The Financial Post reports in its Wednesday edition Barrick has been downgraded to hold from buy at Deutsche Bank despite strong operations in the third quarter. The Post's Jonathan Ratner quotes analyst Jorge Beristain as arguing Barrick may not be able to deleverage its balance sheet amid a weakening gold price. He also cited dimmer prospects for the miner's copper business and a lack of strategic action on its partnerships. Mr. Beristain removed Pascua Lama from his model, figuring the massive project would have attracted a strategic partner by now. The analyst also warned that recently proposed higher royalties in Zambia will put pressure on Barrick's Lumwana project and could lead to further writedowns. He noted Barrick's emerging copper business has been carried by the Zaldivar project in northern Chile, while turnaround efforts continue at Lumwana in Zambia. Despite lower-trending operating costs at Lumwana, Mr. Beristain noted sustaining capex remains high at about $200-million per year (all figures U.S.). If Zambia triples royalty payments to 20 per cent, the analyst believes Barrick will shut it down and take a $1-billion charge. Mr. Beristain also cut his price target on the stock to $16 from $22.