Barrick Gold Corporation
) announced its plans to divest the Plutonic mine in Western
Australia to Northern Star Resources Ltd for total cash
consideration of A$25 million. The transaction is subject to
certain closing conditions and is expected to close in Feb
UBS Securities Canada Inc. and BofA Merrill Lynch are acting
as financial advisors to Barrick and Clayton Utz is Barrick's
legal counsel for the transaction.
As part of its disciplined capital allocation framework, the
company is actively pursuing opportunities to optimize its
portfolio, including the divestiture of certain non-core assets.
In Oct 2013, Barrick completed the selling of its Yilgarn South
assets (Yilgarn South) comprising the Granny Smith, Lawlers and
Darlot mines, in Western Australia to Gold Fields Limited (Gold
Fields). Barrick sold the assets for a total consideration of
$300 million, subject to a closing adjustment deduction estimated
at $30 million.
Lower metal pricing coupled with higher tax and interest
expenses dragged down Barrick's profit in third-quarter 2013,
reported on Oct 31. However, adjusted earnings beat the Zacks
Consensus Estimate. Revenues fell year over year, but beat
expectations. The company saw higher gold and copper production
in the quarter. While Barrick lowered its gold production
guidance for 2013, it raised its copper production outlook.
Currently, Barrick carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the gold mining industry include
Golden Star Resources, Ltd.
Pretium Resources Inc.
AngloGold Ashanti Ltd.
). While Golden Star Resources has a Zacks Rank #1 (Strong Buy),
both Pretium Resources and AngloGold Ashanti hold a Zacks Rank #2
BARRICK GOLD CP (ABX): Free Stock Analysis
ANGLOGOLD LTD (AU): Free Stock Analysis
GOLDEN STAR RES (GSS): Free Stock Analysis
PRETIUM RES INC (PVG): Free Stock Analysis
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