Download now: Gold and Silver Mining Stocks

African Barrick Gold (LON: ABG) Sale Falls Through

Pricing Disagreement with China National Gold Group

Written by Swagato Chakravorty
Posted January 9, 2013 at 3:29PM

In a rough bit of news for at least two gold companies, AngloGold Ashanti (NYSE: AU) saw its chief executive depart for Anglo American (LON: AAL) while African Barrick Gold (LON: ABG) dropped by 20 percent after takeover talks collapsed. The company was the subject of talks between its parent company, Barrick Gold (TSX: ABX), and China National Gold Group.

Back in August, Barrick had mentioned that it was working toward selling its 73.9 percent stake in African Barrick to the Chinese company, but it seems there’s been a disagreement over pricing.

African Barrick has responded by asking its management to undertake an operational review in an effort to increase shareholder value. Total dividend is expected to remain at 2011’s level of $67 million despite the gold company’s decreased performance over 2012.

The Guardian quotes chief executive Greg Hawkins:

“Whilst the discussions between China National and Barrick have not lead to a transaction, the process has re-emphasised the fundamental long-term value of African Barrick's portfolio and the scarcity of large scale producing opportunities to enter the gold market in Africa.”

African Barrick’s shares on the FTSE 250 dropped by 91 pence to reach 353 pence.

Shares were back up 6.73% on Wednesday morning to 375.80 pence.

Related Articles

Silver and Gold, Silver and Gold
What does velocity have to do, have to do with it? The Hammer talks about a new bull market in gold and silver.
Don't Sell Gold
Christian DeHaemer explains why gold is soon to be money under new secret, international banking rules. Only 92 days remain before this goes into effect...
The End of Gold's 40-Year Exile
The U.S. government doesn't want us to think of gold as money. Take a look at gold's history and you'll see why... The gov't unilaterally exiled gold from today's currencies. But now gold is poised for an official comeback the government cannot stop.


What is the benefit of the email subscription?
While the Wealth Daily website offers access to the articles and reports, as a newsletter subscriber you will be among the first to receive access to the valuable advice, delivered directly to your inbox daily, and you will have access to deals on our exclusive services.
Who Owns Most of the World's Gold?
4% of the World Controls 12.6% of the Gold
Volkswagen: The Dumbest Car Company on the Planet
Will Volkswagen Expedite the Demise of the Internal Combustion Engine?
Marijuana Legalization and the Case for Liberty
The Case for Cannabis Legalization
Organic Farmland Investing
Marc Faber and the Millionaire Farmer
The World's Biggest Cash Crop