[miningmx.com] – BARRICK Gold, the Canadian gold miner, is considering selling its 74% stake in African Barrick Gold, led by CEO Greg Hawkins, following that company’s poor performance, according to a report in the Financial Times.
One of the potential suitors for the company, which has its assets in Tanzania, is Zijin Mining Company, a Chinese owned copper and gold producer. The Financial Times, citing a person familiar with discussions, said Barrick Gold had been working with UBS to consider its options regarding African Barrick Gold. Shares in African Barrick Gold have fallen 30% since the firm was floated in 2010.
Another person familiar with the deal, who was also cited by the Financial Times, said however the sale had been put on hold.
The sale of Barrick Gold’s stake in African Barrick Gold could trigger a complete takeover of the company, the newspaper said.
Jamie Sokalsky, the new Barrick CEO, pledged that “returns will drive production; production will not drive returns’ as he unveiled a review of the miner’s sprawling portfolio of assets, the Financial Times said.
