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Barrick Gold sees preliminary Q2 charge related to Pascua-Lama $4.5B-$5.5B

In its Q1 report, Barrick indicated that it may need to reassess the long-term gold and silver price assumptions used in its most recent annual impairment test should metal prices remain at lower levels for an extended period of time. As a result of recent and continued significant declines in gold and silver prices, and the delay in first gold production, Barrick is conducting impairment testing. Preliminary analysis indicates an after-tax asset impairment charge in the range of approximately $4.5B-$5.5B in Q2 for the Pascua-Lama project. The company will complete a final impairment assessment by its Q2 results release. In light of the lower metal price environment, Barrick is also reviewing its other assets, including goodwill, for possible impairment charges in Q2, which, although dependent on various analyses and assumptions which have not been finalized, are likely to be significant.