All posts by Nathaniel Dove

Contaminants remain in popular Ottawa park

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The soil and groundwater in Hurdman Park contains numerous contaminants, with nearly 50 total hectares contaminated by four individual sites, a federal database shows.

The organization responsible for the park, the National Capital Commission, lists Hurdman Park as an urban green space and as valued natural habitat. However, the NCC refused to answer any questions about whether the contaminants were a concern or if the contaminants were hazardous. The City of Ottawa refused to make anyone from Ottawa Public Health available for comment.

The interactive map shows the contaminated sites in Hurdman Park. Click on a site to find out more information.

Data from the Treasury Board of Canada Secretariat

Mario Tremblay, a strategic communications advisor for the NCC who works on capital planning and land use, said by email that the Hurdman sites have been “subject to environment site assessments…which have characterized the environmental quality of the soil, groundwater, surface water and sediment.” He did not clarify what the quality had been characterized as.

“[D]ue to active construction at these properties… any further action such as development of remedial action plans will not commence until construction at these sites is completed,” he said.

The federal database lists all four sites in Hurdman Park as having “detailed testing completed” and states that remedial action plans are under development.

The active construction at Hurdman Park for the LRT Confederation Line is scheduled to end in Winter 2017.

Tremblay said that all sites have been subject to a “Phase II ESA,” an environmental site assessment. However, the website for AEL environment, an environmental engineering firm based in Mississauga, states that “Phase III ESA is the phase at which remedial work occurs to address contamination,” meaning that it is only with in Phase III that contaminants are actually removed and not just identified as being in the soil.

Two of the sites are listed as needing additional assessment and remedial activities, suggesting that the contaminants in the soil are worthy of attention and need to be removed. All four sites are listed as high priority for action.

The listed contaminants include petroleum hydrocarbons, or PHCs, and polycyclic aromatic hydrocarbons, or PAHs, which come from oil, coal or bitumen. The contaminants also contain metals and metalloids. Though experts contacted for this article were unable to confirm how hazardous the contaminants at Hurdman Park are, the Canadian Council for Ministers of the Environment website states that “PHC contamination can cause a wide variety of problems related to their toxicity, mobility and persistence” and a 2010 report from the same organization lists the “unsubstantiated PAHs that are known or strongly suspected to act as carcinogens in humans.” The federal database does not specify whether substantiated or unsubstantiated PAHs are present in the park.

Formerly a city dump, Hurdman Park is now a popular park for cyclists and runners, who don’t seem to mind the pipes emerging from the ground that funnel methane gas from the remainder of the landfill into the air.

Tubes like this one are common in the park. They allow for the methane from the landfill buried beneath the park to escape.
Nathaniel Dove

Mike Giunta lives nearby. He says that the contamination doesn’t bother him. “Contamination, it’s relative. I mean, the river is probably contaminated too, at some level. I wouldn’t drink the water out of it. It doesn’t concern me”

“I don’t know if anyone wants to have their house on it but I think, as it is, it’s probably fine.”

Mike Giunta lives near Hurdman. He says the contamination doesn’t bother him.
Nathaniel Dove

Roseanne and Greg Hart have lived near the park for decades and frequently walk through it, even on this cold December day. While they both knew the site used to be a dump, they were unaware that they were standing metres from a listed contaminated site.

Roseanne and Greg Hart have been walking through the park for decades. They were unaware of the extent of the contamination.
Nathaniel Dove

“I think it’s good for a green space,” said Greg. “Just don’t go digging it up,” said Roseanne.

 

The Canadian Council of Ministers of the Environment report mentioned in this article, as well as a report commissioned by the City of Ottawa in 1988 to investigate sites that may have contaminants, are below.



