London 22/08/2013 – Barrick Gold has agreed to sell thee of its Australian mines to rival producer Gold Fields for $300 million as part of a restructuring programme following its $8.5 billion loss in the second quarter.
The three mines in Western Australian, collectively known as the Yilgarn South assets, comprise Granny Smith, Lawlers and Darlot. They produced an aggregate 452,000 ounces in 2012 and in the first half of this year produced 196,000 ounces at all-in sustaining costs of $1,145 per ounce.
Yilgarn South contained proven and probable reserves of 2.6 million ounces, indicated resources of 0.6 million ounces and inferred resources of 1.2 million ounces at the end of last year.
“The agreement to divest Yilgarn South demonstrates further progress as we work to optimize the company’s portfolio and maximize free cash flow in line with our disciplined approach to capital allocation,” Barrick CEO Jamie Sokalsky said.
The agreement is subject to approval by Australia’s Foreign Investment Review Board, consent from the Western Australian minister for mines for the transfer of the property tenements and the assignment of certain supply contracts, Barrick said.
(Editing by Mark Shaw)