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IPMI and Industry News: Precious Metals Mining News

Barrick CEO touts gold mining industry consolidation

Thursday, October 8, 2020   (0 Comments)
Posted by: Matt Watson
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Barrick CEO touts gold mining industry consolidation

|About: Freeport-McMoRan Inc. (FCX)|By: , SA News Editor 

The gold industry needs more consolidation so it can increase exploration to boost depleting reserves, lure more generalist investors and improve efficiencies, Barrick Gold (GOLD -0.4%) CEO Mark Bristow says.

The flurry of deals that characterized the sector in the past two years likely will continue, with miners in Australia already "stamping their mark" on the industry and more mergers and acquisitions needed in Canada, the CEO told a virtual South African mining conference.

Bristow cautioned producers against merely "rearranging the deck chairs" through deals, saying gold miners must invest in finding new deposits to replace reserves.

"The prospect of a serious reserve crisis is looming," Bristow said, noting a lack of exploration has seen average mine life across the gold mining sector fall from 20 years to closer to 10 years.

Bristow also reiterated his company's interest in Freeport McMoRan's Grasberg (FCX +7%) mine in Indonesia, saying Barrick is "completely, single-mindedly focused on tier-1 assets, and so it's got to be of interest to us."

Wall Street analysts are mostly bullish on Barrick, while the stock's Seeking Alpha Authors' Rating is only Neutral.

 

Read the full article at:  https://seekingalpha.com/news/3620579-barrick-ceo-touts-gold-mining-industry-consolidation


 

 

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