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The Strategic Rationale for the Barrick-Randgold Merger

Annie Gilroy
The Strategic Rationale for the Barrick-Randgold Merger

Both Barrick Gold (ABX) and Randgold Resources (GOLD) believe the combined company will have the greatest concentration of tier one gold assets and the lowest total cash cost position among its senior gold miner peers (GDX). After the merger, the new Barrick Gold (ABX) will have: five of the world’s top ten tier one gold assets by total cash cost. the largest gold (GLD) reserves among senior gold peers. the highest adjusted EBITDA, the highest EBITDA margin, and the lowest cash cost position among senior gold peers. established positions with leading Chinese mining companies. ...