Boston, MA 10/02/2013 (wallstreetpr) – The company Barrick Gold Corporation (ABX) is engaged in the production and sale of gold along with its related activities, i.e. mine development and exploration. It mainly performs the operation of production and sale of gold and copper, including nickel development in a project located in Africa. The business of ABX is primarily organized in seven operating segments, i.e. four segments are engaged in the regional gold business, one segment in the global copper business, one segment in oil and gas business, and one in capital projects group. The company also holds interest in oil and gas properties located in Canada.
The company, Barrick Gold Corporation, completes the divestiture of its Yilgarn South Assets in Western Australia to Gold Fields Limited on Oct 1, 2013. The Yilgran South Assets in Western Australia is comprised of Lawlers, Granny Smith and Darlot mines. These mines in an aggregate produced 452,000 ounces in 2012 at an all-in sustaining cost (AISC) of $1,137per ounce, and in the first half of the FY13 the mines produced 196,000 ounces of gold at an AISC of $1,145 per ounce. According to a research conducted on Dec 31, 2012, it was found that the assets at Yilgran South contained approximate reserve of 2.6 million ounce.
The company sold assets of $300 million, subject to closing adjustment deduction estimated at valued $30 million. The management of the company decided to use the proceeds of the sale for general corporate purpose, which will also include debt payment and its effect will be recorded in the 4Q13. The divestiture formed a part of the company’s ongoing portfolio optimization process, so as to maximize the free cash flow with respect to disciplined capital allocation framework of the company. In FY13, the company aims to maintain a production guidance of 7.0-7.4 million ounces of gold at an AISC of $900-$975 per ounce, which is considered to be the lowest cost among the company’s peer group.
