Barrick Gold makes China investor push as markets slump – by Susan Taylor (Reuters U.S. – August 1, 2018)

https://www.reuters.com/

TORONTO (Reuters) – Barrick Gold Corp will make a bigger push to attract institutional investors in China under a new deeper-ties pact with Shandong Gold, aimed at bolstering its shareholder base, executives told Reuters.

Bruised by a strong U.S. dollar, the price of gold is nearing a one-year low, with speculators holding record short positions. China, the world’s largest producer and consumer of gold, is a largely untapped investor source for western miners, said Barrick’s China President Woo Lee.

“We’re establishing relationships with some of these large investors in China – that’s something that we haven’t had before,” Lee said in an interview. “Because Shandong knows the market far better than we do, they are potentially a good source of introductions to the best investors.”

Barrick hopes the addition of long-term Chinese investors will boost the demand and value of its stock which has sunk about 31 percent over the past year, underperforming the S&P/TSX Global Gold Index, which has dropped 6.5 percent, and a 3.5 percent drop in spot gold prices.

Shares shed 10 percent over the last seven sessions alone, as Barrick reported a money-losing quarter, production declines and its president’s departure without a named successor.

For the rest of this article: https://www.reuters.com/article/us-barrick-gold-shandong-gold/barrick-gold-makes-china-investor-push-as-markets-slump-idUSKBN1KM5XG

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