Barrick Gold Corporation (USA) (NYSE:ABX) to sell Australian mines to Gold Fields


Dallas, Texas 09/03/2013 (Financialstrend) – Barrick Gold Corporation (USA) (NYSE:ABX) proposes to sell 3 of its high-cost mines situated in the Western Australian zone.

ABX stated that it will sell its high-cost mines to Gold Fields Ltd, a South Africa based miner and this will assist the company to concentrate additionally on more remunerative operations.

The firm stated that it will get approximately $300 million from the said deal that is subject to customary closing conditions, including approval by Australia’s Foreign Investment appraisal board

The company added that the 3 mines that comprises of the Yilgarn South assets, made about around 452,000 ounces of the yellow metal in 2012 and an added 196,000 ounces in the first half of the subsisting year (2013).

Kerry Smith, a market professional at Haywood Securities, said that the sale of these mines will reduce Barrick Gold Corporation’s operating spendings and have only a least impact on ABX’s manufacturing levels.

“By selling those 3 mines, it frees their management up to expend additional time on other assets that actually create extra cash,” Smith added up.

The transaction is expected to close by the coming month. The proceeds yielded will be used for general biz procedures, which comprise debt refund, and will be filed during the 4th quarter of the subsisting year (2013).

“The agreement to divest Yilgarn South exposes further expansion as we work to make the most out of the company’s range and capitalize on free cash flow,” said the company’s president as well as CEO Jamie Sokalsky.

Company struggling hard

Barrick Gold, a multi-national gold mining firm, is presently still the biggest gold miner by twelve-monthly output and the second-biggest by market capitalization. The firm has been fighting lately and has declared proposals in order to update its asset collection.

The company’s stock looks good at the moment. So, the investors must hold the scrip to reap good returns.