TORONTO — Barrick President and Chief Executive Officer Mark Bristow said today that Newmont’s Nevada joint venture proposal reinforced the frustration Barrick has experienced in its efforts to unlock the value in the two companies’ assets in Nevada.

“Newmont’s latest proposal is essentially based on the stale and convoluted process that foundered previously. As usual, it comes with unrealistic preconditions including swapping the chairmanship and the leadership of the JV. Experience has shown us that JVs only work well when the majority owner is also the operator,” he said.

“Nevada, with a combined 76 million ounces, will be worth a whole lot more if it is run by one operator. We know we can do that more efficiently than Newmont, and that it will be worth a lot more to both Newmont and Barrick shareholders under that scenario. By the way, based on analyst consensus NAV, the Nevada JV ownership breakdown should be 63/37 percent, without the full potential of the Goldrush-Fourmile project taken into account. If you factor that in, it’s materially more than 2/3-1/3 in favor of Barrick.”

Subscribe to Breaking News

* I understand and agree that registration on or use of this site constitutes agreement to its user agreement and privacy policy.

Load comments