Barrick Gold Corporation succeeded to become the world’s largest gold producer under the leadership of its founder Peter Munk, which brought the company to a leading position in the industry. The major reason behind the company’s growth was its strategic initiatives of mergers and acquisitions that expanded the company from one single mine in Northern Ontario to 26 mines in five continents, with a global workforce of 20,000 employees. However, the company faced various issues in 2012, including reduction in gold prices, declining asset value, and immense operational cost that made a significant impact on its stock price. The primary cause of all these issues was the conflict between the Munk’s personality and his control over the board of directors. John L. Thornton, current co-chairman, would take control after Munk as he will retire in 2014. Following the Munk’s legacy how Thornton could create integration with board of directors. Will Munk’s goal to transform the company into an international diversified mining company collide with Thornton vision? How much Munk will have the impact on the company’s decision? At last, what are the approaches Barrick could pursue to lift itself out of an industry dipped in financial instability and volatility?
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