Boston, MA 02/12/2014 (wallstreetpr) – Barrick Gold Corporation (USA) (NYSE:ABX), the Toronto, Canada based gold mining corporation, has since announced the date for reporting the Fourth quarter earnings as Feb 13, 2014.
Sells minor stake
Meanwhile, Barrick Gold Corporation (USA) (NYSE:ABX) has also announced recently, that it will now exit its stake in the goldmine Marigold, located in Nevada. The interest will now be transferred to Silver Standard Resources Inc. in lieu of cash valued at $86,million. The company announced that it would close this transaction by April 2014 at the earliest.
Barrick Gold Corporation (USA)(NYSE:ABX) has held a 33.3% interest in Marigold, with GoldCorp Inc., holding the larger share of interest, equalling 66.7%. The total gold output in terms of ounces was 55, 000 priced at prevailing rates of $1,545 for an ounce. In terms of quantity, this is a big drop as the share it held was 1.6million ounces, as of December 2012. The overall share as well as measure was indicated in the resources held, valued at 0.2 million.
Barrick Gold Corporation (USA) (NYSE:ABX) offered that this transaction would be a process of single divestiture, and would be executed together with GoldCorp. The transaction reflects as an adjustment with GoldCorp considered as Manager as well as one of the owner’s with majority stake in the venture.
Portfolio optimization reason for sale
Barrick Gold Corporation (USA) (NYSE:ABX) is in the middle of optimizing its portfolio. The diversified portfolio did no good for cash flow for the gold miner thus far. Analysts consider the minority interest transfer in Marigold as the process which will now provide the company with higher cash flow. The generation of cash flow does appear to be within the framework of the capital allocation policy the company has since engaged in. Barrick’s moves are expected to deliver good returns in the long-term.
