Germany Chancellor plans lithium deal with Serbia after Rio ruling
Olaf Scholz plans to visit Serbia this week to secure supplies of lithium that are critical for the nation’s energy transition and auto industry.
Weighed down by weak commodity prices and high costs, Barrick Gold Corp (NYSE:ABX) is exiting the Alberta oil business by selling Barrick Energy.
The world’s largest gold producer announced the sale in a press release on Tuesday as part of a broader move to optimize the company’s portfolio by letting go of non-core assets.
The energy subsidiary consists of several oil-weighted properties in Alberta.
The price tag on Barrick Energy is C$455 million and the Canadian gold producer will receive approximately C$405 million in cash.
The sale involves three buyers, with Venturion Oil putting in C$59 million, Whitecap Resources (TSE:WCP) C$174 million and Canadian Natural Resources (NYSE:CNQ) C$173 million. The transaction is expected to close by month’s end.
By shedding its energy asset, Barrick stands to lose approximately $500 million in the second quarter – $90 million of which would be a goodwill charge.
In late June the gold miner announced an anticipated $5.5 billion write-down in Q2.
The company has also been cutting down by laying off well over one hundred workers in the past few months.
Barrick Gold was up 3.08% on Tuesday on the New York exchange, trading at $18.20, and has been on the rise since mid-July after hitting a 21-year low in June.
Creative Commons image by: Charlie O’Neill
