Canadian miner Barrick falls on Q2 profit miss
GOLD•Nevada Gold Mines settlement removes key overhang
Barrick and Newmont have settled all disputes over their Nevada Gold Mines joint venture, with Newmont agreeing to pay Barrick $1.95 billion.
Barrick will transfer its Fourmile project to the Nevada Gold Mines joint venture, while Newmont will transfer its Mike and Fiberline projects.
TD Cowen said the agreement removes a key overhang for the planned North America IPO, but the price was "below what we had been anticipating". The broker added: "We currently model 38.5% of Fourmile at $6.6 billion, or $4.7 billion more than the $1.95 billion being received, which we think represents a high cost to settle the disputes and IPO".
Barrick falls after Q2 profit miss and weaker gold output
U.S.-listed shares of Barrick Mining fell over 8% to $40.09 after the company missed second-quarter profit estimates, hurt by higher costs and weaker gold production.
Barrick posted second-quarter adjusted profit of 82 cents per share, below the 88 cents per share estimate compiled by LSEG. Q2 gold production dropped to 796,000 ounces, compared with 797,000 ounces a year earlier.
Including the session's moves, the stock was down 7.7% year to date.
