Newmont presses Barrick on Nevada performance ahead of IPO
Gold major Newmont has called on Barrick Mining to improve the operational performance of Nevada Gold Mines (NGM) before proceeding with a potential initial public offering (IPO) of its North American gold assets.
The comments follow Barrick’s renewed preparations for a possible listing of a vehicle holding its interests in NGM, Pueblo Viejo in Dominican Republic and the Fourmile project in Nevada.
In a statement issued on Monday, Newmont said any transaction involving its joint ventures (JVs) must comply with existing contractual protections.
“Any transaction implicating Newmont’s JVs must respect the protections that are contained in those agreements, including, but not limited to, the transfer restriction requirements,” the company said.
Newmont said its primary concern was the management and performance of NGM, which it said had deteriorated over the past six years.
It added that it was engaging with Barrick to "reverse the decline in performance and ensure these assets generate the value they are capable of delivering".
“Newmont remains focused on generating and protecting long-term value through operational excellence and will act in the best interests of its shareholders,” it said.
Barrick first announced last year that it was evaluating an IPO of its North American gold assets through a proposed new company, referred to as “NewCo”.
The vehicle would comprise Barrick’s JV interests in NGM in the US and Pueblo Viejo in the Dominican Republic, as well as its wholly owned Fourmile project in Nevada.
Barrick has since advanced its preparations, appointing interim CEO Mark Hill as president and CEO and elevating him to the board as a nonexecutive director.
Hill’s expanded role will support preparations for the potential listing of its North American business, following last year’s restructuring that separated its regional operations after the departure of former CEO Mark Bristow.
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