|African Barrick has three operating mines—Bulyanhulu, Buzwagi (pictured here), and North Mara—all located in northwest Tanzania. (Photo courtesy of African Barrick)|
Barrick Gold announced on March 11, that it had sold 41 million shares of its holding in African Barrick Gold, raising gross proceeds of about $188 million. Following the sale, Barrick still held approximately 262 million ordinary shares of African Barrick, representing approximately 64% of the company.
Barrick Gold President and CEO Jamie Sokalsky said, “After this transaction, Barrick will still be a controlling shareholder, but this transaction allows us to realize some liquidity from our holding in African Barrick in keeping with our disciplined capital allocation framework and our ongoing program to optimize and lower the average cost of our portfolio.”
African Barrick has three operating mines—Bulyanhulu, Buzwagi and North Mara—all located in northwest Tanzania. Combined production of the mines during 2013 was 641,931 oz of gold at all-in sustaining costs of $1,362/oz sold. Pro-duction during 2014 is forecast to be between 650,000 and 690,000 oz.
Regarding Barrick’s share sale, African Barrick CEO Brad Gordon said, “This is a positive step by Barrick, which significantly increases our free float. The placing is a reflection of the increased interest in the business as a result of the progress we are making as we continue to drive improved operational delivery from our high-quality asset base.”