Barrick Gold Corp on Wednesday reported a net loss in the fourth quarter as it booked $2.8 billion in after-tax impairment charges related mostly to its Lumwana mine in Zambia and its Cerro Casale project in Chile.
Barrick, the world’s biggest gold producer by ounces, reported a net loss of $2.85 billion, or $2.45 a share, in the quarter ending in December compared with a net loss of $2.83 billion, or $2.61 a share, in the same period a year ago.
[Reuters]
This is why mineral royalty tax is crucial. No international conglomerate ever wants to report profits if they can avoid tax. In short they will plunder the counties resources without paying taxes, and move on saying the operations are not profitable. after that they regroup come back as saviours, the much needed investor, plunder again at a ”loss” and move on again until there are no resources to plunder…meanwhile laughing all the way to Swiss banks.
How do u expect them to report profit when they sell minerals to sister companies located in tax havens who then sell to china for a profit. If copper at metal exchange price is 5000. They sell to sister company at 1000 pin and declare a loss in zed and avoid a tax. Sister company in swizaland sell at 5000 pin and declares a profit. We really need to tighten our tax laws otherwise these thieves will continue stealing.
I am waiting impatiently for Barrick to close Lumwana. They need to send a clear message to the PF govt that they are ruining the Zambian economy. That’s the only message that PF will hear. Anything else is posturing.
Stop been petty. How can you side with people who only want to milk your county of its resources?
What losses ? thats a lie, they just want to avoid tax, ensure they pay tax on revenue not profit , Chikwanda is right after all.
I hope their false declarations have no impact to their tax obligations. All genuine businesses pay tax, whether losses or not! @ Silumba…, you are a mediocre shallow minded cadre. You think when Lumwana closes then we will rever to stone age and vote for your loser? That will give us more impetus to vote for our PF and promote indigenisation of our means of production so that no one in future hold us at ransom!
A correction you dont pay tax when you make a LOSS , hence the declaration of losses by this company.
If Barrick is making loses let them close and go. We were better off with minerals in the ground than we are while the same miners have been plundering our resources. Let us leave thèse resources for our future générations.
@Mwana Mulume and Robin, I tend to agree with you! These mines have always been complaining about losses. They refused windfall tax,they made noise when fuel subsidies were removed,they pay reduced tariffs on electricity and they still cry about losses. Most of them have now been saying they are holding on to new investment because of new mineral royalty taxes-which contradicts the picture they have been giving government that they have been making losses! How can they wish to invest more when they have been making losses??@Silumba sa Sata- that is being unpatriotic! All political parties and well meaning Zambians talk about increasing taxation on the mines so what did you expect PF to do?In fact all countries in the region are revising mines taxes upwards, to increase gains for nations!
Its a lie, barricl Gold is telling lies! Are you telling us that all of you accountants in Zambia cant tell whether a company is cheating on taxes or not. You are such a useless profession.
I have never seen anything really worth your value in the so called accounting in Zambia other than boasting with big empty names.
Engineers and doctors on the other hand able to build complex structures from airplanes to motor cycles, homes, bridges, waterways, powerstations, railways and roads whilst doctors are able to operate on the complex parts like the brain and eyes. So what are accountants for if they cant assist Government collect its tax from swindlers like Barrick Gold?
Can we just accept that the work of the Zambian accountants is to write checks and count money then?
Go and train as an Accountant so that you can help your government. Don’t generalise, how do you expect me to go dispute the figures for that company and say that they have made a profit when they themselves are saying they have made a loss? Don’t you know that the government has an agency that collect taxes and not every Accountant? Respect me and others with titles like FCCA, FZICA, MBA, MSc after our names you may never have those titles yourself. Have you not lead the article that they were some impairment charges due to Lumwana in Zambia and Cerro Casale project in Chile hence the losses. Are you the type that will say because that man has not been able to make that lady conceive let me go and do it for him? Companies make losses. These are listed co that can’t just be cheating…
When you ask them to pay taxes they start making loses. When you don’t ask them they start making profits. Please bashi Bwalya Chikwanda don’t let them.
Well said guys. You are unanimous on this issue. Whoever monitors these blogs from State House…PLEASE TAKE NOTE, AND REPORT BACK, CORRECTLY!
I’m proud of you guys.
easy to make a comment when you’re not the one losing your job. keep talking and talking while we prepare to march out of our homes and go homeless and jobless. keep passing your very intelligent and smart comments. i hope they can feed me come next month