Recorded a $3.8 billion impairment charge on its Lumwana copper asset in Zambia
Barrick Gold Corporation (TSX: T.ABX, Stock Forum) Thursday reported a fourth-quarter loss of $3.06 billion, or $3.06 per share, as a result of a large writedown on its copper business, this according to a company news release.
Barrick recorded a $3.8 billion impairment charge in the quarter to write down the value of its Lumwana copper asset in Zambia.
Fourth-quarter earnings, excluding the writedown and other one-time items, were $1.11 a share, surpassing the $1.05 average Bloomberg consensus estimate. Revenue rose 11% to $4.19 billion.
For 2013, Barrick expects gold production of 7.0 million to 7.4 million ounces with total cash costs of $610 to $660 per ounce.
"Rising costs, poor capital allocation and the pursuit of production growth at any cost in the industry have led to declining equity valuations across the sector. The message is clear: the industry must chart a new path forward. Barrick highlighted the need for change last year, and we are increasingly taking strong action and re-focusing our business based on the principle that returns will drive production, production will not drive returns," said Barrick Gold President and CEO Jamie Sokalsky.