Barrick Gold Corp. (ABX), the biggest producer by sales, headed for its biggest weekly decline in four years after gold prices reached a 21-month low and the company halted construction on the Chilean side of an $8.5 billion project in the Andes.
Barrick, based in Toronto, has fallen 15 percent since April 5, the biggest five-day drop since April 8, 2009. The stock decreased 5.9 percent to C$23.53 at 11:33 a.m. in Toronto.
Gold futures in New York fell to the lowest since July 2011 on signs investors are favoring the dollar and equities as the global economy recovers. The price dropped 4 percent to $1,503 an ounce at 11:11 a.m. on the Comex, after earlier falling to as low as $1,491.40.
Barrick said April 10 it was stopping construction on the Chilean side of the Pascua-Lama project after a Chilean court accepted an injunction filed by indigenous communities concerned about water supplies.
The project may have a 12-month delay in first production to early 2016, Greg Barnes, a Toronto-based analyst at TD Securities Inc., wrote in a note yesterday. He cut his rating to hold from buy.
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