Barrick Gold Corporation – Page 15

OPINION: Barrick’s promises of golden synergies won’t be enough to snag Newmont – by Eric Reguly (Globe and Mail – February 26, 2019)

February 26, 2019

https://www.theglobeandmail.com/

Barrick Gold just traipsed into a potentially nasty battle short of ammunition.

On Monday morning, John Thornton, Barrick’s executive chairman, and CEO Mark Bristow unveiled a nil-premium, all-share offer for Colorado’s Newmont Mining. Hostile offers generally come with juicy premiums or else they don’t work, and this bid is already not working.

Were it to succeed, the audacious bid, which comes shortly after both companies announced transformative mergers of their own, would unite the two biggest names in gold mining, creating a colossus with gold operations on four continents, annual revenue of US$15.6-billion and trading liquidity that, to use Barrick’s politically incorrect term, would “dwarf” the competition.

Barrick Gold, Newmont Mining CEOs argue over size as analysts question benefits of megamerger – by Gabriel Friedman (Financial Post – February 26, 2019)

February 26, 2019

https://business.financialpost.com/

Toronto-based Barrick Gold Corp. executives used to claim that unlike other companies in the precious metals industry, they would never make acquisitions to grow their footprint and size.

But on Monday after proposing a nearly $18-billion takeover of Colorado-based Newmont Mining Corp. — a deal that if consummated would create the world’s largest gold producer, with an estimated $42-billion market cap, by a distance — Barrick chief executive Mark Bristow acknowledged that being large is critical.

“The point is we really want to attract generalists back into the industry,” Bristow said on the conference call with investors. “We want to be relevant and we think that $40 billion is relevant.”

Barrick CEO defends $18 billion hostile Newmont bid as logical tie-up – by Ernest Scheyder (Reuters U.S. – February 25, 2019)

February 25, 2019

https://www.reuters.com/

HOLLYWOOD, Fla. (Reuters) – Barrick Gold Corp’s chief executive defended the world’s largest gold producer’s hostile $18 billion bid for Newmont Mining Corp, saying on Monday the deal is “logical” for an industry battling high costs and depleting resources.

Barrick, which recently completed a $6.1 billion acquisition of Africa-focused Randgold Resources, launched its all-stock bid on Monday, encouraging the U.S. rival to ditch a previously announced $10 billion takeover of Canada’s Goldcorp Inc.

“This gold industry needs to become more relevant to investors,” CEO Mark Bristow said in an interview on the sidelines of the BMO Global Metals & Mining Conference in Hollywood, Florida.

Barrick goes hostile with $18-billion all-stock bid for U.S. rival Newmont – by Niall McGee (Globe and Mail – February 25, 2019)

February 25, 2019

https://www.theglobeandmail.com/

Barrick Gold Corp. is offering to buy Newmont Mining Corp. in an unsolicited, all-share, no-premium transaction, claiming it is a “once in a lifetime” opportunity to create an ‘unrivalled leader” in the global gold sector.

In a statement before markets opened on Monday, Barrick said it is offering 2.5694 shares for each Newmont share in a deal worth approximately US$17.8-billion.

Toronto-based Barrick says its proposal is far superior to Newmont’s US$10-billion offer to buy Goldcorp Inc., which was announced last month but hasn’t yet closed.

Barrick Gold Makes Hostile $17.8 Billion Bid for Newmont Mining – by Danielle Bochove and Ed Hammond (Bloomberg News – February 25, 2019)

February 25, 2019

https://www.bloomberg.com/

Barrick Gold Corp. is going hostile in its bid to acquire Newmont Mining Corp. and create the world’s largest gold producer, offering $17.8 billion for the company in an all-share deal. Shares of both companies tumbled.

The proposed purchase, which is a discount to Newmont’s closing price on Friday, raises the potential for a three-way fight between some of the world’s largest gold miners. Newmont said its board would review the deal but made clear its previously announced plan to take over Goldcorp Inc. offers better benefits.

“Newmont has previously determined that Barrick’s risk and return profile is inferior on many fronts, including factoring Barrick’s comparatively ineffective operating model, poor track record on delivering shareholder returns and unfavorable jurisdictional risk,” the Colorado-based company said in a statement Monday.

