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

|About: Barrick Gold Corporation (ABX)|By:, SA News Editor

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.