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Barrick Gold Keeps Selling Assets - But Is It Enough?

Summary

Barrick sold a stake in its Porgera Joint Venture gold mine in Papua New Guinea – a mine that accounted for nearly 7% of the company’s output.

This deal brought in $298 million.

This deal will also improve Barrick Gold’s AISC.

The company is on course to reach its annual $3 billion debt reduction – is it enough?

Barrick Gold (NYSE:ABX) recently announced the sale of 50% interest in Barrick (Niugini), which holds 95% of the Porgera Joint Venture gold mine in Papua New Guinea. This sale will bring in for Barrick $298 million that will be allocated toward paying off its debt.

The company still plans to reduce its debt by $3 billion by the end of 2015 - a goal that seems within its grasp. To reach this goal, ABX slashed its capital spending from $2.4 billion in 2014 to $1.7 billion this year. It also sold off several assets including Cowal mine and 50% interest in its Zaldívar copper project. And it also had a streaming deal for its Pueblo Viejo mine. With this recent deal, the company raised a total of $2.7 billion so 90% of its debt reduction goal was met.


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