Barrick to Spend $2 Billion on Projects with Potential

Barrick Gold Corp. (TSX:ABX,NYSE:ABX) released the results of four studies on projects that could “add or accelerate gold production at Cortez, Goldrush, Lagunas Norte and Turquoise Ridge.”
According to the company, its current set of assets should allow it to produce 4.5 million ounces of gold through 2020. The projects mentioned above represent possible ways for it “to maintain and grow free cash flow beyond 2020.” The Globe and Mail states that in total Barrick looks set to spend about $2 billion on the projects.
As quoted in the press release:

In 2015, all of our projects were put through a rigorous review process by the company’s newly constituted Investment Committee. We looked at them through a new lens, challenging traditional assumptions and exploring different development scenarios in pursuit of value creation. Our approach today prioritizes free cash flow, risk-adjusted returns and capital efficiency across every area of the business, underpinned by a more rigorous risk management process.
These are dynamic projects that continue to evolve. They are evaluated against our 15 percent hurdle rate as they advance through each stage of the development process. We assess returns using our long-term gold price, currently set at $1,200 per ounce. We are focused on continually strengthening the economics of our projects as we incorporate further design improvements identified through detailed engineering and by the potential addition of new reserves and resources. Capital estimates contained within prefeasibility studies may increase or decrease as a result of changes incorporated at the feasibility study stage.

Click here to read the full Barrick Gold Corp. (TSX:ABX,NYSE:ABX) press release.