Barrick Faces $1.04B Charge After Mali Seizes Loulo-Gounkoto Mine
Barrick Gold Posts $1.04B Loss on Mali Mine Seizure Despite Strong Gold Price Rally
Barrick Mining Corp. shares fell in pre-market trading Monday after the Canadian miner reported a $1.04 billion net charge linked to the seizure of its Loulo-Gounkoto gold complex by Mali’s military-led government.
The charge reflects the “deconsolidation” of the mine following a change of control, according to Barrick’s second-quarter earnings report.
The loss was partly offset by a $745 million gain from selling its 50% stake in the Donlin Gold project in Alaska.
Tensions in Mali escalated in June when a court ordered that management of one of Barrick’s largest operations be handed to a state-appointed accountant and former health minister for six months.
The dispute over mining proceeds has led to the detention of four Barrick employees and a government block on gold exports from the site, which Barrick closed in January.
The standoff has prevented the world’s second-largest gold producer from fully benefiting from gold’s record-breaking rally this year.
Bloomberg Intelligence analysts Grant Sporre and Emmanuel Munjeri warned the writedown “reinforces the company’s challenge in regaining control” and could overshadow operational gains, strong cash flow, and a newly declared 5-cent performance dividend.
Despite the Mali setback, Barrick’s shares remain up roughly 50% year-to-date, supported by gold’s surge to a record $3,500 an ounce in April. Over the same period, the VanEck Gold Miners ETF has gained about 70%.
“While the market hasn’t fully recognized the value we have and are creating, our performance and growth are clear,” CEO Mark Bristow said in the report.
Barrick’s stock dropped as much as 5.7% in early New York trading before trimming losses.
