In Barrick's case it is a strong possibility.
When it is finally determined and ruled upon by Chilean Courts that Barrick never had the legal rights to mine the actual Pascua Lama mineral deposite there will be more class action suits than lies in Barrick's playbook. Currently I believe 6 or 7 have been launched in the US.
Canada will follow with the large pension funds I am thinking. They too are fed up of the lies over lies over 15 years
The environment fiasco is I believe a Barrick ploy to buy time in deferring the final truth. As the Chilean courts get together in Chile to get a common front in attacking Barrick's world of corruption and lies.
Try to imagine the financial leverage Barrick has used by using Pascua Lama as collateral.
These finaciers will be looking for their pound of flesh big time.
With their current debt load, Barrick with the criminal loss of Pascua Lama through the fraudulent Protocal will be Barrick's undoing......................I am taking all bets!
yes but for the discipline imposed by its debt covenents. the divi cut is one example of its effect. It has to operate in survival mode because the price of gold cannot be counted on to bail them out. No growth to speak of at all now until it is nurtured back to debt light. Deleveraging is the name of the game
yes - div cut was a +tive sort of...but running the #s at 1200 gold, they still have way too high leverage even with a $1bn aussie sale....some kind of equity raise for sure...they are just trying to smooth it out....but with book at $12/share, they might want to issue sooner than later