Tomahawk, WI 8/28/2013 (BasicsMedia) – Barrick Gold Corporation (USA) (NYSE:ABX) has decided to get rid of 3 high-cost mines located in Western Australia.

The well known firm said that it will sell its mines to South African miner Gold Fields Ltd. The said decision will aid Barrick Gold Corporation to concentrate more on more lucrative operations.

Barrick Gold Corporation stated that it will obtain around $300 million from the said sale of its high-cost mines, which is subject to customary closing conditions, comprising authorization by Australia’s Foreign Investment Review panel.

The firm stated that the 3 mines, which consist of the Yilgarn South assets, fabricated around 452,000 ounces of gold during the last year (2012) and an additional 196,000 ounces during the initial half of the existing year (2013).

Kerry Smith, a market expert at Haywood Securities, stated that the sale of the higher-cost mines will lessen Barrick Gold Corporation’s operating expenditures and have only a least impact on the firm’s manufacturing volumes.

“By getting rid of those 3 mines out of their collection, it frees their administration up to spend additional time on other assets, which actually generate extra cash,” Smith said.

Smith approximated the mines are accountable for around 5% of the company’s overall production.

Elizabeth Collins, a market expert at Morningstar stated that the company is considering a “tiny” step in the direction of reducing its debt load by depriving the “disturbed mines.”

“They are abolishing high-cost mines, which have low remaining reserves on a proven basis, and offering them to a firm, which is smaller and therefore can concentrate on smaller mines,” Elizabeth also satted.

The deal is likely to shut on Oct. 1 this year. The income generated will be utilized for general business functions, comprising debt refund, and will be registered during the 4th quarterly period of the existing year (2013).

“The contract to divest Yilgarn South reveals further growth as we work to get the most out of the company’s assortment and take full advantage of free cash flow,” added up company’s president and chief executive officer Jamie Sokalsky.

Barrick Gold Corporation, one of the globe’s biggest gold manufacturers, has been taking actions to lessen operating expenses by lowering capital expenditure and staffing points. It added that it will cut down between $1.5 billion to $1.8 billion from its prices during 2013 and 2014 by contracting capital expenditure, comprising laying off employees, at its venture in Argentina.

Apart from unusual items, Barrick Gold Corporation had adjusted income of around US$663 million or 66 cents during the quarterly period ended June 30 — 10 cents healthier than forecasters had been anticipating however down from 82 cents per scrip in 2012.

Barrick Gold Corporation cut down its cost guidance for another time in 2013, and its recorded all-in costs of $919 an ounce were lower than competitors. Between cost cuttings and spending reductions, the company stated that it saved around US$2-billion during the first half of this year. Adjusted net income of $663-million was also ahead of anticipations.

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