Barrick Gold Corporation (USA) (NYSE:ABX) is considered to be one of the largest gold mining companies in the world which is having a lot of issues coming in its way. Some of the issues include that there are some of the unprofitable gold mines which are belonging to the company. In order to save on a lot of money, the company is selling off its Australian mine which is no longer profitable for the company.
After the year September 2011, the prices of the company have fallen drastically to $1920 per ounce. This has affected the output prices of the mining companies and one such company which is being affected due to this falling in price is the Barrick Gold Corporation (USA). This falling in the price has dramatically affected the revenues and drop in the prices of the shares there by resulting in to loss of the market capitalization. Some of the losses suffered by Barrick Gold Corporation (USA) are Newmont Mining’s loss of 57%, Gold Corp loss of 46% and Anglo Gold Ashanti loss of 68%.
Due to this Barrick Gold Corporation (USA) has dropped most of their expansion plans as the price of the gold has led to rendering of most of the mines unprofitably. Moreover, the management of the company has planned to lower their operational costs and shutting down the mines which are no longer profitable for the company.
Apart from selling off the Australian Mine, the company is also planning to cut their administrative staff as its head quarters to just one third of the original numbers. Also the company is continuing to looking at various other mines as well which are not profitable for the company. The Australian mine which is being considered for selling is Kanowna Belle and Plutonic located in Western Australia.