Archive | Barrick Gold Corporation

‘Stars have aligned for gold’: Warren Buffett’s Berkshire takes $500-million stake in Barrick – by Gabriel Friedman (Financial Post – August 18, 2020)

https://financialpost.com/

Over the years, Buffett has disparaged gold as both a store of value and an investment

Sprott Inc. chief executive Peter Grosskopf has long fielded the same question while talking up gold to investors: Why does famed investor and multibillionaire Warren Buffett, the so-called Oracle of Omaha, hate the yellow metal? Grosskopf may never have to answer the question again.

On Friday afternoon, after years of trashing gold as an investment, Buffett’s Berkshire Hathaway Inc. revealed it had switched course and purchased 20.9 million shares in Toronto-headquartered Barrick Gold Corp. in a transaction worth an estimated US$563.5 million at the end of the second quarter.

“I think that now he seems to have come around to the fact that he can be comfortable with gold as a store of value,” said Grosskopf, whose company specializes in precious metals investment. “I think people are finally realizing it’s a legitimate part of a portfolio.” Continue Reading →

Barrick Gold’s stock soars more than 10% after Buffett’s Berkshire reveals stake – by Maggie Fitzgerald (CNBC.com – August 17, 2020)

https://www.cnbc.com/

Barrick Gold’s stock popped 10.5% on Monday after legendary investor Warren Buffett’s Berkshire Hathaway revealed a stake in the gold miner’s stock.

Berkshire added a $562 million position in Barrick Gold in the second quarter, according to SEC filings Friday.

While the position is small for Berkshire — which owns more than $89 billion in Apple stock — the conglomerate is the 11th largest shareholder of the gold mining company, according to FactSet. Continue Reading →

Barrick eyes place in S&P 500 while keeping Toronto HQ – by Niall McGee (Globe and Mail – August 11, 2020)

https://www.theglobeandmail.com/

Barrick Gold Corp. is hoping to be included in the S&P 500 Index in the United States but plans to keep its head office in Canada, a potentially tricky manoeuvre that, if successful, would open up the giant miner to an even larger pool of investors.

Being included in the S&P 500 would result in increased buying of Toronto-based Barrick from large institutional investors, such as index funds. While specialist mining funds have been in decline over the past decade, index-tracking exchange-traded funds are making up a bigger swath of the investment pool.

“That’s something that’s always been of interest to me, because if we got on the S&P, the index demand would increase substantially,” Barrick chief executive Mark Bristow said in an interview. Continue Reading →

Barrick Gold reports 14% rise in dividend amid soaring gold prices, on track to achieve 2020 production guidance – by Anna Golubova (Kitco News – August 10, 2020)

https://www.kitco.com/

(Kitco News) Barrick Gold Corp. (NYSE:GOLD, TSX:GOLD.TO) said on Monday that it increased its Q2 dividend to shareholders by 14% to 8 cents per share, citing robust performance and strong balance sheets amid record-high gold prices.

The company also noted that its dividend more than doubled since the Barrick-Randgold merger announcement in September 2018.

“The Board believes that the dividend increase is sustainable and is reflective of the ongoing robust performance of our operations and continued improvement in the strength of our balance sheet, with total liquidity of $6.7 billion, including a cash balance of $3.7 billion as of the end of the second quarter, and no material debt repayments due before 2033,” said Senior executive vice-president and chief financial officer Graham Shuttleworth. Continue Reading →

Barrick backs new global industry standard for mine tailings dams – by Staff (Northern Ontario Business – July 5, 2020)

https://www.northernontariobusiness.com/

North Shore miner Barrick Gold is endorsing a new international standard for managing current and future mine tailings facilities with the aim of preventing waste dam failures.

The Global Industry Standard on Tailings Management was born from a year-long review process by United Nations Environment Programme, Principles for Responsible Investment (PRI) and the International Council on Mining and Minerals.