Polycyclic Aromatic Hydrocarbons 2010 (En) (Text)



Intera Mapping and Assessment of Former Industrial Sites (Text)

The Damascene of Somerset

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As he puts the fur-lined leather hat down on the table he explains how it used to be a beaver. “It was run over” he says, “and then they turned it into a hat.” It is clear that he is very excited to have it. It’s cold outside, November in Ottawa, and he isn’t used to this weather. The hat, the weather and Ottawa are new to him. That’s because he’s only been in the city, in Canada, for 13 months. Before that he was in Jordan. And five years ago, Fadi Sakbani was in Syria.

Sakbani is a refugee. He left his native Syria because his house and his work place were both threatened by the ongoing destruction of the Syrian Civil War. He lost his job as a language teacher and couldn’t make a living. He fled into neighbouring Jordan. Now he sits in an Ottawa coffee shop on Bank Street explaining how he came to Canada.

It was in Jordan where he met Grace Chapman, a Canadian who was teaching English in Amman. Sakbani showed Chapman around the school on her first day. They bonded as they both arrived at the school early every morning and would talk over coffee. They became friends. Eventually they were teaching a course together and Sakbani would join Chapman and her now-husband for dinner at their house.

Fadi Sakbani sits in a coffee shop on Bank Street, Ottawa. A mere 13 months ago he was a refugee in Jordan.
Nathaniel Dove

“He was someone I could always rely on, and as a new teacher that’s an incredible resource to have,” said Chapman via email from Japan, where she now lives and works as an English teacher.

But life in Jordan was difficult for Sakbani. It “got really tough for Syrians,” he says. It was easy to find a job—Sakbani is fluent in English—but as a refugee he was not allowed to work fulltime, even with a work permit.

“You have no social rights there, you can’t get healthcare, you can’t get education, so I just decided to leave,” says Sakbani. He began exploring options. He was awarded a scholarship to Estonia but declined when he realized he would have to commit to returning to Syria after he finished his degree. So in January 2016 Sakbani reached out to Chapman about coming to Canada. She agreed to help.

“As I had e-mailed a family friend and my mom, a thread of e-mails began of us putting together the puzzle pieces and figuring out what we needed,” she said. According to the government’s rules on privately sponsoring a refugee Chapman would need to assemble five people to be sponsors. Those that agreed would need to prove that they could raise the money necessary to support a refugee—collectively about $13 000, according to the website—and that they would all be in Ottawa, where Sakbani would live.

As Chapman was in Kuwait at the time she was ineligible to be a sponsor. But she was still able to organize a group of family friends and her parents to bring Sakbani to Canada.

And his immigration was quick—ten months between the message to Chapman to his plane landing in Canada. Sakbani says that the process usually takes two to three years. He knows he is lucky.

“I think it’s one of the most successful cases that I’ve witnessed here in Canada, because I know a lot of Syrians who were sponsored by the government, by communities or even individuals, private groups, and they’re really grateful but they were not as lucky as me… I was spoiled. I’m still being spoiled.”

Sakbani is an exception to many trends. Not only was the speed of his case so remarkable but he didn’t end up in the areas in Ottawa where most Arab immigrants in the past five years have settled, Osgoode and Versant in Gatineau. Sakbani thinks that so many people live in these areas because they want to be surrounded by people who share the same language and culture.

An interactive map showing where the majority of Arab immigrants to Ottawa now live. The darker the blue colour, the more immigrants reside in that area. Click on the map to explore the data. All data from Statistics Canada

 

“If I had a family… I would have probably had to live in a community that has more people from my own culture so my family would be able to have friends, because they speak zero English.” He says that not everyone is open to other cultures.

Instead he lived with one of his sponsors in the Glebe for his first year in the country. He now lives with a roommate, another refugee, in Centretown. He has a part-time job and he attends Algonquin College for computer engineering.

He has come very far and accomplished a lot since leaving his home country. His journey has been very different from those of other Syrians.

“Most of my friends just got on a boat together, like all my friends in Syria… got on the same boat, in the Mediterranean, from Turkey—illegally, of course.” This is in 2013, when there were massive amounts of people leaving Syria.

“People where just throwing themselves in the sea…hoping to get picked up near the Greek shores. They were lucky to survive.”

