Nevada Gold Mines, the new joint venture between Barrick Gold
Corporation (NYSE:GOLD)(TSX:ABX) (“Barrick”) and Newmont Goldcorp
Corporation (NYSE:NEM)(TSX:NGT) (“Newmont Goldcorp”), is a classic
case of the whole being more valuable than the sum of its parts,
Barrick President and Chief Executive Officer Mark Bristow said
today.
At a presentation to local stakeholders, Bristow
said the logic for combining the two companies’ Nevada assets has
always been compelling, and now we are able to realize the
potential by building on decades-long efforts to realize these
synergies. Teams from both sides are at present very constructively
engaged in integrating the joint venture assets, and this process
should be completed at the end of the current quarter.
The name of the new joint venture company was
revealed at Barrick’s quarterly results presentation yesterday, and
Bristow said its branding reflected the joint venture partners’
deep roots in Nevada, a state rich in gold deposits.
“Nevada Gold Mines will have three Tier One1 gold
mines: Barrick’s Cortez; the combination of Barrick’s Goldstrike
and Newmont Goldcorp’s Carlin; and Barrick’s Turquoise Ridge with
Newmont Goldcorp’s Twin Creeks. In addition, our Goldrush-Fourmile
project has the potential to become the fourth,” Bristow said.
“It will be one of the world’s greatest gold mining
operations and will create sustainable, long-term value for all its
stakeholders, not least the State and people of Nevada.”
Bristow announced that Greg Walker, currently head
of operations for Barrick’s North American region, had been
appointed as Executive Managing Director of Nevada Gold Mines. He
will head a team representing a balanced combination of Barrick and
Newmont Goldcorp executives with dynamic energetic talent moving up
into leadership positions.
Nevada Gold Mines, owned 61.5% by Barrick and 38.5%
by Newmont Goldcorp, will be operated by Barrick. The operations
making up the joint venture produced in excess of 4 million ounces
of gold in 2018, more than double the next largest gold mining
complex.
Barrick Enquiries:
President and Chief Executive OfficerMark Bristow+1
647 205 7694+44 788 071 1386
Senior Executive Vice-President and Chief Financial
OfficerGraham Shuttleworth+44 1534 735 333+44 779 771 1338
Investor and Media RelationsKathy du Plessis+44 20
7557 7738Email: barrick@dpapr.com
Website: www.barrick.com
Cautionary Statement on Forward-Looking
Information
Certain information contained in this press
release, including any information as to Barrick’s strategy, plans,
or future financial or operating performance, constitutes
“forward-looking statements”. All statements, other than statements
of historical fact, are forward-looking statements. The words
“will”, “potential”, “long-term” and similar expressions identify
forward-looking statements. In particular, this press release
contains forward-looking statements including, without limitation,
with respect to: the proposed Nevada joint venture, including
estimates of the expected size of the Nevada joint venture and
other value-creating opportunities (including estimated synergies
and financial benefits); and the expected timing for the completion
of integration of assets and operations into the proposed Nevada
joint venture.
Forward-looking statements are necessarily based
upon a number of estimates and assumptions; including material
estimates and assumptions related to the factors set forth below
that, while considered reasonable by Barrick as at the date of this
press release in light of management’s experience and perception of
current conditions and expected developments, are inherently
subject to significant business, economic, and competitive
uncertainties and contingencies. Known and unknown factors could
cause actual results to differ materially from those projected in
the forward-looking statements, and undue reliance should not be
placed on such statements and information. Such factors include,
but are not limited to: fluctuations in the spot and forward price
of gold, copper, or certain other commodities (such as silver,
diesel fuel, natural gas, and electricity); the ability to realize
the anticipated benefits of the proposed joint venture or
implementing the business plan for the proposed joint venture,
including as a result of a delay in its completion or difficulty in
integrating the Nevada assets of the companies involved; the risk
that the conditions to formation of the proposed joint venture will
not be satisfied; the risk that the focus of management’s time and
attention on the proposed joint venture may detract from other
aspects of the respective businesses of Barrick and Newmont
Goldcorp; the risks associated with each of Barrick’s and Newmont
Goldcorp’s brand, reputation and trust; the speculative nature of
mineral exploration and development; changes in mineral production
performance, exploitation, and exploration successes; diminishing
quantities or grades of reserves; changes in national and local
government legislation, taxation, controls, or regulations and/or
changes in the administration of laws, policies, and practices,
expropriation or nationalization of property and political or
economic developments in Canada and the United States; timing of
receipt of, or failure to comply with, necessary permits and
approvals; failure to comply with environmental and health and
safety laws and regulations; litigation; increased costs, delays,
suspensions, and technical challenges associated with the
construction of capital projects; operating or technical
difficulties in connection with mining or development activities,
including geotechnical challenges, and disruptions in the
maintenance or provision of required infrastructure and information
technology systems; local and global political and economic
conditions; contests over title to properties, particularly title
to undeveloped properties, or over access to water, power, and
other required infrastructure; employee relations including loss of
key employees; increased costs and physical risks, including
extreme weather events and resource shortages, related to climate
change; and availability and increased costs associated with mining
inputs and labor. In addition, there are risks and hazards
associated with the business of mineral exploration, development,
and mining, including environmental hazards, industrial accidents,
unusual or unexpected formations, pressures, cave-ins, flooding,
and gold bullion, copper cathode, or gold or copper concentrate
losses (and the risk of inadequate insurance, or inability to
obtain insurance, to cover these risks).
Many of these uncertainties and contingencies can
affect our actual results and could cause actual results to differ
materially from those expressed or implied in any forward-looking
statements made by, or on behalf of, us. Readers are cautioned that
forward-looking statements are not guarantees of future
performance. All of the forward-looking statements made in this
press release are qualified by these cautionary statements.
Specific reference is made to the most recent Form 40-F/Annual
Information Form on file with the SEC and Canadian provincial
securities regulatory authorities for a more detailed discussion of
some of the factors underlying forward-looking statements, and the
risks that may affect Barrick’s ability to achieve the expectations
set forth in the forward-looking statements contained in this press
release.
Barrick disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise, except as required
by applicable law.
Endnote 1
A Tier One Gold Asset is a mine with a stated life
in excess of 10 years with 2017 production of at least 500,000
ounces of gold and 2017 total cash cost per ounce within the bottom
half of Wood Mackenzie’s cost curve tools (excluding state-owned
and privately-owned mines). For purposes of determining Tier One
Gold Assets, total cash cost per ounce is based on data from Wood
Mackenzie as of August 31, 2018, except in respect of Barrick’s
mines where Barrick may rely on its internal data which is more
current and reliable or in relation to Newmont Goldcorp, certain
more recent information provided by Newmont Goldcorp which Barrick
has not independently verified. The Wood Mackenzie calculation of
total cash cost per ounce may not be identical to the manner in
which Barrick calculates comparable measures. Total cash cost per
ounce is a non-GAAP financial performance measure with no
standardized meaning under IFRS and therefore may not be comparable
to similar measures presented by other issuers. Total cash cost per
ounce should not be considered by investors as an alternative to
operating profit, net profit attributable to shareholders, or to
other IFRS measures. Barrick believes that total cash cost per
ounce is a useful indicator for investors and management of a
mining company’s performance as it provides an indication of a
company’s profitability and efficiency, the trends in cash costs as
the company’s operations mature, and a benchmark of performance to
allow for comparison against other companies. Wood Mackenzie is an
independent third party research and consultancy firm that provides
data for, among others, the metals and mining industry. Wood
Mackenzie does not have any affiliation to Barrick.
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/05e6038f-abd8-4922-8275-f3e7457cd27f
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