News Bulletin

Making a Switch from Yellow to Red

Making a Switch from Yellow to Red?

 

Barrick Gold, the world’s largest gold mining company is attempting to capture the current high copper price as it moves into copper mining at a large scale. 

Barrick’s recently proposed acquisition may give the company good scope for further growth but such a move has not been welcomed by the company’s shareholders with the company’s share value dropping by around 9% since deal announcement.  Critics have condemned the deal as risky and argued that it would harm the company’s price-to-cash-flow multiple.

Barrick’s chairman, Peter Munk said that the company is not shifting its focus from gold to copper and remains firmly committed to being the world’s top gold miner.  He also said that the transaction was a logical move given the amount of free cash flow Barrick was producing. 

The condition on Barrick’s offer is for Equinox to terminate its bid for Canada’s Lundin Mining.  Lundin Mining is currently not planning to resurrect its friendly merger with Inmet Mining and would instead focus on securing a premium bid for itself.

 

Sources:

http://www.reuters.com/article/2011/04/27/us-barrick-equinox-idUSTRE73Q7GQ20110427

http://www.theaustralian.com.au/business/no-bidding-war-for-equinox-as-minmetals-pulls-out/story-e6frg8zx-1226045883909

http://www.barrick.com/Theme/Barrick/files/docs_presentations/2011/Agreement-to-acquire-Equinox_v001_q1qtj1.pdf.

 

 

     

      

     

     

    Follow us on

    http://www.facebookloginhut.com/facebook-login/        http://www.facebookloginhut.com/facebook-login/

    Support

    Phone: +61 8 9486 9557
    Fax: +61 8 9486 7011
    Email: enquiries@minesonline.com