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Barrick Gold Corp
Symbol ABX
Shares Issued 1,164,669,578
Close 2014-04-21 C$ 19.03
Market Cap C$ 22,163,662,069
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Globe says Barrick, Newmont merger depends on savings

2014-04-22 08:04 ET - In the News

The Globe and Mail reports in its Tuesday edition the market is betting Barrick could still pull off a multibillion-dollar takeover of Newmont Mining. The Globe's Rachelle Younglai writes investors on Monday sent Newmont's stock up to $25.05 per share, and drove Barrick down to $17.28. The world's largest gold producers halted merger talks last week, but remain open to the idea of a combination. Success will depend on how much money the miners can save from combining their operations in Nevada. Barrick operates six mines in the state and Newmont operates 18. The companies already work together on their Turquoise Ridge mine in Nevada. In their latest merger proposal the companies had found as much as $1-billion in annual savings. Analysts, however, are not convinced $1-billion of savings is attainable. They peg the savings anywhere between $150-million and $500-million per year. Some of the savings are expected to come from the Carlin trend. Barrick's prized Goldstrike asset is there. Other savings are expected to be found from combining the miners' regional offices in the Americas, as well as Australia. One analyst said annual savings of significantly less than $500-million would not be compelling.

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