Barrick Gold Corp. (ABX), the world’s largest producer, said prices will remain high as central banks move excessive foreign-exchange holdings to bullion and inflation in China and India boost the lure of the metal. “Gold is well-supported at current levels,” Gary Halverson, Barrick’s regional Australia-Pacific president, said today at a conference in Kalgoorlie, Western Australia. The Toronto-based company expects to maintain profit margins of more than $1,000 an ounce this year, he said. Gold rose to a record last month on concern the U.S. and Europe would struggle to contain their debt burdens. Inflation in China hit a three-year high last month, while India’s benchmark wholesale-price index has remained above 9 percent for seven straight months. Central banks, the world’s biggest holders of bullion, about doubled their purchases in the first five months of this year, according to the World Gold Council. Immediate-delivery gold, which reached a record $1,632.80 an ounce on July 29, was little changed at $1,619.60 at 9:48 a.m. in Singapore. Natixis Commodity Markets Ltd. raised its 2012 estimate to $1,300 from $1,140 an ounce on July 28. Barrick, which completed the C$7.4 billion ($7.7 billion) takeover of copper producer Equinox Minerals Ltd. last month, expects the Lumwana mine in Zambia to produce about 300 million pounds of copper annually, Halverson said. Low Rate “The opportunity to pick up Equinox was unique for us as we had access to very low interest” funding for the acquisition, Halverson said. Debt funding for Equinox was “sub-3 percent,” he told reporters. Barrick will continue to focus on gold production, which makes up 80 percent of its revenue, Halverson said. Copper accounts for about 19 percent, he said. The company has no plans to sell the Jabal Sayid copper project in Saudi Arabia, part of the Equinox acquisition, that is due to produce 100 to 130 million pounds of copper from the second quarter, Halverson said. Barrick operates the Super Pit in Western Australia, producing as much as 850,000 ounces of gold a year, with venture partner Newmont Mining Corp. Barrick owns five mines in the nation, as well as the Porgera venture in Papua New Guinea. To contact the reporter on this story: Elisabeth Behrmann in Sydney at ebehrmann1@bloomberg.net To contact the editor responsible for this story: Rebecca Keenan at rkeenan5@bloomberg.net

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