Barrick Gold (NYSE:GOLD -0.1%) says the capital cost of expanding the Pueblo Viejo mine in Dominican Republic has increased by another $100M to $1.4B and delayed from July to the end of this year.
The company says the expansion project, which would deliver a mine capable of producing more than 800K oz/year until at least 2040, has suffered logistical challenges due to the impact of COVID-19 on the global supply chain.
Barrick, which owns Pueblo Viejo in a 60-40 joint venture with Newmont (NEM +1%), says it had incurred $450M on the project by year-end 2021.
The expansion project could extend the mine’s life beyond 2040, supporting production of more than 900K oz/year.
Barrick’s new performance-based dividend policy could be a catalyst to re-rate the stock, Investing on the Spectrum writes in a bullish analysis posted recently on Seeking Alpha.