Markets
KGC

Barrick Gold Closes Spring Valley, Ruby Hill Stake Sale

An image of a few devices next to a stock chart
Credit: Shutterstock photo

Barrick Gold CorporationABX has declared the completion of the sale of its 70% interest in the Spring Valley project and its 100% interest in the Ruby Hill mine to subsidiaries of Waterton Precious Metals Fund II Cayman, LP, for $110 million in cash.

This asset sale is in sync with the company's strategy to strengthen its balance sheet, creating long-term value for its shareholders. This will also help the company to focus on its core assets that will drive free cash flow. The company is on track to meet its debt reduction target of $3 billion for 2015, which, when achieved, will represent a 23% reduction in total debt since the beginning of this year.

Barrick is also working toward vending its 50% interest in the Round Mountain mine and 100% of the Bald Mountain mine to Kinross Gold Corporation KGC for a total consideration of $610 million in cash. Both the companies have agreed to form an exploration joint venture for a large land package at Bald Mountain. Each company will own half of the joint venture and will finance exploration activities and advance new mine development opportunities on a 50-50 basis, with Kinross acting as the operator.

This deal will also help Barrick retain considerable exposure to a highly prospective exploration land package at Bald Mountain. The transaction is expected to close by mid-Jan 2016.

Barrick currently carries a Zacks Rank #3 (Hold).

Some better-ranked mining companies are Harmony Gold Mining Company Limited HMY and Richmont Mines Inc. RIC . Both of these companies hold a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

KINROSS GOLD (KGC): Free Stock Analysis Report

BARRICK GOLD CP (ABX): Free Stock Analysis Report

HARMONY GOLD (HMY): Free Stock Analysis Report

RICHMONT MINES (RIC): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

KGC HMY

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More