Barrick slashes costs to the bone

The Toronto-based miner said it has reduced its 2013 guidance for all-in cash costs by a full $100 per ounce and that 75% of this year's production will be mined at a cost of less than $800 an ounce.

That compares to an industry average of $1,200 – $1,300.

Barrick is focusing its efforts on just five core mines, all of them in the Americas.

The mines – Cortez and Goldstrike in Nevada, Veladero in Argentina, Lagunas Norte in Peru and Pueblo Viejo in the Dominican Republic – will generate 60% of the company's output at a cash cost of $700 an ounce.

The presentation also detailed the company's new-found focus on returns for investors and budget discipline – 2013 will see a $2 billion cut to capex and costs across the organization.

The company offloaded three high-cost mines to Gold Fields last month and further "portfolio optimization" is planned.

10 Barrick mines have cash costs exceeding $800 and the likes of its Porgera mine in PNG and Plutonic in Australia among others are being re-evaluated and my be sold.

Read More: www.mining.com/barrick-slashes-costs-to-the-bone-32955/