BARRICK GOLD REPORTS US$11m LOSS

Barrick Gold Corporation announces US$11m loss due to Goodwill payoff agreement with Tanzania.

The world’s largest mining company Barrick Gold Corporation has reported that it lost US$11m in the third quarter due to an increase of a tax provision related to a goodwill payoff of US$300m, the company agreed with Tanzania.

Previously the tax provision of the company – which is the amount it agreed would be paid by its subsidiary Acacia to Tanzania was US$128 million but after financial results were announced the figure increased to US$3oo million.

Barrick also experienced a decrease in its net earnings and have blamed the decrease on the impact of the concentrate export ban by the government and also on lower gold production and prices.

The company have agreed to pay the said sum but have tied its payment to  Acacia’s business flow and the outcome of talks to lift the ban on concentrate export.

In its own statement : “Given Acacia’s current financial position, these payments would be made over time, using Acacia’s ongoing cash flows. As such, payment would be also conditional on Acacia’s ability to sell doré (gold bars) and concentrate.”