Barrick Gold Stock Gains Despite Mali Operations Halt Over Seized Stockpiles: Retail Divided

Barrick Gold (GOLD) stock was up nearly 1% in pre-market trade after the company followed through on its threat to halt gold operations in Mali if the local government acted on its interim order to seize gold stockpiles at the Loulo-Gounkoto mine operated by the company. 

The move comes eight days after the firm warned it would be forced to take such action if the authorities in the West African nation continued to restrict exports and disrupt operations.

“Barrick has regrettably initiated the temporary suspension of operations while it continues to work towards a resolution,” the company said in its update.

Barrick, one the largest gold producers in the world, reiterated that it remains committed to constructive engagement with the Malian government to find an “amicable solution.”

Barrick and Mali’s government have been locked in a standoff over revenue distribution from the Loulo-Gounkoto mine, an asset that’s key for both the company and the treasury. 

Since November, the state has blocked Barrick from shipping the precious metal out of the country. It also started seizing gold stockpiled at the mine and issued an arrest warrant for Chief Executive Officer Mark Bristow. 

In response, the miner has begun arbitration proceedings against Mali.

On Stocktwits, retail sentiment around Barrick Gold remained in ‘neutral’ territory even as chatter jumped to ‘extremely high’ levels. 

Users on the platform are worried that Barrick’s seizure of gold stock from one of its most lucrative mines will impact the company’s earnings.

Barrick’s stock is down more than 10% in the last year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read also: Aehr Stock Plummets Pre-Market On Q2 Earnings Miss, But Optimistic Guidance Bolsters Retail Faith

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