Barrick Gold Corporation (NYSE:ABX)’s strategies in adapting to changing times.
Barrick Gold Corporation (NYSE:ABX) is a company engaging itself in production and selling of gold along with its related activities such as exploration and mine development. The company primarily operates in four segments: Gold business, Copper Business, Oil and Gas Business and a Capital project. The stock of the company closed at $13.91 posting a hike of 0.87% in its previous day’s trading session.
The company in its recent magazine Beyond Borders has laid down an in depth details of their Capital Allocation Strategies, Corporate Social Responsibility and their focus on the future goals and vision. The company’s Founder and Chairman Peter Munk said that the company was expecting a robust production pipeline in its world’s most promising gold projects — Pascua-Lama and Pueblo. But during the year, both these projects experienced setbacks, the company had to wrtiedown $3.8 billion in its copper units, the operating cost tremendously increased, resource nationalism intensified and the gold price fell down. Munk even noted that, the popularity of ETF’s have wiped away $140 billion from the gold equity market by offering a political risk free trading in the gold.
The company has made efforts to cut down its capital expenditures and have reported that they have been successful in lowering their capital expenditures by $4 billion and also indicated that they will not build any new mines in the current changing environmental conditions.
Company’s President and CEO, Jamie Sokalsky has said that the company had been focusing on the CSR and has treated it to be their top most priorities. He said that the company’s development contributes to the economic development by generating jobs, provides a stable source of revenue to the governments and to maximize their local and regional purchases. He also said that with the rising expectations of the stakeholder the company is keen to make progress by strengthening its policies and practices, aligned with international standards.
The company is looking forward to control their operating costs, to adapt decisively to the changing environment and to focus on their capital expenditure allocation thereby to create shareholder’s wealth.