Barrick Gold’s CEO Departs, Thorton De Facto Lead

CEO Jamie Sokalsky leaves after only two years into the job.

Bullion.Directory precious metals analysis 16 July, 2014
By Christopher Lemieux
Senior FX and Commodities Analyst at FX Analytics

Barrick Gold Corp. (ABX), the world’s largest gold producer, will see Chief Executive Officer Jamie Sokalsky leave only two years into the job.

According to Greg Barnes at TD Securities, “[John Thorton] will continue to be very active in the management of the company in a de facto CEO role.”

Sokalsky is will step down on September 15, as indicated by a company statement. There is speculation that the lack of an active CEO will ignite merger talks with Barrick’s largest rivial, Newmont Mining Corp. (NEM).

Previous discussions between the two firms deteriorated last April, and there are currently no talks about a potential deal.

“The door is not closed, but it’s not open either,” said Thorton. He continued to express that the idea was not even on his mind.

Barrick’s stock has seen a boost in 2014, after years of failed performance. During gold’s tremendous rise during the decade long bull market, Barrick gambled on ever-increasing prices through forwards contracts. The near-30 percent decline in 2013 caused Barrick to take nearly $20 billion in writedowns.

Up 8.4 percent, gold and gold miners continue to outpace equities this year on global growth and central bank policy uncertainty.

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