FT: Barrick Gold to cut layer of management

|About: Barrick Gold Corporation (ABX)|By:, SA News Editor

Barrick Gold (ABX +0.5%) plans to cut regional managers and move oversight of operations to its head office, in a restructuring designed to make mines more accountable for controlling costs and increasing cash flow, FT reports.

Gold miners around the world are cutting costs and rethinking expansion plans as falling gold prices this year have made many mines unprofitable; ABX already has cut one-third of head office staff, cut $2B from its capital budget for this year, sold mines in Australia and will look at further sales or closures as it focuses on its largest, lowest-cost mines.

As ABX retrenches, talk of divesting its 74% stake in African Barrick (ABGLF.PK, ABGLY.PK) is coming up again; CEO Brad Gordon says the company could be independent in 12-18 months if ABX seeks a sale, but "they are not sellers at the current price."