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Barrick Gold Corporation

CORRECTED-UPDATE 2-PNG puts Barrick, Zijin on notice over Porgera gold mine negotiations – by Jonathan Barrett and Mell Chun (Reuters Africa – August 19, 2019)

https://af.reuters.com/

SYDNEY, Aug 19 (Reuters) – Papua New Guinea plans to take a larger share of the Porgera gold mine as part of lease-renewal talks, diluting the ownership of joint venture partners Barrick Gold Corp and Zijin Mining Group, the country’s commerce minister told Reuters on Monday.

The planned changes are part of a push by the South Pacific archipelago to transform its economy under new government leadership amid a perceived lack of benefits flowing from resources projects back to communities.

Porgera, located in PNG’s northern highlands region, is expected to produce 240,000 to 260,000 ounces of gold this year. Barrick and Zijin each own 47.5% of the mine, with the remaining 5% held by landowner group, Mineral Resources Enga.

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Barrick Gold eyeing sale of 50-per-cent share in Australian mine – by Niall McGee (Globe and Mail – August 12, 2019)

https://www.theglobeandmail.com/

Barrick Gold Corp. is planning to sell its 50-per-cent share in the Kalgoorlie mine in Australia and has identified two Australian companies as possible buyers.

“There’s a lot of very interested parties in that asset, whether it’s Northern Star or Evolution [Mining]. Those mid-cap Aussie guys are doing extremely well,” Barrick CEO Mark Bristow said in an interview after the release of the company’s second-quarter results on Monday. Neither Northern Star nor Evolution responded to a request for comment.

After Barrick bought Randgold Resources Ltd. for US$6-billion earlier this year, the company said it intended to divest about US$1.5-billion in assets to concentrate on its highest-returning assets, such as its mines in Nevada and its massive Pueblo Viejo mine in the Dominican Republic, which needs about US$1-billion in capital expenditure over the next few years.

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‘A lot of boxes ticked’: Barrick roars through summer as rival Newmont struggles with former Goldcorp mines – by Gabriel Friedman (Financial Post – August 14, 2019)

https://business.financialpost.com/

On Monday morning, Barrick Gold Corp.’s chief executive Mark Bristow visited the mining giant’s Toronto headquarters to announce second quarter earnings, and to take a victory lap on what’s shaping up to be a good summer.

“It’s a been a fun six months,” Bristow told the assembled analysts, bankers, journalists and others. “Today, I’m glad to share with you the enormous progress our teams have made.”

Barrick recently negotiated to purchase its troubled subsidiary in Tanzania, trimmed overhead and helped make other cost saving moves that helped propel its stock up 50 per cent since June.

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Barrick posts profit jump, flags significant work ahead on Acacia – by Nichola Saminather and Shanti S Nair (Reuters U.S. – August 12, 2019)

https://www.reuters.com/

(Reuters) – Barrick Gold Corp (ABX.TO) (GOLD.N) reported quarterly adjusted profit that nearly doubled on higher production on Monday, and said it has a “great deal of work” ahead resolving problems around its African unit, whose buyout the company expects to complete next month.

Barrick also said it plans to begin the sale process for its 50% stake in the Kalgoorlie operation in Western Australia in the third quarter. Newmont Goldcorp (NEM.N) owns the remainder.

The world’s second-largest gold producer reported adjusted profit of $154 million, or 9 cents per share, in the second quarter ended June 30, up from $81 million, or 7 cents per share, a year earlier.

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BAANG Vs. FAANG Stocks: Here’s Why You Can’t Go Wrong With These Gold Miners – by Anna Golubova (Kitco News – July 25, 2019)

https://www.kitco.com/

(Kitco News) – Could BAANG be the new FAANG? This new basket of gold miners should not be missed this year, according to Wolfe Research, which came up with the index that includes Barrick Gold, AngloGold, Agnico Eagle Mines, Franco-Nevada and Gold Fields.

“We made this index BAANG in homage to the fading FAANG,” Wolfe Research technical analyst John Roque told CNBC this week.

Roque sees his BAANG index following the same upward trajectory as gold. “[These miners are] much like gold … An excessively low-interest rate is a great environment for gold,” he said.

