16.90 -0.32 (-1.86%)
Pre-Market: 4:48AM EDT
|Bid||0.00 x 800|
|Ask||17.20 x 1200|
|Day's Range||0.00 - 0.00|
|52 Week Range|
|Beta (3Y Monthly)||-0.15|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.16 (0.96%)|
|1y Target Est||16.51|
(Bloomberg) -- For the past two years, Acacia Mining Plc has faced deteriorating relationships with its largest shareholder, Barrick Gold Corp. and the government of Tanzania. Now, one of those battles has found a truce.In an announcement on Friday, the two companies said they reached a deal for Barrick to buy the roughly 36% stake in Acacia it doesn’t already own. Barrick sweetened its offer to win over Acacia shareholders, some of whom had decried the previous bid as too low. The new offer has an implied value of about 232 pence per Acacia share, a 24% premium to the closing price on Thursday.“Given all the circumstances, this is possibly the best outcome,” Acacia’s acting Chief Executive Officer Peter Geleta said by phone.The agreement paves the way for Barrick to negotiate with Tanzania in hopes of resolving an public battle that crippled Acacia’s operations in the country, where it runs three gold mines. Acacia hopes the talks will help set up a “new partnership” with the Tanzanian government, Geleta said.Acacia’s shares rallied as much as 20% on Friday and traded at 222.2 pence at 9:41 a.m. in London. Before today, the stock had gained 1.8% this year.A successful deal would close the nearly decade-long chapter of Acacia’s life as a public miner, after the unit was spun out in 2010 as African Barrick Gold. Since then it’s fended off challenges spanning an infiltration by criminal gangs, to invasion by hundreds of intruders armed with machetes and hammers and mining-tax changes.Its biggest challenge came two years ago, when Tanzania imposed an export ban on two of Acacia’s units and handed the miner a $190 billion tax bill. Since then, the company’s position in the country has deteriorated further, with the government saying in May it would no longer allow Acacia to manage its mines in the country and will only work with Barrick.Just this week, Tanzania ordered Acacia to stop using a waste-storage facility at its core gold mine, which could disrupt production.The dispute with Tanzania has had a crippling effect of Acacia’s business -- forcing the company to stockpile output and curb production -- and its shares dropped 50% since the start of 2017 before Thursday’s announcement.The higher offer shows that Barrick Chief Executive Officer Mark Bristow was forced to shift his position that he wouldn’t raise the bid. In an interview with Bloomberg News in June, the CEO said he had no intention of raising the offer. But he faced shareholder pressure in recent months, with Odey Asset Management opposing the valuation.Barrick has led discussions with the government in an effort to solve the impasse with Tanzania, while Acacia moved ahead separately with arbitration proceedings.In a 2017 meeting between President John Magufuli and Barrick Executive Chairman John Thornton, it was tentatively agreed that Acacia would pay $300 million to the government to settle tax claims and would split future returns from operations with the country. At the time, Acacia criticized the move and blamed Barrick for its worsening relationship with Tanzania after Thornton took over negotiations.(Updates with more details on the buyout agreement.)To contact the reporters on this story: Elena Mazneva in Moscow at email@example.com;Danielle Bochove in Toronto at firstname.lastname@example.orgTo contact the editors responsible for this story: Lynn Thomasson at email@example.com, ;Luzi Ann Javier at firstname.lastname@example.org, Liezel HillFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Barrick had spun off Acacia into a separate company in 2010, but owns about 64% of the company. The deal will offer Acacia shareholders, as well as special dividends on Acacia exploration properties and deferred cash consideration dividends, 0.168 Barrick shares per Acacia share, implying a value of about 232 pence per share, the miner said. Acacia had said until earlier this month that it is worth more than what Barrick's earlier offer of 193 pence per share valued the company at.
Barrick Gold Corp has agreed to buy out fellow shareholders in Acacia Mining in a deal that values the firm at 951 million pounds, ending a two-month standoff between the world's second biggest gold miner and its Africa unit. Barrick had spun off Acacia into a separate company in 2010, but owns about 64% of the company. The deal will offer Acacia shareholders, as well as special dividends on Acacia exploration properties and deferred cash consideration dividends, 0.168 Barrick shares per Acacia share, implying a value of about 232 pence per share, the miner said.
Barrick Gold has bowed to pressure from minority shareholders and increased its buyout offer for Acacia Mining. Based on the current Barrick share price, that values Acacia at about 232p a share, or £951m in total. Minority shareholders would receive total consideration of £343m, the companies said.
Fed's rate cut hope, IMF's comment on U.S. dollar and jump in government yields due to fears of global slowdown had a combined positive effect on gold price.