With more than 12,000 tailings storage facilities globally, the goal of the review was to establish a standard of the safer management of mine waste, by strengthening environmental, social, governance and technical practices of the mining industry across the entire lifecycle of these facilities. Continue Reading →

Skeena gains full ownership of past-producing Eskay Creek from Barrick – by Mariaan Webb (MiningWeekly.com – July 7, 2020)

https://m.miningweekly.com/

TSX-V-listed Skeena Resources will exercise its option to acquire the Eskay Creek gold/silver project, in the Golden Triangle of north-west British Columbia, from gold major Barrick Gold. Barrick has also agreed to waive its back-in right on Eskay Creek.

As a result of the transaction, Barrick will be a significant shareholder in Skeena, owning about 12.4%. If Barrick were to exercise the warrants, its ownership of Skeena would increase to 17.2% on a partially diluted basis and Skeena would receive cash proceeds of C$30.4-million.

“Skeena is honoured to have Barrick as a significant shareholder as we endeavour to revitalise Eskay Creek, the former highest-grade, past-producing gold mine in the world,” said Skeena CEO Walter Coles in a statement on Monday. Continue Reading →

Aussie miner Saracen strikes $1.1b Super Pit deal on Kalgoorlie’s Golden Mile – by Jarrod Lucas (Australian Broadcasting Corporation – November 18, 2029)

https://www.abc.net.au/

Australian gold miner Saracen Mineral Holdings has struck a $1.1 billion deal for a 50 per cent stake in Kalgoorlie-Boulder’s famous Super Pit operation.

The deal with Canada’s Barrick Gold finalised in Toronto over the weekend, two months after Saracen privately entered a “competitive” sale process, and was announced to the Australian Securities Exchange on Monday morning.

Saracen estimates it will take more than three years to recover from devastating rock falls, but insists the acquisition will pay off in the long run. Continue Reading →

PNG threatens Barrick over alleged gold export attempt – by Cecilia Jamasmie (Mining.com – June 5, 2020)

https://www.mining.com/

Papua New Guinea (PNG) has threatened Barrick Gold with criminal proceedings, claiming the company’s joint venture in the country was planning to illegally export $13 million in silver and gold to Australia.

The country’s mining regulator said that Barrick Niugini Limited (BNL) asked earlier this week for clearance to ship precious metals to the Perth Mint.

The move, the Mineral Resources Authority (MRA) said, is considered illegal given that BNL is not allowed to process or ship gold since the government’s refused to extend its mining lease for the Porgera mine almost two months ago. Continue Reading →

OPINION: Expect gold mining takeovers, but no takeover premiums – by Andrew Willis (Globe and Mail – June 1, 2020)

https://www.theglobeandmail.com/

The gold mining sector is being rocked by a round of mergers and acquisitions that’s widely expected to pick up steam. Courtesy of one influential executive, Barrick Gold Corp.’s Mark Bristow, what’s missing from the current round of deal-making is the premium prices that defined past takeovers.

Precious metals stocks are market darlings because the price of gold is soaring on fears of a pandemic-induced economic downturn and currency-debasing inflation.

The last time bullion prices tested these historic highs, a decade ago, a number of mining chief executive officers binged on wealth-destroying deals. Continue Reading →

Tanzanian politician accuses Barrick of abandoning Acacia employees jailed as ‘ransom’ in tax spat – by Geoffrey York and Nial McGee (Globe and Mail – May 29, 2020)

https://www.theglobeandmail.com/

Barrick Gold Corp. is facing criticism from a prominent Tanzanian politician for not doing enough to free three employees of its Tanzanian operations who were jailed 20 months ago and allegedly used as pawns in a multiyear tax dispute between Barrick and the Tanzanian government.

In 2017, Tanzania banned former Barrick subsidiary Acacia Mining PLC from exporting gold concentrate and demanded it pay US$200-billion in back taxes.

