Barrick Gold Considers Selling Assets, Hints at Mick Davis Deal
Like most people in the world, Barrick Gold is trying to reduce debt. The Toronto-based gold miner is attempting to cut its debt by $3 billion and has made it very clear they are open to a wide range of asset sales and joint ventures.
Barrick has even hinted at a possible deal with former Xstrata chief executive, Mick Davis.
According to the Financial Times, the company's chairman, John Thornton, said it would be a “good example” to assume that Barrick Gold go into partnership with someone such as Mick Davis, whose company, X2 Resources, is currently looking for investments.
“I could imagine a joint venture in which, let’s say, we sold a minority interest to a party [with] a world-class chief executive and that chief executive was going to run the copper business the way he thought made sense,” Thornton said in an interview with the Financial Times.
“We would build the business with him. We would be majority owner or even 50-50 owner. It would build value for us.”
Thornton also said Barrick is open to finding a strategic long-term partner interested in selected stakes in a cluster of assets.
Thornton, a former Goldman Sachs banker, said Barrick is confident of meeting its target to cut $3 billion this year from its net debt of more than $10 billion. Barrick, which has been one of the worst-performing large miners of the past two years, is desperately trying to rebuild its reputation with investors.
The company is also in the advanced stages of selling two gold mines -- Cowal in Australia and Porgera in Papua New Guinea – and is reportedly considering selling its Zaldivar copper mine in Chile.
On a side note, Thornton did confirm with the Financial Times that Barrick has no plans to try and revive a merger with its US rival Newmont Mining.
(Source: Financial Times)