African Barrick Gold tumbles on failed deal with Chinese

Shares in African Barrick Gold (LON:ABG) went down a mineshaft, losing a fifth of its value on Tuesday, after talks failed to sell a majority stake in the London-listed miner to a Chinese group.

In a press release, the company announced that state-owned China National Gold had ended talks to buy Canadian Barrick Gold’s 74% stake in African Barrick, which is Tanzania’s biggest gold producer.

The miner’s board has asked management to conduct a full operational review with the aim of rebalancing operations and improving returns, African Barrick said.

Further details of the review would be disclosed with its annual results in mid-February, it added.

The company’s performance hasn’t been the best in the last few months.

In October last year, African Barrick posted weak third-quarter results and decreased its full-year output forecast as disruptions to its operations dragged down production.