Archive | Barrick Gold Corporation

Barrick proposes low-ball buyout offer for beleaguered Tanzanian subsidiary Acacia – by Gabriel Friedman (Financial Post – May 23, 2019)

https://business.financialpost.com/

Barrick offered a nine per cent discount to the London-listed Acacia’s closing price, valuing it at US$787 million

Earlier this month, Barrick Gold Corp. chief executive Mark Bristow had said his company would consider buying out minority shareholders in its embattled subsidiary, Acacia Mining Plc, but only at the right price.

“The problem is that we are not prepared to overpay for these assets,” Bristow said. On Wednesday, the Toronto gold company made its price clear — proposing a share swap at 0.1533 of a Barrick share for each Acacia share in an offer that values the smaller company at US$787 million.

That’s a nine per cent discount to the London-listed company’s closing price on Tuesday, which comes on top of a 68 per cent decline since 2017 amid an ongoing dispute with Tanzanian authorities, which slapped a US$190 billion tax bill and banned the export of processed metals. Continue Reading →

No ‘instant gratification’ at Barrick as CEO Mark Bristow confronts rising costs – by Gabriel Friedman (Financial Post – May 9,, 2019)

https://business.financialpost.com/

Mark Bristow is playing a new role. After spending decades finding and building his own mines, the South African geologist who built a widely admired gold company in sub-Saharan Africa that was taken over by Barrick Gold Corp. in January for $6 billion, is now trying to wring profits out of gold mines that someone else found and built — and then operated for years, sometimes making decisions that he cannot undo.

Bristow is about four months into his job as chief executive of Barrick, and production at the world’s second-largest gold miner is set to increase as much as 23 per cent to between 5.1 and 5.6 million ounces this year.

But costs are also up: share slid about 1.18 per cent to close at US$12.57 Wednesday in New York after it reported all-in sustaining costs would rise from US$806 per ounce in 2018 to between US$870 and US$920 an ounce. Continue Reading →

Barrick CEO Expects to Raise $1.5 Billion in Asset Sales – by Danielle Bochove (Bloomberg News – May 8, 2019)

https://www.bloomberg.com/

Barrick Gold Corp., which completed its acquisition of Randgold Resources Ltd. at the beginning of the year, has identified $1.5 billion in assets the miner intends to sell, Chief Executive Officer Mark Bristow said.

“Our focus is realizing $1.5 billion through next year,” Bristow said Wednesday in an interview in Toronto. The assets will be sold once they are optimized enough to create sufficient value for shareholders, he said.

The gold sector has been anticipating a wave of asset sales in the wake of Barrick’s US$5.4 billion acquisition of Randgold and a second mega-merger that created Newmont Goldcorp Corp. Continue Reading →

Barrick to shift focus away from free cash flow as first-quarter profit falls – by Niall McGee (Globe and Mail – May 8, 2019)

https://www.theglobeandmail.com/

A slimmed-down Barrick Gold Corp. posted a mixed earnings statement in its first quarter after closing its biggest acquisition in seven years.

With its previously high debt load now largely under control, Barrick also said in a Wednesday news release it is shifting its focus away from free cash flow to exploiting its ore bodies.

Net profit at the Toronto-based miner fell 30 per cent year over year to US$111-million from US$158-million for the period ending March 31. Continue Reading →

Newmont Bondholder Revolt May Put Barrick on Hook for Debt – by Molly Smith and Danielle Bochove (Bloomberg News – April 10, 2019)

https://www.bloomberg.com/

Barrick Gold Corp. could find itself partially liable for $600 million in additional debt if some Newmont Mining Corp. bondholders have their way.

The creditors are trying to block an amendment Newmont is seeking for a large tranche of notes associated with its operations in Nevada, according to people with knowledge of the matter. The change would prevent liability for those bonds from shifting to Barrick after the companies’ recently announced joint venture in the state is completed.

A majority of holders of Newmont’s $600 million of bonds due 2035 have organized and submitted their rejection to the proposed change, the people said, asking not to be identified as the discussions are private. Continue Reading →

Barrick Gold’s John Thornton sees compensation surge in 2018 amid lacklustre share performance – by Niall McGee (Globe and Mail – April 6, 2019)

https://www.theglobeandmail.com/

Barrick Gold Corp.’s top executive saw his pay package surge in 2018 – a lacklustre year for shareholders that saw the miner strike its biggest acquisition in seven years.

In a regulatory document released on Friday, Barrick said executive chairman John Thornton earned US$12.8-million last year, a two-thirds increase compared with the US$7.7-million he made in 2017.

