Company News

BUZZ-Barrick Gold: U.S.-listed stock gains; co ends bid for Newmont

** U.S.-listed shares of giant gold miner up 2.1 pct at $13.20 premarket after co withdraws hostile bid for Newmont Mining Corp

** Co had made a $18 bln hostile bid for NEM last month, which Barrick CEO Mark Bristow said at the time was a “logical” tie-up which would create an unrivaled global gold producer

** Newmont and Barrick have instead signed a deal to create a joint venture for their mining operations in Nevada; Barrick to operate the joint venture and will be the majority owner

** Nevada complex to be world’s single-largest gold producer, with pro forma output of >4 mln ounces in 2018 - says Barrick

** Goldcorp Inc welcomes Barrick withdrawing its NEM bid; NEM had offered to buy Goldcorp in mid-January in a deal valued at ~$10 bln at the time, which would have been derailed had GOLD bought NEM

** NEM trades ~1 pct higher at $34.05 before the bell

** In the year to Friday’s close, GOLD stock has fallen 4.5 pct, compared with a 2.7 pct dip in NEM

** Over the same period, gold prices have risen ~1.2 pct (Reporting by Aaron Saldanha in Bengaluru)