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.