Barrick rumoured to be selling WA gold mines

Rumours have emerged that Barrick Gold is looking to sell three gold mines in Western Australia in order to reduce debt and fight-off a credit rating downgrade.

According to Reuters the gold producer has appointed UBS and Merrill Lynch to advise on the sale of its Yilgarn South assets, which comprise of the Darlot, Granny Smith, and Lawlers mines.

 

Unsourced rumours claim Chinese firms Zijin Mining and Shandong Gold are interested in the assets, but so far Barrick has not released details about a potential sale.

 

A spokesperson for the company was unavailable for comment.

 

The Yilgarn South assets produced 452,000 ounces of gold in 2012 at total cash costs of $768 an ounce.

 

Barrick is due to announce its first quarter performance this week, and analysts have tipped a fall in earnings and revenue.

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