The 10 biggest gold companies led by Barrick Gold Corp. spent more than $100 billion in the past 20 years buying new mines and projects around the globe. Now they’re feeling pressure to throw the strategy into reverse.
KGHM Polska Miedz SA, the copper miner with the largest European output, agreed to buy Canada’s Quadra FNX Mining Ltd. for about C$2.87 billion ($2.84 billion) in the largest overseas acquisition by a Polish company.
Barrick Gold Corp., the world’s biggest producer of the metal, said the estimated cost of building a mine in the Andes may jump to about $8 billion because the project is more complex than it had anticipated.
Barrick Gold Corp. is betting growth will come from Nevada, where the world’s largest producer scored its first big success three decades ago, after more than $9 billion in writedowns and cost overruns in the past two years on projects from the Andes to Zambia.
Lundin Mining Corp., which lost almost half its value after spurning two takeover bids, now needs an acquirer willing to pay the biggest premium for a diversified minerals deal to make shareholders whole again.
Barrick Gold Corp.’s agreement to buy Equinox Minerals Ltd. for the most expensive valuation in a copper mining takeover still isn’t high enough, according to traders who profit from mergers and acquisitions.
Barrick Gold Corp. Chief Executive Officer Jamie Sokalsky makes his public debut tomorrow as head of the world’s biggest gold company battling rising costs, a decline in profit and a sluggish price for the metal that can no longer paper over the industry’s struggles.
Capital spending by the largest gold producers is increasing at a faster pace than earnings for a second straight year as the industry’s biggest mining projects are beset by delays and surging labor costs.
Leucadia National Corp., Inmet Mining Corp.’s largest shareholder, plans to tender shares in the Canadian mining company in support of First Quantum Minerals Ltd.’s C$5.1 billion ($5.2 billion) hostile bid for Inmet.