The Globe and Mail reports in its Thursday edition the unusual new management structure at Barrick Gold signals two things -- that John Thornton is now clearly in command, and that more changes lie ahead.
The Globe's Ian McGugan writes the big change is the departure of president and chief executive officer Jamie Sokalsky, who will resign in September. He was a favourite of company founder Peter Munk. Now, Barrick may attempt to reopen merger talks with Colorado's Newmont Mining. The absence of a CEO at Barrick might make it easier to merge the two corporate hierarchies. However, Mr. Thornton's own role in a merged company was widely perceived to be one of the most divisive issues in the Newmont talks earlier this year. Another possibility is that Barrick will strike a deal in China, a country where Mr. Thornton has extensive contacts from his days as chairman of Goldman Sachs Asia, and as a business professor at Tsinghua University in Beijing.
A move in either direction would cheer Barrick investors, who have seen the company's share price cut in half over the past couple of years.
During those tough years, Mr. Sokalsky's skill as a financial Mr. Fix-It does not seem to fit into Barrick's new vision.
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