Barrick Gold Corporation
) announced that it has closed the sale of its 33.3% interest in
the Marigold mine in Nevada to
Silver Standard Resources Inc.
) for a total cash consideration of $86 million.
Marigold was jointly owned by
) and Barrick Gold where the former is the operator with a 66.7%
stake. Goldcorp and Barrick announced in Feb 2014 that they will
sell their respective stakes in the Marigold mine. The proceeds
to Barrick are adjusted to reflect Goldcorp's position as manager
and majority owner of the joint venture.
Barrick Gold sold its interest in the Marigold mine as part of
its ongoing effort to shed some higher-cost assets, thereby
reducing debt burden. On the other hand, the sale of the mine is
in line with Goldcorp's strategy of focusing on core assets,
thereby creating value for shareholders. This acquisition will
help Silver Standard to add an operating mine in a
well-established and low-risk mining jurisdiction.
Barrick Gold's share of proven and probable reserves at the end
of 2013 was 1.4 million ounces, and its share of measured and
indicated resources and inferred resources was 0.2 million ounces
and 0.1 million ounces, respectively.
Barrick Gold released its fourth-quarter results in Feb 2014 Its
adjusted earnings (excluding one-time items) for the quarter
dropped to 37 cents per share from $1.16 in the year-ago quarter.
Lower realized gold and
and a decline in gold and copper sales volumes led to the decline
Revenues fell around 29.5% year over year to $2,926 million in
the reported quarter, but exceeded the Zacks Consensus Estimate
of $2,815 million. Average realized price of gold decreased 25.8%
year over year to $1,272 per ounce. All-in costs declined 8.1% to
$1,317 per ounce while all-in sustaining costs fell roughly 14.2%
to $899 per ounce in the reported quarter.
Barrick Gold currently carries a Zacks Rank #4 (Sell).
A better-ranked stock in the gold mining industry is
AngloGold Ashanti Ltd.
) holding a Zacks Rank #1 (Strong Buy).
BARRICK GOLD CP (ABX): Free Stock Analysis
ANGLOGOLD LTD (AU): Free Stock Analysis
GOLDCORP INC (GG): Free Stock Analysis Report
SILVER STD RES (SSRI): Free Stock Analysis
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