SWOT Analysis
Extracted on: 25 Oct 2011
Publication construe: 02 Dec 2010
Robust project pipeline
Barrick has a balanced geo-political risk profile and a development strategy focused on generating value in highly prospective regions. Many of the companys projects are located near existing operations where they can improvement from infrastructure and synergies related to processing, personnel, and community development programs. The company has a successful track record of tap development, having completed the formulation of the Tulawaka, Lagunas Norte, and Veladero mines in 2005; the Cowal mine in early 2006;, and the re-opening of the Ruby knoll mine in early 2007. In 2007, the company announced that fortunate was poured at its newest mine, Ruby Hill in Nevada. It produced 154,000 ounces of gold at total cash costs of $195 per ounce in 2007. Construction cost at Ruby Hill was to a lower place its estimate.
In addition, Barrick announced that first gold was poured at its Buzwagi mine in Tanzania in May 2009. In 2009, Buzwagi produced approximately 189,000 ounces of gold. In drudgery, the mine became one of the countrys largest mining operations. Buzwagi is the sixth Barrick project brought into production on time in the last six years.
Moreover, in March 2010, Barrick acquired an additional 25% fill in the Cerro Casale regard in Chile from Kinross Gold Corporation (Kinross). The acquisition resulted in Barrick owning a 75% interest in the Cerro Casale Project and gaining regard of one of the worlds largest undeveloped gold-copper deposits.
Higher level of indebtedness could shoot an adverse effect on the companys liquidity position and whitethorn hamper its credibility in the market.
Opportunities
Agreement to acquire interest in the El Morro project
Barrick is planning to increase its gold reserves portfolio through acquisitions. In this context, in October 2009, the company entered into an agreement with Xstrata bullshit Chile, a...If you want to get a full essay, order it on our website: Orderessay
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