NEW YORK, May 23, 2017 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP
(www.kaplanfox.com) is investigating claims on behalf of investors
of Barrick Gold Corporation ("Barrick" or the "Company") (NYSE:
ABX).
Class Action litigation has been filed in the United States
District Court for the Southern District of New York against Barrick, along with certain
officers and a Director of the Company, on behalf of investors who
purchased or otherwise acquired Barrick securities between
February 16, 2017 and April 24, 2017, inclusive (the "Class"), alleging
violations of the Securities Exchange Act of 1934.
Barrick is a gold and copper mining company that engages in
exploration and mine development.
The class action alleges that on February
16, 2017, the Company held a conference call during which
Defendant Jorge Palmes ("Palmes"),
the Executive General Manager that oversaw Barrick's Veladero mine,
acknowledged that "2016 was a very challenging year" for the
Veladero mine due to pipe-related damage, but that the Company
"completed a series of remedial works to prevent such an incident
from occurring again." Defendant Palmes then provided
guidance for Veladero production for 2017, stating "we expect
increased production of 770,000 ounces to 830,000 at an all-in
sustaining cost of $840 per ounce to
$940 per ounce."
The complaints further allege that on March 28, 2017, a pipe at the Veladero mine
ruptured, but that "[s]urprisingly. . . the Company reaffirmed its
fiscal year guidance" and stated "[a]t this time, we do not
anticipate a material impact to Veladero's 2017 production
guidance."
On April 24, 2017, however, the
Company issued a press release announcing a revision to its
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."
Following the April 24, 2017 news,
Barrick's share price fell $2.15 per
share, or 11.3%, to close at $16.89
per share on April 25, 2017.
The complaints allege that throughout the Class Period,
defendants made false and/or misleading statements, as well as
failed to disclose that (1) the pipes and safety systems at the
Veladero mine were not robust enough to prevent spills; (2) as a
result, Argentinian authorities would restrict the Veladero mine
and require remedial work; (3) these developments would impact (and
were impacting) the production capacity of the Veladero mine; (4)
as such, the Company's Veladero mine production guidance and total
gold production guidance were overstated; and (5) as a result of
the foregoing, defendants' statements about Barrick's business,
operations, and prospects, were false and misleading and/or lacked
a reasonable basis.
If you are a member of the proposed Class, you may move the
Court by no later than July 10,
2017 to serve as a lead plaintiff for the purported
class. You need not seek to become a lead plaintiff in order to
share in any possible recovery. If you would like to discuss the
complaint or our investigation, please contact us by emailing
pmayer@kaplanfox.com or by calling 800-290-1952.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP,
with offices in New York,
San Francisco, Los Angeles, Chicago and New
Jersey, has many years of experience in prosecuting investor
class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit
our website at www.kaplanfox.com. If you have any questions about
this Notice, the action, your rights, or your interests, please
contact:
Donald R. Hall
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(212) 687-1980
Fax: (212) 687-7714
E-mail: dhall@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California
94104
(415) 772-4700
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com
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SOURCE Kaplan Fox &
Kilsheimer LLP