06 Nov Barrick chairman outlines new company vision after Randgold mega-merger
Barrick Gold’s executive chairman John Thornton has laid out a streamlining plan for the gold mining major after its investors approved the US$6.1 billion merger deal with Randgold Resources.
The world’s biggest gold producer confirmed that 99.8% of its shareholders were in favour of the no-premium transaction that was announced last month, with the all-stock deal now set to close on January 1st 2019.
Outlining his vision for how the new $18 billion company will look, Thornton said: “Ideally, we will have sold certain assets that don’t fit … that’s number one. Number two, we will be demonstrably more efficient.”
Thornton added that he would like to replicate the deal-making pace set by Barrick when it made seven asset sales over 18 months. The firm’s staff compliment is also set for further streamlining under the new leadership of former Randgold CEO Mark Bristow.
After the merger, Barrick will focus on low-cost mines producing 500,000 ounces of gold annually with at least 10 years of operations. It currently has five mines in its portfolio that fit this description.
In other Barrick-related news, the company is reportedly in talks with Newmont Mining to combine their Nevada gold mining operations. Barrick and Newmont had previously explored this possibility back in 2014 without reaching a deal.
Together the companies produced 4.1 million ounces of gold from Nevada in 2017.