What is your view on Barrick gold, the last quarter earnings appeared to be very good , but the stock has lagged AEM and NEM by a wide margin with gold hitting all time highs.
Thanks ,
George
ABX had a decent Q2. Improving output at Barrick's Turquoise Ridge mine could add to the robust performance at Carlin, helping the Nevada Gold complex deliver a much stronger 2H. Increased recovery at Pueblo Vieja may boost 2H gold production to 2.1 million ounces, putting 4 million ounces for 2024 well within reach. Total cash costs might average at the top end of guidance of $940-$1,020 an ounce as solid expense controls offset higher royalties. Should gold hold at the current spot price, full-year Ebitda could reach $7.1-7.2 billion, suggesting that consensus may be 10-14% too conservative. Depending on the pace of buybacks, strong operating cash flow might help Barrick into a positive net cash position by year-end, which may spur a 4Q dividend bump.
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.