The bulk of Mr. Thornton’s compensation was a US$9.7-million long-term incentive payment, the majority of which must be put toward share purchases. That stock must then be held by Mr. Thornton until he leaves the company and the minimum holding period is three years. Continue Reading →

Wrestle mania: inside the Goldcorp-Newmont-Barrick mega deal – by Heidi Vella (Mining Technology – April 2, 2019)

https://www.mining-technology.com/

As Newmont Mining continues to proceed with its $10bn takeover deal of gold-miner Goldcorp, in a shock move, rival Barrick Gold instigated a hostile $18bn takeover bid of Newmont. Heidi Vella takes a look at the potential combinations and their possible impact on the North American gold mining sector.

As 2019 kicked-off, Colorado-based Newmont and Canadian-based Goldcorp announced the two companies had struck a deal to merge, in a move that would see them become one of the biggest mining firms in the world. The following month, the firms’ consolidation overcame its first hurdle after it was approved by both Canadian and Korean regulators.

However, in a surprise move in February, Newmont received an acquisition proposal from Canadian-based mining behemoth Barrick – one of the largest gold mining companies in the world. Continue Reading →

Newmont, under pressure over Goldcorp deal, offers dividend to shareholders – by Niall McGee and Rachelle Younglai (Globe and Mail – March 26, 2019)

https://www.theglobeandmail.com/

Newmont Mining Corp. plans to pay its shareholders a one-time dividend worth US$470-million after a number of its biggest investors pushed for the giant miner to redo the terms of its US$10-billion takeover of Goldcorp Inc.

The sweetener makes it more likely that Colorado-based Newmont will win support from its shareholders, who are set to vote on the transaction in a couple of weeks. If Newmont succeeds, it will bypass Barrick Gold Corp. and become the biggest gold company in the world by market value, production and reserves.

In January, Newmont announced a friendly deal buy Goldcorp in a mostly stock transaction, at a premium of 17 per cent. But some Newmont investors argued the offer was too high considering Goldcorp’s poor past performance. Continue Reading →

Bristow’s masterstroke gives Barrick control of Newmont’s Nevada assets — but now he must deliver – by Gabriel Friedman (Financial Post – March 16, 2019)

https://business.financialpost.com/

Barrick CEO Mark Bristow says investor’s poor reaction to the Newmont-Goldcorp merger created an opportunity and he pounced

One day after announcing a deal to effectively create the world’s third largest gold company, Mark Bristow, chief executive of Barrick Gold Corp., stayed in Elko, Nevada — a dry, rugged city situated near the Carlin Trend, one of the world’s richest gold mining districts — to assemble the team responsible for executing his promises.

For decades, Toronto-based Barrick Gold Corp. and its archrival Colorado-based Newmont Mining Corp., the two biggest gold mining companies in the world, have fuelled a large part of their growth through discoveries along the Carlin Trend, and tried numerous times to reach an accord to work together there.

Now, Bristow, 12 weeks into his tenure at the helm of Barrick, is holding up a joint venture agreement with Newmont to share assets in Nevada, which he claims will save both companies US$500 million per year, and billions of dollars over the long run. What’s more the deal was ramrodded through in a matter of days while Bristow proposed a $17.8 billion hostile offer to takeover all of Newmont. Continue Reading →

The huge risks and rewards of [Barrick’s] Papua New Guinea’s Porgera gold mine – by David James (Business Advantage PNG – March 13, 2019)

https://www.businessadvantagepng.com/

The Porgera gold mine in Papua New Guinea’s Enga Province is a world class gold mine but, as Executive Director for Barrick (Niugini) Ila Temu explains, it is also one of the world’s most difficult mines to operate.

Drainage, breakdowns in the infrastructure and illegal mining are the three challenges Porgera miners and executives face.

But the rewards are also great. Despite the severe obstacles, Porgera’s production in 2017 was about 500,000 ounces of gold and 204,000 in 2018 (with production affected by the Highlands earthquake).

Barrick Gold Corporation’s new President and CEO, Mark Bristow, explained during his recent trip to Papua New Guinea that the future of the Porgera mine is considered promising. ‘When you look at the current plans of Porgera, it has the potential to be able to deliver 500,000 ounces [per annum] for the next 10 years,’ he reportedly said. Continue Reading →

Barrick drops $18-billion hostile bid, signs Nevada joint venture with Newmont Mining – by Niall McGee and Rachelle Younglai (Globe and Mail – March 12, 2019)

https://www.theglobeandmail.com/

Barrick Gold Corp. and Newmont Mining Corp. have agreed to team up in a joint venture in Nevada that will see Barrick drop its hostile bid for its biggest rival and unite the world’s two biggest gold miners in one of the richest goldfields on the planet.

