Even though the share of the world’s second largest gold producer Barrick Gold is likely to start the day a little easier due to the weakening gold price, the rally of the past few days has been impressive. The paper is now at a seven and a half year high. And the group is also setting the course for the future in small steps.
Growing large acquisitions
Barrick Gold was previously known for growing with large acquisitions. This then brought the company into serious imbalance during the gold price bear market. The high debts had to be reduced by selling projects. Now Barrick Gold seems to be taking a different path under Mark Bristow: the path of small steps. Barrick Gold plans to invest over $ 10 million in Precipitate Gold, a small company. Only around one million will flow directly into the company as part of a private placement. Most of the investment will go directly to Precipitate’s Pueblo Grande project in the Dominican Republic. The project is directly adjacent to the Pueble Viejo project by Barrick Gold and Newmont Goldcorp. Barrick can acquire a 70 percent stake in Pueblo Grande if the group invests at least $ 10 million in exploration and delivers a prefeasibility study over the next six years.