Proactive Investors - Barrick Gold (NYSE:GOLD) Corp remains a “Buy” for analysts at Stifel GMP following an announcement this week that the company plans to undertake a new share repurchase program to buy back additional common shares.
In a flash note published Wednesday, the firm pointed to the buyback plan as well as Barrick’s recently announced fourth-quarter financial results.
“Q4 earnings results came in largely as expected but FCF generation was negative,” analysts said. “Headline adjusted EPS of $0.13 came in line with our forecast of $0.13 (but ahead of consensus $0.11).”
“Unlike peers, Barrick did not revise its original 2022 cost guidance and was anticipated that costs would exceed guidance,” analysts said. “For the full-year, total cash costs/ [all-in sustaining costs] of $862 / $1,222/oz came in broadly in line with our estimates (of $864 / $1,218/oz). Gold AISC coming about $100/oz higher than original guidance.”
Stifel estimates a 7% production increase in 2023 compared to 2022 based on a production forecast of approximately 4.43Moz.
Barrick is a huge gold and copper producer, operating mines and projects in 18 countries in North and South America, Africa, Papua New Guinea and Saudi Arabia.
Shares of Barrick traded 1.5% lower at US$16.91 in New York and 1.3% lower at C$22.71 in Toronto midday Thursday.