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Barrick and Newmont settle Nevada Gold Mines dispute for $1.95B
Newmont will pay Barrick $1.95 billion within 30 days, clearing a hurdle for Barrick’s planned North American gold assets IPO by year-end.
Barrick and Newmont have settled their remaining Nevada Gold Mines disputes in a deal that brings specific projects into the joint venture and requires Newmont to pay Barrick $1.95 billion, according to Mining.com. Under the agreement, Barrick’s Fourmile project and Newmont’s Fiberline and Mike projects will be part of Nevada Gold Mines.
The settlement also includes revised governance provisions and removes a potential complication for Barrick’s planned initial public offering of its North American gold assets. Newmont consented to the IPO, helping the separation process move ahead toward completion by year-end.
Separately, Barrick reported second-quarter adjusted earnings that missed analysts’ estimates, with higher production costs and retrospective tax penalties in Mali offsetting stronger-than-expected gold output. Adjusted profit was $0.82 per share for the three months ended June 30, below the $0.88 average analyst estimate compiled by LSEG.
On operations, Barrick said gold production rose 11% quarter over quarter to 796,000 ounces, beating guidance of 730,000 to 770,000 ounces. The company maintained full-year production and cost guidance while reducing expected attributable capital expenditures to $3.8 billion to $4.2 billion, and said the North American IPO remains on track with Mark Hill set to become CEO following the separation.
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