Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Barrick Gold Corp. executive chairman John Thornton has moved to chairman after nearly a decade in the position.
The change is “best suited for the company’s next growth phase,” the world’s second-largest gold producer said in a regulatory filing on Wednesday.
“In his capacity as chairman, Mr. Thornton will continue to provide leadership and direction to the board and facilitate the operations and deliberations of the board and the satisfaction of the board’s functions and responsibilities under its mandate,” Barrick said.
Thornton, an ex-investment banker from Goldman Sachs Group Inc., joined Barrick in 2012 as a director under founder Peter Munk. He was instrumental in Barrick’s $5.4 billion merger with Randgold Resources Ltd., which saw Randgold’s founder Mark Bristow become Barrick’s chief executive officer in 2019.
Thornton also forged ties between Barrick and Chinese mining companies including Shandong Gold Mining Co Ltd. and Zijing Mining Group Co Ltd., both of which are partners in Barrick operations.
The shuffle is another indicator of a shifting focus at the Canadian company that was once predominantly focused on gold. Barrick’s Bristow has forged ahead on projects aimed at growing the firm’s copper production, including a $7 billion copper development in Pakistan. Earlier this year Bristow approached top shareholders of First Quantum Minerals Ltd., which operates major copper assets, to discuss a potential takeover.
Barrick’s gold production has dropped to multi-decade lows, meanwhile, while longstanding industry rival Newmont Corp. recently closed a huge acquisition that catapults it well out of Barrick’s league in gold production.
(By Jacob Lorinc)
Comments