Barrick estimates $2 billion costs if Nevada, Peru projects proceed
(Reuters) - Barrick Gold Corp (ABX.TO: Quote) ABX.N, the world's largest gold miner, estimated spending of about $2 billion if it decides to proceed with projects in Nevada and Peru.
Barrick, releasing updated pre-feasibility and feasibility studies on the projects, also said on Monday it would redeem up to $750 million of notes to help cut debt by at least $2 billion this year.
The company's U.S.-listed shares were down about 3 percent at $12.18 in premarket trading on Monday.
Barrick said a pre-feasibility study estimated $1 billion in initial capital spending on its Goldrush project in Nevada, based on a start of construction in 2020.
The project would produce 440,000 ounces of gold a year, with all-in sustaining costs of $665 per ounce.
Another pre-feasibility study estimated that $640 million would be needed to extend the life of the Lagunas Norte project in Peru by about nine years.
The Toronto-based miner said a feasibility study showed $300 million to $325 million would be required to boost production at its Turquoise Ridge mine in Nevada.
The proposed Cortez project in the state, which is in the pre-feasibilty stage, would require an estimated $153 million, with a construction start in 2019-2020.
Barrick said it expected to maintain annual production of at least 4.5 million ounces of gold through 2020. Continued...