According to a report by the Wall Street Journal, the world’s top two gold miners in terms of production had been in talks to merge this week, but no deal could be made.
According to “people familiar with the matter” the talks broke down in the past few days and it wasn’t the first time that the Canadian and US miners have discussed a deal.
Toronto-based Barrick (TSE:ABX NYSE:ABX) which produces some 7 million ounces of gold per year is worth $21 billion on the TSX, down 20% compared to a year ago and nowhere near its $54 billion market value in 2011.
Newmont Mining Corp (NYSE:NEM) with a market value of just under $12 billion has fared even worse shedding 30% in value compare to this time last year. The Denver-based company is a 5 million ounce a year producer.
Gold is up some 8% in 2014, but more than $600 an ounce below all-time highs reached September 2011.