NEM should be $100 US, its profits up its too cheap?
Barrick sizing up Newmont: report
Rebecca Lawson Friday, 16 March 2007
THE world's biggest gold miner Barrick Gold could be about to place a takeover bid for another major gold miner, Newmont Mining, according to news reports.
Reuters reported that BusinessWeek's March edition posted an article saying that Barrick would pursue Newmont for its proven and probable reserves of some 95 million ounces of gold.
Using comments from "pros", the newswire reported that a possible deal could value Newmont's share price in the "mid-50s". Its shares closed US70c higher at $US42.14 on the New York Stock Exchange overnight.
Barrick's shares also closed higher, up C63c at $C33.03 on the Toronto Stock Exchange overnight.
A spokesperson from Barrick Gold in Australia told MiningNews.net that the company did not pass "comment on speculation".
In its annual report, Newmont reported a jump of 146% in its net income to $US791 million (just over $A1 billion) but has forecast a tough year ahead following the closure of its mines in North America and lower production in Australia and Peru.
NEM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
