Barrick Mining (TSX: ABX) is in early-stage talks to fold its African operations into a $30 billion London-listed entity through an all-share combination with Endeavour Mining (TSX: EDV), Reuters reported, in what would be the another leg of the gold miner’s sweeping global restructuring.
Two sources familiar with the discussions said no decision has been made and no announcement is expected soon. Neither Barrick nor Endeavour responded to Reuters.
The $30 billion figure reflects the combined weight of both portfolios. Analysts value Endeavour’s assets at roughly $15 billion, about the same as Barrick’s African mines. One source described the potential tie-up as a merger of equals, with little or no premium changing hands.
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Barrick’s African portfolio spans five countries. North Mara and Bulyanhulu in Tanzania, Lumwana in Zambia; Kibali in the Democratic Republic of Congo; and Tongon in Ivory Coast. For Endeavour, a deal would open the door to Tanzania and the DRC, while returning the company to an operational state in Mali.
Under the structure being examined, Barrick would keep its Toronto listing as a holding company with stakes in two separately listed vehicles. One would cover North American operations and trade in New York. The other, listed in London, would house the African mines.
The rumoured transaction follows a period of upheaval for Barrick. A year-long standoff with Mali’s military-led government ended in a settlement that cost former CEO Mark Bristow his job. Current CEO Mark Hill has since said Barrick will look to exit mines in countries where it lacks majority ownership, including operations in Papua New Guinea, as the company moves away from what it considers risky jurisdictions.
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