Barrick reaches agreement to sell its share of Australian Super-pit for $750M
November 17 2019 - 5:37PM
Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) today announced it
has reached an agreement to sell its 50 percent interest in
Kalgoorlie Consolidated Gold Mines ("KCGM") in Western Australia to
Saracen Mineral Holdings Limited (“Saracen”) for a total
consideration of $750 million in cash.
"The sale of our non-operating interest in KCGM
represents the first step in our plan to realize in excess of $1.5
billion from the disposal of non-core assets by the end of next
year. While this iconic gold mine has been a valuable
contributor to Barrick over the years, the asset does not fit with
our strategy of operating mines that we own. The sale allows
us to further focus our portfolio on core operations," says Mark
Bristow, Barrick president and chief executive officer.
Bristow said Barrick was pleased to have
achieved a successful outcome following a competitive sale process
and was confident that Saracen would be an excellent partner at
KCGM going forward. Proceeds from the sale will be used to
further strengthen the balance sheet, invest in our future and
support our commitment to deliver returns to our shareholders.
The transaction is expected to be completed in
the fourth quarter of 2019 and is subject to customary closing
conditions. Saracen is an ASX200 listed gold company with two gold
operations in the Kalgoorlie region of Western Australia.
Credit Suisse Securities (Canada), Inc. is
acting as financial adviser to Barrick. Davies Ward Phillips
& Vineberg LLP and Herbert Smith Freehills LLP are acting as
legal counsel to Barrick.
Enquiries:
Mark BristowPresident and CEO +1 647 205 7694+44 788 071 1386 |
Kevin ThomsonSenior executive vice-president, strategic matters +1
416 307-5150 |
Kathy du PlessisInvestor and Media Relations +44 20 7557
7738barrick@dpapr.com |
Website: www.barrick.com
Cautionary Statement on Forward-Looking
Information
Certain information contained in this press release, including
any information as to Barrick’s strategy, plans, or future
financial or operating performance, constitutes “forward-looking
statements”. All statements, other than statements of historical
fact, are forward-looking statements. The words “plan”, “would”,
“expected”, “will”, and similar expressions identify
forward-looking statements. In particular, this press release
contains forward-looking statements including, without limitation,
with respect to: timing for completion of the transaction with
Saracen and the expected use of proceeds to invest in Barrick’s
business; and dispositions of additional non-core assets and
potential proceeds from any such transactions.
Forward-looking statements are necessarily based upon a number
of estimates and assumptions; including material estimates and
assumptions related to the factors set forth below that, while
considered reasonable by Barrick as at the date of this press
release in light of management’s experience and perception of
current conditions and expected developments, are inherently
subject to significant business, economic, and competitive
uncertainties and contingencies. Known and unknown factors could
cause actual results to differ materially from those projected in
the forward-looking statements, and undue reliance should not be
placed on such statements and information. Such factors include,
but are not limited to: fluctuations in the spot and forward price
of gold, copper, or certain other commodities (such as silver,
diesel fuel, natural gas, and electricity); the speculative nature
of mineral exploration and development; changes in mineral
production performance, exploitation, and exploration successes;
diminishing quantities or grades of reserves; increased costs,
delays, suspensions, and technical challenges associated with the
construction of capital projects; operating or technical
difficulties in connection with mining or development activities,
including geotechnical challenges, and disruptions in the
maintenance or provision of required infrastructure and information
technology systems; changes in national and local government
legislation, taxation, controls, or regulations and/or changes in
the administration of laws, policies, and practices, expropriation
or nationalization of property and political or economic
developments in Canada, the United States or Australia; lack of
certainty with respect to foreign legal systems, corruption, and
other factors that are inconsistent with the rule of law; risk of
loss due to acts of war, terrorism, sabotage and civil
disturbances; timing of receipt of, or failure to comply with,
necessary permits and approvals; failure to comply with
environmental and health and safety laws and regulations;
litigation and legal and administrative proceedings; damage to the
Barrick’s reputation due to the actual or perceived occurrence of
any number of events, including negative publicity with respect to
the Barrick’s handling of environmental matters or dealings with
community groups, whether true or not; the impact of global
liquidity and credit availability on the timing of cash flows and
the values of assets and liabilities based on projected future cash
flows; the impact of inflation; fluctuations in the currency
markets; contests over title to properties, particularly title to
undeveloped properties, or over access to water, power, and other
required infrastructure; employee relations including loss of key
employees; business opportunities that may be presented to, or
pursued by, the Company; our ability to successfully complete
divestitures; risks associated with working with partners in
jointly controlled assets; increased costs and physical risks,
including extreme weather events and resource shortages, related to
climate change; and availability and increased costs associated
with mining inputs and labor. In addition, there are risks and
hazards associated with the business of mineral exploration,
development, and mining, including environmental hazards,
industrial accidents, unusual or unexpected formations, pressures,
cave-ins, flooding, and gold bullion, copper cathode, or gold or
copper concentrate losses (and the risk of inadequate insurance, or
inability to obtain insurance, to cover these risks).
Many of these uncertainties and contingencies can affect our
actual results and could cause actual results to differ materially
from those expressed or implied in any forward-looking statements
made by, or on behalf of, us. Readers are cautioned that
forward-looking statements are not guarantees of future
performance. All of the forward-looking statements made in this
press release are qualified by these cautionary statements.
Specific reference is made to the most recent Form 40-F/Annual
Information Form on file with the SEC and Canadian provincial
securities regulatory authorities for a more detailed discussion of
some of the factors underlying forward-looking statements, and the
risks that may affect Barrick’s ability to achieve the expectations
set forth in the forward-looking statements contained in this press
release.
Barrick disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
applicable law.
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