Barrick’s Unbelievable Chutzpah

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Barrick shareholders reject executive compensation

This month Barrick Gold posted awful performance with a massive loss, and at the same time proposed massive pay hikes. Amazingly, the shareholders actually objected.

The Experts talk about performance of large cap resource companies, by referencing the price of gold, or projects owned or proposed. The link above, refers to my last blog about the expertise of the experts, which is suspect.

Investing in Large Cap gold companies is ensuring that that the follies and self enrichment of management of the past, continues in the future.

Barrick’s Website Heading

Barrick has the audacity to headline its website with the following phrase. Disciplined, profitable production. Follow the link to Barricks’ website if you don’t believe me. This really is chutzpah. A company that wastes shareholders money by making foolish investment decisions, is anything but !

 

Some Recent Announcements from Barrick

On April 3, 2015 Barrick press released “Barrick Gold Corporation and EarthRights International (“ERI”) have negotiated a settlement of claims by 14 individuals from Papua New Guinea.”      This is just the latest, and the least important of a string of horrific announcements, some of which follow:.

Included in the latest financial statements – “(We..) recorded $930 million in impairment charges, including the full amount of goodwill allocated to Lumwana“

Barrick Gold took a $2.8 billion US after-tax impairment charge, related to its Lumwana copper mine in Zambia and the Cerro Casale project in Chile.

That’s only a few of the many write downs. If you have the stomach to read Note 19 of the Financial Statements, you can read about much more, all sugar coated in nice words and such massive information that only the most dedicated can read and understand the 176 pages of self congratulation that mask the terrible write downs, and poor performance.

The Joke of the Stock Price

Barrick Gold
eSignal

Summary

Management is supposed to manage. They are not there solely to enrich themselves.
 
 

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By Larry Cyna

Mr. Cyna is an accomplished investor in the Canadian public markets for over 20 years, and has managed significant portfolios. He is a financing specialist for private and public companies, and has expertise in real estate and debt obligations. He has assisted private companies accessing the public markets, has been a founding director of public companies and continues as a strategic consultant to selected clientele. He is and has been a director, a senior officer and on the Advisory Board of a number of TSX and TSXV public companies in the mining, resource, technology and telecommunications sectors, and the Founding Director of two CPC’s with qualifying transactions in mining and minerals. He was an honorary director of the Rotman School of Management MBA IMC program, has completed the Canadian Securities Institute Canadian Securities Course & Institute Conduct and Practices Handbook Course, was a former Manager under contract to an Investment Manager at BMO Nesbitt Burns, a roster mediator under the Ontario Mandatory Mediation Program, Toronto, a member of the Institute of Corporate Directors of Ontario, a member of the Upper Canada Dispute Resolution Group, and the Ontario Bar Association, Alternate Dispute Resolution section. He obtained his designation as a Chartered Accountant in Ontario in 1971 and was the recipient of the Founder’s Prize for academic achievement together with a cash reward. He became a CPA in the State of Illinois, USA in 1999 under IQEX with a grade of 92%. He is a Member of the Institute of Chartered Accountants of Ontario and the Canadian Institute of Chartered Accountants. He holds certificates in Advanced ADR & in Civil Justice in Ontario, Faculty of Law, University of Windsor, certificate in Dispute Resolution from the Ontario Institute of Chartered Accountants. Previous accomplishments are Manager of Cymor Risk Consultants LP specializing in Risk Management Assessment; CEO of Cyna & Associates specializing in mediation and ADR; Founder & Senior Partner of Cyna & Co, Chartered Accountants, a fully licensed and accredited public accountancy firm with international affiliations; and was a partner in a large public accountancy firm. Mr. Cyna is well known in the Canadian Investing community. He is invited to, and attends presentations given by public companies usually 3 or 4 times each week. These presentations are intended by the various hosting companies to present their inside story to sophisticated parties and Investment Managers for the purpose of attracting funding, or of making parties more interested in acquiring shares of those companies. Being a part of this keeps Mr. Cyna deeply involved in the current market and leads to numerous investment opportunities.

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