It provides funds for capital expenditure upfront when a project is being developed and obtains the right to buy precious metals produced at low, fixed prices.
Long Term Leases : Purchasing land and constructing a factory and office building can take up a large part of the capital expenditure budget for a new project in China.
Over the summer Barrick announced a tougher stance on capital expenditure, and deferred indefinitely its major Cerro Casale project in Chile and Donlin Creek in Alaska.