Barrick confirms weighing bid for Newmont Mining in no-premium deal – by Niall McGee (Globe and Mail – February 23, 2019)

February 23, 2019

https://www.theglobeandmail.com/

A hostile bid for Newmont Mining Corp. may force its shareholders into a tough decision: proceed with plans to acquire and turn around an industry laggard, or be swallowed by a long-standing rival.

Barrick Gold Corp. confirmed Friday that it has examined an all-stock takeover offer to acquire Colorado-based Newmont. Toronto-based Barrick said the bid it was contemplating would not contain a takeover premium, but the news sent Newmont shares 3 per cent higher, indicating some investors believe a formal offer will come.

The Globe and Mail reported Thursday that Barrick is mulling a US$19-billion takeover of Newmont that would involve the company flipping some Newmont assets to another company, possibly Australia’s Newcrest Mining. Bloomberg also reported Thursday night that Barrick had studied a bid.

OPINION: Barrick may have to pay fat premium for Newmont – by Eric Reguly (Globe and Mail – February 23, 2019)

February 23, 2019

https://www.theglobeandmail.com/

The marriage of Toronto’s Barrick Gold and Denver’s Newmont Mining, the two big beasts of the gold world, should have happened a long time ago. The theoretical deal made perfect sense because combining their properties in Nevada could save fortunes, all the better to reward shareholders.

And since the top mining companies tend to be run by egomaniacs obsessed with size, the union would come with bragging rights. Barrick-Newmont would bury the competition.

Mark Bristow, the new chief executive of Barrick, has revived the idea of a blockbuster Barrick-Newmont merger. If there is any executive in the mining industry who could pull off such a stunt, it is him. He has the chutzpah and his track record of superb value creation at his old haunt – Randgold Resources, which Barrick bought last year – might ensure the support of investors.

Barrick-Newmont ‘makes no sense’: Pierre Lassonde blasts deal chatter – by Noah Zivitz (BNN Bloomberg News – February 22, 2019)

February 23, 2019

https://www.bnnbloomberg.ca/

One of the most prominent names in the mining industry is blasting the mere possibility of Barrick Gold Corp., calling its potential hostile takeover bid for Newmont Mining Corp. “stupid.”

“Someone is having fun with the press,” said Pierre Lassonde, chairman of Franco-Nevada Corp. (), in an emailed statement to BNN Bloomberg. “A hostile bid in this environment is stupid. [Barrick’s] stock would get crushed.”

Barrick () confirmed in a short press release Friday morning that it has “reviewed the opportunity” to merge with Newmont () in what the company said would be an all-stock, no premium offer. Barrick added it hasn’t decided how it will proceed.

Barrick eyes hostile bid as Newmont set to become No. 1 gold producer – by Niall McGee and Rachelle Younglai (Globe and Mail – February 21, 2019)

February 21, 2019

https://www.theglobeandmail.com/

Barrick Gold Corp. is mulling a takeover bid for Newmont Mining Corp., a transaction that would represent one of the largest mining deals ever and solidify the Toronto-based company’s position as the world’s largest gold producer.

Barrick is actively working on a plan for a two-step deal that would see it take over Colorado-based Newmont for about US$19-billion in stock, then flip some of Newmont’s assets to Australia’s Newcrest Mining, according to industry sources familiar with the situation.

The sources, who were granted anonymity by The Globe because they were not authorized by their employers to speak publicly, cautioned that there are still a number of hurdles. One of those obstacles is winning support from shareholders of Newmont. The company is attempting to close its own US$10-billion acquisition of Vancouver miner Goldcorp Inc., which was only announced last month.

Barrick outlines agreement with Tanzania aimed at ending Acacia gold export ban – by Niall McGee (Globe and Mail – February 21, 2019)

February 21, 2019

https://www.theglobeandmail.com/

Barrick Gold Corp. has reached a new agreement with Tanzania that may finally end a punishing multiyear gold-export ban at its subsidiary Acacia Mining PLC that has weighed heavily on the share prices of both companies.

The development comes about six weeks after skilled African operator Mark Bristow took over as the new chief executive officer of Toronto-based Barrick.

