Newmont Mining Corp. might be interested in some of Barrick Gold Corp.’s assets — just not the ones Barrick is currently trying to sell.
After taking over operations this year at the Kalgoorlie Super Pit in Western Australia, Newmont would be interested in buying out Barrick’s 50 percent stake, said CEO Gary Goldberg Tuesday in an interview at the Denver Gold Forum.
Mines in Nevada that Barrick is marketing are not of interest to the Greenwood Village-based company, he said.
Gold’s more than 40 percent slump from a 2011 peak has left miners scrambling to adapt in slightly different ways. Some, like Toronto-based Barrick, are downsizing to focus on key assets. Others such as Goldcorp Inc. are building war chests for future growth. In Newmont’s case, the focus is on improving asset quality as well as selectively seeking acquisitions, Goldberg said.
“That’s one asset that we know pretty well, and if we could obtain it at the right value that would be one that we’d be interested in considering,” he said, referring to the Super Pit. “Of their current portfolio in Nevada, we don’t have any interest in the assets that they’re looking to sell.”
Barrick is trying to offload a package of six mines in Nevada and Montana.
Newmont and Barrick discussed the possibility of combining their operations several times over the past two decades. The latest merger talks ended in a very public way in April 2014, with both sides blaming the other for the breakdown.
Since then, both companies have been working to bring down costs and debt levels. Newmont isn’t focused on resuming talks with Barrick, Goldberg said.
Newmont’s giant Conga project in Peru continues to work on social acceptance measures after development was halted amid protests, he said, adding that the project remains viable even at today’s metal prices.
Just as Barrick has suggested it might seek partnerships to share costs at its stalled Pascua-Lama project, Newmont might also bring in a partner at Conga.
In Indonesia, Newmont expects to deliver authorities required documentation in the coming weeks as part of a rolling export permit renewal process. Authorities haven’t asked the company to list on the local exchange, he said.
Newmont shares have lost 34 percent in the past year, while Barrick has plunged 52 percent. Both companies’ shares are worth less than their book value.
