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jerryking : barrick   15

Another one bites the dust: Goldcorp sale a further example of the hollowing out of Corporate Canada - The Globe and Mail
ERIC REGULY EUROPEAN BUREAU CHIEF
ROME
PUBLISHED JANUARY 14, 2019

Toronto’s Barrick Gold Corp. always wanted to team up with Newmont Mining Corp. of Colorado. Merging the two giants, which have adjoining operations in gold-rich Nevada, would have created an unassailable industry leader and reduced costs by an estimated US$1-billion a year. On paper, it looked like a dream deal. But it never got off the ground, in good part because Barrick founder Peter Munk wanted the new company to stay in Toronto, not move to Denver.

Were he alive today, Mr. Munk – a Canadian patriot who believed in the value of head offices – would be distraught. In the fall, Barrick bought Randgold Resources but handed management control to Randgold’s executives, who promptly gutted Barrick’s Toronto headquarters, leaving the world’s top producer with a mere 65 employees in its echo-chamber offices on Bay Street. The deal was, in effect, a reverse takeover. The new Barrick will be run from the Channel Islands........Toronto still fancies itself the mining capital of the world, a bold claim given that it is now largely devoid of A-team and even B-team players. Barrick was the last miner in Canada that could be considered world class, and it’s fading from view as a Canadian company. All the big base-metal names are gone, bar Teck Resources. Goldcorp is going. Who’s next? Could it be the well-regarded Agnico Eagle Mines (market value $12.4-billion) or B2Gold ($3.7-billion)?

Aside from the loss of their Toronto stock-market listings, the endless elimination of head offices across Canada rots the country’s social fabric. Head offices provide high-paying, high-skilled job opportunities and create an ecosystem of spinoff jobs, from accountants and chefs to limo drivers and lawyers. Head offices bolster the financial-services industry, which underwrites bond and equity sales and sponsors the arts and charities. When head offices disappear, so does talent. If you want a top-level management job in mining, an industry that shaped Canada, forget Toronto. Today, the opportunities are in London, Johannesburg and Melbourne...........In a largely open economy such as Canada’s (banks, big telecoms and media companies are still protected from foreign takeovers), it’s hard to stop head offices from disappearing. The cult of shareholder capitalism produces unsentimental results, such as the eradication of underperforming companies. But Canadian investors and managers have proven time after time that they’re happier to sell rather than build, happy to take a quick buck rather than take a long-term gamble on a double or triple. The cost of doing so is a hollowed-out corporate sector – a branch-plant economy.
Barrick  Corporate_Canada  Eric_Reguly  Goldcorp  head_offices  hollowing_out  Peter_Munk  sellout_culture  social_fabric 
january 2019 by jerryking
The gutting of Barrick Gold – it didn’t have to be this way - The Globe and Mail
ERIC REGULY EUROPEAN BUREAU CHIEF
ROME
PUBLISHED JANUARY 4, 2019

Most big companies Eric Reguly followed – Inco, Falconbridge, Alcan, Dofasco, Molson, Fairmont, Four Seasons, among others – were flogged to foreigners, their head offices downgraded to branch plants or eliminated. ....Canadians were sellers, not builders.....If there was one company that was safe from the takeover onslaught, it was Barrick Gold, I thought......At the time, Barrick was run by its founder, Peter Munk, the Hungarian-born Canadian patriot who wanted to build the world’s biggest gold miner. After achieving that goal, he mused about creating a diversified resources giant, the equivalent of a BHP Billiton or Rio Tinto under the Maple Leaf. But he was too late: By the time he was ready to put the pieces together, in the middle part of the previous decade, all his potential targets, including Inco, had been plucked clean from the Toronto stock market.....
Eric_Reguly  branch_plants  head_offices  hollowing_out  John_Thornton  large_companies  LSE  mining  Peter_Munk  Pierre_Lassonde  sellout_culture  TMX  Barrick  Corporate_Canada 
january 2019 by jerryking
Can John Thornton save Barrick Gold? - The Globe and Mail
RACHELLE YOUNGLAI
Can John Thornton save Barrick Gold?
SUBSCRIBERS ONLY
The Globe and Mail
Published Friday, May. 29 2015
Barrick  gold  mining  John_Thornton  CEOs  relationships  legacies  Goldman_Sachs  boards_&_directors_&_governance  Bay_Street  Nevada  free_cash_flow 
may 2015 by jerryking
The man with the key to China: Barrick Gold’s quest to open new doors - The Globe and Mail
RACHELLE YOUNGLAI - MINING REPORTER
The Globe and Mail
Published Friday, Dec. 06 2013

John Thorton is a man who “loves flawless execution” and prefers to work behind the scenes.

When Goldman won the contract to take some of China’s government-controlled telecom services public in 1998, it stemmed from Mr. Thornton’s work.

In the mid-1990s, Mr. Thornton got wind that the vice-premier at the time, Zhu Rongji, wanted to reform some of the country’s state-owned telecoms.

Mr. Thornton, who had taken Britain’s Vodafone public in the late-1980s, arranged for a meeting with the number 2 banker at the newly formed state-owned Chinese investment bank, a Chinese national who did not speak English.

