Barrick Gold Hit With Securities Fraud Suit
WASHINGTON, DC (May 11, 2017) — U.S. Market Advisors Law Group PLLC announces that a class action lawsuit has been filed against Barrick Corporation (“Barrick” or the “Company”) (NYSE:ABX) and certain of its officers. The case has been filed in United States District Court for the Southern District of New York and docketed under 17-cv-03507. The class action is on behalf of investors who purchased or otherwise acquired Barrick securities, seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934.
If you are a shareholder who purchased Barrick securities between February 16, 2017 and April 14, 2017 (“Class Period”), you have until July 10, 2017 to ask the Court to appoint you as Lead Plaintiff for the class. To discuss this action, contact David P. Abel at [email protected].
Barrick is a gold mining company that purportedly engages in exploration and mine development. The Company also produces and sells gold and copper.The Company has a history of pipe ruptures and chemical spills at its Valedero mine in the San Juan Province of Argentina. On September 13, 2015, the Company identified a valve failure on a leach pad pipeline, resulting in a release of cyanide-bearing process solution into a nearby waterway. This resulted in a temporary court order restricting the addition of new cyanide to the mine’s processing circuit. The restriction was subsequently lifted, however, on September 24, 2015. Then, on September 8, 2016 a pipe carrying process solution was damaged by a large block of ice that had rolled down a nearby slope, resulting in a temporary suspension of operations at the Veladero mine. Operations resumed on October 4, 2016.On February 16, 2017, the first day of the Class Period, the Company held a conference call to discuss its 2016 fiscal year financial results. On the call, Defendant Palmes stated that “[a]t Veladero, 2016 was a very challenging year” do to the pipe-related damage, but that the Company “completed a series of remedial works to prevent such an incident from occurring again.” On the same call, Defendant Palmes provided fiscal year 2017 Veladero production guidance, stating: “For 2017, we expect increased production of 770,000 ounces to 830,000 ounces at all-in sustaining cost of $840 per ounce to $940 per ounce.”
On March 28, 2017, the Company’s Veladero troubles reappeared, when a pipe carrying gold-bearing solution ruptured. Surprisingly, in response to the rupture, the Company reaffirmed its fiscal year 2017 guidance. On March 30, 2017, the Company stated: “[a]t this time, we do not anticipate a material impact to Veladero’s 2017 production guidance.”
On April 24, 2017, the truth about the Veladero mine began to emerge when the Company issued a press release announcing its first quarter 2017 financial results. Therein, the Company revised its full year guidance, stating that “[f]ull-year gold production is now expected to be 5.3-5.6 million ounces, down from our previous range of 5.6-5.9 million ounces.” The Company further stated that “[a]pproximately two-thirds of this reduction is attributable to the anticipated sale of 50 percent of Veladero.” The Company also provided Veladero-specific guidance, stating: “we now expect full-year production at Veladero of 630,000-730,000 ounces of gold, at a cost of sales of $740-$790 per ounce, and all-in sustaining costs of $890-$990 per ounce. . . . This compares to our original 2017 guidance of 770,000-830,000 ounces (100 percent basis), at a cost of sales of $750-$800 per ounce, and all-in sustaining costs of $840-$940 per ounce.”
On this news, the Company’s share price declined $2.15 per share, or 11.3%, to close at $16.89 per share on April 25, 2017, on unusually heavy trading volume.
About USMA
U.S. Market Advisors Law Group PLLC is a national law firm based in Washington, D.C. The firm represents investors worldwide in U.S. securities class action lawsuits.
Contact
David P. Abel
(202) 274-0237
[email protected]