In October, 2018, Acacia executives Deo Mwanyika, Alex Lugendo and Asa Mwaipopo were charged with money-laundering offences and imprisoned without chance of bail. At the time, Barrick owned 63.9 per cent of Acacia. Continue Reading →

Exclusive: Barrick offers PNG landowners a stake to resolve Porgera mine dispute – by Tom Westbrook and Melanie Burton (Reuters U.S. – May 29, 2020)

https://www.reuters.com/

SINGAPORE/MELBOURNE (Reuters) – Barrick Gold Corp (ABX.TO) has offered an extra 15% stake in its Porgera gold mine in Papua New Guinea to local landowners, according to a letter from its CEO, in a bid to break an impasse with the national government over the mine’s future.

Barrick, the world’s second-largest gold miner, was last month refused an extension of its expired lease over the mine that has been troubled by social unrest and pollution concerns.

Any deal would be the first struck by a resources company under economic nationalist prime minister, James Marape, who came to power a year ago seeking to retain a bigger share of the country’s resource riches. Continue Reading →

Politics and Porgera: why Papua New Guinea cancelled the lease on one of its biggest mines – by Jonathan Pryke and Shane McLeod (The Guardian – May 12, 2020)

https://www.theguardian.com/

Late in April, in the middle of a global pandemic and slow-boiling domestic economic crisis, the government of Papua New Guinea made the surprising announcement not to extend the mining lease on a goldmine that contributes roughly 10% of the country’s total exports.

The announcement not to renew the special mining lease for the Porgera mine was a shock, not least to the mine’s operator, Barrick Gold, and their joint venture partner Zijin Mining.

Porgera is one of Papua New Guinea’s longest running goldmines. Operating for 30 years in the highlands province of Enga, this large mine was expected to produce around 250,000 ounces of gold in 2019. Continue Reading →

Papua New Guinea seeks $191-million in back taxes from Barrick, Chinese partner as mining row escalates – by Niall McGee (Globe and Mail – May 7, 2020)

https://www.theglobeandmail.com/

Papua New Guinea wants Barrick Gold Corp. and its Chinese joint-venture partner to fork over US$191-million in back taxes, as the world’s second biggest gold producer dukes it out in court over whether it has the right to continue mining in the country.

Late last month, Papua New Guinea (PNG) refused Barrick’s request to renew its mining lease on the Porgera gold mine, citing environmental and other legacy issues.

Barrick subsequently took legal action against the government, filing a judicial review with the National Court of Justice. The court ordered both sides to negotiate and report on their progress on Friday. If the two can’t reach an agreement, a mediator will be appointed to hash out a settlement. Continue Reading →

Gold price boosts Barrick profit as miner eyes copper deals – by Arundhati Sarkar, Zandi Shabalala and Helen Reid (Reuters U.S. – May 6, 2020)

https://www.reuters.com/

(Reuters) – Barrick Gold Corp (ABX.TO) (GOLD.N) reported a nearly 55% rise in quarterly profit on Wednesday as gold prices surged, bolstering its ability to snap up mines including in copper, its chief executive said.

Investors’ anxiety about a global economy brought to its knees by the coronavirus pandemic has boosted “safe-haven” gold XAU= by 12% so far this year, while copper CMCU3, seen as a bellwether for economic growth, is down about 15%.

Barrick CEO Mark Bristow has previously said the world’s No. 2 gold miner aims to increase its exposure to copper because of its expected higher use in electrification. He added on Wednesday the relative price performance between copper and gold made deals more attractive. Continue Reading →

Zijin warns Papua New Guinea of China anger over end of gold mine lease – by Tom Westbrook and Tom Daly (Reuters U.S. – April 29, 2020)

https://www.reuters.com/

SINGAPORE/BEIJING, April 29 (Reuters) – China’s Zijin Mining has warned Papua New Guinea that its failure to renew the lease of a gold mine it jointly owns with Barrick Gold Corp there could damage bilateral relations.

Papua New Guinea on Friday said it would not renew a 20-year mining lease at its Porgera gold mine, citing environmental damage and social unrest even as gold prices have soared to more than seven-year highs.

Barrick (Niugini) Limited (BNL), the local venture in which both miners have a 47.5% stake, suspended operations on Saturday, saying the government had not given it formal notification that it would not renew the lease, or any details of a planned transition. Continue Reading →