The accord means Colorado-based Newmont is far more likely to succeed in its efforts to buy Goldcorp Inc. and bypass Barrick as the world’s biggest gold company. Barrick’s pursuit of Newmont had threatened to derail the US$10-billion deal that was announced in January.

The Barrick-Newmont ownership split announced on Monday will be 61.5 per cent in favour of Barrick with the Toronto-based miner also named as the operator. The agreement will see gigantic mines, including Barrick’s Goldstrike and Cortez operations, along with Newmont’s Carlin, unite under one roof. Continue Reading →

Gold Miners Don’t Quite Put a Ring on It – by Liam Denning (Bloomberg News – March 11, 2019)

https://www.bloomberg.com/

Barrick and Newmont finally strike a deal, but it won’t move the needle much.

It’s amazing what just talking it out can achieve. After a parade of insults, suspect numbers and pitch decks, Barrick Gold Corp. and Newmont Mining Corp. have agreed to a deal.

It isn’t the deal Barrick originally pushed for; namely, a hostile full takeover of its rival. Instead, they will holster their Excel models and form a partnership in the one asset anyone really cares about: their Nevada mining operations.

On balance, it looks as if Barrick got most of what it wanted. It will run the Nevada joint venture and control three of the five board seats governing it. Ownership of 61.5 percent reflects Barrick’s much bigger resource base in the region (as my colleague David Fickling laid out here), with Newmont giving ground on its earlier proposal of a 55/45 split. Continue Reading →

Is the Barrick-Newmont joint venture a ‘stepping stone’ to a bigger deal? – by Gabriel Friedman (Financial Post – March 12, 2019)

https://business.financialpost.com/

When asked if the venture was a prelude to something else, Barrick CEO Mark Bristow chuckled: ‘I’m not prepared to comment on that’

Barrick Gold Corp. and Newmont Mining Corp., the two largest gold producers in the world, ended their feud Monday and agreed to work together in the Nevada desert where both companies operate vast mining complexes.

Almost immediately, questions surfaced about whether it was a prelude to a larger deal between the two giants and Barrick chief executive Mark Bristow declined to rule out such an idea. Asked by one analyst whether the Nevada joint venture is merely “a stepping stone” to greater consolidation, Bristow chuckled.

“I’m not prepared to comment on that,” he said.As part of that agreement announced Monday, however, Toronto-headquartered Barrick agreed to drop its US$17.8 billion hostile bid for Colorado-headquartered Newmont and to commit to a two-year standstill that prevents further action. Continue Reading →

Tanzania orders cleanup at Acacia gold mine, threatens closure – by Fumbuka Ng’wanakilala (Reuters U.K. – March 7, 2019)

https://uk.reuters.com/

DAR ES SALAAM (Reuters) – Acacia Mining Plc must halt waste water pollution at its North Mara gold mine in Tanzania by March 30 or the facility will be shut down, the country’s mining minister said on Friday.

Doto Biteko said Acacia needs to stop contaminated water seeping from a waste storage dam at the mine to nearby communities in the country’s north.

“The life of even one Tanzanian is worth more than their gold mining activities,” Biteko told Reuters. Acacia Mining said it had stopped a temporary overspill at the mine, blaming vandals for destroying sections of the pipe it uses to move waste water. Continue Reading →

Barrick Withdraws $17.8 Billion Hostile Bid for Newmont – by Joseph Richter and Danielle Bochove (Bloomberg News – March 11, 2019)

https://www.bloomberg.com/

Barrick Gold Corp. is withdrawing its $17.8 billion hostile takeover bid for Newmont Mining Corp., with the companies opting instead to forge a joint venture around their Nevada projects.

The change came weeks after Barrick proposed an all-share offer that would have created the world’s largest gold producer. After Newmont’s board rejected the bid, Newmont Chief Executive Officer Gary Goldberg proposed the joint venture as an alternative both companies could gain from.

Barrick’s decision ends two weeks of animosity between the gold producers, and helps Newmont focus on securing shareholder approval for its previously announced offer to buy Goldcorp Inc. Newmont raised doubts about the Barrick bid from the start, saying its Goldcorp move offered better benefits. Continue Reading →