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Barrick Gold (ABX.TO, GOLD) on Tuesday said it has initiated the temporary suspension of operations at the Loulo-Gounkoto mining complex in Mali and the seizure of gold stocks from the complex amid a dispute with the country's government.
The Malian government moved the existing gold stock from the site to a custodial bank, further preventing the shipment and sale of the gold. The move was part of the government's execution of an interim attachment order on the gold.
This comes after a judge ordered the seizure of the stock amid a dispute over a contract based on new mining rules.
The company said it remains restricted from shipping gold from the mining complex but is continuing to work toward a resolution.
National Bank of Canada maintained its sector-perform rating and $26.00 price target on the company following the release.
"Based on our current estimates, a shutdown of the mine for 2025 would result in a ~13% drop in (Barrick's) 2025 EBITDA," the bank said. "We would expect the stock to trade below peers in today's trading."
Barrick shares were last seen down $0.07 to $22.19 on the Toronto Stock Exchange.
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