Photo: Barrick Gold
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.