Archive | Barrick Gold Corporation

Randgold CEO Says New Barrick to Focus on Cash-Generating Assets – by Rupert Rowling (Bloomberg News – November 6, 2018)

Randgold Resources Ltd. Chief Executive Officer Mark Bristow said the company formed by its merger with Barrick Gold Corp. will focus on high-quality assets to generate cash to boost dividends and shareholder value.

The merger between Barrick and Randgold will also provide momentum for further consolidation within the gold industry, which needs to better compete for global investors, Bristow said in an interview after the release of his company’s third-quarter results.

Key Insights

It’s clear that Bristow, who will become CEO of new Barrick, will employ the same game plan that made Randgold the darling of gold-mining investors. That means focusing on the five tier-1 assets the enlarged company will have in its portfolio and sweating them for cash. Continue Reading →

Large Canadian gold miners ‘to finish year strong’ despite lower prices – EY ( – November 7, 2018)

Despite lower gold prices in the second and third quarters of the year, Canada’s large-cap gold companies are trending towards a stronger second half and most of them are looking to finish the year strong, EY Canada Mining and Metals transaction leader Jay Patel said on Tuesday.

The gold price decreased by 5% in the third quarter, consistent with the decline in the second quarter, mainly owing to the strong US dollar and the recent Federal Reserve rate hike in September.

Patel said that improving grades and production ramp-ups helped senior gold companies to maintain their production guidance for the year, following a challenging second-quarter performance. Continue Reading →

Randgold ready to mediate in Acacia’s Tanzania row before Barrick tie-up – by Zandi Shabalala (Reuters Canada – November 6, 2018)

LONDON (Reuters) – Randgold Resources (RRS.L) said on Tuesday it would mediate in a tax dispute between Tanzania and Acacia Mining (ACAA.L), a firm in which Randgold investors will have a stake if its planned merger with Barrick Gold (ABX.TO) is approved by shareholders.

Randgold Chief Executive Mark Bristow, who will lead the group after the Barrick tie-up, also told Reuters that Barrick could dispose of its Zambian copper mine after the merger.

In Tanzania, the government has accused Acacia, which is 63.9 percent owned by Barrick, of tax evasion and has slapped it with a $190 billion tax charge and banned any exports of unprocessed gold. Acacia denies any wrongdoing. Continue Reading →

Barrick shareholders approve Randgold acquisition – by Niall McGee (Globe and Mail – November 6, 2018)

Barrick Gold Corp. is one step closer to closing its biggest acquisition in seven years with shareholders voting overwhelmingly in favour of its $6-billion (U.S.) takeover of Randgold Resources Ltd.

On Monday, roughly 99 per cent of shareholders voted in favour of its zero-premium, all-stock purchase of Jersey-based Randgold, which operates in Africa.

Unlike Barrick’s $7.3-billion purchase of copper miner Equinox Minerals Ltd. in 2011, which was blamed for destroying billions in shareholder value, this deal has been warmly welcomed by shareholders on both sides since it was announced in late September. Continue Reading →

Tanzania deaths spark criticism of grievance process at Barrick subsidiary – by Geoffrey York (Globe and Mail – November 6, 2018)

Barrick Gold Corp., entering the final stages of its US$6-billion takeover of Africa-focused Randgold Resources Ltd., is facing fresh questions about unresolved grievance claims for dozens of deaths and injuries among villagers around a subsidiary’s mine site in Tanzania.

Barrick subsidiary Acacia Mining says it has sharply reduced the number of violent clashes between Tanzanian police and local villagers who enter its North Mara site in search of waste rock, from which they can extract small bits of gold.

But while the deaths and injuries may have declined, Acacia is still grappling with complaints that its grievance procedure is unfair and has failed to provide proper compensation for the injured and the families of people who were killed. Continue Reading →

Barrick in talks with Newmont to combine Nevada gold operations: sources – by Zandi Shabalala and Clara Denina (Reuters U.S. – November 5, 2018)

LONDON (Reuters) – Barrick Gold Corp, which is being formed by Barrick’s (ABX.TO) $6.1 billion takeover of Randgold Resources (RRS.L), is in talks with Newmont Mining (NEM.N) to combine their Nevada gold mining operations, sources told Reuters.

Last month’s tie-up between Barrick and Africa-focused Randgold Resources revived speculation about a joint venture between Newmont and Barrick in Nevada, something the two mining firms had explored in 2014 without reaching a deal.

“They have been trying to negotiate for years but Newmont couldn’t agree with Barrick, now that you have a new management team, it’s certain they revived those talks,” one source said. Continue Reading →

OPINION: As Barrick gains a new partner, what’s been lost? – by Jennifer Wells (Toronto Star – November 5, 2018)

“There are analysts who a year ago wouldn’t touch Barrick. There are analysts who don’t like the colour of my hair.” I didn’t write about Peter Munk when he died this past March at the age of 90.

But Monday being voting day, in which the merger between Barrick Gold Corp. and Randgold Resources Ltd. will be consummated, seems an appropriate time for an elegy.

I can’t state with certainty the first time I interviewed Munk, but it must have been around 1987 or so. Perhaps earlier. In my memory it was thought by some editor somewhere that handing a youngish woman the mining beat might be a bit of fun, though I didn’t have to write the regular Drill Hole Diary feature, thank goodness. Continue Reading →

Barrick takes $405-million writedown on Peruvian mine – by Niall McGee (Globe and Mail – October 24, 2018)

About a month after announcing its biggest takeover in seven years, Barrick Gold Corp. has announced a hefty write-down on a South American mine and says its full-year gold production will likely be on the lower end of its forecast.

In a release after trading closed on Wednesday, Barrick said it lost US$412-million in the third quarter, driven in large measure by a US$405-million impairment charge at its Lugunas Norte mine in Peru.

