Canadian miners Barrick Gold and Goldcorp, the world's largest producers of the precious metal, have hired Bank of Montreal to sell their jointly owned Marigold Mine in Nevada.
Marigold, majority owned by Vancouver-based Goldcorp (67 percent), is one of the largest gold mines in the United States. However, as bullion prices tumbled this year and the mine owners face complex scenario, selling assets has become a common practice, Bloomberg reported.
After months of declining gold prices, a second-quarter loss of $8.6 billion and write downs of more than $13 billion in 2013, Barrick’s stock is trading around the $19 mark, making it one of the worst performers in the sector this year. The company has slashed its dividend by 75 percent and has vowed to cut costs by selling non-core assets and reducing its workforce.
The Toronto-based company, which has a 33 percent stake in Marigold, still has a significant long-term debt of almost $15 billion.
Fellow miner Goldcorp is not in a better shape. Late last month it reported a significant drop in third-quarter profit and announced it deferring spending at one of its main projects —Cerro Negro, in Argentina— and suspending all exploration activity.
Marigold began operating around two decades ago.