Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Barrick Gold (NYSE:ABX) investors will get a dividend of $0.05 per share for the third quarter of 2013, representing a 1% yield, the company announced on Wednesday.
Not much of a surprise considering the mining giant cut its dividend by 75% while writing off $8.7 billion in assets last quarter.
This time last year the company was paying 20 cents per share.
Barrick, worth $20 billion on the New York Stock Exchange, was up 3.4% by Wednesday afternoon, trading at $20.44 per share.
Desperate to cut debt and costs, Barrick is looking at cash-raising options which includes an equity stake sale, anonymous sources told Bloomberg. According to the article, the company is looking at selling part of its copper business and has even considered offering stakes of the company or its $8.5 billion Pascua-Lama project to state-back Chinese investors.
“Barrick has yet to settle on any options, and there’s no certainty a deal will occur,” the Bloomberg report reads.
2 Comments
colinhar2
You would have to feel sorry for investors who put their money into the worst managed mining company in the world, should have stuck to motels!
stardust
It all depends on when you invested colin