Barrick Gold completes $18.3bn merger with Randgold Resources
Barrick Gold, the world’s largest bullion miner, has announced the completion of its $18.3bn merger with Rangold Resources.
The merger has created a sector-leading gold company which owns five of the industry’s Top 10 Tier One gold assets: Cortez and Goldstrike in Nevada, USA (100%); Kibali in DRC (45%); Loulo-Gounkoto in Mali (80%); and Pueblo Viejo in Dominican Republic (60%)), and two with the potential to become Tier One gold assets (Goldrush/Fourmile (100%) and Turquoise Ridge (75%) - both in the USA.
Barrick has the lowest total cash cost position among its senior gold peers, and a diversified asset portfolio positioned for growth in many of the world’s most prolific gold districts.
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In a joint letter to stakeholders, Executive Chairman John Thornton and CEO Mark Bristow noted that with the best asset base and the strongest management team in the sector, Barrick was well placed to be the world’s most valued gold mining business: “We will do so by optimizing our existing operations, pursuing new opportunities that meet strict investment criteria, and developing them with disciplined efficiency. In all that we do we will be guided by a long-term strategy and clear implementation plans designed to deliver sustainable returns to our owners, and real benefits to our partners, host countries, and communities,” they said.
The merger heralds what they believe will be a new era for the gold mining industry - an era in which Barrick will lead the recognition of sustainable value creation as its primary goal.
Barrick Gold's latest joint venture with Goldcorp in Chile (Norte Abierto in the Atacama Region) contains 11.6 million ounces of proven and probable gold reserves, and 13.3 million ounces of measured and indicated gold resources. The JV is now advancing an optimised project design, including an updated geological model for the Cerro Casale, Caspiche, and Luciano deposits.