Barrick-Newmont: Nevada JV a win for both sides

The complex will become the world’s single largest gold producer, with an output of more than 4 million ounces in 2018

Ruth Saldanha 13 March, 2019 | 12:15AM

After Newmont Mining Corporation’s (NEM) rejection of Barrick Gold Corporation’s (ABX) unsolicited acquisition on March 4, a week later, on March 11, the companies announced their joint venture (JV) agreement for their Nevada assets. Barrick also agreed to withdraw its unsolicited bid for all of Newmont, and as a result, Newmont will continue to pursue the completion of its acquisition of Goldcorp (G) independent of the joint venture announcement.

“This joint venture announcement is fantastic news for the sector, and for the companies as well. The joint venture has great synergies and works well for both. It should have been done 20-years ago,” said Greg Taylor, portfolio manager at Purpose Investments. Purpose Investments holds a position in Newmont.

Barrick will contribute Goldstrike, Cortez, Turquoise Ridge, Goldrush, and South Arturo, while Newmont will contribute Carlin, Twin Creeks, Phoenix, Long Canyon, and Lone Tree. Barrick will own 61.5% of the joint venture while Newmont will own 38.5%.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Barrick Gold Corp38.02 CAD-0.42
Newmont Corp64.71 USD-2.43

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Ruth Saldanha

Ruth Saldanha  Ruth Saldanha is Senior Editor at Morningstar.ca

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