Barrick Gold Looks to Sell All Or Part Of Its Peru Mine - Report
© Barrick Gold
Barrick Gold Corp. (NYSE, TSX: ABX) is interested in potentially selling all or part of its Lagunas Norte mine in north-central Peru, Reuters cited sources as saying.
Toronto Dominion Bank is helping Barrick Gold with the transaction, which could be worth up to $1.4 billion, according to the report.
It is still unclear if the company wants to maintain control as operator after the sale.
In 2016, the Lagunas Norte mine produced 435,000 ounces of gold, with production costs of $529 per ounce. In 2017, the company estimates higher costs of $560-$620 per ounce, with total production set between 380,000-420,000 ounces of gold, according to the Barrick Gold’s website.
One of Reuters’ sources described the deliberations behind the possible sale as a “soft process” and not a top priority to the mining company.
Lagunas Norte is Barrick's flagship mine, which is located 4,000 meters above sea level in the Andes Mountains. At the end of 2016, the mine had 4.2 million ounces of proven and probable gold reserves.
Currently, the mine is at the end of its life under the first phase, which began in March 2005. The Toronto-based company is now exploring different second phase options, with production likely starting in 2023.