UPDATE 5-Barrick Gold reins in costs; could suspend Chile project

Wed Apr 24, 2013 7:04pm EDT
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* Q1 EPS $0.85 vs $1.04 year earlier, revenue falls 6 percent

* Barrick warns of possible suspension at Pascua-Lama

* 85.2 percent of shareholders oppose compensation resolution

* Shares close up 7.6 percent at C$19.38 in Toronto

* Quarterly dividend unchanged at 20 cents a share (Adds Moody's downgrade)

By Julie Gordon and Euan Rocha

TORONTO, April 24 (Reuters) - Barrick Gold Corp, making a painful adjustment to a sustained slump in bullion prices, reported progress in controlling costs on Wednesday and said it planned further cuts in capital spending, sending its shares higher.

The world's No. 1 gold producer also said it may suspend development at Pascua-Lama, its newest gold mine, located high in the Andes Mountains. A Chilean court has halted some work at the project, which straddles the border of Chile and Argentina.

The Toronto-based miner warned on Pascua-Lama as it reported an 18 percent drop in first-quarter profit. The decline, attributed to a slump in gold and copper prices and volumes, was not as severe as analysts had expected.   Continued...