As the cup of tea he is drinking is emptied he starts to look out the window, into the cold street down which he will have to walk to get home. “How can people survive here? I know that I need a couple more winters to get used to it, I’m not looking forward to it. It’s the first snow this year and I’m not happy. I know what’s coming and I’m not looking forward to it,” he says, laughing.

He is wearing a sweatshirt with “Quebec” written on it, the kind that you find in a souvenir shop. And he is smiling. He likes it here. Even in the short time that he has been in the country he says that “Ottawa feels like home.”

Popular Centretown Shawarma Restaurants Frequent Violators of Health Code

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Three Centretown shawarma restaurants have violated the health code a combined 71 times since January 1, 2016, an analysis of data compiled by the City of Ottawa has revealed.

 

The three restaurants, Prince Gourmet Shawarma and Falafel, Shawarma Deluxe and Shawarma’s King Restaurant have a variety of violations of the provincial Health Protection and Promotion Act. The Act governs how the food is stored and prepared and regulates the cleanliness of facilities.

 

Shawarma Deluxe, located at 347 Dalhousie Street in the Byward Market and Prince Gourmet Shawarma and Falafel, located at 55 Byward Market, have both been inspected three times in 2017. According to an emailed statement from Ottawa Public Health “[f]ood premises are inspected once, twice or three times each year, depending on the risk classification of High, Moderate or Low.”

 

The City of Ottawa website states that a minimum of three inspections per year makes a restaurant a high-risk food establishment. Shawarma’s King Restaurant, at 395 Bank Street, has been inspected twice in 2017, making it a medium-risk food establishment.

Shawarma Deluxe, located at 347 Dalhousie Street, has been inspected by the City of Ottawa’s food inspectors three times in 2017.

When asked about health code violations at Shawarma Deluxe, co-owner Joseph –who only gave his last name as “Shawarma Deluxe”— said “so far we have [had] no complaint[s]” from the health inspectors. When asked to address the 22 health code violations that Shawarma Deluxe has accumulated since January 1, 2016, Joseph blamed the spite of some customers. “When you work in the public for a long time, you can’t please everybody,” he said.

 

He also said some complaints leveled against Shawarma Deluxe stem from drunk people coming into the restaurant and vomiting in the bathrooms. Joseph did not clarify how these complaints were related to the health code violations that regulate the food preparation area cleanliness.

Prince Gourmet Shawarma and Falafel has had 20 violations of the Health Protection and Promotion Act since January 1, 2016

At Prince Gourmet Shawarma and Falafel, Ahmed Al-Bawaadh, an employee and brother of the owner, claimed not to be aware of any violations. When the 20 health code violations were mentioned another employee ended the interview saying that they were busy during the lunch rush. At the time, a few minutes before noon, the Prince Gourmet Shawarma was largely empty as there were four other people in the restaurant. All had already ordered and been served their food.

The co-owner of Shawarma’s King Restaurant claims most health code violations stem from the previous owner.

Fadel El-Hussein, a co-owner of Shawarma’s King Restaurant, the sign and website for which reads Shawarma King Restaurant or Shawarma Kin respectively, said that the 29 health code violations that it has accumulated are largely the fault of the previous owner.

 

“A lot of that was from the old management. We inherited old equipment, the whole building was old to begin with, so we did a lot of renovation,” he said. El-Hussein said that he and his business partner purchased Shawarma’s King two years ago and that the entire front food preparation area was renovated in the past month and a half. The last inspection of Shawarma’s King Restaurant took place approximately two months ago.

 

Ottawa Public Health refused to comment on their inspection process or on the effects or consequences of what repeated violations of the same health code violations entails. An emailed statement said that “[t]here are different levels of deficiencies, from non-critical to a health hazard. Non-critical deficiencies (ex. lack of environmental cleaning) can be corrected at the time of the inspection or shortly after, where a re-inspection would be required.” The statement went on to say that an inspector is able to issue a closure order where there is an immediate risk to the safety of the public’s health.

