African Barrick Gold shares slide on Reuters mine attack report

Shares in African Barrick Gold (ABG) fell nearly 7 percent and were the biggest loser on the FTSE 250 index on May 17 after Reuters reported an attack on its North Mara gold mine in Tanzania. The company confirmed the attack, but declined to give details. It eventually put out a statement after its shares dropped as the death toll rose to seven. The Reuters story quoted police saying it was the third attack in a week and this worried analysts. Citi said in a note to clients quoting the Reuters report that it would review its valuation of ABG as the gravity of the incident meant there were serious medium-term implications for the mine. A second note to clients from Canaccord Genuity, also quoting the Reuters story, said it was clearly negative news and would hamper sentiment in the near term. It said it was placing its ABG target price under review as the North Mara mine accounted for 21 percent of its net asset value.