Research Update: Barrick Gold Corp. Ratings Lowered To 'BBB+' From 'A-' On Higher Forecasted Capital Spending; Outlook Negative Jul 12
- Language: English
- Published: July 2012
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.
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Barrick Gold Corp.,Newmont Mining Corp.,Placer Dome Inc.