Newmont agrees to pay $1.95 billion to settle Nevada gold mine dispute with Barrick

Published Aug 10, 10:51 AM UTC

Barrick Mining and Newmont have settled their dispute over Nevada Gold Mines, with Newmont agreeing to pay Barrick $1.95 billion. The deal brings Barrick's Fourmile project and Newmont's Fiberline and Mike projects into the joint venture and includes revised governance provisions. Newmont also consented to Barrick's planned IPO of its North American gold assets, removing a key hurdle. The settlement comes as Barrick reported Q2 adjusted earnings of $0.82 per share, missing analyst estimates of $0.88, due to higher production costs and tax penalties in Mali. Gold production rose 11% quarter-over-quarter to 796,000 ounces. Barrick's North American IPO remains on track for year-end completion, with Mark Hill set to become CEO of the new company. The IPO is seen as a critical move for chairman John Thornton, who faces investor criticism over Barrick's underperformance relative to rivals Newmont and Agnico Eagle.