Back to top

Image: Bigstock

Barrick & Shandong Gold Enter Into Cross Shareholding Deal

Read MoreHide Full Article

Barrick Gold Corporation has inked a mutual investment agreement with Shandong Gold Group Co., Ltd. The move strengthens the company’s partnership with one of the leading mining companies in China.

Per the deal, Shandong Gold will acquire up to $300 million of Barrick’s shares. Barrick will invest an equivalent amount in shares of Shandong Gold Mining Co., Ltd., which is controlled by Shandong Gold. The shares will be purchased in the open market. The companies, through the partnership, expect to leverage collective strengths to unlock long-term value for respective shareholders.  

In July 2018, Barrick and Shandong Gold entered into an enhanced strategic cooperation agreement. The latest cross shareholding deal builds on this agreement.  

Notably, Barrick and Shandong Gold are partners in a 50-50 joint venture in the Argentina-based Veladero mine. Also, Shandong Gold is presently conducting an independent evaluation of Barrick’s Lama project, which includes analysis of potential synergies between the Lama and the adjacently-located Veladero operation. Moreover, the companies have formed internal working groups that are sharing technical expertise and best practices, which are focused on best-in-class mining practices and innovation.

Barrick’s shares have lost 11.9% in the past three months compared with the industry’s decline of 14.3%.



Zacks Rank & Stocks to Consider

Barrick currently carries a Zacks Rank #4 (Sell).

A few better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Huntsman Corporation (HUN - Free Report) and ArcelorMittal (MT - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Nucor has expected long-term earnings growth rate of 12%. Its shares have gained 16.2% in the past year.

Huntsman has expected long-term earnings growth rate of 8.5%. Its shares have moved up 4.2% in a year.

ArcelorMittal has expected long-term earnings growth rate of 4.8%. Its shares have gained 28.6% in the past year.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in