May 19, 2020
Barrick Gold to offload unwanted assets following Randgold merger
Toronto-based Barrick Gold, the world’s largest gold mining firm, will reportedly sell off a considerable number of assets following completion of its Randgold acquisition
Speaking to Sky News, Randgold chief executive Mark Bristow said the move would be “a cleanup moment,” and that the combined company wants “to deliver high-quality assets that can attract the investment required.”
The merger deal, announced in September this year, is worth around US$18bn and will create the largest combined concentration of Tier One Gold Assets of any company in the world.
Tier One refers to mines that have an annual output of 500,000 ounces of gold, with a lifespan of over 10 years.
According to Sky News, Barrick’s executive chairman John Thornton has previously said that Tier One assets would become the firm’s primary focus.
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Barrick announced on 5 November that its shareholders had agreed overwhelmingly to the merger, which the firm expects to complete by 1 January 2019.
Mining Global reported in September that the merger would see the resultant New Barrick Group’s ownership split at 66.6% for Barrick shareholders while the remaining 33.4% will be under Randgold’s control.
Bristow told Sky News that a significant number of mines and assets would be sold as part of Barrick’s portfolio streamlining.
"I've always said a good half a dozen assets is the right kind of profile to have,” he said.