The latest proposal would see Acacia split “economic benefits,” including taxes and royalties from its Tanzanian mines, 50/50 with the East African country. Acacia would also pay Tanzania US$300-million to resolve a long-running tax dispute. While the agreement is similar to one announced in late 2017, the tax penalty can be paid over time, instead up front. Barrick says it will present a proposal to Acacia in the “near future.”

Barrick details proposal to settle Acacia dispute with Tanzania – by John Benny (Reuters Canada – February 20, 2019)

February 20, 2019

https://ca.reuters.com/

(Reuters) – Canadian miner Barrick Gold outlined on Wednesday details of a deal it reached with the government of Tanzania to settle its disputes with Acacia Mining, including a $300 million payment to resolve tax claims in the country.

The news sent London-listed shares in Acacia, which is 63.9 percent owned by Barrick, up 6 percent to their highest since October 2017, when an initial framework agreement was announced.

Barrick’s announcement confirms the 2017 deal which called for the creation of a local firm in Tanzania to manage Acacia’s assets, a 50-50 split of economic benefits and a $300 million payment to resolve all outstanding tax claims in the East African country.

Nevada like Witwatersrand of 1970s – Bristow – by Martin Creamer (MiningWeekly.com – February 15, 2019)

February 20, 2019

http://www.miningweekly.com/

JOHANNESBURG (miningweekly.com) – Nevada is like the Witwatersrand of the 1970s, says new Barrick Gold president and CEO Dr Mark Bristow, whose Randgold Resources is now merged into Barrick to form the world’s biggest gold mining company, which is also an extractor of copper, a metal that Bristow sees as “another gold”.

The brand new Goldrush-Fourmile discovery, which extends the footprint within Cortez district in Nevada in the US, is already at 12-million ounces at over 10 g/t.

“I reckon that will go over 20-million ounces and that’s an 8-km-long deposit,” South African-born Bristow tells Mining Weekly Online. And then there is Turquoise Ridge, which is the richest gold mine in the world at 15 g/t.

Barrick Gold Faces Challenges to Develop Latin America Mines – by Danielle Bochove and Laura Millan Lombrana (Bloomberg News – February 15, 2019)

February 15, 2019

https://www.bloombergquint.com/

(Bloomberg) — Just seven weeks into the job, Barrick Gold Corp.’s new boss has already discovered, first hand, the challenges of developing and mining giant deposits in Latin America.

Barrick’s main project, the Veladero joint venture with Shandong Gold in Argentina, isn’t performing like a tier one asset, Mark Bristow said on Wednesday.

In 2019, Veladero is expected to have the highest cost per ounce in Barrick’s portfolio. He also cited projects in the El Indio belt straddling the Argentina-Chile border, and Alturas in Chile, as high-cost efforts.

Barrick CEO Bristow stands to earn as much as $18-million if targets are met – by Niall McGee (Globe and Mail – February 15, 2019)

February 15, 2019

https://www.theglobeandmail.com/

Barrick Gold Corp. shareholders sent a message to the company in 2013 by opposing a US$17-million pay package for new recruit John Thornton. Now, the gold miner may end up paying its new chief executive officer even more.

Mark Bristow took over as Barrick’s CEO as it completed its recent acquisition of Randgold Resources Ltd., where he was CEO. He stands to earn as much as US$18-million at Barrick this year, subject to performance measures being met.

In a regulatory document, Barrick disclosed that Mr. Bristow’s compensation will include a salary of US$1.8-million and a cash bonus of up to three times his salary that could be worth US$5.4-million.

Barrick’s new CEO on a mission to restore glory to miner’s brand — and he’s not afraid to cut to get there – by Gabriel Friedman (Financial Post – February 14, 2019)

February 14, 2019

https://business.financialpost.com/

One of Mark Bristow’s goals is to rein in costs; he expects a total of US$200 million in savings by 2020

At 11 a.m. on the nose on Wednesday, Barrick Gold Corp.’s new chief executive, Mark Bristow, strolled into the company’s 37th floor conference room with its postcard view of Lake Ontario’s frozen shores, and gave a nod to the packed room of bankers, analysts and media.

“We’re starting something new here,” Bristow said in South African-inflected English. “Face-to-face quarterlies.”

In the first look forward since Barrick closed its US$6-billion purchase of Bristow’s former company, Randgold Resources Inc. earlier this year, he spent nearly an hour providing a detailed look at his plans for the newly combined company.