Connect with us

Uncategorized

Barrick Gold Sees Canaccord Lower Price Target On High CAPEX Spend

Last Friday Barrick Gold Corp. (TSX: ABX) had its investor day with sell-side analysts and investors. Canaccord Genuity has since
The post Barrick Gold…

Share this article:

Published

on

This article was originally published by The Deep Dive

Last Friday Barrick Gold Corp. (TSX: ABX) had its investor day with sell-side analysts and investors. Canaccord Genuity has since provided their takeaways, saying the bottom line is that the 5-year plan aligns with their estimates but with a higher CAPEX spend. As a result, Canaccord lowered their 12-month price target on the stock to C$28 and reiterated their buy rating.

Barrick Gold currently has 24 analysts covering the stock with an average 12-month price target of US$20.36, or an upside of 33%. Out of the 24 analysts, five have strong buy ratings, 13 have buy ratings, and the last six have hold ratings on the stock. The street high is US$25.

During investor day, Barrick Gold said they are continuing their plans to increase gold production modestly to 4.5 million ounces of gold, up 300,000 from this year. Then they expect to reach 4.7 million ounces of gold production by the end of 2027. Barrick said this increase in production would come from Cortez, Turquoise Ridge, the completion of the Pueblo Viejo expansion, and the restart of Porgera. Additionally, Barrick is guiding copper production to increase from 480 million pounds in 2023 to over 500 million pounds by 2025.

Barrick Gold expects gold cash costs to decrease over the next five years due to higher volumes and a lower gold price going forward. Barrick assumes the long-term oil price will be $70 a barrel, down from $90.

Canaccord says that the largest variance between the 5-year plan Barrick provided on Friday, and their long-term estimates are the capital expenditures. Barrick told investors that their CAPEX spending would increase versus Canaccord’s expected decrease. Barrick said CAPEX would increase to $2.6 billion versus Canaccords’ $2.0 billion estimate.

Most of the increase comes from Pueblo Viejo, a 60% owned joint venture with Newmont, and it is expected to cost $2.1 billion versus the $1.4 billion previously expected. While solar investment continues to be a large investment by Barrick, they estimate that all solar projects will cost roughly $400 million.


Information for this briefing was found via Edgar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

The post Barrick Gold Sees Canaccord Lower Price Target On High CAPEX Spend appeared first on the deep dive.


Share this article:

Uncategorized

ASX Small Caps Lunch Wrap: Who’s making some pretty outrageous predictions for 2023?

Patriot Battery Metals has made its ASX debut and leads the small caps winners on the ASX today with the … Read More
The post ASX Small Caps Lunch Wrap:…

Share this article:

Continue Reading
Uncategorized

Red Mountain picks up two tasty new lithium assets in Nevada

Special Report: Red Mountain Mining has acquired two highly prospective and strategic lithium assets in an emerging lithium district in … Read More
The…

Share this article:

Continue Reading
Uncategorized

The 7 Best Battery Stocks to Buy in December

Some of the best battery stocks have underperformed this year. The correction has been in-sync with the downside in electric vehicle stocks. There is however…

Share this article:

Continue Reading

Trending