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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.
Comments (2)
  • sbrncra
    , contributor
    Comments (214) | Send Message
     
    gearing up for $NG ??
    14 Jul, 01:48 PM Reply Like
  • gmmpa
    , contributor
    Comments (502) | 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, 08:05 PM Reply Like
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