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>>> Barrick Gold Beat Earnings Estimates. Its Stock Continues to Rise


Barron's

By Connor Smith

Aug. 10, 2020


https://www.barrons.com/articles/barrick-gold-beat-earnings-estimates-its-stock-continues-to-rise-51597073316?siteid=yhoof2&yptr=yahoo


Barrick Gold stock’s huge two-year run continued on Monday after the company’s second quarter results proved it’s a great time to be a gold miner.

For the second quarter, Barrick reported earnings of 20 cents a share, ahead of consensus estimates calling for 18 cents a share, according to FactSet. Revenue of $3 billion eked out estimates calling for $2.9 billion.

Barrick said the realized gold price during the second quarter was $1,725 an ounce, up from $1,589 an ounce in the first quarter. Its free cash flow was $522 million, up from $55 million in the second quarter of last year. The miner produced 1.15 million ounces of gold and 120 million pounds of copper.

Barrick also raised its quarterly dividend 14% to 8 cents a share. Chief Financial Officer Graham Shuttleworth called the dividend sustainable, adding in the earnings release that it reflects the company’s, “ongoing robust performance of our operations and continued improvement in the strength of our balance sheet, with total liquidity of $6.7 billion, including a cash balance of $3.7 billion at the end of the second quarter, and no material debt repayments due before 2033.”

CEO Mark Bristow said in the earnings release that Barrick’s major projects remain on track, aside from the Veladero mine in Argentina, where Covid-19 restrictions impacted its heap leach and cross-border Chilean power line projects.

Barron’s turned bullish on gold in a 2018 cover story, calling the metal cheap amid fears of inflation. Shares of Barrick (ticker: GOLD) and peer Newmont (NEM), both favored by Barron’s in January of 2019, soared last year. The stocks continued their run in 2020, as the price of gold passed $2,000 a troy ounce. In a July 31 story, Barron’s argued gold’s rally could continue with inflation-adjusted U.S. rates negative and the U.S. government running massive deficits.

Other than miners, investors can play the metal’s rise with exchange-traded funds like the SPDR Gold Shares ETF, which has returned 18% year-to-date. Barrick Gold stock was up 1% to $29.19 on Monday. The stock has risen about 62% in the past 12 months.

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