NEW YORK (TheStreet) -- Barrick Gold Corp (ABX) tumbled 11% this week following a mix of news that heightened concern about the company's current operations. On Friday alone, the stock plunged 7.6% to $17.92.
The gold and copper producer announced plans of a bought-deal offering of 163.5 million shares at $18.35 each on Thursday. Of the $3 billion in capital expected to be raised, the company will use around $2.6 billion to strengthen its balance sheet and pay down outstanding debt.
The Canadian industrial also reported third-quarter earnings of 58 cents a share on $2.99 billion in revenue. The results beat analysts' expectations of 51 cents a share on $2.97 billion, according to those surveyed by Thomson Reuters.
In conjunction with its earnings report, the company announced it would suspend operations at Pascua-Lama, a mining project on the border of Chile and Argentina which has already incurred costs of around $9 billion according to Reuters.
"We have made this decision in light of prolonged lower gold and silver prices and uncertainty related to timing required to obtain permits as well as other uncertainties and risks associated with other legal and regulatory matters," said CEO Jamie Sokalsky during a conference call.
The company expects its 2014 capital cost guidance to be further reduced by $1 billion as a result. The miner is aiming for an additional $500 million in annual cost savings related to job cuts and an organizational restructure.
JPMorgan reiterated its "neutral" rating but updated its price target to $19 from $18, citing the mine's suspension as likely to fortify near-term cash flow.