Barrick Gold completes merger with Randgold Resources; trades under the ticker GOLD

• The Canadian Barrick Gold (ABX) has merged with the British Randgold Resources (GOLD) on January 1, 2019.  
• The new company is still known as Barrick but its trading symbol on the NYSE will change to GOLD, the ticker formerly held by Randgold on NASDAQ. On the TSX, the ticker remains ABX.
• Gold miners' bearish cycle may have ended in mid-October. The probability of a golden cross occurring in early 2019 is now significantly high.

Barrick Gold (ABX) (old)

Barrick Gold (GOLD) (new)

 

Golden cross on $GOLD

It's the first bell of 2019, and the NYSE is celebrating the successful merger between Barrick Gold with Randgold Resources with their new ticker $GOLD

Barrick executive chairman John L. Thornton (center), and Mark Bristow, president and chief executive officer (center left), open the New York Stock Exchange on January 2, 2019. 

• The $18.3 billion-deal, which gained final approval in December, has created a sector-leading miner which owns five of the industry’s Top 10 Tier One gold assets and which is well placed to be the world’s most valued gold mining business, Barrick said in the statement.

The merger has created a sector-leading gold company which owns five of the industry’s Top 10 Tier One gold assets1 (Cortez and Goldstrike in Nevada, USA (100%); Kibali in DRC (45%); Loulo-Gounkoto in Mali (80%); and Pueblo Viejo in Dominican Republic (60%)), and two with the potential to become Tier One gold assets (Goldrush/Fourmile (100%) and Turquoise Ridge (75%), both in the USA). Barrick has the lowest total cash cost2 position among its senior gold peers3, and a diversified asset portfolio positioned for growth in many of the world’s most prolific gold districts.

Barrick approach community relations in Nevada (source)

The Summer Youth Employment Program, a Barrick-funded initiative, allows Shoshone youth aged 14 to 18 to gain valuable work experience in their communities. This past summer alone, 136 students participated in the program, performing jobs ranging from painting to community maintenance to elder care.

Shoshone interns. In all, Barrick provided funding for 18 Shoshone summer interns to work in their communities this past summer.

Rebecca Darling is Director of Corporate Social Responsibility for Barrick in the U.S.A.

Randgold Resources Limited (GOLD) to be acquired by Barrick Gold (ABX) for $18.3B

• Toronto-based Barrick will own around two-thirds of the combined group, the companies said in a statement Monday, with Randgold's Mark Bristow serving as CEO and Barrick's John Thorton keeping his role as executive chairman. 
• The newly-created group will have a market value of around $18.3 billion, hold five of the world's ten largest bullion deposits and have the ability to produce around 5.5 million ounces of gold each year. 

  

 

Randgold Resources confirms merger with Barrick Gold (ABX) 

Under the terms of the Merger, each Randgold Shareholder will receive 6.1280 New Barrick Shares for each Randgold Share. Following completion of the Merger, Barrick Shareholders will own approximately 66.6 per cent and Randgold Shareholders will own approximately 33.4 per cent of the New Barrick Group on a fully-diluted basis. The Merger is expected to close by Q1 2019.

• The Boards of Barrick and Randgold believe that the Merger will create an industry-leading gold company with the greatest concentration of Tier One Gold Assets in the industry, the lowest total cash cost position among Senior Gold Peers, and a diversified asset portfolio positioned for growth in many of the world's most prolific gold districts.
• Based on Barrick and Randgold's Closing Prices as of 21 September 2018 (being the last business day prior to the date of this announcement), the New Barrick Group will have an aggregate market capitalization of USD 18.3 billion. In addition, based on the 2017 financial results for both companies, the New Barrick Group would have generated aggregate revenue of approximately USD 9.7 billion and aggregate Adjusted EBITDA2 of approximately USD 4.7 billion.

Barrick Gold (ABX) enters investment agreement with Shandong Gold Group which will purchase up to $300 million of Barrick shares 
Shandong Gold will purchase up to $300 million of Barrick shares, and Barrick will invest an equivalent amount in shares of Shandong Gold Mining Co. Ltd., a publicly listed company controlled by Shandong Gold. Shares will be purchased in the open market. Barrick and Shandong Gold are 50-50 joint venture partners at the Veladero mine in Argentina, the first step in the partnership between the two companies.

