Bristow sees more gold deals coming
8th February 2019
Resources Rising Stars
Barrick Gold CEO Mark Bristow believes there needs to be more consolidation in the gold sector (reports MiningNews).
Bristow has long been critical of the gold sector.
"I've spent my whole career trying to prove you can make returns in mining and gold," he told reporters on the sidelines of Mining Indaba in Cape Town.
"The majority of the industry is still struggling to deliver value to long-suffering shareholders.
"Instead of creating value, the industry has destroyed value."
When Randgold was delisted on January 1, it was the best-performing FTSE 100 company of the past two decades.
Bristow said the philosophy behind the recent Barrick-Randgold merger was simple: to apply Randgold's "winning formula" to the industry's best portfolio of assets and "create a true value champion".
Bristow said he hoped there would be more gold sector consolidation.
"There are too few assets with too many management teams - it's too inefficient," he said.
Further gold consolidation is already underway with Newmont Mining last month announcing a merger with Goldcorp.
"It appears from where I sit that Goldcorp was in bad shape," Bristow said.
Bristow's criticisms didn't extend to the entire gold industry, citing an emerging breed of "interesting new players" in Northern Star Resources, Evolution Mining, B2Gold and Endeavour Mining.
"Those are the new-generation, more focused management teams that have delivered value for their shareholders," he said.
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