Barrick Gold Corporation
) has agreed to sell its Kanowna gold mine (Kanowna Belle and
Kundana mine operations) in Western Australia to Northern Star
Resources Ltd for A$75 million ($66 million) as part of its
portfolio optimization strategy. The transaction is subject to
certain closing conditions and is expected to close in Mar
UBS Securities Canada Inc. and BofA Merrill Lynch are acting
as financial advisors to Barrick, while Clayton Utz is the
company's legal counsel for the transaction.
As part of its disciplined capital allocation framework,
Barrick is actively pursuing opportunities to optimize its
portfolio, including the divestiture of certain non-core assets.
Last month, the company announced its plans to divest the
Plutonic mine in Western Australia to Northern Star Resources Ltd
for a total cash consideration of A$25 million ($22 million).
Lower metal pricing coupled with higher tax and interest
expenses pulled 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
The company saw higher gold and copper production in the
quarter. Though Barrick lowered its gold production guidance for
2013, it raised its copper production outlook.
Barrick, a prominent player in the mining industry along with
Newmont Mining Corporation
), operates mines and advanced exploration and development
projects on four continents, and holds large land positions on
some of the most prolific and prospective mineral trends.
Barrick currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the gold mining industry include
Golden Star Resources, Ltd.
Lake Shore Gold Corp.
). Both hold a Zacks Rank #2 (Buy).
BARRICK GOLD CP (ABX): Free Stock Analysis
GOLDEN STAR RES (GSS): Free Stock Analysis
LAKE SHORE GOLD (LSG): Free Stock Analysis
NEWMONT MINING (NEM): Free Stock Analysis
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