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Barrick books tidy profit from Shandong share sale

Barrick Gold has realised a tidy profit from selling nearly 80 million shares in Shandong Gold Mining for gross proceeds of about US$210 million.
Barrick books tidy profit from Shandong share sale Barrick books tidy profit from Shandong share sale Barrick books tidy profit from Shandong share sale Barrick books tidy profit from Shandong share sale Barrick books tidy profit from Shandong share sale

Barrick Gold has sold down its strategic holding in Shandong Gold

Staff Reporter

The company acquired the shares in in the last quarter of 2018 at HK$10.50 per share (US$1.35 at current exchange rates) and sold them for $20.50 each.

Barrick continues to hold 10.25 million shares of Shandong Gold, about 2.05% of the company's Hong-Kong listed H-class shares.

The Canadian gold major and Shandong first formed an equal joint venture on the Veladero mine in Argentina in June 2017, when Shandong invested US$960 million.

They also signed a collaboration accord in 2018 with a view to the joint development of the Pascua-Lama deposit, and assessment of other opportunities on the El Indio Gold Belt stradling the Argentina-Chile border.

Subsequently, the partners signed a mutual investment accord under which Shandong committed to buy on the open market up to $300 million of Barrick shares, and Barrick said it would invest an equivalent amount in shares of Shandong Gold.

Barrick and Shandong Gold had also created internal working groups that were sharing technical expertise focused on best-in-class mining practices and innovation.

Shares in Barrick Gold (TSX: ABX) were down about 2% Tuesday at C$32.88, capitalising it at about C$58.5 billion.

Shandong (HK: 1787) dipped 3.5% today to HK21.30, capitalising the company at HK109 billion.