Mining

Bristow warns of “a great deal of work” for Acacia ahead of Barrick Gold takeover

BARRICK Gold would complete the takeover of the UK’s Acacia Mining in September, but the firm issued a health warning on its integration which included “a great deal of work”.

Commenting in Barrick’s second quarter results published today, CEO Mark Bristow said “getting to grips” with Acacia involved implementing a dispute solution with the Government of Tanzania (GoT) which had been agreed prior to Barrick’s updated offer to minority shareholders in Acacia accepted by its board in July.

Barrick reported net earnings for the second quarter of 11 US cents per share which compares to six cents in the previous quarter. This was on the back of 1.35 million ounces in gold production (Q1: 1.38 million oz) which was processed at an all-in sustaining cost (AISC) of $869/oz ($825/oz).

Relations between the GoT and Acacia management continue to rumble on. Acacia announced today it had received permission to resume gold exports from North Mara, the only mine in the group that operates free from export restrictions.

However, the GoT has requested Acacia provide it with a feasibility and life of mine report by August 16 suggesting that further imposts are merely a flick of the pen away. Barrick observed in a study of Acacia ahead of its improved offer to minority shareholders that in the absence of North Mara production the company was headed for bankruptcy.

 

The post Bristow warns of “a great deal of work” for Acacia ahead of Barrick Gold takeover appeared first on Miningmx.

Source: miningmx.com

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