Barrick and Newmont expand Nevada Gold Mines joint venture

Barrick Gold Corporation and Newmont Corporation have reached an agreement to expand their Nevada Gold Mines (NGM) joint venture and resolve all outstanding disputes between the two companies. Under the terms of the deal, Barrick will contribute its Fourmile project to the venture, while Newmont will contribute its Fiberline and Mike developments. To reflect these contributions, Newmont will pay Barrick $1.95 billion in cash within 30 days.

The resolution of these disputes includes Newmont providing consent for Barrick’s proposed initial public offering (IPO) of its North American gold assets. The enlarged Nevada complex is expected to contain nearly 100 million ounces of gold. The IPO, which is intended to include NGM, Pueblo Viejo, and other North American exploration properties, remains on track for completion by the end of the year, subject to market conditions and approvals.

In related financial news, Barrick reported a 50% year-on-year increase in net earnings to $1.22 billion for the second quarter, supported by higher gold and copper prices. However, the company noted an increase in all-in sustaining costs to $1,866 per ounce, citing lower grades at certain sites and higher fuel costs.