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Saracen wraps up Super Pit deal

Saracen Mineral Holdings has completed the acquisition of Barrick Gold’s half of Kalgoorlie’s Super Pit, just 11 days after the US$750 million deal was announced.
Saracen wraps up Super Pit deal Saracen wraps up Super Pit deal Saracen wraps up Super Pit deal Saracen wraps up Super Pit deal Saracen wraps up Super Pit deal

Newmont Mining and Saracen Mineral Holdings' Super Pit in Kalgoorlie

Staff reporter

The deal was funded via a A$796 million capital raising and the drawdown of $400 million under a new $450 million senior secured debt facility.

Completion of the deal completes Barrick's long-mooted exit from Australia.

Saracen managing director Raleigh Finlayson said the acquisition of 50% of the Super Pit transformed the company into one of Australia's leading gold producers.

"We now have three long-life assets generating strong cash flow in a tier one location," he said.

"Each asset also has outstanding exploration potential, providing scope to create further value for shareholders through organic growth.

"We are looking forward to partnering with Newmont Goldcorp, which has extensive knowledge of the Super Pit and vast experience in openpit and underground operations."

The deal will take Saracen's FY20 guidance from 350,000-370,000 ounces of gold at all-in sustaining costs of $1,025-1,075/oz to 605,000oz to $1,220/oz.

Saracen shares rose 1% to $3.11, capitalising the company at $3.3 billion. The capital raising was completed at $2.95 per share.