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Barrick Gold sweetens offer, Acacia agrees to takeover deal in Tanzania – by Niall McGee (Globe and Mail – July 20, 2019)

https://www.theglobeandmail.com/

Barrick Gold Corp. and Acacia Mining PLC have reached agreement on terms of a takeover deal that could put an end to a geopolitical quagmire that has engulfed both companies for more than two years.

On Friday, Barrick announced plans to acquire the 36.1 per cent of Acacia it doesn’t already own for US$428-million by paying 0.168 of its own stock for each Acacia share.

In 2017, the Tanzanian government accused London-based Acacia of US$200-billion in tax fraud and banned it from exporting gold and copper concentrate. The development crippled production at two of its three mines in the East African country. Tanzania has refused, for the most part, to even engage with Acacia in talks to end the dispute.

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Barrick set to take full control of Acacia after raising bid – by Nichola Saminather, Barbara Lewis and Zandi Shabalala (Reuters Canada – July 19, 2019)

https://ca.reuters.com/

TORONTO/LONDON (Reuters) – Barrick Gold Corp has struck a deal to buy out its fellow shareholders in Acacia Mining with a higher bid than originally proposed, raising expectations Acacia’s long-running tax dispute with the Tanzanian government will finally be resolved.

The original buyout proposal from Barrick, which owns 63.9% of Acacia, drew accusations from minority shareholders that Barrick was taking advantage of the Tanzania-focused company’s woes to buy it on the cheap. But Acacia acknowledged that a takeover would be the best solution to its problems.

The improved bid was welcomed by the company and investors, with Acacia shares jumping as much as 20% on Friday. They were trading at 222 pence, their highest since April, at 1453 GMT (10:53 a.m. EDT).

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Acacia faces Tanzanian roadblock as Barrick bid set to expire – by Niall McGee (Globe and Mail – July 18, 2019)

https://www.theglobeandmail.com/

Acacia Mining PLC is facing a new threat to its African gold-mining operations, as it pushes for a higher takeover offer from parent company Barrick Gold Corp.

In a statement on Wednesday, Acacia said that Tanzania’s environment regulator has ordered it to close the tailings management facility at its North Mara mine by Saturday morning, citing a “failure to contain and prevent seepage.”

The directive threatens to cripple production at the mine, which accounted for about two-thirds of Acacia’s gold output last year. The development isn’t coming entirely out of the blue. In May, Acacia was fined for environmental breaches at North Mara, and in January, Tanzania told Acacia it must completely rebuild and redesign the facility.

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Barrick Gold just won a US$5.83B arbitration award, but getting paid may be a different story – by Gabriel Friedman (Financial Post – July 16, 2019)

https://business.financialpost.com/

Collecting such high-value awards is far from simple or guaranteed

The World Bank’s International Centre for the Settlement of Investment Disputes has ordered the Islamic Republic of Pakistan to pay US$5.83 billion to a Barrick Gold Corp. joint venture subsidiary for blocking a mining project nearly a decade ago.

It marks the latest in a string of high-value arbitration awards that Canadian resource companies have won against foreign countries in recent years, although collecting such awards is far from simple or guaranteed.

Barrick, which jointly owns the subsidiary with Chilean copper company Antofogasta Plc, long ago dropped the project from most of its investor materials. On Monday, both companies signalled an interest in settling the matter with Pakistan, which is set to receive billions of dollars in loans from the International Monetary Fund as it struggles to revive its economy.

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Acacia Mining, independent consultant push Barrick Gold to increase takeover offer – by Niall McGee (Globe and Mail – July 10, 2019)

https://www.theglobeandmail.com/

Barrick Gold Corp. has been given more time to table a formal takeover bid for Acacia Mining PLC, as its London-based subsidiary pushes for a materially higher offer.

On Tuesday, just hours before a deadline set by a British takeover panel was set to expire, Barrick was granted a 10-day extension to consider a report by an independent mining consultant that argues Acacia is worth about 38 per cent more than Barrick is willing to pay.