Barrick said it had studied whether it could profitably process “refractory” ore, which is a difficult to handle sulphide-rich rock, at Lagunas Norte, but concluded it wasn’t feasible for the time being. In an e-mail, Barrick spokesman Andy Lloyd said it could still be an option at some point in the future. Continue Reading →

Barrick Gold sees potential to expand Tier 1 assets: Thornton – by Susan Taylor (Reuters U.S. – October 25, 2018)

TORONTO (Reuters) – Barrick Gold Corp (ABX.TO) could have nine of the world’s top gold mines in a “relatively short” time under its $6.1 billion acquisition of African miner Randgold Resources Ltd (RRS.L), Barrick Executive Chairman John Thornton said Thursday.

Barrick and Randgold will focus on Tier 1 assets which produce 500,000 ounces of gold annually, have a mine life of more than 10 years and are low cost. The combined company, subject to a Nov. 5 shareholder vote, will have five of the world’s top 10 Tier 1 assets, Thornton said.

“This combination could have as many as nine Tier 1 assets within a relatively short period of time,” he said on a conference call with analysts to discuss quarterly financial results. Continue Reading →

Barrick favours taking back control of Acacia Mining – by Thomas Biesheuvel and Danielle Bochove (Bloomberg News – October 23, 2018)

Barrick Gold Corp. favors taking back control of its separately listed Tanzanian assets after completing its takeover of Africa-focused rival Randgold Resources Ltd., according to people familiar with the situation.

Barrick spun off those assets in 2010 into a company now called Acacia Mining Plc. That unit — listed in London but majority owned by Barrick — has been dogged by operational setbacks and is locked in a dispute with Tanzania’s government. The dispute would need to be resolved before any decision is made.

Acacia shares soared as much as 11 per cent in London before falling back to close up 7.7 per cent. The stock has declined 70 per cent in the past two years. Barrick, which was up 1.6 per cent as of 12:29 p.m. in Toronto, has gained 29 per cent since the merger was announced. Continue Reading →

UPDATE 2-Acacia Mining looks to force talks on Tanzania dispute – by Zandi Shabalala (Reuters U.S. – October 19, 2018)

LONDON, Oct 19 (Reuters) – Acacia Mining threatened to use a bilateral investment treaty to force face-to-face talks with Tanzania over a long-running tax dispute that has seen the gold miner hit with a huge tax bill.

Acacia’s parent Barrick Gold has been negotiating with the Tanzanian government over the issue for 19 months but no final settlement has been reached and Acacia’s management stresses that it wants direct involvement in any talks.

An investment treaty between Tanzania and Britain could compel the east African country to have dialogue with Acacia over a period of six months, interim chief executive Peter Geleta told Reuters. Continue Reading →

Tanzania arrests more senior Acacia executives for corruption – by Geoffrey York (Globe and Mail – October 18, 2018)

JOHANNESBURG – Tanzanian authorities have arrested a senior executive and filed dozens of criminal charges at the beleaguered African subsidiary of Barrick Gold Corp., intensifying a corruption investigation that has cast a shadow over Barrick’s planned merger with African-focused Randgold Resources Ltd.

The latest arrest is part of an investigation in which 39 charges have been filed against company subsidiaries, employees and former employees for tax evasion, corruption, forgery, conspiracy and money-laundering, according to a statement on Wednesday by Barrick subsidiary Acacia Mining PLC.

The charges date back as far as 2008 and “appear to relate to the historical structuring and financing” of the mines that eventually formed part of Acacia, the company said. Continue Reading →

Editorial: Gold majors jostle for attention in Denver – by John Cumming (Northern Miner – October 9, 2018)

Northern Miner

The pecking order within the global gold mining industry is never more on display each year than at the Denver Gold Forum in September, with miners and developers of all sizes converging to capture the attention of big investors.

After a tough several years that saw the near wholesale changeover amongst execs of the top gold miners, the presidents and CEOs that presented were a familiar bunch.

In its presentation this year, Newmont Mining, the world’s largest gold mining company — at least for now — highlighted that it is already five years into its sweeping, companywide plan to create long-term value. Continue Reading →

Barrick maintains forecasts ahead of Randgold vote – by Susan Taylor (Reuters U.S. – October 10, 2018)

TORONTO (Reuters) – Canada’s Barrick Gold Corp, which recently announced a $6.1 billion deal to acquire Randgold Resources Ltd, affirmed its 2018 gold and copper production forecast on Wednesday, reflecting improvements in operations.

Citing preliminary data, Barrick said its 2018 effective tax rate was expected at about 48 to 50 percent, up from a previous forecast of 44 to 46 percent, because of lower-than-expected sales from lower-tax mines. More details are expected when it reports quarterly results on Oct. 24.

In the third quarter, Barrick said it sold 1.2 million ounces of gold and 114 million pounds of copper, and produced 1.15 million ounces of gold and 106 million pounds of copper. Continue Reading →

Randgold CEO pushed for takeover by Barrick as opposed to buying assets – by Niall McGee (Globe and Mail – October 6, 2018)

Barrick Gold Corp. considered merely selling assets to African gold major Randgold Resources Ltd. but as talks progressed, the prospect of a takeover took centre stage.

A regulatory filing released by Barrick on Friday sheds more light on how the two gold majors got together, a process that took about four years, and is the biggest deal in the gold sector in seven years. The management information circular also shows that Barrick director Nancy Lockhart resigned on the eve of the US$6-billion takeover announcement and did not attend the final board meeting.

After becoming executive chair of Toronto-based Barrick in April, 2014, John Thornton held “periodic meetings” with Mark Bristow, Randgold’s founder and chief executive, to discuss “potential strategic opportunities,” according to the circular. Continue Reading →