(Bloomberg) – Barrick Gold Corp. said Mali’s military junta has blocked shipments from the country’s largest gold mine and the company will have to halt operations at the site if they remain suspended.
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Shares of the Canadian gold producer fell as much as 2.6% to $16.34 at noon in New York.
Barrick has been embroiled in a dispute with the government for months over how to share the economic benefits of the Loulo-Gounkoto complex, which produced nearly 700,000 ounces of gold last year. The junta has arrested several company employees and issued an arrest warrant for CEO Mark Bristow earlier this month.
“Local business conditions have deteriorated significantly, with workers jailed without cause and gold shipments blocked,” Barrick said in a statement on Monday. “If shipments remain suspended, Barrick will be forced to suspend operations, which will further impact the viability of this crucial economic engine for Mali.”
Recent developments at the site will further erode investor confidence in Mali’s mining sector and deter future investment, Bristow said in the statement. The company remains open to constructive cooperation with the government to resolve the dispute, he said.
“A December closure of this major mine could also jeopardize 2024 gold production guidance,” National Bank of Canada analyst Mike Parkin said in a note. Parkin now estimates that Barrick will produce 3.9 million ounces across its portfolio this year, the lower end of the company’s range of 3.9 million to 4.3 million ounces.
–With help from Katarina Höije.
(Updates shares and analyst note in last paragraph.)
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