Through a translator late at night in Beijing, Mr. Thornton said: “Here’s the real situation, you call yourself a banker and yet you know nothing about banking. I am in charge of Goldman Sachs Asia and China and I know nothing about any one of those. So we have a perfect marriage here. You’re going to teach me China and I am going to teach you banking and I am going to make you look like a hero in front of Zhu Rongji and everyone else who is important to you. And I don’t need any visibility, credit, anything. All I want to do is understand China out of this whole process.”

Mr. Thornton stressed his experience with Vodafone and the Chinese banker took Mr. Thornton’s request to Wang Qishan, then the head of China Construction Bank (one of China’s four biggest banks) and a protege of Mr. Zhu. Mr. Wang then spoke to Mr. Zhu and Goldman made its foray into China.

Mr. Thornton, Mr. Evans and former U.S. treasury secretary and Goldman chief executive Hank Paulson met Mr. Zhu in Beijing and Goldman got the deal.
Hank_Paulson  mining  Barrick  Goldman_Sachs  boards_&_directors_&_governance  China  relationships  dealmakers  optics  protégés 
december 2014 by jerryking
Munk's Tale
April 19, 2014 | The Economist | Schumpeter
Peter_Munk  mining  moguls  entrepreneur  Barrick  gold  serial_entrepreneur 
may 2014 by jerryking
Peter Munk: A mining magnate nears the end of his golden reign - The Globe and Mail
ERIC REGULY - EUROPE BUSINESS CORRESPONDENT

KLOSTERS, SWITZERLAND — The Globe and Mail

Published Saturday, Mar. 15 2014,
Eric_Reguly  Peter_Munk  Glencore  Xstrata  John_Thornton  Canada  Barrick  mining  moguls  entrepreneur  commodities 
march 2014 by jerryking
The man with the key to China: Barrick Gold’s quest to open new doors - The Globe and Mail
Dec. 06 2013 | The Globe and Mail | RACHELLE YOUNGLAI - MINING REPORTER.

The former Goldman Sachs president has spent more than 20 years working with Chinese policymakers. He shares Mr. Munk’s vision of turning Barrick into a diversified mining giant and tapping China to join the effort...Mr. Thornton said his Barrick talks with the Chinese have been with the highest levels of the communist government right on down the system. He stresses he does not want what he calls a “transactional” or one-off deal with the Chinese. He wants to build an enduring relationship with the government...Mr. Thornton envisions Barrick first doing one “thing that is relatively modest” with the Chinese. For example, he says Barrick could consider a Chinese construction company for Pascua Lama. Mr. Thornton has not spoken to any such companies about the South American mine and says it’s only an example.

Michael Evans, a Goldman vice-chairman who worked with Mr. Thornton for years in London and Asia, describes Mr. Thornton as a hugely strategic operator who “loves flawless execution” and prefers to work behind the scenes...In the mid-1990s, Mr. Thornton got wind that the vice-premier at the time, Zhu Rongji, wanted to reform some of the country’s state-owned telecoms.

Mr. Thornton, who had taken Britain’s Vodafone public in the late-1980s, arranged for a meeting with the number 2 banker at the newly formed state-owned Chinese investment bank, a Chinese national who did not speak English.

Through a translator late at night in Beijing, Mr. Thornton said: “Here’s the real situation, you call yourself a banker and yet you know nothing about banking. I am in charge of Goldman Sachs Asia and China and I know nothing about any one of those. So we have a perfect marriage here. You’re going to teach me China and I am going to teach you banking and I am going to make you look like a hero in front of Zhu Rongji and everyone else who is important to you. And I don’t need any visibility, credit, anything. All I want to do is understand China out of this whole process.”

Mr. Thornton stressed his experience with Vodafone...
Barrick  gold  mining  John_Thornton  CEOs  relationships  Goldman_Sachs  personal_connections  Tsinghua  boards_&_directors_&_governance  barter  transactional_relationships 
december 2013 by jerryking
Peter Munk: Recipe for success? Learning from failure
November 5, 2007 | The Globe and Mail | Gordon Pitts.

It's hard to think of Peter Munk as a failure. This is, after all, the man who built Barrick, the world's
largest gold miner, as well as a property empire, a philanthropic legacy and a reputation as a shootfrom-
the-hip tycoon. Yet in the 1960s, he was tarred with the collapse of Clairtone, a Canadian
manufacturer of cutting-edge stereo equipment and colour televisions that he had co-founded. Now approaching his 80th birthday, he considers the strange alchemy of failure and success, and how
entrepreneurs are formed.
Peter_Munk  Gordon_Pitts  failure  Barrick  mining  entrepreneur  moguls 
november 2011 by jerryking
10 Million Reasons To Give Barrick A Hand With Its Silver
September 19, 2007 Canadian Press article by ANDY HOFFMAN
discussed how Barrick is offering $10-million (U.S.) to anyone who can
help the company extract the 180 million ounces of silver at its
Veladero gold mine in Argentina. Barrick's problem at Veladero is no
laughing matter. The gold in the deposit is relatively easy to mine but
the silver is sheathed in an impermeable layer of silica and has
resisted traditional processing methods such as leaching with cyanide.
Barrick  mining  silver  gold  prizes  bounties  innovation  contests 
february 2009 by jerryking

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