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 **

 

=Franco-Nevada (FNV)

Franco-Nevada Corporation is a Toronto, Ontario, Canada-based company that owns royalties and streams in gold mining and other commodity and natural resource investments. It is traded on the Toronto Stock Exchange and New York Stock Exchange.

• Headquarters: Toronto, Canada
• http://www.franco-nevada.com
• Founded: 2007
• Sector: Basic Materials > Industry: Gold - NEC

Description

Franco-Nevada Corporation (Franco-Nevada) is a gold-focused royalty and stream company. The Company has interests in silver, platinum group metals, oil and gas and other resource assets. The Company is engaged in resource sector royalty/stream acquisitions and management activities. It has a portfolio of properties in the United States, Canada, Mexico, Peru, Chile and Africa. Its properties in the United States include Goldstrike, Stillwater, Gold Quarry, Marigold, Fire Creek/Midas, Bald Mountain, South Arturo and Other. Its properties in Canada include Sudbury, Detour Lake, Golden Highway, Musselwhite, Hemlo, Kirkland Lake, Timmins West, Canadian Malartic and Other. Its properties in Latin America include Antapaccay, Antamina, Candelaria, Guadalupe-Palmarejo and Other. Its properties in Rest of World include Mine Waste Solutions (MWS), Sabodala, Subika, Tasiast, Karma, Duketon, Edikan and Other.

-=Kirkland Lake Gold (KL)

• Headquarters: Toronto, Canada
• Founded: 1983
• (TSX:KL) (NYSE: KL) (ASX: KLA)
• klgold.com

Kirkland Lake Gold announces its full-year guidance for 2018 

Highlights of 2018 guidance include: 

• Production growth to over 620,000 ounces
• Exploration expenditures estimated at $75 -- $90 million in 2018, with $60 -- $75 million targeted for Australia aimed at achieving continued growth of the Swan Zone and other high-potential areas at Fosterville, and in support of resuming operations at the Cosmo mine in the Northern Territory
• Sustaining capital expenditures of $150 -- $170 million, with higher sustaining capital expected at Fosterville related to elevated levels of development in support of mining to lower depths, establishing additional mining fronts and sustaining operations over multiple years
• Growth capital expenditures of $85 -- $95 million, with key capital requirements including expenditures for a new shaft (see section, Macassa Shaft Project) and tailings impoundment area at Macassa, as well as the bulk of growth capital required at Fosterville to achieve the mine's target of over 400,000 ounces of annual production by 2020.

Klondex Mines (KLDX) reported Q3 op results on Thur 19 Oct 2017 (a/h)

Gold ore mining company

• Headquarters: Vancouver, Canada
• Founded: 1971
• klondexmines.com

  

** daily **

** monthly **

Klondex Mines reports Q3 op results and reaffirms full year guidance

• Mined a total of 54,166 gold equivalent ounces, in-line with Company expectations. Produced and sold a total of 40,818 and 38,012 gold equivalent ounces, respectively. 
• The Company is in a favorable position to now have three mines in Northern Nevada feeding one central mill, providing significant operating flexibility to optimize profitability. As a result, ore feed from the Nevada operations to the Midas mill will depend on the optimal blend of ore type and grade. As such, the annual production guidance for the Fire Creek and Hollister mines is being adjusted. The Company now expects an increase in annual production from Fire Creek to 105,000 to 110,000 gold equivalent ounces and a decrease in annual production from Hollister to 20,000 to 25,000 gold equivalent ounces as lower grade ore is displaced with higher grade ore from Fire Creek.The Company continues to expect to mine 30,000 to 35,000 gold equivalent ounces at Hollister. Guidance for total annual production for Nevada operations remains unchanged at 172,000 to 185,000 gold equivalent ounces.
• "We built stockpiles in Nevada and at True North at the end of the third quarter and are well positioned to deliver on our annual consolidated production guidance of 213,000 - 230,000 gold equivalent ounces."

Gold Standard Ventures (GSV) : to commence Drilling at the Lewis Project, Battle Mountain District, Nevada

Headquarters: Vancouver, Canada
Founded: 2004
goldstandardv.com

 

  

Gold Standard Ventures will commence a drill program in mid-October at its 100%-owned Lewis Project in the Battle Mountain mining district, Lander County, Nevada

Highlights

• Completing core hole BVM16C-03B which was suspended due to adverse weather conditions in January, 2017. The hole was halted in visually-encouraging alteration above the targeted permissive host formations (Antler Sequence).
• Site MGH-F will test for the down-dip extension of the Phoenix deposit which has the potential for high grade gold-silver deposits in Antler Peak Limestone similar to the adjacent Lower Fortitude deposit that produced 1.9 moz of gold and 7.5 moz of silver at an average grade of 8 g/t gold and 32 g/t silver. {See Cary, et al., 2000, Geology, skarn alteration, and Au-Cu-Ag mineralization of the Phoenix project, (Battle Mountain mining district), Lander County, Nevada, in Cluer, J.K., Price, J.G., Struhsacker, E.M., Hardyman, R.F., and Morris, C.L., eds., Geology and Ore Deposits 2000: The Great Basin and Beyond: Geological Society of Nevada, Symposium Proceedings, May 15-18, 2000, p. 1021-1045. (See Table 1)}
• One RC precollar/core tail hole is planned in the Southwest target area to offset by 300 m a 17 m skarn intercept drilled by Barrick Gold grading 5.7 g/t Au (from 776 to 793 m in FWL-30 using a 2.5 g/t cutoff). The bottom of this interval has 4.6 meters of 9 g/t Au and 21 g/t Ag. This hole will also test for Fortitude-style gold mineralization in Antler Peak Limestone.

After the FOMC announcement of no rate hike

• UP: gold, gold miners, biotech
• DOWN: dollar, Dow, S&P500

Citing “recent global economic and financial developments,” the Federal Open Market Committee voted to maintain the near-zero interest rate policy that was put in place during the throes of the economic crisis in December 2008.

In so doing, the U.S. central bank evidently was in accord with major international authorities, notably the International Monetary Fund and the World Bank, which had urged the Fed not to raise its interest rate target for fear of worsening the turmoil in emerging markets.

(click for live chart)

Inflation, however, continues to fall short of the Fed’s 2% target (which uses the personal consumption deflator, not the more familiar consumer price index). And the Fed sees the risks posed from abroad posing downside risks to prices and the economy. Here’s the key sentence from the FOMC statement:

“Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term.”

Which translates to the Fed keeping rates lower for even longer than previously projected.

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the following day:

next day following Fed announcement, Fri 9/18/15

for the week: