African Barrick Gold

African Barrick Gold continues to fail to live up to expectations. The Tanzania-focused miner, which was spun off from Barrick Gold in 2010, disappointed investors again on Wednesday with guidance in its full-year results suggesting its gold production would be 540-600 thousand ounces in 2013.

This compares to 2012′s 626koz – 9 per cent less than 2011 – and suggests the company is once again heading for a decline in production. Continue reading »

Shares in African Barrick Gold plummeted by over 20 per cent on Tuesday following news that China National Gold had pulled out of talks to buy a majority stake in the company from Barrick Gold.

In heavy trading the shares fell from 444p to reach 354p as of 11.00 GMT, down from the initial float price of 575p in 2010, but some way off their all time low of 310p reached in May. Continue reading »

China’s largest gold producer is already a force to be reckoned with. But if the visionary head of China National Gold Corporation gets his way, it’s going to be much, much bigger.

As the FT reported on Friday, the state-owned group is in talks to buy a majority stake in African Barrick Gold from its parent Barrick Gold, the world’s top gold miner.

For anyone seeking an insight into the thinking behind the deal, beyondbrics has translated a fascinating article by Sun Zhaoxue [pictured], president of China National. Continue reading »

Mining companies are queuing up for east Africa’s natural resources boom, but one key player might now be heading for the exit.

On Thursday Barrick Gold, the world’s biggest gold producer, confirmed it is considering selling its 74 per cent stake in its African operation, African Barrick. As the FT reports, potential buyers in the frame are China National Gold and the Zijin Mining Group – both state owned. Continue reading »

An investor in a business majority-controlled by another shareholder has embarked on a mystery tour, writes Jonathan Guthrie in the FT’s Lombard column.

With gold miner African Barrick, which has attracted bid interest from China, the trip has been far from magical. The shares fell roughly a third between flotation in 2010 and an announcement from 74 per cent stakeholder Barrick Gold of Canada that it is mulling a disposal.

Share prices for mining companies in the FTSE were down across the board on Monday by around 3 per cent but one (at time of writing) was falling more than all the rest: African Barrick Gold, which saw its share price fall more than seven per cent to 349.9p. The drop coincides with poor interim results for the first half of 2012 and the announcement of a new exploration programme in Kenya. Continue reading »