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Barrick Gold JV on track despite pandemic

Mining
TSX:ABX
01 July 2020 13:30 (EDT)
Barrick Gold Corporation - CEO, Mark Bristow

Source: The Wall Street Journal

Barrick Gold’s (TSX:ABX) new joint venture Nevada Gold Mines has met its operational and cost targets despite the impact of COVID-19.

In a release today, the company stated that Nevada Gold Mines has posted an exceptional performance in its first 12 months of operations. However, no hard operational figures have yet been released.

Nevada Gold Mines has also been working with the State of Nevada to provide financial and logistical support to mitigate the impact of the pandemic.

Barrick, one of the largest gold companies in the world, established the venture with Newmont Mining to manage both companies’ mines in Nevada. In the process, Barrick and Newmont created the world’s largest mining complex.

The joint venture is 61.5 per cent owned by Barrick, with Newmont holding the remainder. Newmont is a monolithic producer in its own right, as one of the largest miners in the world. 

President and CEO of Barrick, Mark Bristow said the results were outstanding, considering the team of Nevada Gold Mines are managing a slew of assets, including three tier-one assets.

“The new team was drawn from both legacy companies. It started with a clean slate in a fit-for-purpose, integrating the two bodies of knowledge to produce new models and fresh opportunities, and introduced a strong geological focus to the operations.

“It was the strength of the team and the structure, incidentally, that enabled NGM to deal so quickly and effectively with the unprecedented threat posed by the pandemic,” he said.

Barrick Gold (ABX) is down 1.26 per cent and is trading at C$36.07 per share at 1:00 pm EDT. 

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