Barrick and Newmont settle Nevada dispute with $1.95 billion deal

Published Aug 10, 10:51 AM UTC

Barrick Mining and Newmont have resolved their disputes over the Nevada Gold Mines joint venture in a deal requiring Newmont to pay Barrick $1.95 billion. The agreement 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 as Barrick aims to complete the separation by year-end. The settlement comes as Barrick reported Q2 adjusted earnings of $0.82 per share, matching estimates, with gold production rising 11% to 796,000 ounces. However, higher production costs and tax penalties in Mali weighed on results. The IPO is seen as crucial for Barrick chairman John Thornton, who faces investor criticism over the company's underperformance relative to rivals Newmont and Agnico Eagle. Mark Hill has been named CEO of the new North American company.