A Joint Venture in Nevada Gold Mining

The two largest gold miners – Barrick and Newmont Mining – announced a joint venture (JV) in their Nevada operations to create the world’s single largest gold producing company with a reserve base of 48 million ounces in the ground. The JV is estimated to save both companies $500 million in the first five years of operations due to sharing resources and tax breaks, according to GMP Securities equity research. This news follows weeks of drama after Barrick offered a hostile, all-share bid to take over Newmont. Frank Holmes, CEO and chief investment officer of U.S. Global Investors, comments that the JV is a much better alternative, rather than have the two companies battle it out in the capital markets. Frank also says that a big winner from this news will be Franco-Nevada Corp, which owns royalties on several of the mines in the Nevada complex.

For Frank’s full explanation, watch the video below!

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