Barrick Gold Corp., the world’s second-largest bullion producer, is exploring investment opportunities in Canada as gold prices continue to climb.
CEO Mark Bristow expressed caution about committing to major deals but is actively seeking opportunities within the company’s home country for acquiring or developing mining projects.
‘Canada is a great place to invest, and it’s a location we constantly monitor,’ Bristow remarked during an interview in Toronto on Monday. ‘Would we like more exposure in Canada? Absolutely.’
Barrick’s stock surged by up to 9.5% on Monday, marking its largest intraday increase since 2020, following the company’s announcement of second-quarter earnings that surpassed analyst expectations. Gold prices also rose.
Rising gold prices are pushing miners to look for acquisition opportunities in stable jurisdictions as a means of expanding. With the $1.6 billion acquisition of Canada’s Osisko Mining Inc., which was announced on Monday, Johannesburg-listed Gold Fields Ltd. gains complete control over a significant gold project and an opportunity to expand its business outside of South Africa.
In contrast to rivals Newmont Corp. and Agnico Eagle Mines Ltd., which have completed significant acquisitions in the last two years, Toronto-based Barrick has abstained from engaging in transformative dealmaking since acquiring Randgold Resources in 2019. Instead, the company has concentrated on building a significant copper-gold project in Pakistan and expanding its current assets.
According to Bristow, when it comes to major M&A deals, we’re very cautious. The transaction we completed five years ago has a lot of unfinished business, as we are demonstrating.