Barrick Completes Divestiture of Three Australian Mines
TORONTO, ONTARIO -- (Marketwired) -- 10/01/13 --
All amounts expressed in US dollars unless otherwise indicated.
Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) (Barrick or the
"company") today announced it has completed the divestiture of its
Yilgarn South assets ("Yilgarn South") in Western Australia to Gold
Fields Limited ("Gold Fields").
The Yilgarn South assets are comprised principally of the Granny
Smith, Lawlers and Darlot mines. In aggregate, these mines produced
452,000 ounces in 2012 at all-in sustaining costs (AISC) of $1,137
per ounce(1) and 196,000 ounces in the first half of 2013 at AISC of
$1,145 per ounce. Yilgarn South contained proven and probable
reserves of 2.6 million ounces(2), measured and indicated resources
of 0.6 million ounces(2) and inferred resources of 1.2 million
ounces(2) as at December 31, 2012, respectively.
Barrick sold the assets for total consideration of $300 million,
subject to a closing adjustment deduction estimated at a value of $30
million. As permitted by the terms of the sale agreement, Gold Fields
elected to satisfy the purchase price by delivering 28.7 million of
its common shares for half the consideration at a volume weighted
average price of $4.70 per share based on the five days prior to, but
not including, the closing date of October 1. There are no
contractual hold restrictions on the disposition of the shares.
Proceeds will be used for general corporate purposes, including debt
repayment, and will be recorded in the fourth quarter of 2013.
The divestiture of Yilgarn South is part of Barrick's ongoing
portfolio optimization process to maximize free cash flow in line
with the company's disciplined capital allocation framework. Barrick
maintains its 2013 gold production guidance of 7.0-7.4 million ounces
at AISC of $900-$975 per ounce, which are the lowest costs of its
senior peer group.
UBS Securities Canada Inc. and BofA Merrill Lynch acted as financial
advisors to Barrick with respect to the transaction. Clayton Utz
acted as legal counsel to Barrick.
(1) All-in sustaining cost per ounce is a non-GAAP financial performance
measure with no standardized definition under IFRS. See pages 45-48 of
Barrick's Second Quarter
(2) For a breakdown of reserves and resources by category and additional
information relating to reserves and resources, see pages 25-35 of
Barrick's Form 40-F.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Certain information contained in this press release, including any
information as to our strategy, projects, plans or future financial
or operating performance constitutes "forward-looking statements".
All statements, other than statements of historical fact, are
forward-looking statements. The word "will" and similar expressions
identify forward-looking statements. Forward-looking statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by the company, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. Known and unknown factors could cause actual results
to differ materially from those projected in the forward-looking
statements. Such factors include, but are not limited to:
fluctuations in the spot and forward price of gold and copper or
certain other commodities (such as silver, diesel fuel and
electricity) and changes in national and local government
legislation, taxation, controls, regulations, expropriation or
nationalization of property and political or economic developments in
jurisdictions in which the company does or may carry on business in
the future. Many of these uncertainties and contingencies can affect
our actual results and could cause actual results to differ
materially from those expressed or implied in any forward-looking
statements made by, or on behalf of, us. Readers are cautioned that
forward-looking statements are not guarantees of future performance.
All of the forward-looking statements made in this press release are
qualified by these cautionary statements. Specific reference is made
to the most recent Form 40-F/Annual Information Form on file with the
SEC and Canadian provincial securities regulatory authorities for a
discussion of some of the factors underlying forward-looking
INVESTOR CONTACT: Amy Schwalm
Vice President, Investor Relations
MEDIA CONTACT: Andy Lloyd
Vice President, Communications
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