In a release, Acacia said that SRK Consulting (UK) Ltd. has calculated the “preferred” value for Acacia to be 271 pence ($4.45) a share. In May, Toronto-based Barrick said it was willing to pay 0.153 of its own shares for each Acacia share it doesn’t already own, or roughly 197 pence a share.

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Barrick and Newmont Goldcorp launch Nevada Gold Mines (Mining Technology – July 2, 2019)

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

Barrick Gold and Newmont Goldcorp have concluded a transaction establishing Nevada Gold Mines. Canadian mining company Barrick Gold will own 61.5% of the new company, while Newmont takes the remaining 38.5%.

The joint venture (JV) assets in North-eastern Nevada comprise ten underground and 12 open pit mines, two autoclave facilities and two roasting facilities. It also consists of four oxide mills, a flotation plant and five heap leach facilities.

Barrick Gold president and CEO Mark Bristow said: “The establishment of Nevada Gold Mines was designed to combine arguably the industry’s best assets and people in order to deliver the best value to stakeholders.

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Barrick doubles down on allegations of overvaluation by Acacia – by Niall McGee (Globe and Mail – June 27, 2019)

https://www.theglobeandmail.com/

Barrick Gold Corp. says its proposal to acquire Acacia Mining PLC is “fair,” and it’s doubling down on claims that its London-based subsidiary has overvalued some of its mines.

In a statement on Wednesday, Barrick said that “certain assumptions made by Acacia in relation to its mine plans are not appropriately risked or supportable and that adjustments should be made.”

Last week, Barrick expressed skepticism about the true value of some of Acacia’s assets, suggesting its own analysis shows that Acacia may be overestimating grade and underestimating costs at some of its mines.

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Acacia Mining says Barrick Gold offer doesn’t fairly value mining company – by Niall McGee (Globe and Mail – June 25, 2019)

https://www.theglobeandmail.com/

Acacia Mining PLC says Barrick Gold Corp.’s takeover proposal undervalues the company, prompting Acacia to push its biggest shareholder to table a “fair” bid.

Last month, Toronto-based Barrick said it was willing to acquire the 36.1 per cent of London-based Acacia that it doesn’t already own for US$285-million in stock. At the time, the proposal was worth roughly 9 per cent less than Acacia’s market value.

Barrick chief executive Mark Bristow told The Globe and Mail that the discounted proposal was justified because of the inherent risk Acacia presents: It operates three gold mines in Tanzania and is currently subject to a gold concentrate export ban in the East African country.

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Acacia Mining says Barrick offer undervalues the company – by Noor Zainab Hussain and Nichola Saminather (Reuters U.S. – June 24, 2019)

https://www.reuters.com/

(Reuters) – Acacia Mining on Monday strongly disagreed with majority shareholder Barrick Gold Corp’s valuation of the company, saying Barrick’s proposal undervalued its life of mine plans and appears to have ignored the value of its exploration and development assets.

However a fair value buyout offer from the world’s No. 2 gold miner would be attractive, it added.

Barrick’s proposal to take full control of its African unit to resolve a long-standing tax dispute with Tanzania has drawn the ire of Acacia’s minority shareholders, who may have the ultimate vote on a deal.

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Reporters investigated abuse and corruption at a Barrick gold mine in Tanzania. They faced threats and censorship – by Marion Guégan and Cécile Schilis-Gallego (Toronto Star – June 19, 2019)

https://www.thestar.com/

In Tanzania, reporters trying to investigate violence, environmental damage and other wrongdoing connected to a gold mine in the north of the country are trapped between the silence of a mining giant and the lies of a repressive government.

At least a dozen reporters — local and international — who wrote about the mine have been censored or threatened. Forbidden Stories, an international consortium of 40 journalists publishing in 30 media organizations around the world, unveiled the shameful history of gold leaving the North Mara gold mine to end up in coveted high tech phones and computers.

This is part of the “Green Blood” series, a project pursuing stories of journalists who have been threatened, jailed or killed while investigating environmental issues.

“Truly innovative products leave their mark on the world instead of the planet,” Apple proudly claims on its website. “We are building a better world for future generations,” says Canon’s CEO. Nokia’s “technology improves lives.”

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