🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

UPDATE 1-Barrick Argentina projects likeliest for partnerships- exec

Published 28/10/2016, 07:27 am
UPDATE 1-Barrick Argentina projects likeliest for partnerships- exec
NEM
-
GOLD
-

(Recasts with Barrick executive interview, stock price, analyst comment)

By Susan Taylor

TORONTO, Oct 27 (Reuters) - Barrick Gold Corp ABX.TO hopes to develop a "steady stream" of projects on its land in the El Indio belt in Argentina, making it the likeliest candidate for a partnership deal, a top executive said in an interview on Thursday.

Toronto-based Barrick is open to offers to buy or take stakes in its five major mines, including Veladero in Argentina, President Kelvin Dushnisky also said earlier, after Reuters reported the company had held talks with Chinese miners.

China's Zijin Mining 601899.SS and Shandong Gold Mining 600547.SS have held separate discussions with Barrick about buying a 50 percent stake in Veladero, according to four sources with knowledge of the process. sources had told Reuters that Barrick would like the buyer of a stake in Veladero to also invest in neighboring Pascua-Lama, which straddles the border of Argentina and Chile.

El Indio, a 140-km (87-mile) stretch of land, is home to Veladero and Barrick's Pascua-Lama and Alturas projects.

"We're hopeful that we'll have a steady stream of projects over the years that we develop in the El Indio belt and that would be an area where it would make a lot of sense for us to bring in a partner," Dushnisky said in the phone interview.

"I would signal that the El Indio area is one that would probably be a more likely candidate at this point."

Partnership deals allow miners to combine capital, technical expertise and other abilities, he said, adding that more such deals can be expected.

Dushnisky would not say if other miners had approached Barrick about investing in Veladero or the timing of any deal.

Last year, Barrick sold a stake in its Papua New Guinean mine to Zijin, and the two companies formed a partnership. Barrick has committed to work with Zijin at the mine for five years, Dushnisky said.

Barrick is also considering opportunities to acquire assets but will be "discerning," he said. The company has been selling off assets and using cash flow to pay down debt.

Barrick's 50 percent stake in the Kalgoorlie Super Pit mine in western Australia has drawn "robust" interest from miners in and outside that country since it went on the block last quarter, Dushnisky said.

Newmont Mining (NYSE:NEM) NEM.N , which operates Kalgoorlie and owns the other 50 percent, has expressed interest in the acquisition, but differing views on valuation have thwarted a deal.

Barrick reported a higher-than-expected profits on Wednesday. The stock ended up 1.4 percent on Thursday at $C22.55.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.