Odds of First Quantum M&A now higher, says RBC Capital

After Bloomberg reported that Barrick Gold (GOLD) CEO Mark Bristow spoke to some of First Quantum Minerals’ (FQVLF) major investors late last year to gauge their support for a potential takeover, RBC Capital noted that various reports of potential Barrick M&A have popped up over time, including reports of a potential combination having previously surfaced in June of last year. While the firm continues to view such a combination as “complicated today,” it believes “the probability of this potential outcome advancing is now higher” given First Quantum’s financial position and the fact that Cobre Panama remains suspended. RBC has an Outperform rating on Barrick Gold and a Sector Perform on First Quantum Minerals.