Why One Of The World’s Biggest Gold Companies Is Making A Massive Bet On Copper

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[credit provider=”Barrick Gold” url=”http://www.barrick.com/Investors/default.aspx”]

Today Barrick Gold, one of the world’s biggest gold companies, announced that it’s buying copper company Equinox for $7.7 billion.Barrick is diving on the news, as people wonder why a gold company is making such a big bet on a different industry.

In a presentation, Barrick spells out the rationale:

  • Positive copper fundamentals.
  • An opportunity to get a copper company in a non-hostile situation.
  • Earnings accretion.
  • Historically cheap financing.
  • More growth.

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