Barrick Gold Corp has tried and failed to purchase Newmont Mining Corp twice in the past decade, but the rationale is now more compelling than ever for a merger between two of the world's largest gold miners.The two companies have been weakened by massive asset write-downs and the derailment of two vital growth projects in Latin America in the last two years, as the price of gold has slid 33 percent since peaking in 2011. These issues have led to credit rating downgrades and forced both miners to sell some assets.But the slide in gold also means that the value of goodwill attached to Newmont's portfolio has tumbled, lowering the cost of a deal and reducing the risk of more major write-downs at Barrick should gold prices fall further.Investors, long skeptical of big, unwieldy mining entities, seem more open now to the view that a combined Barrick-Newmont can generate more cash and better service its debt than the companies can on their own.
Barrick Gold Corporation (Barrick) is engaged in the production and sale of gold, as well as related activities, such as exploration and mine development. Shares of ABX fell by 3.84% or $-0.69/share to $17.29. In the past year, the shares have traded as low as $13.43 and as high as $21.70. On average, 12720400 shares of ABX exchange hands on a given day and today's volume is recorded at 18283498.
Barrick Gold Corporation (Barrick) is engaged in the production and sale of gold, as well as related activities, such as exploration and mine development. Shares of ABX fell by 3.79% or $-0.75/share to $19.06. In the past year, the shares have traded as low as $14.22 and as high as $23.78. On average, 3149720 shares of ABX.TO exchange hands on a given day and today's volume is recorded at 3281098.
Newmont Mining Corporation, is primarily a gold producer with operations and/or assets in the United States, Australia, Peru, Indonesia, Ghana, New Zealand and Mexico. Shares of NEM traded higher by 5.99% or $1.41/share to $24.95. In the past year, the shares have traded as low as $20.79 and as high as $35.44. On average, 10043400 shares of NEM exchange hands on a given day and today's volume is recorded at 12484455.
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