Barrick in no rush for takeovers

By Cameron French

NEW YORK (Reuters) - Barrick Gold Corp. (ABX.TO: Quote, Profile, Research, Stock Buzz) could handle a top-tier acquisition in the gold sector but is wary of pursuing targets amid high M&A-driven stock valuations, the company's chief executive said on Tuesday.

Speaking at the Reuters Mining and Steel Summit, Greg Wilkins also said the company should continue to benefit from higher gold prices, saying the metal has traded into a "new regime" due to tight supply and strong Asian-driven demand.

Wilkins dismissed recent speculation the company might make a move on rival Newmont Mining Corp. (NEM.N: Quote, Profile, Research, Stock Buzz), but said the size of such a deal would not be a deterrent for Barrick, the world's No. 1 gold producer.

"We have an ongoing interest in acquisitions, but we have a lot of things on our plate that don't create a sense of urgency for acquisitions" he said, referring to mines in the pipeline.

While he said the company had not had any talks with Newmont, he added: "We could handle something (the size of) Newmont if we wanted to."

Media reports in March suggested Barrick might make a $20 billion bid for Newmont. Barrick said at the time the story was unsubstantiated.

Barrick became the world's top gold producer with the acquisition of fellow Canadian miner Placer Dome last year, part of a rush of consolidation that has driven up prices of mid-tier mining companies.

"Until the valuations of some of those mid-tier companies become a little more attractive, I'm not really all that interested in them," he said.

Instead, the company will focus on its pipeline of nine development and exploration projects, including the Pascua-Lama site on the border of Argentina and Chile, and Pueblo-Viejo in the Dominican Republic.

HIGHER GOLD PRICE

He said he expected higher gold prices in the long run would be supported by tight supply and strong demand for jewelry.

"We should be in a fairly robust gold environment for some time to come," he said.

Spot gold <XAU=> traded at $658.80 an ounce on Tuesday.

Also speaking at the summit, Newmont chief executive Wayne Murdy agreed that the long term direction for gold was upward.

"There's strong physical and investment demand," he said.  Continued...