** charts before  **

** ABX **

 

** GOLD **

 

-=Barrick Gold (ABX) President Dushnisky quits, joins AngloGold Ashanti (AU) as CEO

• AngloGold, which is listed in Johannesburg, poaches new CEO from rival Barrick Gold
• Kelvin Dushnisky would be joining the company in September, ending the search to replace Srinivasan Venkatakrishnan.

July 23 (Reuters) - Canadian miner Barrick Gold Corp said on Monday its President Kelvin Dushnisky will step down and take the top job at South African gold producer AngloGold Ashanti Ltd.

Dushnisky, who joined Barrick in 2002, will step down by end-August and will assume the role of a chief executive officer at AngloGold.

-=Barrick Gold (ABX) reported earnings on Wed 14 Feb 2018 (a/h)

Barrick Gold beats by $0.02, reports revs in-line; guides FY18 production down 6-15%

• Reports Q4 (Dec) earnings of $0.22 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $0.20; revenues fell 3.9% year/year to $2.23 bln vs the $2.21 bln Capital IQ Consensus. Gold production in the fourth quarter was 1.34 million ounces, at a cost of sales applicable to gold3 of $801 per ounce, and all-in sustaining costs4 of $756 per ounce. Copper production in the fourth quarter was 99 million pounds, at a cost of sales3 of $1.79 per pound, and all-in sustaining costs6 of $2.51 per pound.
• "In 2018, we expect to produce 4.5-5.0 million ounces of gold, at a cost of sales applicable to gold of $810-$850 per ounce, and all-in sustaining costs of $765-$815 per ounce. Higher cost guidance for 2018 primarily reflects lower anticipated gold production from Barrick Nevada, Pueblo Viejo and Veladero, increased processing of higher-cost inventory, and higher costs at Acacia.
• We expect first quarter production of around one million ounces at costs that will be proportionately higher than those anticipated for the remainder of the year, largely due to lower grades at Barrick Nevada, and the timing of planned maintenance at Pueblo Viejo.
• Total attributable capital expenditures for 2018 are expected to be in the range of $1.40-$1.60 billion. This includes project capital expenditures of $450-$550 million, an increase of roughly $270 million compared to 2017, as we increase investments in the future of our business. Attributable mine site sustaining capital expenditures are expected to be in the range of $950 million-$1.1 billion, compared to $1.1 billion in 2017, reflecting our ongoing focus on capital efficiency and discipline.
• Based on our current asset mix, from 2019 to 2022 we expect average annual gold production to be between 4.2-4.6 million ounces, at an average cost of sales of $850-$980 per ounce, and average all-in sustaining costs of $750-$875 per ounce, representing a stable base case for our business. This includes contributions from feasibility level projects at Goldrush, Cortez Deep South, Turquoise Ridge, and Lagunas Norte-but assumes no contribution from Pascua-Lama, Donlin Gold, Cerro Casale, or Alturas.
• Investor Day February 22

Barrick Gold (ABX) reported earnings on Wed 25 Oct 17 (a/h)

** charts after earnings **

Barrick Gold reports EPS in-line, misses on revs; narrows full-year gold production guidance

• Reports Q3 (Sep) earnings of $0.16 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.16; revenues fell 15.8% year/year to $1.93 bln vs the $2.02 bln Capital IQ Consensus.
• Gold production in the third quarter was 1.243 million ounces, at a cost of sales applicable to gold(3) of $820 per ounce, and all-in sustaining costs(4) of $772 per ounce. 
• Narrowed full-year gold production guidance to 5.3-5.5 million ounces(prior 5.3-5.6 mln ounces) , at a cost of sales(3) of $790-$810 per ounce, and all-in sustaining costs(4) of $740-$770 per ounce. 
• Feasibility level projects at Cortez Deep South, Goldrush, Turquoise Ridge, and Lagunas Norte continue to advance on schedule and within budget.

Great trade : ABX +9% (1/15)

#2
+ largest candle / engulf
+ nice weekly: low stochs
+9% in one week