Barrick Mining considers splitting off risky assets

CANADA’S Barrick Gold is exploring a potential split into separate North American and Africa-Asia entities, said Reuters citing sources familiar with the company’s deliberations.The proposed restructuring could also involve selling Barrick’s African assets and the Reko Diq mine in Pakistan once financing is secured, the newswire said. In Mali, the company aims to resolve an ongoing dispute with the military government before divesting the asset.Interim CEO Mark Hill declined to comment on speculation when questioned about a possible split on Monday, said Reuters. The sources cautioned that discussions remain fluid with no final decisions reached.The move would effectively unwind Barrick’s 2019 merger with Randgold Resources and shed assets acquired under former CEO Mark Bristow. Concentrating on North American operations, including Nevada’s undeveloped Fourmile gold mine, would protect Barrick from undervaluation in potential takeover scenarios, one source told Reuters.Barrick shares rose three percent on the Toronto Stock Exchange following the Reuters report. Investors have long argued the company’s stock is undervalued despite gold’s historic rally. Whilst Barrick shares have gained 130% this year, the company has returned just 52% over five years compared with rival Agnico Eagle’s 142%.Earlier this year, Barrick lost control of its most profitable operation, Mali’s Loulo-Gounkoto complex, resulting in a $1bn write-off. The dispute over mining taxation led to three tons of gold being seized, with four Barrick employees remaining detained by Malian authorities.The post Barrick Mining considers splitting off risky assets appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com