Barrick Gold (TSE:ABX) (NYSE:GOLD), one of the world’s top gold producers, recently tried to make a takeover offer for Canadian copper mining firm First Quantum Minerals (TSE:FM), according to insiders. Barrick was reportedly trying to tap into the copper market, which has seen many deals amid soaring demand due to the shift toward green energy. However, First Quantum wasn’t interested, steering clear of any serious merger talks.
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The news of the informal offer sparked a frenzy in the market, with First Quantum’s shares soaring by as much as 13% today before closing 7.6% higher. Meanwhile, Barrick Gold fell by 2.6% today. Despite the initial excitement, there are currently no formal discussions on the table, and it’s unclear whether Barrick will try again.
This development highlights the bigger picture — the global mining industry is quickly shifting focus to metals like copper, crucial to the green energy push. Barrick’s CEO has been outspoken about the importance of copper production in keeping mining firms in the game. Although this particular deal might not pan out, it showcases First Quantum’s status as a hot commodity in large-scale copper mining.
Is First Quantum Stock a Buy, According to Analysts?
According to analysts, First Quantum stock comes in as a Moderate Buy. This is based on nine Buys, four Holds, and two Sells assigned in the past three months. The average FM stock price target implies 1.9% upside potential.