As Alberta’s population grows so does the cost of a hospital bed

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The cost of a standard hospital stay in Alberta has risen by almost 30%, an analysis of data released by the Canadian Institute for Health Information has revealed. This coincides with an increase in population for Alberta of nearly 12%.

 

The data shows an increase in the cost of a standard hospital stay, up by 26% between 2011-2012 and 2015-2016. Census data collected by Statistics Canada shows that Alberta’s population has increased by 11.6%—the highest of any province or territory— between the 2011 census and the most recent 2016 census.

 

According to John Church, a political science professor at the University of Alberta who studies health care in Canada, there are a number of reasons for this increase. The first reason is the lack of an integrated healthcare option outside of the hospital setting, which means “that everybody gets driven into the hospital setting, whether they need to be there or not.” And the hospital setting, Church said, is the most expensive setting for a patient to receive medical services.

 

“If you have a situation in which I don’t need to be hospitalized… then my hospital care is going to look pricier” said Dr. Raisa Deber from the University of Toronto’s Institute of Health Policy, Management and Evaluation. Deber said that it’s where and how the money is being spent as opposed to the fact that money is being spent.

 

It’s the issue of “what exactly am I paying for in the hospital as opposed to what am I paying for in other settings?” said Deber. She pointed to chemotherapy as an example, saying that if the drugs are delivered in a hospital, as opposed to an outpatient clinic, the cost of the drugs count towards the hospital’s budget.

 

The second reason that Church pointed to is the lack of a single patient record system, which can result in patients undergoing tests which other healthcare workers have already administered.

 

Church also pointed to the fact that wages in Alberta are typically higher than other healthcare workers across the country. A separate report from CIHI states that the average gross clinical payment to Alberta physicians was $380 000, the highest in the country.

 

And given Alberta’s rising population, Church says that this issue is poised to get more expensive. “More people means more people potentially needing health services” Church said. Church said that the demand on Alberta’s healthcare system will increase, both in numbers and in demand on its services, that as the population ages it will require more health services that can handle the more complex health issues inherent with age.

 

Church pointed out that elderly people often require the most amount of healthcare, that most people consume the most health services in terms of cost in the last few months of their lives. Deber concurred, stating that “if [the] population [is] going to be younger and healthier, then you would expect [the cost of an average hospital stay] to be smaller.”

 

A report from the Alberta Auditor-General has identified these three reasons for expensive healthcare in Alberta as “pervasive barriers” that prevents Albertans from “receiving the quality of care they could receive.”

 

“Unless there are fundamental changes… people will continue to flood to the emergency room” Church said. Church identifies timely access to healthcare outside of hospitals as necessary to alleviating this costly issue. This includes “everything from seeing your family doctor to seeing a range of service providers that provide services to seniors, [to services] that provide access to community-based mental health service [and services that are] providing sufficient access to things like home care.”

Veteran’s Access to Healthcare Needs to Change, says 2015 Report

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The topic: Veterans of the Canadian Armed Forces, or CAF, have difficulty accessing healthcare from Veterans Affairs Canada.

This is a flow chart of the relationship between VAC and CAF. It demonstrates how complicated the relationship is.
This information comes from Veterans Affairs Canada. It was helpful because it delineates the complex relationship that VAC and the CAF have.

What’s new: In a document created by a third party consultation company, Hitachi Consulting Government Solutions, from March of 2015, entitled “Review Progress on Transitions from Military to Civilian Life: Transforming Veterans Affairs Canada” Hitachi Consulting reviewed the transition process from the CAF to VAC. This document was obtained by access to information laws.

A page of the 2015 Hitachi Consulting report. It demonstrates the increasing number of Canadian veterans. It is helpful because it shows that there will be more veterans in the future, some of whom will need healthcare from the CAF and VAC.

The key finding of the report was that there is no one definition of “transition,” a testament to how complex the process of transferring healthcare from the CAF to VAC is. The report also found that that there has been little change in VAC with regards to veterans and their families, that veteran feedback was not observed and that there was no process to measure transition success. It also found that sharing Department of National Defence health records with VAC took too long. The system that the report describes is one that is ill designed, very slow and not effective.

