Barrick CEO Says Gold Industry Still Needs to Consolidate

(Bloomberg) - According to the top executive at Barrick Gold Corp. the gold industry needs to be more consolidated so that exploration can be increased to increase depleted reserves, attract more general investors and improve efficiency.
The barrage of business that has shaped the sector for the past two years is likely to continue as Australian miners "leave their mark" on the industry, CEO Mark Bristow told a virtual South African mining conference. Mergers and acquisitions are likely to dominate the sector in Africa and are required in Canada, which is home to the world's second largest gold mining company.
"The industry still needs to be consolidated," said Bristow on Wednesday. "Canada needs more consolidation work."
After the mega-merger between Barrick and Randgold Resources Ltd. in 2018 and the subsequent acquisition of Goldcorp Inc. by Newmont Corp. a rush for business, but buying slowed as the gold rally rose to an all-time high this year in assets.
According to Bloomberg, gold mining deals worth around $ 14 billion have been signed or negotiated this year, compared to around $ 26 billion in 2019.
Bristow warned producers not to rearrange the lounge chairs merely by doing business. Gold miners must invest in finding new deposits to replace reserves, he said.
For his part, Barrick remains keen to acquire additional Tier 1 assets, including Freeport-McMoRan Inc.'s Grasberg mine in Indonesia, Bristow said.
“As you know, Barrick is completely and purposefully focused on Tier 1 assets. Hence, it will be of interest to us as there aren't many Tier 1 assets left that we don't own or of which we own a part. " he said.
Tier 1 gold investments are generally assumed to have annual production of at least 500,000 ounces and long-term costs at the lower end of the industry average.
(Updates with the value of the offers in the fifth paragraph)
More articles of this type can be found at bloomberg.com
Subscribe now to stay up to date with the most trusted business news source.
© 2020 Bloomberg L.P.
In this article
GC = F.
+ 0.35%
ZG = F.
-1.87%
GOLD
+ 1.19%
NEM
+ 0.87%

You should check here to buy the best price guaranteed products.

Last News

Elias Lindholm with a Goal vs. Anaheim Ducks

See former LSU football coach Ed Orgeron on the sidelines at Ponchatoula vs. Acadiana playoff game

'Sorry they gave me tickets and not you because you’re poor': Streamer playing game at BTS concert angers ARMY

One Of "RuPaul's Drag Race's" New Cast Members Is A Cisgender, Heterosexual Male, And A Lot Of Fans Are Displeased

Chandler Stephenson with a Shorthanded Goal vs. Arizona Coyotes

Details emerge of Brian Kelly’s final Notre Dame recruiting trip