Barrick Gold Corporation (GOLD)(ABX.TO) announced today that it continues to make good progress on achieving its goals and objectives set out at the start of the year. Reflecting another solid operating performance across its portfolio, Barrick announced preliminary second quarter sales of 1.37 million ounces of gold and 96 million pounds of copper, as well as preliminary second quarter production of 1.35 million ounces of gold and 97 million pounds of copper. The average market price for gold in the second quarter was $1,309 per ounce, while the average market price for copper in the second quarter was $2.77 per pound.
(Bloomberg) -- Acacia Mining Plc hit another roadblock in Tanzania, two days before a deadline for its parent Barrick Gold Corp. to make an offer to minority shareholders.Tanzania ordered the company’s core gold mine, North Mara, to stop using its tailings storage from Saturday because of alleged seepage from the facility, Acacia said in a statement on Wednesday. The miner also said an international arbitration with Tanzania could be postponed to give the government time to settle a wider dispute through talks with Barrick.Acacia shares fell as much as 2.6% in London and ended the session down 0.1%.Barrick, which owns 64% of Acacia, said in May it might buy out minorities in an all-stock deal, but a formal offer has been delayed since then. The current deadline to submit a bid is Friday as Barrick responds to an independent report that attaches a higher value to Acacia than the one the Toronto-based mining giant has proposed.The timing of the decision to halt the tailings storage has nothing to do with the buy-out situation, Doto Biteko, Tanzania’s mining minister, said in an interview. “This has been a long-running problem since 2009, and we have warned Acacia several times, but they have not rectified this problem.”Two years ago, Tanzania imposed an export ban on two of Acacia’s units and handed the miner a $190 billion tax bill. Since then, the company’s position in the country has deteriorated further, while its relationship with Barrick has become increasingly strained.Acacia said Wednesday that it will “immediately seek” a stay of their international arbitration, for which hearings were due to start next Monday. The company is also reaching out to the Tanzanian government to seek clarification on the ban.Earlier this month, Acacia said it produced record monthly gold output of 47,849 ounces at the North Mara mine in June.(Updates with comment from Tanzanian mining minister in fifth paragraph.)\--With assistance from Danielle Bochove and Dylan Griffiths.To contact the reporters on this story: Elena Mazneva in London at email@example.com;Ken Karuri in Dar es Salaam at firstname.lastname@example.orgTo contact the editors responsible for this story: Lynn Thomasson at email@example.com, ;Luzi Ann Javier at firstname.lastname@example.org, Steven FrankFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Barrick Gold (GOLD) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
Barrick Gold (GOLD) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank 2 (Buy).
Acacia Mining said on Wednesday it was seeking a stay of international arbitration proceedings against Tanzania, a step that could ease tensions between the two sides locked in a dispute following a $190-billion tax bill. The offer to postpone arbitration, which was scheduled to start on July 22, precedes a looming July 19 deadline for Acacia's majority owner Barrick Gold Corp, holder of a 63.9% stake, to make a firm bid to buy out Acacia. Acacia and many of its shareholders have opposed the offer, saying it is too cheap.
Tanzania has stepped up the pressure on gold miner Acacia Mining, ordering it to stop using a waste storage facility at its largest gold mine by Saturday, an act that could cripple operations. The order by Tanzanian’s National Environment Management Council comes just days after Acacia was told its North Mara mine had to be investigated before it could export gold. It also comes before a Friday deadline for Acacia’s majority shareholder Barrick Gold to make a final offer for the London-listed company, after a preliminary bid in May was strongly rejected by Acacia’s minority shareholders.
Acacia Mining said on Wednesday it was seeking a stay of international arbitration proceedings against Tanzania, a step that could ease tensions between the two sides locked in a dispute following a $190-billion tax bill. The offer to postpone arbitration, which was scheduled to start on July 22, precedes a looming July 19 deadline for Acacia's majority owner Barrick Gold Corp , holder of a 63.9% stake, to make a firm bid to buy out Acacia.
The Kibali gold mine remains on track at the year’s halfway point to meet or beat its production forecast of 750,000 ounces for 2019, says Mark Bristow, president and chief executive of operator and co-owner Barrick Gold Corporation. Speaking at a briefing for local media here today, Bristow said this year marked the 10th anniversary of the acquisition of the Moto project which since then has been developed into one of the largest gold mines in the world, contributing $2.7 billion to the Congolese economy in the process. It is also now a full year since Kibali became the owner-operator of its underground mine, which ranks as one of the most advanced in the global industry in terms of automation. The system is currently being developed to the next technological level, where it will allow manned and unmanned operations within the same area.
