this may or may not be the company ?
Barrick Gold eyes development in Pakistan, but pans Bolivia and Venezuela
TORONTO (CP) -
Barrick Gold Corp. (TSX:ABX), the world's biggest gold producer, says it's open to further expansion in Pakistan - which it considers more politically stable than some countries in South America.
"Pakistan ... from a mining point of view, from a business point of view, is among the better countries (to invest in)," founder and chairman Peter Munk told shareholders during the Canadian company's annual meeting Thursday.
"If I had the choice to put my money in one of the Latin American countries run by (Bolivian president) Evo Morales or (Venezuelan President Hugo) Chavez - I know where I'd put my buck," he said, referring to moves to nationalize resources in those two countries, to the detriment of foreign investors.
Barrick bought a stake in the Reko Dig copper-gold project in Pakistan for $100 million US in February from Antofagasta PLC, a Chilean mining group.
When CEO Greg Wilkins went to Pakistan in connection with that project, Munk said, he was received by both Prime Minister Shaukat Aziz and President Pervez Musharraf.
"If a country has time to have its president, who's in the middle of a politically, highly charged region, courted by Soviets, China, Muslims and America ... sit down ... with Greg to encourage him to invest money and invite a Canadian company to come in to develop the country's resources, it shows you what a great country it is," Munk said
Although the company's assessment of opportunities in that country is still in the early days, Wilkins said Barrick would be "very interested" in more projects in the area, despite challenges posed by the presence of al-Qaida in its various regions.
"We have a $20-million joint exploration program for (Reko Dig) alone and the Tethyan belt itself - which is actually geological belt that runs from Turkey all the way to Iran and into Pakistan is really quite prospective," he said. "So we'll be looking to take advantage if we can (and) see what opportunities exist for us."
While a growing leftist trend in Latin America is raising concerns for foreign companies like Barrick, Wilkins said, some countries are fighting to address those issues and remain attractive to investors.
A senior Argentine official, for instance, has offered to make a presentation to Barrick's board to "give us the assurance that Argentina isn't going that way," Wilkins said.
"The extremism of what Mr. Morales has done is going to knock those other guys back and perhaps off that agenda."
Barrick, a Toronto-based miner, has about 22,000 employees around the world. The company reported a jump in first-quarter profit to $224 million US from a year-earlier $66 million US late Wednesday, boosted by strong metal prices and gains made from the acquisition of Vancouver-based Placer Dome.
The gold company's earnings, reported in U.S. dollars, translated to 29 cents a share, up from 12 cents per share in the same period last year, beating analysts expectations.
Michael Jalonen, and analyst with Merrill Lynch, said he was expecting earnings to come in at 19 cents per share.
"We attribute the variance to our assumption the company would deliver production to lower-priced hedge positions during the quarter, thus recognizing a lower gold price than actual for Q1 2006," he said in a note to clients.
Barrick bought Placer Dome in a $12.1-billion-Cdn deal completed March 15. Barrick expects to close the deal to sell some of Placer's assets to Goldcorp Inc. (TSX:G) in May.
The company reiterated its 2006 gold production forecast of 8.6 to 8.9 million ounces at $275 to $290 per ounce.
On the Toronto stock market Thursday afternoon, its shares were trading up over seven per cent, or $2.53, at $36.93, with over 7.2 million shares changing hands
http://www.cbc.ca/cp/business/060504/b050484.html