Moody's may lower Barrick Gold

Moody's Investors Service said it placed the Baa1 senior unsecured rating of Barrick Gold Corp., along with all rated subsidiary issuers guaranteed by Barrick, under review for possible downgrade.

The downgrade review arises from the challenges facing the company on its Pascua Lama project following the Chilean government's injunction to halt construction activity on the Chilean side of the project and the uncertainty this creates with respect to the cost and timing of this project, Moody's said.

The review also is attributable to the flat to declining production profile in 2013 relative to 2012 and increasing cost base, the agency said, and likelihood of greater-than-expected negative free cash flow given the high capital expenditure profile in 2013 and possibly 2014, the agency said.

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