Barrick Gold Corporation – Page 15

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.

Barrick predicts higher costs in 2019 as it books a $1.2-billion quarterly loss – by Niall McGee (Globe and Mail – February 14, 2019)

February 14, 2019

https://www.theglobeandmail.com/

Barrick Gold Corp. is predicting sharply higher costs and lower grades at a key mine, as well as lacklustre production for 2019, highlighting the challenges the company still faces after its takeover of Randgold Resources Ltd.

The Toronto-based miner, which closed its deal for Randgold on Jan. 1, also booked a fourth-quarter net loss of US$1.2-billion, as it incurred impairment charges at its Lagunas Norte and Veladero mines in Peru and Argentina, respectively.

The Randgold acquisition was designed in part to inject new management talent into Barrick after years of restructuring. New Barrick chief executive Mark Bristow, who came from Randgold, is considered within the industry to be skilled at trimming costs.

Barrick CEO Says Cuts to Take Miner Beyond Where Thornton Could – by Danielle Bochove (Bloomberg News – February 13, 2019)

February 13, 2019

https://www.bloomberg.com/

(Bloomberg) — Mark Bristow, known throughout the gold industry for his relentless focus on costs, is counting on his belt-tightening skills to take Barrick Gold Corp. to the next level.

“John really drove this business on multiple fronts, but his primary focus was the debt,” Barrick CEO Bristow said Wednesday in an interview at Bloomberg’s Toronto office, referring to the miner’s executive chairman, John Thornton. “He really pushed the envelope on cash flow.”

The “easiest’’ way to manage cash flow is to increase the grade of the gold being mined, Bristow said. “You go to the high-grade zones, and you mine them, and you get your cash flow.” However, that approach has its limits; the next step is to cut costs sufficiently that lower-grade gold becomes profitable — which also boosts reserves, he said.

Donlin Gold moves ahead: Project in Southwest Alaska would be boost for economy (Fairbanks Daily News-Miner – January 29, 2019)

January 30, 2019

http://www.newsminer.com/

News-Miner opinion: It’s been quite the month for the two companies behind the proposed Donlin Gold project in Southwest Alaska.

It was just over a week ago that the companies — NOVAGOLD Resources Alaska Inc. and Barrick Gold US Inc. — announced that the Donlin Gold project had received two key permits from the state. One, from the Department of Environmental Conservation, is the waste management permit.

The other, from the Department of Natural Resources, approves of the project’s reclamation plan, which is the process the companies will undertake to close the mine and maintain the site at the end of the mine’s estimated life of at least 27 years. For that permit, the companies had to assure the state that funds would be available for the reclamation.

Can the no-premium Barrick-Randgold deal spark an M&A gold rush? – by Gabriel Friedman (Financial Post – January 29, 2019)

January 29, 2019

https://business.financialpost.com/

More Australian gold companies may be active in the M&A space this year, perhaps looking at Canadian companies

After Ian Telfer, chairman of Vancouver-based Goldcorp Inc., brokered a $10-billion sale of his company earlier this month to Newmont Mining Inc., he characterized it as one of the first in a series of deals coming to the gold sector.

“It was our sense that the industry was going to consolidate,” said Telfer. “It’s becoming a big company game for people who want exposure to gold.”

His remarks echo those made by a chorus of analysts, bankers and mining executives, who for months have been predicting a wave of mergers and acquisitions is about to hit the gold sector, where too many companies are chasing too few investors.

Barrick CEO on Zambia tax dispute: Threats don’t solve problems (BNN Bloomberg – January 25, 2019)

January 25, 2019

https://www.bnnbloomberg.ca/

Barrick Gold Corp.’s new chief executive officer, Mark Bristow, said his company is seeking solutions to a dispute over mining taxes in Zambia.

“We’re engaged with the government in a constructive way,” he told reporters at a press conference in the Ivory Coast’s economic capital, Abidjan. “We don’t believe that threatening one’s partner is a constructive way to go about solving problems.”

Mining companies in Zambia, Africa’s second-biggest copper producer, have warned that the tax hikes will harm the industry and some producers have said they’ll curtail operations as a result of the changes. First Quantum Minerals Ltd. in December said it would cut 2,500 jobs in the country, before backtracking this week on the plan.

Barrick Gold opens door to sale of biggest copper mine amid new African tax dispute – by Niall McGee (Globe and Mail – January 22, 2019)

January 22, 2019

https://www.theglobeandmail.com/

Barrick Gold Corp. is opening the door to a sale of its biggest copper mine as it faces higher taxes that threaten its profitability in Zambia.

In a statement on Monday, Barrick said the Zambian government has proposed tax increases for its Lumwana property that would “imperil the mine’s ability to sustain returns to all stakeholders.”

Barrick said reports that it had already sold Lumwana were untrue, but the Toronto-based company allowed that given the “challenging conditions,” it was considering “all options.” The potential sale is an about-face for Barrick, which had previously designated its copper assets as “strategic” and not something it was planning to sell.

Foreigners are taking control of Barrick and Goldcorp – but the miners made this mess – by Tim Kiladze (Globe and Mail – January 18, 2019)

January 18, 2019

https://www.theglobeandmail.com/

David Garofalo seemed to have everything going for him. A polished executive with a strong résumé in mining, he was hired to run Goldcorp Inc. in 2015, giving him control of what looked like a darling in a moribund sector.

Unlike many of its peers, Goldcorp came out of the commodity crash with a favourable view from investors. It had avoided mega-acquisitions. The balance sheet looked good.

Three years later, Mr. Garofalo has lost the confidence of shareholders. Goldcorp’s stock fell by more than half, hit by falling production and rising costs, prompting U.S. gold giant Newmont Mining Corp. to step forward this week with a deal to buy the company for US$10-billion. It’s not certain if Mr. Garofalo will have a job at the merged company. What is clear is that another big Canadian-based mining company is falling into foreign hands.

Monster Gold-Mining Deals Pile Pressure on Those Left Behind – by Thomas Biesheuvel and Danielle Bochove (Bloomberg News – January 15, 2019)

January 15, 2019

https://www.bloomberg.com/

Mark Bristow’s tenure as boss of the world’s biggest gold miner might have been short-lived, but his message for smaller rivals just got even more pointed.

“Holy camoly, I missed out on a great opportunity!” is how Bristow described anyone not involved in Barrick Gold Corp.’s purchase of Randgold Resources Ltd. in September. With Newmont Mining Corp. poised to become the No. 1 producer through a $10 billion takeover of Goldcorp Inc. announced Monday, the pressure on those left behind will be even greater.

The two mega deals promise to transform the industry that many investors have shunned due to floundering bullion prices and poor decision making by producers. The newly combined companies are also expected to put several unloved assets up for sale, leaving lots of room for maneuvering by those that missed out on the dealmaking so far.