The Financial Post reports in its Friday edition that Barrick's new CEO has a message for the gold industry: This is just the start of a big shakeup.
A Bloomberg dispatch to the Post says that Barrick agreed to buy smaller rival Randgold Resources in a $5.4-billion (U.S.) deal announced in September. As part of the agreement, Randgold's chief executive officer, Mark Bristow, became CEO of Barrick.
"Without a doubt, this industry needs transformation," Mr. Bristow told Bloomberg. "We believe we have started that. We're going to end up with a blue-chip business and on the way we're not going to be sitting on our hands should there be other opportunities."
By combining the two companies, Barrick says it will run five of the 10 best gold mines in the world, with operations from Nevada to South America and Mali and the Democratic Republic of Congo. The deal happened when gold mining has fallen out of favour with many investors after a year of lacklustre bullion prices and a recent history of costly takeovers and mine developments that racked up debt but did not pay off.
"This industry, if it had carried on the way it was, was going to become irrelevant," said Mr. Bristow, a South African geologist who founded Randgold.
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