Summary: Barrick Gold Corp. Apr 06
Standard & Poors, April 2006
Abstract
The ratings on Barrick Gold Corp. reflect the company's position as the world's largest gold producer, with cash costs that are among the lowest in the industry, and a modest financial risk profile. These strengths are offset somewhat by Barrick's narrow revenue diversity and the attendant exposure to volatile gold, silver, and copper prices, as well as its large capital expenditure plans. Although Barrick remains the lowest-cost producer among senior gold companies since its acquisition of Placer Dome Inc. (A-/Stable/A-2) in early 2006, Standard & Poor's Ratings Services expects that its pro forma 2005 gold cash cost advantage over its closest peer, Newmont Mining Corp. (BBB+/Stable/--), will decline to below US$20 per ounce from almost US$40 per ounce. In addition,...
Companies mentioned in this report are: Barrick Gold Corp.,Newmont Mining Corp.,Placer Dome Inc.
Action: Review
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
Barrick Gold Corp.,Newmont Mining Corp.,Placer Dome Inc.
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