NEW YORK, May 26, 2017 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Barrick Gold Corporation ("Barrick" or the "Company") (NYSE: ABX) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 17-cv-03815, is on behalf of a class consisting of investors who purchased or otherwise acquired Barrick securities, seeking to recover compensable damages caused by defendants' violations of the Securities Exchange Act of 1934.
If you are a shareholder who purchased Barrick securities between February 16, 2017 and April 24, 2017, both dates inclusive, you have until June 19, 2017 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Barrick is a gold mining company that purportedly engages in exploration and mine development. The Company also produces and sells gold and copper.
The Company has a history of pipe ruptures and chemical spills at its Valedero mine in the San Juan Province of Argentina. On September 13, 2015, the Company identified a valve failure on a leach pad pipeline, resulting in a release of cyanide-bearing process solution into a nearby waterway. This resulted in a temporary court order restricting the addition of new cyanide to the mine's processing circuit. The restriction was subsequently lifted, however, on September 24, 2015. Then, on September 8, 2016 a pipe carrying process solution was damaged by a large block of ice that had rolled down a nearby slope, resulting in a temporary suspension of operations at the Veladero mine. Operations resumed on October 4, 2016.
On February 16, 2017, the Company held a conference call to discuss its 2016 fiscal year financial results. On the call, Defendant Palmes stated that "[a]t Veladero, 2016 was a very challenging year" do to the pipe-related damage, but that the Company "completed a series of remedial works to prevent such an incident from occurring again." On the same call, Defendant Palmes provided fiscal year 2017 Veladero production guidance, stating: "For 2017, we expect increased production of 770,000 ounces to 830,000 ounces at all-in sustaining cost of $840 per ounce to $940 per ounce."
On March 28, 2017, the Company's Veladero troubles reappeared, when a pipe carrying gold-bearing solution ruptured.
Surprisingly, in response to the rupture, the Company reaffirmed its fiscal year 2017 guidance. On March 30, 2017, the Company stated: "[a]t this time, we do not anticipate a material impact to Veladero's 2017 production guidance."
Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) that the pipes and safety systems at the Veladero mine were not robust enough to prevent gold-bearing solution spills; (ii) that, as a result, Argentinian authorities would restrict the addition of cyanide to the Veladero mine's heap leach facility and require remedial work; (iii) that these developments would impact (and were impacting) the production capacity of the Veladero mine; (iv) that as such, the Company's Veladero mine production guidance and total gold production guidance were overstated; and (v) as a result of the foregoing, Barrick's public statements were materially false and misleading at all relevant times.
On April 24, 2017, the truth about the Veladero mine began to emerge when the Company issued a press release announcing its first quarter 2017 financial results. Therein, the Company revised its full year guidance, stating that "[f]ull-year gold production is now expected to be 5.3-5.6 million ounces, down from our previous range of 5.6-5.9 million ounces." The Company further stated that "[a]pproximately two-thirds of this reduction is attributable to the anticipated sale of 50 percent of Veladero." The Company also provided Veladero-specific guidance, stating: "we now expect full-year production at Veladero of 630,000-730,000 ounces of gold, at a cost of sales of $740-$790 per ounce, and all-in sustaining costs of $890-$990 per ounce. . . . This compares to our original 2017 guidance of 770,000-830,000 ounces (100 percent basis), at a cost of sales of $750-$800 per ounce, and all-in sustaining costs of $840-$940 per ounce."
On this news, Barrick's share price fell $2.15, or 11.3%, to close at $16.89 on April 25, 2017.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
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SOURCE Pomerantz LLP