Barrick-Newmont JV Deal Valued at $1.95B, But Barrick Shares Tumble 7% on 'Too Low' Price
NEM sits 74% above its 52-week low of $67.11.
Summary
Barrick and Newmont settled their Nevada Gold Mines dispute with Newmont paying $1.95B within 30 days to consolidate the Fourmile project. The deal resolves a key obstacle to Barrick's planned North American asset spinoff. However, Barrick's stock fell 7% as investors and analysts deemed the price too low, with Bloomberg Intelligence estimating an implied resource valuation of just $325/oz. The agreement follows years of tension dating back to Barrick's 2019 hostile bid and recent accusations of resource diversion. While the settlement clears the path for Barrick's restructuring, opposition to the spinoff from major shareholders like VanEck and Mackenzie Financial adds uncertainty. For Newmont, the deal secures a strategic asset at what appears to be a favorable price, but the market's negative reaction to Barrick suggests potential read-through for joint venture dynamics.
At the time of this announcement, NEM was trading at $117.10 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $123.6B. The 52-week trading range was $67.11 to $134.88. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.