CAPITAL MARKETS

Barrick books tidy profit from Shandong share sale

Barrick Gold has realised a tidy profit from selling nearly 80 million shares in Shandong Gold Mining for gross proceeds of about US$210 million.

Staff Reporter
Barrick Gold has sold down its strategic holding in Shandong Gold

Barrick Gold has sold down its strategic holding in Shandong Gold

The company acquired the shares in in the last quarter of 2018 at HK$10.50 per share (US$1.35 at current exchange rates) and sold them for $20.50 each.

Barrick continues to hold 10.25 million shares of Shandong Gold, about 2.05% of the company's Hong-Kong listed H-class shares.

The Canadian gold major and Shandong first formed an equal joint venture on the Veladero mine in Argentina in June 2017, when Shandong invested US$960 million.

They also signed a collaboration accord in 2018 with a view to the joint development of the Pascua-Lama deposit, and assessment of other opportunities on the El Indio Gold Belt stradling the Argentina-Chile border.

Subsequently, the partners signed a mutual investment accord under which Shandong committed to buy on the open market up to $300 million of Barrick shares, and Barrick said it would invest an equivalent amount in shares of Shandong Gold.

Barrick and Shandong Gold had also created internal working groups that were sharing technical expertise focused on best-in-class mining practices and innovation.

Shares in Barrick Gold (TSX: ABX) were down about 2% Tuesday at C$32.88, capitalising it at about C$58.5 billion.

Shandong (HK: 1787) dipped 3.5% today to HK21.30, capitalising the company at HK109 billion.

 

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining Journal Intelligence team.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.