(Kitco News) - The U.S. mining sector has struggled to attract investor capital as it has significantly underperformed the precious metal.
While gold prices ended 2024 up more than 26%, the broader mining sector struggled to achieve gains of even 20%. The mining sector’s underperformance is attracting some predatory tactics.
On Monday, ahead of the North American open, Barrick Gold recommended that shareholders reject an unsolicited mini-tender offer from TRC Capital Investment Corporation. The investment firm said it wants to buy five million of Barrick's outstanding shares at $21.35 per share.
Barrick cautioned shareholders that the offer has been made at a price below the market price for Barrick common shares. The senior gold producer said that TRC Capital’s offer represents a discount of approximately 4.52% and 4.38% from Friday’s closing prices on the Toronto Stock Exchange and the New York Stock Exchange, respectively.
“Barrick does not endorse this unsolicited offer, is not in any way affiliated or associated with TRC Capital or its offer, and recommends that shareholders do not tender their shares to this unsolicited mini-tender offer,” the company said.
A mini-tender is an offer to purchase no more than 5% of a company's shares.
Barrick noted that both the Canadian Securities Administrators (CSA) and the U.S. Securities and Exchange Commission (SEC) recommend that investors exercise caution with mini-tender offers and have expressed serious concerns about such offers, including the possibility that investors might tender to these offers without understanding the offer price relative to the actual market price of their securities.
Although the mining sector has struggled to attract investor attention, many analysts have said that it is only a matter of time before sentiment turns more positive as gold prices continue to trade near record highs.
