| Barrick Closes Gold & Silver Streaming Deal with Royal Gold | |
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Barrick Gold Corporation ABX has closed its earlier announced gold and silver streaming deal with RGLD Gold AG, a fully-owned subsidiary of Royal Gold, Inc. RGLD, for production linked to Barrick’s 60% interest in the Pueblo Viejo mine.
Barrick has received an upfront cash payment of $610 million and will get continuing cash payments for gold and silver delivered under the agreement. Proceeds from the transaction will be utilized to cut debt.
Per the deal, Barrick will sell gold and silver to Royal Gold equivalent to 7.5% of the former’s interest in the gold produced at Pueblo Viejo until 990,000 ounces of gold have been delivered, and 3.75% thereafter. Barrick will also sell gold and silver equivalent to 75% of its interest in the silver produced at Pueblo Viejo until 50 million ounces have been delivered, and 37.5%from then on. Silver will be delivered on the basis of a fixed recovery rate of 70%.
Barrick will get ongoing cash payments equivalent to 30% of the prevailing spot prices for the first 550,000 ounces of gold and 23.1 million ounces of silver delivered. After that, payments will double to 60% of prevailing spot prices for each subsequent ounce of gold and silver delivered. Ongoing cash payments to Barrick are tied to prevailing spot prices rather than fixed in advance.
Barrick will retain its 60% equity interest in Pueblo Viejo and its related rights under the joint venture deal with Goldcorp Inc. GG, including operatorship of Pueblo Viejo. The transaction will not impact any of Pueblo Viejo's obligations to the Dominican Government.
The deal brings considerable upside price participation for Barrick. It will not be subject to a Barrick guarantee, and will not be treated as a debt-like obligation. Barrick’s obligation to sell gold and silver under the deal is serviced using after tax cash flow being remitted from the Dominican Republic. Currently, Barrick carries a Zacks Rank #3 (Hold). A better-ranked mining company is Asanko Gold Inc. AKG, which holds a Zacks Rank #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BARRICK GOLD CP (ABX): Free Stock Analysis Report ROYAL GOLD INC (RGLD): Free Stock Analysis Report GOLDCORP INC (GG): Free Stock Analysis Report ASANKO GOLD INC (AKG): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Royal Gold Inc.
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PRODUCTEUR |
CODE : RGLD |
ISIN : US7802871084 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Royal Gold est une société basée aux Etats-Unis D'Amerique. Royal Gold est productrice d'or, d'argent, de cuivre, de plomb et de zinc en USA, au Burkina Faso, au Canada, au Chili, au Mexique, au Nicaragua, en Argentine, en Bolivie et en Guinee, en développement de projets d'argent, de cuivre, d'or, de plomb et de zinc au Burkina Faso, au Canada, au Chili et en Australie, et détient divers projets d'exploration au Canada, en Argentine, en Bulgarie et en Finlande. Ses principaux projets en production sont BALD MOUNTAIN en USA, LIMON, LEEVILLE MINING COMPLEX et GOLDSTRIKE OPEN PIT au Nicaragua, DON MARIO (CERRO PELADO) et ROBINSON (NEVADA) en Bolivie, EL CHANATE, PEÑASQUITO, WHARF, MARIGOLD, DOLORES MINE, MULATOS MINE -ESTRELLA et GOLDSTRIKE UNDERGROUND au Mexique, SIGUIRI en Guinee, TAPARKO au Burkina Faso, MARTHA MINE en Argentine, ANDACOLLO HYPOGENE, TOQUI et ANDACOLLO au Chili et WILLIAMS, TWIN CREEKS, PIPELINE MINING COMPLEX et TROY au Canada, ses principaux projets en développement sont GOLD HILL et PASCUA LAMA au Chili, HOLT MINE & MILL et PINE COVE (MINGS BIGHT) au Canada, BALCOOMA en Australie et BOUROUM au Burkina Faso et ses principaux projets en exploration sont CANADIAN MALARTIC (QUEBEC), GOLDSTRIPE WILLA, MANHATTAN (WHITE CAPS) et CAMP BIRD MINE au Canada. Royal Gold est cotée au Canada, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 8,8 milliards US$ (7,9 milliards €). La valeur de son action a atteint son plus bas niveau récent le 28 février 1992 à 0,03 US$, et son plus haut niveau récent le 06 septembre 2024 à 134,04 US$. Royal Gold possède 65 455 293 actions en circulation. |