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Barrick Gold Corp
Symbol ABX
Shares Issued 1,164,669,708
Close 2015-05-26 C$ 14.56
Market Cap C$ 16,957,590,948
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FP says Barrick needs to sell a lot more assets

2015-05-26 07:40 ET - In the News

The Financial Post reports in its Tuesday edition Barrick Gold is a long way from reaching its $3-billion debt reduction target for 2015, but selling its Cowal mine in Australia to Evolution Mining Ltd. for $550-million is an encouraging step (all figures U.S.). The Post's Peter Koven writes the transaction allows Barrick to close its Perth office and lower its overhead costs. The Cowal sale only covers only 18 per cent of the company's $3-billion target, and Barrick is still only 24 per cent of the way to its goal. However, the sale price on Cowal is significantly higher than analysts expected, and it shows Barrick can fetch good prices for assets in a difficult gold market. That provides greater confidence that the company can reach its target without having to issue equity and dilute shareholders. On average, analysts valued the mine at significantly less than $500-million. "In our view, the transaction represents full value for the asset at today's gold prices," Dundee analyst Josh Wolfson said in a note. If Barrick sells Porgera, half of Zaldivar, and its 50-per-cent share of the Kalgoorlie operation in Australia, the company would be on track to repay $2.7-billion out of its $3-billion target for 2015.

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