Seeking Alpha

Barrick sells stake in Saudi mine at fire sale price, analysts say

Barrick Gold's (ABX -1.9%) move to bring in a local partner is a logical move to help jump-start the Jabal Sayid copper project in Saudi Arabia, but analysts say that doesn't change the fact that the 50% stake was sold at a fire sale price.

RBC's Stephen Walker had valued the Jabil Sayid stake at $498M, more than double the final sale price; other analysts had lower valuations but were unanimous in their surprise at the cheap transaction.

J.P. Morgan adds that settling the Saudi dispute could facilitate more corporate restructuring at ABX.

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Comments (2)
  • sbrncra
    , contributor
    Comments (257) | Send Message
    gearing up for $NG ??
    14 Jul 2014, 01:48 PM Reply Like
  • gmmpa
    , contributor
    Comments (614) | Send Message
    Let's hope you are right. ABX only has so many lives left. How many time can a company screw up and still land on its feet.
    14 Jul 2014, 08:05 PM Reply Like
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