Already the world’s largest gold producer, Barrick Gold Corp. (TSE: ABX) is looking to reduce costs by analyzing new mines for prospective purchases.
“Perhaps there’s more M&A opportunities today than there were a year ago and as a company we’re looking at those assets on a daily basis,” Mike Feehan, regional president of the Toronto-based company’s Australia and Pacific operations said today at the Diggers & Dealers mining conference in Kalgoorlie, Australia. “If we could find a few million ounces of gold deposit that’s probably pretty good.”
Gold, as you’ve probably read, has acted as a resource of refuge for many investors as they seek to escape market uncertainties. This year, gold prices are up by 3.1 percent – calmer than the last 11 years, when prices rose fivefold.
Gold for immediate delivery rose to $1,614.50 per ounce.
Barrick will spend between $450 and $490 million this year in exploration projects. 20 percent of that will be used to focus on the Australia/Papua New Guinea area.
The company still foresees gold production between 7.3 to 7.8 million ounces this year, at cost targets between $550 to $575 per ounce.