February 21, 2008

Things to watch: Rio Tinto, Barrick Gold

Rio Tinto sells gold mining interest
February 22, 2008 - 1:31PM
Source: ABC

Rio Tinto has sold its stake in its Cortez gold mine to its joint venture partner Barrick Gold.

Barrick, the world's largest gold producer, will buy the 40 per cent share in the Nevada mine for $1.85 billion.

The sale is part of Rio's plan to divest the company of about $16.35 billion of assets.

Rio says it will retain a contingent royalty interest in the future output of the mine.

Rio says it will benefit from a deferred bonus payment if a significant discover of resources is made at the mine.

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Gold giant announces $26m loss
February 22, 2008 - 11:49AM
Source: ABC

Lihir Gold has suffered a full-year loss after restructuring its finances to take advantage of record high bullion prices.

The Australian-listed Papua New Guinea gold miner has reported a loss of about $26 million, reflecting the company's decision to exit its hedging program and to repay a big gold loan early.

But before tax and restructuring costs, record production and higher prices have resulted in a 25 per cent increase in operating profit to $213 million.


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