Barrick Gold Retreats From Digital Reinvention – by Alistair MacDonald and Jacquie McNish (Wall Street Journal – December 6, 2018)

https://www.wsj.com/

CEO Mark Bristow plans to sell a variety of noncore core assets, cut costs and shrink head-office management

Barrick Gold Corp. ABX +2.11% , the world’s largest gold miner, is selling a research-and-development company it owns and is cutting staff hired to lead what executives had called a digital reinvention, championed by Executive Chairman John Thornton, people familiar with the matter said.

The move comes shortly after the company agreed to buy Randgold Resources Ltd. GOLD +2.13% for $6 billion in an all-share merger—a move that would solidify Barrick as the world’s largest gold producer by output.

That merger is set to close in January, and incoming Chief Executive Mark Bristow has said he plans to sell a variety of noncore assets, cut costs and shrink head-office management in an effort to delegate more authority to regional mining operations.

One of the first assets to go on the block is Barrick-owned AuTec Innovative Extractive Solutions Ltd., a Vancouver-based company that specializes in testing mineral samples and processing, people familiar with the matter said.

In recent months, Barrick has also disbanded or shrunk technology based teams at its head office in Toronto and at mining operations in Nevada, people familiar with the matter said.

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