In an interview last month, Barrick Gold Corporation (TSE: ABX) (NYSE: GOLD) chief executive Mark Bristow revealed that Nevada Gold Mines won’t be publicly listed in the foreseeable future. Those who want a piece of the pie will just have to buy Barrick or Newmont Corporation (TSE: NGT) shares.
He laid speculation on the matter to rest in a discussion with the Northern Miner at the Gold Forum Americas conference in Colorado. It was held between Sept. 15-18.
“Not while I’m running this organization,” Bristow declared. He explained that there are too many assets in the industry without enough competent managers to run them. There are already more than enough public operators in the sector that are not being managed efficiently and going public wouldn’t increase the joint venture’s value, he believes.
In the interview, he also explained that the industry has been depleting gold and copper resources at a faster rate than it is delineating new ones. This will be problematic going forward, Bristow says.
“When you look at the copper and gold reserves of the industry, we haven’t really replaced what we’ve mined since the turn of the century,” he explained to the Northern Miner’s Western Editor, Henry Lazenby.
“What we have relied on is an increasing commodity price to carry us.”
At the mining conference, Bristow discussed the importance of capital allocation and how mergers and acquisitions have been necessary for survival among many operators. He was interviewed by Kitco Mining’s analyst Paul Harris too.
"You need to be disciplined in the way you allocate capital," said @barrickgold's Mark Bristow on passing on Great Bear.
Watch the interview: https://t.co/CjUhfFSZRM. Coverage of @DenGoldGroup's Gold Forums Americas is sponsored by @metallaroyalty.#mining #business #investing… pic.twitter.com/AyTi17QL5Q
— Kitco Mining (@KitcoMining) October 5, 2024
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Barrick enhances copper focus
Bristow explained to Lazenby that Barrick was focused on growing its copper repertoire.
He says that the Reko Diq copper-gold operation in Pakistan is one of the company’s key assets that is helping to achieve this. Also, Bristow firmly believes that Barrick’s Lumwana mine in Zambia is on its way to becoming one of the world’s top 25 copper assets. Barrick intends to double its copper output by 2029.
Copper has had a significant rally since the beginning of this year, rising in value by over 15 per cent. It hit an all-time high of approximately US$5.00 per pound in May and has since dropped down to about US$4.40.
The recently inaugurated Goldrush underground mine in Nevada will be another key economic driver for Barrick and Newmont going forward.
Gold’s historically high price has been a key growth catalyst for smaller state producers like Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF) and Fortitude Gold Corp (OTCMKTS: FTCO).
Calibre Mining is a sponsor of Mugglehead news coverage
rowan@mugglehead.com
