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Barrick Gold Corp
Symbol ABX
Shares Issued 1,164,669,608
Close 2015-01-13 C$ 12.76
Market Cap C$ 14,861,184,198
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FP says Goldcorp's retained earning may be wiped out

2015-01-14 08:58 ET - In the News

See In the News (C-G) Goldcorp Inc (2)

The Financial Post reports in its Wednesday, Jan. 14, edition that Goldcorp could soon join other large gold miners that have a net loss to show for their entire history as corporate entities. The Post's Peter Koven writes that Goldcorp warned this week that it expects to record an impairment charge of $2.3-billion to $2.7-billion on its Cerro Negro mine in Argentina (all figures U.S.). Given that Goldcorp's retained earnings were $2.2-billion as of Sept. 30, it may be completely wiped out in its next quarterly report. Mr. Koven says that would not be unusual in the gold industry, where writedowns have destroyed historic profits in recent years. Barrick Gold has retained earnings of negative $7.8-billion, while Kinross Gold is at minus $8.5-billion. AngloGold Ashanti has a $4-billion historic loss, while Agnico Eagle Mines has a slimmer loss of $740-million. These companies have highly profitable operations that continue to perform well in a tough gold market. However, they paid the price for taking risky bets that backfired and crushed shareholder value when gold prices dropped. Independent analyst John Tumazos says, "It matters when you write off more than you ever earned."

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