Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Barrick Gold Corporation (USA) (ABX) Taps Cisco Systems, Inc. (CSCO) To Help Modernize Operations

Barrick Gold Corporation (USA) (NYSE:ABX), billed as the world’s leading gold producer, is up to something big: digitizing company-wide operations. To achieve that goal, the company is partnering with networking giant Cisco Systems, Inc. (NASDAQ:CSCO).

With the help of Cisco, Barrick plans to digitize nearly all aspects of its operations, including the running of mines, with the hope of boosting productivity and cutting costs.

merger, businessman, greeting, handshake, hands, business, concept, handclasp, success, friendship, symbol, partnership, tone, cooperation, people, agree, welcome,


A $100 million investment

It will cost Barrick nearly $100 million between 2016 and 2017 to modernize its operations as envisioned with the help of Cisco Systems, Inc. (NASDAQ:CSCO). In its mining business, Barrick is looking forward to technology to help it to achieve faster, safer and better mining operations such as real-time tracking of underground mining activities.

The mining sector has seen little technological innovation and this has denied many players the opportunity to operate more efficiently to improve returns to shareholders.

Follow Barrick Gold Corp (NYSE:GOLD)
Trade (NYSE:GOLD) Now!

A new Barrick in the making

Commenting on the partnership with Cisco Systems, Inc. (NASDAQ:CSCO), Barrick Gold Corporation (USA) (NYSE:ABX)’s COO Richard Williams hinted at a new Barrick in the making. He said that the Barrick that will emerge post the digitization work will be significantly different on the upside from the Barrick of past years.

Barrick said its Cortez mine in Nevada will be the first beneficiary of digitized operations as the company rolls out the multi-million dollar technology initiative.

The digitization of operations is expected to give Barrick a competitive edge in its industry. Mr. Williams said that all mining companies will at some point have to do what Barrick has started otherwise they might not have a long life in the business otherwise.

Improving efficiency

Barrick Gold Corporation (USA) (NYSE:ABX) has been rattled in recent years with depressed commodity prices and especially metals prices, expensive acquisitions and runaway operating costs. Chairman John Thornton has been working to transform the company through measures aimed at cutting costs and improving profitability. As such, the digitization project joins the list of actions Mr. Thornton is taking to steady the Barrick ship.

When it comes to efficient operations, Barrick has its focus on cutting its production costs to less than $700 an ounce of gold. The company is gearing up to achieve that production efficiency target by 2019.

Follow Cisco Systems Inc. (NASDAQ:CSCO)
Trade (NASDAQ:CSCO) Now!

Note: This article is written by Adam Russell and originally published at Market Exclusive.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.