World’s largest gold miners put Nevada mine up for sale
Canadian miners Barrick Gold (TSX, NYSE:ABX) and Goldcorp (TSX:G) (NYSE:GG), the world’s largest producers of the precious metal, have hired Bank of Montreal to sell their jointly owned Marigold mine in Nevada, US, Bloomberg reports.
Marigold, majority owned by Vancouver-based Goldcorp (67%), is considered one of the largest gold mines in the US and the world. However, as bullion prices tumbled this year and the mine owners face complex scenario, selling assets has become a common practice.
After months of declining gold prices, a second-quarter loss of $8.6 billion and project writedowns of over $13 billion so far in 2013, Barrick’s stock is trading around the $19 mark, making it one of the worst performers in the sector this year. The company has slashed its dividend by 75% and has vowed to cut costs by selling non-core assets and reducing its workforce.
The Toronto-based company, which has a 33% stake in Marigold, still has a significant long-term debt of almost $15 billion.
Fellow miner Goldcorp is not in a better shape. Late last month it reported a significant drop in third-quarter profit and announced it deferring spending at one of its main projects —Cerro Negro, in Argentina— and suspending all exploration activity.
Marigold began operating around two decades ago.