Barrick expects to take up to $3 billion in impairment charges.

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pgolivares

Member
Apr 9, 2010
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Will the DR gov't take a hit due to Barrick Gold accounting issues?

"Barrick Gold Corp (ABX.TO), the world's biggest gold producer, said it expects to take charges of up to $3 billion following an annual accounting impairment review.".

"accounting impairment" sounds like another term I heard before "accounting irregularities". It will probably more of the same the make money we loose they loose we loose more.

"The asset writedown is primarily related to its Pascua-Lama mining project, on the border of Chile and Argentina, and its Pueblo Viejo project in Dominican Republic."

http://www.reuters.com/article/barrick-gold-outlook-idUSL3N1555SO
 
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playacaribe2

Gold
Jan 9, 2004
10,919
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pgolivares said:
Will the DR gov't take a hit due to Barrick Gold accounting issues?

"Barrick Gold Corp (ABX.TO), the world's biggest gold producer, said it expects to take charges of up to $3 billion following an annual accounting impairment review.".

"accounting impairment" sounds like another term I heard before "accounting irregularities". It will probably more of the same the make money we loose they loose we loose more.

"The asset writedown is primarily related to its Pascua-Lama mining project, on the border of Chile and Argentina, and its Pueblo Viejo project in Dominican Republic."

http://www.reuters.com/article/barrick-gold-outlook-idUSL3N1555SO
Click to expand...

Yes.

The current contract gives the DR a percentage of the profits from Pueblo Viejo.

An impairment charge is an expense.....which reduces profitability....which will in turn reduce the amount of money the DR receives relating to Pueblo Viejo.


Respectfully,
Playacaribe2
 
Drake

Drake

Bronze
Jan 1, 2002
667
23
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playacaribe2 said:
Yes.

The current contract gives the DR a percentage of the profits from Pueblo Viejo.

An impairment charge is an expense.....which reduces profitability....which will in turn reduce the amount of money the DR receives relating to Pueblo Viejo.


Respectfully,
Playacaribe2
Click to expand...

Taxes the DR govt recieves are based on smelter production and the price of gold on a 50/50 basis. Pofitabilty of Barrick only affects long term project investment which might in the long run reduce earnings. Low fuel costs are helping tem.
 
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pgolivares

Member
Apr 9, 2010
229
9
18
Drake said:
Taxes the DR govt recieves are based on smelter production and the price of gold on a 50/50 basis. Pofitabilty of Barrick only affects long term project investment which might in the long run reduce earnings. Low fuel costs are helping tem.
Click to expand...

It sounds, by the read of it, that the DR govt got something right (taxes based on production and revenue based on price of gold, profitability only affects long term investment). Now if only the country's coffer would be left along and use for the good of the country that would be a good thing but most likely we will see more jeepetas come Christmas if not sooner, Aug?
 
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playacaribe2

Gold
Jan 9, 2004
10,919
2,261
113
Drake said:
Taxes the DR govt recieves are based on smelter production and the price of gold on a 50/50 basis. Pofitabilty of Barrick only affects long term project investment which might in the long run reduce earnings. Low fuel costs are helping tem.
Click to expand...

The renegotiated agreement calls for an approximately 50/50 split...that is true.

But the tax as I understand it is a net profits tax...not gross....and net profits are calculated after expenses.

The original contract was posted here some years ago....so I imagine it is resting in the DR1 archives somewhere.


Respectfully,
Playacaribe2
 
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