Barrick Gold Corporation
) declared that it has closed its earlier announced bought deal
equity offering. The company has sold 163.5 million common shares
at $18.35 per share for net proceeds of roughly $2.9 billion.
Consequently, its common shares outstanding have risen to roughly
Barrick plans to use around $2.6 billion of the offering's net
proceeds to redeem or repurchase its outstanding debt, mostly
focused on debts maturing in the short and medium term. The
company plans to use around $1.1 billion of the net proceeds of
the offering to redeem the outstanding $700 million aggregate
principal amount of 1.75% notes due 2014, as well as the $350
million aggregate principal amount of 4.875% notes due 2014. The
notes will be redeemed on Dec 16, 2013, in accordance with their
Further, Barrick intends to use about $1.5 billion of these
net proceeds to purchase other notes pursuant to its tender offer
announced on Oct 31, 2013. The balance net proceeds will be
utilized to strengthen the company's balance sheet and for
general corporate purposes, including its current operating and
capital expenditures related to an existing portfolio of
Barrick released its third-quarter 2013 financial results on
Oct 31. The company's cash and cash equivalents stood at $2,283
million as of Sep 30, 2013, down roughly 10% from $2,530 million
as of Sep 30, 2012. Total debt was $15.4 billion, up around 11%
from $13.9 billion a year ago. Adjusted operating cash flow was
$1.3 billion versus $1.4 billion in the prior-year quarter.
Barrick currently carries a Zacks Rank #3 (Hold).
Other companies in the mining industry with a favorable Zacks
Pretium Resources Inc.
Lake Shore Gold Corp
). While both Franco-Nevada and Pretium Resources carry a Zacks
Rank #1 (Strong Buy), Lake Shore Gold holds a Zacks Rank #2
BARRICK GOLD CP (ABX): Free Stock Analysis
FRANCO NV CP (FNV): Free Stock Analysis
LAKE SHORE GOLD (LSG): Free Stock Analysis
PRETIUM RES INC (PVG): Free Stock Analysis
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