The Globe and Mail reports in its Tuesday edition that Barrick Gold's new chief executive officer says the company is sizing up a number of acquisition opportunities in Canada as it looks to boost investment in its home country. The Globe's Niall McGee quotes Mark Bristow saying,
"If you look at the corporate structure, the biggest gap is the fact that it's underinvested in Canada." Barrick last week completed its $6-billion (U.S.) acquisition of Randgold Resources, and Mr. Bristow, Randgold's founder, formally took over as Barrick's CEO last month. In particular, Barrick is looking at acquiring what are known as single-asset companies, smaller firms with only one mine, that may be struggling for various reasons, Mr. Bristow said.
"We're looking at some due diligence opportunities, which are assets that might not be working as well as they should be," he added.
"You can deliver synergies in some of these big single-asset projects that are inefficiently run." When asked whether the company could buy Pretium Resources, whose sole B.C. mine is known for its tricky geology, Mr. Bristow replied, "maybe."
With a market cap of $2.1-billion, Pretium operates the Brucejack mine in northwestern B.C.
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