Gold Updates: Barrick Gold Corporation (USA) (ABX)’s Goal, Goldcorp Inc. (USA) (GG)’s Rating & Newmont Mining Corp (NEM)

Editor’s Note: Barrick Gold Corporation (USA) (NYSE:ABX), Goldcorp Inc. (USA) (NYSE:GG), Newmont Mining Corp (NYSE:NEM), Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX)

Gold Mining Giant Barrick (ABX) Shrinks Spending To Beat Poor Gold Markets (International Business Times)
Barrick Gold Corporation (USA) (NYSE:ABX), the world’s largest gold miner, promised investors on Thursday that it would become more lean, agile and profitable, as it deals with a delayed Chilean gold mine and poor earnings in the latest quarter. “If we get smaller, so be it,” said Barrick CEO Jamie Sokalsky at a Toronto mining conference. “We just want to be more profitable, and make more money… Returns will drive production, not the other way around.” The company confirmed a gradual closure of its Peruvian Pierina mine, which holds 0.5 million ounces of gold, after a review announced last month.

Barrick Gold Corporation (USA) (NYSE:ABX)

Goldcorp Raised to Neutral (
On Sep 10, we upgraded our recommendation on Goldcorp Inc. (USA) (NYSE:GG) to Neutral. While the gold mining giant remains challenged by high costs, we are encouraged by progress of its project pipeline and signs of a recovery in gold prices. Both revenues and adjusted earnings for second-quarter 2013, reported on Jul 25, missed Zacks Consensus Estimates. Goldcorp Inc. (USA) (NYSE:GG) swung to a loss on a reported basis on a sizable impairment charge and lower gold prices. However, both gold production and gold sales rose by double digits in the quarter. The company retained its production and cost guidance for the full year.

Newmont Named to Dow Jones Sustainability World Index for Seventh Consecutive Year (
Newmont Mining Corp (NYSE:NEM) has been named to the Dow Jones Sustainability World Index (DJSI World) for the seventh consecutive year. The 2013 DJSI World – Dow Jones’ premier sustainability index – includes 333 global companies identified as leaders in the areas of sustainable economic, environmental and social performance. In 2007, Newmont Mining Corp (NYSE:NEM) became the first gold company included in the DJSI World and also has been included on the DJSI North America Index every year since 2006.

October 11th Options Now Available For Barrick Gold (ABX) (Forbes)
Investors in Barrick Gold Corporation (USA) (NYSE:ABX) saw new options become available today, for the October 11th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the ABX options chain for the new October 11th contracts and identified one put and one call contract of particular interest. The put contract at the $17.50 strike price has a current bid of 82 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $17.50, but will also collect the premium, putting the cost basis of the shares at $16.68 (before broker commissions).

Tapering fears spook Goldcorp Inc (NYSE:GG) (GSPInsider)
Goldcorp Inc. (USA) (NYSE:GG) stocks slipped by over 5.87% compared to Wednesday’s close of $22.7. This represents an astounding 44% drop from its 52 week high price of 447.42. What seems to have spooked the markets into off loading shares of gold companies is the impending decision of US Federal Reserve on September 18 to either scale back or continue with its stimulus approximately $85 billion monthly asset purchase. The apprehension seems to be that in the event of a tapering of the stimulus; US dollar will appreciate and in turn will lead to investors staying off gold as an investment vehicle.

A Closer Look Of Barrick Gold’s Delayed Pascua Lama Mine (Trefis)
Barrick Gold Corporation (USA) (NYSE:ABX) operates mines in North America, South America, Australia and Africa. The company has mainly gold and copper in its portfolio and competes with other mining companies such as Newmont Mining Corp (NYSE:NEM), Goldcorp Inc. (USA) (NYSE:GG) and Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX). In this article, we take a closer look at Barrick’s Pascua Lama project. It is located on the border of Chile and Argentina, approximately 6 miles from the company’s Veladero mine. Once in operation, Pascua-Lama is expected to be one of the world’s largest low cost mines and is expected to contribute significant free cash flow to Barrick Gold Corporation (USA) (NYSE:ABX) for many years to come. Before that can happen, the company has some major hurdles and challenges to overcome.

Recommended Reading:

Goldcorp Inc. (USA) (GG), Newmont Mining Corp (NEM): Is Barrick Gold Corporation (USA) (ABX) Destined for Greatness?

Yamana Gold Inc. (USA) (AUY), Goldcorp Inc. (USA) (GG): Ignore ETFs, Look at Gold Miners

Barrick Gold Corporation (USA) (ABX), Goldcorp Inc. (USA) (GG), Newmont Mining Corp (NEM): There Is a Bigger Problem Overshadowing Gold Miners