Blasthole drilling at the Super Pit in Western Australia. (Image: Kalgoorlie Consolidated Gold Mines Pty)
TORONTO – In discussing its second quarter results, Barrick Gold slipped in two very interesting bits of information.
First, president and CEO Mark Bristow said the company is seeking a buyer for the 50% of the Kalgoorlie gold mine – commonly known as the Super Pit –in Australia. The mine is currently operated by joint venture partner Newmont Goldcorp. Bristow said that since Barrick is not the operator, the company will not consider the mine a core asset. The name of Australian miner Northern Star has popped up in speculation as to what company would buy half the Super Pit.
Second, Bristow admitted the company has met with Senegal president Macky Sall to float the idea of a consolidated gold industry in that country. Barrick’s Massawa project could become part of a larger operating complex shared by other regional miners. He mention several mid-cap miners who might be interested in an arrangement similar to the one Barrick and Newmont Goldcorp share in Nevada.
Barrick has expressed interest in selling its Massawa mine in Senegal and perhaps its Tongon mine in Cote d’Ivoire as part of a strategy to raise US$1.5 billion.
Barrick’s Q2 2019 presentation is posted at www.Barrick.com.