Tomahawk, WI 06/02/2014 (Basicsmedia) – Barrick Gold Corporation (USA) (NYSE:ABX) has been trending in the industry news over the past few months as rumors had milled around about a possible merger between ABX and Newmont Mining Corp. (NYSE:NEM)! However, public quarrel added stigma between the deals, leading to breach of professional relations.

NEM Merger Dwindle, Amidst Quarrels!

Certainly, investors would have been glad if the deal had happened on a good note; such a scenario would have been testament to the biggest revolution in the gold-mining sector! However, the deal ended with a whimper, dwindling any probabilities of improved and organized operational performance.

ABX Facing Quandary!

Barrick Gold Corporation (USA) (NYSE:ABX) has a plethora of problems to counter; its biggest disappointment has been disgruntling first quarterly results. Besides, the company is suffering from gnawing production issues. ABX lowered its net copper production by a significant 12%. The company expects its production unit to come around with 425 million pounds. Moreover, ABX has considered reducing its holistic production cost.

Gold Prices Abominably Low!

Gold prices have been floundering significantly off late. Falling prices result in the fall in net production, causing importunate negative impacts upon the company’s yearly performance. Gold hasn’t shown any modal improvement; hence if the company fails to gain substantial revenues and maintain proper profit margins, the company would have a detrimental impact upon ABX’s dividend payment!

Nevada Expansion On The Cards

However, the company has unveiled plans to find a solution for the faux pas that resulted in abrupt failure of the anticipated deal with Newmont Mining Corp. (NYSE:NEM). ABX has shared its intention to move ahead with its expansion plans across Nevada, particularly linked with the Goldrush discovery.

The company shall reach out to potential areas nearby, especially Cortez Hills Mine and Turquoise Ridge Mine. During the last year, Barrick obtained 40% of its gold reserves from Nevada. Perhaps, that’s why the CEO of ABX, Jamie Sokalsky considered pointing its focus upon Nevada, opting to expand its myriad operations across Nevada!

CEO Plays A Pivotal Role!

Sokalsky joined Barrick Gold Corporation (USA) (NYSE:ABX) team in June, 2012. Since then, he has played pivotal roles in dealing with issues and concerns pertaining to the falling prices of gold, deteriorating of mines and so on! If things fall into place as expected, Nevada shall evolve as the best asset in the disposition of ABX!

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