64°F
weather icon Windy

Nevada’s 2 biggest gold producers may merge

Nevada’s two largest gold producers might merge, creating a global, $40 billion mining behemoth.

Barrick Gold Corp. said it is considering making a hostile offer for its biggest competitor, Newmont Mining Corp.

“Barrick Gold today confirmed that the company has reviewed the opportunity to merge with Newmont Mining in an all-share, nil-premium transaction. No decision has been taken at this time,” Barrick said in a statement Friday in response to media rumors of a tie-up.

Barrick’s interest comes as Newmont seeks to buy Goldcorp to become the world’s largest producer of the precious metal. Newmont declined to speculate on Barrick’s interest and said it is pushing ahead with the Goldcorp deal.

“We remain confident that the combination of Newmont and Goldcorp represents an unparalleled opportunity to create value for our shareholders and deliver industry-leading returns for decades to come,” Newmont spokesman Omar Jabara said in a statement.

Barrick and Newmont are the two largest publicly-traded gold producers with a combined 2017 output of more than 10 million ounces of gold. Barrick has a market capitalization of $23 billion, and Newmont is valued at $19 billion.

Though Barrick is headquartered in Canada and Newmont in Colorado, both companies have extensive operations in Northern Nevada, the largest gold-producing region in America.

“A combined Barrick and Newmont could potentially realize significant synergies in Nevada, although Newmont has downplayed these synergies in the past,” Jefferies Group analysts Christopher LaFemina and Patricia Hove said in a note Friday.

Barrick develops the Cortez and Goldstrike properties near Elko, employing 3,000 employees and 800 contractors. Barrick’s Nevada unit produced 2.1 million ounces of gold last year.

Newmont produced about 1.7 million ounces in Nevada last year. Barrick and Newmont are jointly developing the Turquoise Ridge underground gold mine in Golconda.

The gold industry is undergoing consolidation to cut costs and boost profitability as the price of the precious metal has failed to surpass $1,400 an ounce in more than five years.

Barrick last year merged with Randgold Resources, and Newmont recently has made an offer for Goldcorp.

“Making acquisitions to become bigger might not be correlated with higher share prices, but we believe the status quo was not an option. We expect more M&A in the space,” the Jefferies analysts said.

Don't miss the big stories. Like us on Facebook.
THE LATEST
Pahrump homeschoolers dance the night away

Pahrump Valley’s homeschool youth were whisked away into the Enchanted Forest this month, with local Moose Lodge #808 hosting a night of dancing and revelry in honor of an age-old adolescent right-of-passage, prom.

Looking for some family fun for Easter? Hop over to Simkins Park

Anyone looking for a fun, family-friendly festivity to enjoy this holiday can hop on over to Simkins Park to join the Mills family as they celebrate Easter Sunday with worship music, free food and an enormous 14,000-egg hunt that is sure to bring a smile to hundreds of faces.

Campground fees to increase at Death Valley National Park

DEATH VALLEY, Calif. — Visitors to Death Valley National Park can expect a slight increase in entrance fees for various campgrounds beginning on May 1.

Clerk staffer Cori Freidhof appointed interim leader

Nye County Clerk Mark Kampf’s time in office officially comes to a close on March 31 and deputy clerk Cori Freidhof has now been selected to assume that vacated seat. Freidhof will take over the office as of Monday, April 1 and fulfill the unexpired term ending Jan. 1, 2027.

Gaming can have impact on us

When does gaming cross the line from recreational relaxation to problematic behavior? How do video games and gambling relate? What resources are available for those who find themselves struggling to control their relationship with video games and gambling?

County eyeing impact fee increases

The cost to develop in Pahrump could go up, with a public hearing on a proposal to raise local impact fees set for next month.

Here’s who filed as political candidates in Nye County

Locals have filed their political candidacy as of March 15 and this year two major offices in Nye County will be up for grabs in the general election. Nye County residents have to first narrow down their preferred party candidate on June 11 in the primary and then vote in November to support their preferred candidates.

Second Source donation for Sleep in Heavenly Peace

Nye County Sleep in Heavenly Peace is now better off thanks to a second donation from The Source dispensary’s Round Up program.

Beatty riled by sheriff’s substation closure

Lone staffer will be relocated to Pahrump to help with workload there; be onsite in Beatty just once a month.