Barrick Cut Gold Reserves by 26% and Lose $2.83 Billion in Q4

Barrick Gold Corporation

(Kitco News) – Barrick Gold, arguable largest gold mining company, lost $2.83 billion in 2013 Q4, and reduced its gold reserves by 26% due to lower gold prices.

Barrick Gold (ABX) lost $2.61 per share, resulting in a loss of $2.83 billion in Q4. A $2.82 billion after-tax impairment charge was the main reason behind this loss.

The gold mining company reduced its gold reserves by 26%, from 140.2 million ounces in 2012 to 104.1 million at the end of 2013. Barrick said it used in 2013 $1,100 per ounce price estimation instead of the previous $1,500 per ounce in 2012.

Temporary suspension of Pascua Lama gold mine was the main reason behind impairment charges hike. It resulted also in $176 million loss to Barrick Gold in suspension-related costs. The rest of impairment charges were associated with Australia Pacifica, Poregera and Veladero gold segments.

Barrick Gold lost $10.14 per share, resulting in a net loss of $10.37 billion in 2013. After-tax impairment charges cost the company $11.54 billion in the past year.

Adjusted net earnings with respect to the new gold price for 2013 were $2.51 per share, a total of $2.57 billion. Q4 adjusted net earnings were $0.37 per share, a total of $410 million, compared to $1.16 per share and a total of $1.16 billion quarter-on-quarter.

The company lost its share-value due to the sharp decline in gold prices and gold and copper sale volumes. Reducing costs helped Barrick a lot and improved its financial flexibility, CEO and Barrick president Jamie Sokalasky said in a press release.