Boston, MA 01/30/2014 (wallstreetpr) – Barrick Gold Corporation (USA) (NYSE:ABX) has reached an agreement with Northern Star Resources Ltd for the sale of its Kenowna gold mine (Kanowna Belle and Kanduna mine) located in the slopes of Western Australia. As part of the agreement Barrick Gold is expected to pocket an estimated a $75 million or equivalent $66 million as part of the portfolio optimization strategy. The deal has not been officially concluded as it is still subject to closing condition but March has been pointed out as the ideal date for the full closure of the deal.
Barrick Gold Corporation (USA) (NYSE:ABX) chose USB securities Canada Inc. and BoFa Merril Lynch as its financial advisors for the deal while Northern star resources resorted to the legal advice of Clayton Utz. Barrick Gold is currently searching for disciplined capital allocation framework to finance its diverse range of optimization portfolio with some of the portfolios including the divestiture of its non-core assets. It is only last month that the mega Gold Company announced plans to divest its Plutonic mine in Western Australia to Northern Resources Ltd for a cash consideration of $22 million.
Barrick Gold Corporation (USA) (NYSE:ABX) did not report favorable results for the third quarter due to lower metal pricing accompanied with increased taxes and interests on expenses. Its adjusted earnings despite the lower metal pricing were still able to beat zacks consensus estimates this is despite revenues falling on the year over basis. In other news Barrick gold has confirmed through its Chief Executive Officer that it is using a price assumption of $1000 an announce to calculate its 2013 year end reserves. The Company had reported 140 million ounces of gold reserves for the year ending 2012 at a long term price of $1500. Barrick Gold is not experiencing the best times in the market having already fired a number of workers and adjusting its mine plans to solely focus on profitable production