This is a page of the 2015 Hitachi Report that details the key findings. It is from Veterans Affairs Canada. This is the key finding of the report.

What is really new about the findings in this report is that an independent third party has now confirmed findings from other government reports. There have been many reports calling for the transition process from military life to civilian life, and especially for the transfer of healthcare, to be reformed and streamlined. But many of these recommendations have not been enacted.
Why it’s important: The complexity of the transfer process can be overwhelming for veterans. The complicated process can result in delays and those delays result in ill and injured veterans not receiving the healthcare that they need. Provincial healthcare does not cover soldiers and veterans often rely on VAC for the specialized healthcare that they may require. The consequences of veterans not getting healthcare that they need can be dire. Veterans with Post Traumatic Stress Disorder have committed suicide and murder-suicide because they didn’t have proper support.

These are statistics from Veterans Affairs Canada released under the Access to Information Act. It lists the amount of veterans with PTSD, which underscores how serious of an issue it is that the CAF-VAC transfer is reformed.

What the government says: The current Liberal government and the previous Conservative government have been very quiet with regards to this issue. Despite numerous reports and campaign promises elected officials have done nothing. While on the campaign trail Justin Trudeau promised to reinstate lifelong pensions for injured and ill veterans. To date that promise has not been fulfilled.

When asked why nothing has changed, Gary Walbourne, Ombudsman for National Defence and the Canadian Forces, said that it was an issue of bureaucracy. “I’ve been dealing with the same people as when I started, ” he said at a town hall meeting for ill and injured veterans on March 22 in Ottawa. He went on to describe a system that was resistant to change despite the fact that many of the requested changes to support veterans would not require an Act of Parliament and that it would not require very much money.
What others say: Barry Westholm is a former Sergeant Major with the Joint Personnel Support Unit, the unit that the CAF has designated to help ill and injure veterans. In a written document, his response to the Hitachi Report, he wrote that “I can state from experience that the benefits afforded injured service-members and their families while still in the CAF can be difficult for a person to understand, and in fact can cause a great deal of frustration for a military family.”
What’s next: At the town hall meeting last week many veterans expressed their distrust and dislike of VAC and the transition process. There was a lot of discussion around how to organize in order to create a better venue for having their voices heard and how to have the transition process reformed. Many options were discussed. But what was agreed upon was that they wanted no more reports. They wanted action.

 

Some of my correspondence with VAC
My previously-released Access-to-information document

 

More of my correspondence with VAC

 

My correspondence with the Ontario Ministry of Health and Long Term Care
The continuation of my correspondence with the Ontario Ministry of Health and Long Term Care

 

More of my correspondence with VAC

 

The last of my correspondence with VAC

 

Needle Drop-Off Not Universal in Ottawa

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The City of Ottawa has been working to improve its needle drop-off locations. With discarded needles being found in increasing amounts in suburban areas over the past several years the city has expanded the number of needle drop-boxes in these areas outside of the downtown core.

Yet despite the increase in drop-off points, the City of Ottawa does not yet have a universal coverage of needle drop-off boxes around the city. Several wards do not have easy means of discarding found needles.

According to analysis of data released by the city, Ottawa does not have needle drop-off boxes in the wards of Gloucester-South Nepean, Cumberland, Innes, Kanata North, and West Carleton-March. Of these wards, Gloucester-South Nepean and Cumberland both had needles found within them this year.

Meanwhile, the wards of Beacon Hill-Cyrville, Kitchissippi, Orleans, Osgoode and Rideau-Goulbourn have drop-boxes but had no discarded needles reported in 2016.

MAP OF NEEDLE DROP BOXES AROUND THE CITY OF OTTAWA

According to Daniel Osterer, a spokesperson with the City of Ottawa, “safe sharps disposal is necessary in all geographic areas and is not limited to certain parts of the City.” Continuing, Osterer said, via email, that drop-boxes are placed in locations that “prioritize public safety and are convenient for people looking to dispose of their sharps.” At time of printing Osterer did not respond to a question about why all wards did not have drop-boxes. The Ottawa Police refused to comment.

“In general, [the city] has done a good job of making sure their discarded needles are removed as safely and quickly as possible off the streets,” says Eugene Williams of the Somerset West Community Health Centre.

The needles are picked up by residents and by city workers after Ottawa 311 has been informed of the location. These “Needle Hunters” are people who proactively search for discarded needles and other drug paraphernalia across the city. Formed in 1998, the Needle Hunters Program is a central component of the city’s response to discarded needles, as well as other drug-related items.

According to analysis of the data, most wards have a drop-off location per capita figure that is very close to the number of needles found per capita. This means that the city has accurately placed its needle drop-off boxes where they need to be. The exception to this finding has been the wards mentioned above that have no drop-boxes at all and the ward with the most needles found.

The ward with the most needles found remains the downtown borough of Rideau-Vanier, which had close to 60 needles found last year, which is more than four times greater than the ward with the next highest amount of discarded needle reports, Somerset. Rideau-Vanier has about three drop-off points for every thousand people in the ward.

Rideau-Vanier is known for being a rambunctious neighbourhood. The fact that it is the location of the most discarded needle reports is no surprise; with a large population, a downtown location and with several shelters, the ward is well known for being a rougher area. It has repeatedly had a higher number of needles found over the past couple of years, as well as a higher incidence of crime. It has been a focus of the city for several years to reduce crime in the area. The increased amount of drop-off boxes demonstrates those initiatives.

Should you find a needle, be very careful and please follow the instructions in the City’s pamphlet below to depose of the needle safely. 311 can also be called. A list of drop-off points can be found here. All needles should be handled with care by an adult and not put in the garbage, recycling, or flushed down the toilet.

The Lack of a Legacy for Indigenous Soldiers in the First World War

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Nearly 100 years ago the Canadian identity was forged in fire. It was at the Battle of Vimy Ridge that British North Americans came to identify themselves as Canadian for the first time, a sign of pride in what their soldiers had accomplished where other allied armies had failed. Among those who fought at Vimy, but who are often neglected by history, were Indigenous soldiers. One was Robert Edward Kippling, a Cree man of the Peguis Reserve in Manitoba.
Kippling died at Vimy Ridge in the service of a country that gave him little respect or rights. Indigenous People did not have Canadian citizenship at the time, something that they couldn’t gain without first giving up their status as Indians. Nor could they vote. Yet despite this, the Government of Canada estimates that over 4000 Indigenous People enlisted for the First World War.
According to Brian McInnes, a professor at Minnesota Duluth University and author of the recent book Sounding Thunder: The Stories of Francis Pegahmagabow, the Indigenous soldiers were motivated more by existing relationships with the Crown rather than with the Government of Canada. The motivation in enlisting lay in the fact that many Indigenous soldiers fought to protect a shared homeland. Yet despite their intentions, they still faced great prejudice. They needed to “transcend they Indian-ness to be accepted” McInnes explains.
Kippling had an advantage over many other Indigenous soldiers in that he spoke English, the language of the Canadian Expeditionary Force. He enlisted in Selkirk and was put in the 108th battalion, where he received his training and with which he was sent to England. The 108th was a catchall battalion; anyone from Manitoba was placed here. It was with the 78th Battalion, the Winnipeg Grenadiers, that Kippling lost his life on April 9 1917.

