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Barrick Gold's asset sale is the start of promised restructuring

Barrick Gold's (ABX) $300M sale of three mines in Western Australia to rival Gold Fields (GFI) is the start of its promised restructuring, allowing it to concentrate on its five lower-cost mines that already make up 60% of output.

The three mines that comprise the Yilgarn South assets produced a total of 452K oz. of gold in 2012 and a further 196K oz. in H1 of this year, but ABX says the sale will not change its full-year plan to produce 7M-7.4M oz.

The move switches GFI's main production focus away from western Africa to Australia, where it will bundle assets with its existing mines to try to lower costs.

ABX +1.6%, GFI -6.5% premarket.

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Comments (2)
  • haleiwahu
    , contributor
    Comments (3880) | Send Message
    This sale appears to be a positive move. Good Focus ABX
    22 Aug 2013, 10:10 AM Reply Like
  • Uncle Pie
    , contributor
    Comments (4032) | Send Message
    a good start however $300 million isn't a lot when you have a debt of $14 billion.
    22 Aug 2013, 10:38 AM Reply Like
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