Barrick Gold agrees to buy rival Randgold in all-share deal

24 Setiembre, 2018, 17:09 | Author: Arnold Perez
  • Barrick buys Randgold to create world's largest gold miner

However, they also announced the new company's shares would be traded in NY and Toronto, meaning Randgold's London listing on the FTSE 100 would be cancelled if the deal went ahead, as planned, early next year.

The price of gold has fallen more than 8% this year, putting all gold producers under pressure.

The deal will also give Barrick a much bigger presence in Africa, where Randgold has mines in Mali, Senegal, Côte d'Ivoire and the Democratic Republic of Congo.

Randgold chief executive, Mark Bristow, will remain in his role at the enlarged company. Thornton, a former Goldman Sachs Group Inc. executive, has discussed a need to import Silicon Valley technology to radically change the mining industry's approach, while Bristow has frequently criticized competitors.

"The combination of Barrick and Randgold will create a new champion for value creation in the gold mining industry, bringing together the world's largest collection of Tier One gold assets", said Barrick Executive Chairman John Thornton.

More news: Patriots tight end Rob Gronkowski confirms he squashed trade to Lions
More news: Colombia rechaza categóricamente acusación de Venezuela por atentado a Maduro
More news: Palestinian shot dead in new Gaza clashes

The new group will consider selling non-core assets over time.

The firms own some of the world's most valuable gold fields, producing more than 6.6 million ounces of gold a year.

Randgold shares were up 4.3 percent at 0901 GMT, making it the biggest gainer in London's wider mining index FTNMX1770.

"They also have high internal "hurdle" rates for investment; in Barrick's case they must generate an internal rate of return of 15% and in Randgold's 20%". The metal settled at US$1,200.04 on the spot market Friday. "Randgold has earned a 93% total return for shareholders in 10 years; Barrick, a 61% loss", it said. Newmont didn't immediately respond to an emailed request for comment outside usual office hours.

Speculation of a tie-up between the two companies comes as this year's Denver Gold Group conference, is about to kick into gear.

Recomendado:



Popular

Blaming Israel for downed jet, Russia to sell Syria advanced missiles
Russian Federation in April had hinted that it would supply the S-300 to Assad's government despite Israeli objections. The Kremlin said Russia's decision was not targeted against anyone and only serves to protect Russian troops in Syria.

OPEC raises forecast based on United States oil production
Al Falih said returning to 100 per cent compliance was the main objective and should be achieved in the next two to three months. The Iranian oil minister warned that OPEC's authority is being jeopardized by the US shadow effect on the allies in the region.

Deoxys confirma su llegada a 'Pokémon GO'
Para conseguir uno de los raros pases para incursiones EX es necesario haber ganado un combate en una incursión normal . Todo gimnasio cuya base esté situada dentro de una de estas zonas es elegible para recibir una incursión EX .

DOJ Source Claims Rod Rosenstein Was Joking
They tried to destroy this president. "If Rosenstein's involved, he should be fired, if he's not involved then leave him alone". "He shouldn't fire Rosenstein unless you believe Rosenstein's lying", Graham said.

Film lovers In Kenya can now watch lesbian movie 'Rafiki'
Rafiki , a love story of two teenage girls who develop a romantic relationship opposed by their families and community was banned for promoting lesbianism.

Reportan avistamientos de una misteriosa criatura en Pokémon GO
En ella, compartió una captura de pantalla que muestra a esta criatura. Su cabeza es una tuerca dorada que tiene una especie de ojo al centro.

Le crece árbol en la panza a cadáver, en Chipre
Al excavar alrededor de la higuera para su investigación, descubrió con horror los huesos de una persona. En los últimos 12 años se han hallado e identificado los restos de 890 personas .

Escucha "When Bad Does Good", el primer tema póstumo de Chris Cornell
Aunque aún no hay información oficial por parte de los realizadores, se espera que el nuevo álbum sea lanzado en noviembre .

Vamos a imponer aranceles del 25% a mercancías fabricadas en China — Trump
Muro fronterizo entre México y Estados Unidos . "El año pasado China se llevó 500.000 millones de dólares de nuestro país.

NASA balloon examines electrical blue clouds
AIM tracks large scale features in the clouds across a global scale, but can only resolve features a couple miles across. Turbulence occurs in fluids across the universe and the results will help scientists better model it in all systems.