As part of the 12th Brigade, 4th Division, the 78th Battalion was to attack from the northern-most Canadian position, towards the best-defended section of the ridge. Here the Canadian barrage of artillery, which had preceded the infantry assault, did not destroy the German’s concrete tunnels and dugouts as it was supposed to. This resulted in fierce resistance. Such was the resistance that the Canadian soldiers were unable to follow the creeping barrage—a technique where the artillery barrage advances at a steady rate as a means of clearing the path for the infantry. The 78th was to follow another battalion, but the lead battalion had pushed hard into German resistance and had found themselves outflanked. In the confusion the 78th Battalion advanced through to the next objective, the German third line. The few men who reached it did not return and by nightfall of the first day only 200 men survived of the original 700-strong unit.
It is most likely here where Kippling died. In all of the confusion of the opening attack, the heavy snow, the thick mud, the artillery barrage and counter fire from the Germans, Kippling went missing. He was retroactively declared Killed In Action.
His wife, to whom he left everything, survived Kippling. A part of his pay book included a military will, which read “In the event of my death I give the whole of my property to my wife Mrs. Charlotte Kippling.” At only 23-years-old the Kipplings had no children.
Little else is known about Robert Edward Kippling. His name lives on through a handful of memorials scattered across Canada and at his grave in France. But his contribution, and the contributions of all Indigenous soldiers during the First World War to Canada, should not be forgotten. As Canada celebrates in 150th Anniversary the sacrifices of Indigenous People cannot go uncelebrated.

Barrick Gold Struggling for Rebound

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Canada’s Barrick Gold Corporation is facing an uneven path as it tries to reclaim its former stock price and revenue. Amid positive restructuring actions taken after several tumultuous years, including a change in leadership, the company faces a challenging progression ahead.

Coming off of a third quarter ending September 30 2016 that showed less gold produced from its various mines, at only 83% of what it claimed a year prior, Barrick has also posted a minor decrease in net income of 3%. Meanwhile, the total comprehensive income is down by a staggering 26% from last year.

The decrease in gold production comes on the heels of the company selling some mines. The mines were sold in order to service debt. Such a decrease in gold production means that the revenue, at least at this stage, has also decreased.

As well, the reduced revenue comes as the company sold less gold than it did previously (though still more than expected for this quarter).

As well, by increasing its discounted cash flows the company is looking to once again increase its net value. As the company sheds profits and restructures itself in order to better produce gold and service it’s debt, the Barrick Gold Corporation has some challenges ahead.

Paying down the company’s debt remains a priority for Barrick and it has made strides in this area. Barrick has aims to pay down $2 billion in debt this fiscal year and, according to the Q3 report, is on track to do so, paying $461 million this quarter.

Yet Barrick remains at the mercy of the gold market, a notably volatile commodity if ever there was one. This reflects the dramatic change in Barrick’s stock price over the past few years, which had a ceiling of just over $50 and difference of almost $40.

When questioned about the change in stock price, Barrick Senior Vice President Andy Lloyd pointed out the volatility in the market, stating that “[o]ur share price will always be highly correlated to the price of gold, regardless of how well the company is executing on its strategy.” When asked about how Barrick’s new leadership affected the stock price, Lloyd said “virtually every market commentator has credited Mr. [John] Thornton with driving an unprecedented turnaround at the company.” Thornton is the chairman of the company.

Nour El-Khadri, a business professor at the University of Ottawa, believes that the restructuring has been mildly successful and quite strategic. By shedding high cost operations Barrick is looking to increase its profit by decreasing some of its more expensive costs.

Looking forward, Barrick will always have the volatility of gold to deal with. S&P Global, however, expects that the price of gold will increase through 2018. And though it is rated at BBB- S&P Global expects the company to “generate credit ratings that are considered strong for the current rating over the next two years.” The ratings agency also believes that a favourable gold price environment and improvement in Barrick’s cost position can translate into better debt repayment and a freer cash flow.

El-Khadri is somewhat optimistic about the future for the company, which he calls “promising.” As Barrick redesigns its whole business process by reducing its inefficiencies and by partnering with the tech giant Cisco El-Khadri says that the company can expect to have better results for investors. But with all of this being said, El-Khadri doesn’t expect gold to rise over the short term. The comeback continues.

Barrick Gold Stock Price by Nate7 on TradingView.com

Source: TradingView

(To read the annotations from this financial statement, please click on the “Notes” tab at the top.)