plate, is an investment opportunity in my opinion that will be getting some attention in this strenghtened precious metal environment.
Luc Lesage
@LesageLuc