Barrick Gold Corp., the biggest producer by sales, posted 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 Feb. 27, 2009. The stock decreased 8.2 percent to C$22.94 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 settle at $1,501.40 an ounce on the Comex, after earlier falling to as low as $1,482.30.
Other gold producers also declined. The 54-company Standard & Poor’s/TSX Global Gold Sector Index fell 5.9 percent today to its lowest point since Nov. 20, 2008.
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.