UPDATE 2-Barrick's Pascua-Lama costs rise again, shares dive

Thu Nov 1, 2012 10:08am EDT
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* Q3 adj EPS $0.85 v Street view $0.98

* Revenue falls 13.5 percent as gold sales, prices sag

* Capital costs at Pascua-Lama rise again

* 2012 copper outlook lowered to 450 million pounds

* Shares fall 7.1 percent to C$37.49 on TSX (Releads, adds details)

Nov 1 (Reuters) - Barrick Gold Corp reported a sharp drop in third-quarter profit on Thursday, while again increasing its cost estimate for building the massive Pascua-Lama mine and pushing back the date when production at the project will begin.

Shares of the world's top gold miner dropped 7 percent after it bumped up the cost of building Pascua-Lama, located high in the Andes mountains on the border between Chile and Argentina, to $8 billion to $8.5 billion from an earlier budget of $7.5 billion to $8 billion.

The company blamed the increase on delays and higher labor and project-management costs.

This is the second time Barrick has boosted its cost estimate. Three months ago it raised the Pascua-Lama budget by 50 to 60 percent from a previous estimate of $4.7 billion to $5 billion.   Continued...