2023-06-15 11:27:48 ET
First Quantum Minerals ( OTCPK:FQVLF ) +9.8% and Barrick Gold ( NYSE: GOLD ) -1.7% in Thursday's trading after The Wall Street Journal reported Barrick made overtures to First Quantum in recent months as part of its search for ways to expand in copper production.
First Quantum ( OTCPK:FQVLF ) reportedly indicated it was not interested in a combination and declined to enter any substantive talks; the two companies are not currently in formal discussions, but it is not clear whether Barrick ( GOLD ) will revive its interest.
A deal with First Quantum ( OTCPK:FQVLF ) would transform Barrick ( GOLD ) into a significant copper miner, as the industry's largest players seek to expand production of the red metal seen as a key in decarbonizing the global economy.
First Quantum ( OTCPK:FQVLF ) has long been seen as a takeover target, primarily for its massive copper operations in Panama, which accounts for ~1.5% of global copper production.
More on Barrick Gold:
- Financial and valuation comparison to sector peers
- Analysis: Barrick Gold: Pessimistic Sellers Could Crash Out Soon
- Stock price return: Down 6% YTD, down 13.5% in the past 12 months
For further details see:
First Quantum rebuffed informal approach from Barrick Gold - Bloomberg