Q: Good afternoon,
On Aug 2020 ABX was at $40.39, March 2022 - $33.50, today $24.60 . Many gold stocks are reaching new highs the last few days and gold appears like will reach a new high any day. ABX is in much better shape vrs 2020 but the stock never goes up , what am i missing here?? thanks, George
On Aug 2020 ABX was at $40.39, March 2022 - $33.50, today $24.60 . Many gold stocks are reaching new highs the last few days and gold appears like will reach a new high any day. ABX is in much better shape vrs 2020 but the stock never goes up , what am i missing here?? thanks, George
5i Research Answer:
ABX does have some metals production (copper_ other than gold, which gold investors don't like at times. Its cost structure has not been great, and it has had some production and grade issues at its mines. It made more money in 2020 than it will this year, and investors need to see earnings growth. Compared with AEM, for example, AEM's earnings per share will nearly double from 2020 to this year. We do like ABX a bit better than we did a few years ago, but it s lack of growth never makes it a favourite.