How Barrick Gold Corporation (NYSE:ABX) is raising cash
Barrick Gold Corporation (NYSE:ABX) is all set to cut down on its regional management. With this change, the other change will be that the supervision of operations will be moved to the head office. This objective of this restructuring is to add some accountability to its mines as far as raising cash flow and controlling costs is concerned.
Cost-cutting is one thing that all gold mines across the globe have adopted. Apart from this, they are also deferring their expansion plans. All of this in the wake of dipping gold prices in 2013 which has rendered many of the mines unprofitable. The company has already downsized 1/3rd of its staff at its head-office. In addition, it has chopped $2 billion from the company’s capital-budget for 2013. It has divested its Australian mines and will also be looking for some more closures or sales. The operational focus will be on its lowest-cost and biggest mines.
Barrick Gold Corporation (NYSE:ABX) is totally in retrench-mode and there is some news that it will be selling-off the 74% share that it has in African Barrick. This issue had been latent for some time but has now reared its head again. Brad Gordon, the CEO says that if they look for a sale, Barrick Gold Corporation (NYSE:ABX) might be independent in a period of 12-18 months. However, at the current price, they are not selling.
In Monday’s trading, Barrick Gold Corporation (NYSE:ABX) stock fell by 1.40%. The shares opened at $18.56 which rose to a $19.00 intraday high and fell to close at $18.35. Almost 14.64M shares were traded in Monday’s session. An average volume of 18.64M shares were traded over a period of 30 days. The shares’ 52-week low is $13.43 and their 52-week low is $18.64. Barrick Gold Corporation (NYSE:ABX) has a market cap of $18.37 billion.