Barrick poised to gain traction on falling costs

Andy Hoffman

From Friday's Globe and Mail
Last updated on Thursday, Aug. 06, 2009 03:05AM EDT


For the world's largest gold producer, it's time to reap the upside of the global recession.

The new head of Barrick Gold Corp. says the company has finally turned the corner in its battle to contain rising mining costs because the downturn is easing the upward pressure on wages, diesel fuel and other key expenses.

Ballooning costs have, for years, tempered the effect of rising bullion prices on the bottom line of Barrick and other gold miners.

That's one of the main reasons Barrick ABX-Tshares have lagged gold: While the price of the metal has surged 139 per cent in five years, the company's stock has returned 85 per cent (in U.S. dollars).

Continue reading at: http://www.theglobeandmail.com/report-on-business/barrick-poised-to-gain-traction-on-falling-costs/article1237258/

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