Barrick Gold Corporation (GOLD)(ABX.TO) (“Barrick” or the “Company”) today announced that the World Bank International Centre for Settlement of Investment Disputes (“ICSID”) has awarded $5.84 billion in damages to Tethyan Copper Company Pty Limited (“TCC”), a joint venture held equally by Barrick and Antofagasta plc, in relation to the arbitration claims filed against the Islamic Republic of Pakistan following the unlawful denial of a mining lease for the Reko Diq project in Pakistan in 2011. Damages include compensation of $4.087 billion in relation to the fair market value of the Reko Diq project at the time the mining lease was denied, and interest until the date of the award of $1.753 billion. Compound interest continues to apply at a rate of US Prime +1% per annum until the award is paid.
Canadian gold producing giant Barrick Gold has been awarded nearly $6 billion in damages related to a 2011 arbitration case involving it and a partner being denied a mining lease in Pakistan.
Acacia Mining says the Tanzanian government will conduct an inspection of its main gold mine in the country, in a sign of increasing government pressure on the gold miner as it faces an imminent takeover by Canada’s Barrick Gold. The London-listed miner said it had been informed by Tanzania’s Ministry of Minerals that it would “soon conduct an inspection” of its North Mara gold mine before it issues export permits. The inspection is the latest sign of trouble for Acacia in Tanzania, following a ban on some of its gold exports two years ago by the government following charges it had not paid billions of dollars in taxes.
TORONTO, July 11, 2019 -- Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) (“Barrick”) will release its Second Quarter 2019 Results on Monday August 12, 2019. President and CEO.
London hedge fund Odey Asset Management has increased the pressure on Barrick Gold to raise its offer for Acacia Mining, saying it would reject any offer that is not higher than 271p a share. Barrick, which is led by Mark Bristow, wants to buy the 36.1 per cent of Acacia it does not already own so that it can end a damaging stand-off with the government of Tanzania over unpaid taxes. Regulators have agreed to extend the bidding deadline until July 19, Acacia said on Tuesday.
The improved results announced earlier this week by Acacia Mining are unsustainable, according to its majority shareholder Barrick Gold, which is trying to buyout the shares in the company it does not already own in an increasingly bitter takeover battle. Barrick said the 51 per cent increase in second quarter production revealed by Acacia on Monday was down to developing a very high-grade part of an underground mine at its flagship North Mara asset in Tanzania.
(Bloomberg) -- Acacia Mining Plc said it’s worth a lot more than the takeover offer drafted by Barrick Gold Corp., showing the African gold miner is digging in its heels in a long dispute with its top shareholder.The company released a report by a consultant that put its “preferred value” at 271 pence a share. That’s 38% more than Barrick’s informal proposal to buy the company in an all-stock transaction currently worth 197 pence a share. Barrick said in a statement that it is reviewing the report against its own due diligence study of Acacia’s assets.Barrick, which owns 64% of Acacia, also said its request to postpone making a firm offer until July 19 had been approved by the U.K. Takeover Panel. The company plans to meet early next week with Acacia and the consultant, and provide an update to shareholders.The extension drags out the contested takeover battle even longer and comes after Barrick was already granted a three-week delay. In an interview in June, Chief Executive Officer Mark Bristow said he would use the time to lobby minority shareholders, but had no intention of raising the bid price.The clock is ticking as Acacia, stuck in a public battle with Tanzania’s government since 2017, has seen its shares collapse by more than 60%. Acacia rose as much as 4% in London and was up 2.2% as of 8:55 a.m.Top officials in the East African country won’t engage with Acacia in any way, Bristow said last month, raising the possibility the situation could get even worse.Two years ago, Tanzania imposed an export ban on Acacia and handed the miner a $190 billion tax bill. Since then, the company’s position in the country has deteriorated further, while its relationship with Toronto-based Barrick has become increasingly strained. Acacia has been seeking to work out some of its issues with Tanzania through international arbitration, which is expected to begin in London later this month.Bristow surprised the market in May with an informal plan to buy out Acacia’s minority shareholders for $285 million in stock, a discount of about 8.5% based on closing prices of both companies at the time. Several minority shareholders reportedly balked at the offer.(Updates with Barrick comments in third paragraph.)To contact the reporters on this story: Elena Mazneva in London at email@example.com;Danielle Bochove in Toronto at firstname.lastname@example.orgTo contact the editors responsible for this story: Phoebe Sedgman at email@example.com, ;Luzi Ann Javier at firstname.lastname@example.org, Dylan Griffiths, Lynn ThomassonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.