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Barrick Gold Corp, the world’s largest gold miner, estimated spending of approximately US$2 billion if it decides to proceed with projects in Nevada and Peru.
Barrick, releasing updated pre-feasibility and feasibility studies around the projects, also said on Monday it would redeem up to US$750 million of notes to help cut debt by at least US$2 billion this year.
The company’s U.S.-listed shares were down about 3 percent at US$12.18 in premarket trading on Monday.
Barrick said a pre-feasibility study estimated US$1 billion in initial capital spending on its Goldrush project in Nevada, based on a start of construction in 2020.
The project would produce 440,000 ounces of gold annually, with all-in sustaining costs of US$665 per ounce.
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Another pre-feasibility study estimated that US$640 million could be required to extend the life from the Lagunas Norte project in Peru by about nine years.
The Toronto-based miner said a feasibility study showed US$300 million to US$325 million could be required to boost production at its Turquoise Ridge mine in Nevada.
The proposed Cortez project in the state, that is in the pre-feasibilty stage, would require an estimated US$153 million, with a construction start in 2019-2020.
Barrick said it likely to maintain annual production of a minimum of 4.5 million ounces of gold through 2020.
The company, which has among the highest debt lots of any gold miner, has been selling its non-core assets coupled with cut debt by US$3 billion this past year.
The miner had outstanding debt of approximately US$9.77 billion by Dec. 31.
? Thomson Reuters 2016
