Barrick, Newmont Expand Nevada Gold Mines JV for $1.95 Billion as Dispute Ends

3 articles · Updated · The Globe and Mail · Aug 10

Newmont will pay Barrick US$1.95 billion in cash to fold Fourmile, Fiberline, Mike and other properties into the Nevada Gold Mines joint venture, broadening a 2019 tie-up that already includes Carlin, Cortez and Turquoise Ridge.
The revised pact resolves a dispute that flared earlier this year, when Newmont accused Barrick of mismanaging NGM and diverting resources to the wholly owned Fourmile project, prompting a February default notice.
RBC analyst Josh Wolfson said the price came in well below his prior US$4.2 billion estimate for adding Fourmile, suggesting Newmont emerged stronger from the negotiations; Barrick shares fell more than 9% in early Toronto trading.
Barrick also said Newmont consented to its planned North American IPO, even as Barrick maintained that approval was not required; the spinout is expected to sell a 10%-15% stake later this year.
The deal supports Barrick's push to create a lower-risk North American pure play that could narrow its valuation discount to peers, though Mark Hill's move to lead the new company leaves Barrick needing a new CEO for its remaining operations.