Barrick Gold Corporation is the second largest gold producer globally after Newmont goldcorp, it’s market cap is around $30billion
Barrick gold primarily produces gold and copper with 16 operating sites in 13 countries and is headquartered in Toronto, Barrick has mining operations in Argentina, Canada, Chile, Côte d’Ivoire, Democratic Republic of Congo, Dominican Republic, Mali, Papua New Guinea, Saudi Arabia, Tanzania, The United States and Zambia.
In 2019 Barrick produced 5.5 million ounces of gold at an all in sustaining cost of $894 an ounce (quite a reasonable all in sustaining cost for such a large company, every dollar above $894 an ounce is pure profit)
and 432 million pounds of copper at an all in sustaining cost of $2.52 per pound.(again a reasonable all in sustaining cost)
Its gross revenue for 2019 was $9.72 billion. With a market cap of around $30 billion this makes Barrick gold stock price reasonable in terms of price to earnings ratio, (PE) and considering Barrick has 71 million ounces of proven and probable gold reserves to mine in the future it’s production rates will either remain the same or continue to grow for the coming years ahead. Barrick is considered a safe and low risk company to invest in with good upside potential. With the rising price of gold (and later copper) we could see Barrick’s share price double or more over the next few years.
As a reminder, in an emerging bull market, undervalued, low risk large cap stocks is where you want to place the majority of your investment capital since the rate of return is low risk.
Large cap stocks within an industry currently seeing a bull market provide steady gains but perhaps not life changing gains. As with everything it’s risk vs reward.
Barrick Gold trades on the (NYSE) New York stock exchange under the ticker symbol GOLD and on the Toronto stock exchange as ABX
We recommend to buy shares from the home exchange where the company is based, in this case it is on the Toronto stock exchange (TSX)
Our buy up to price for Barrick is $50 CAD, it’s currently trading at around $37 CAD
(CAD = Canadian dollar)
It’s hard to predict a timeline for how long to hold a stock, I will be keeping an eye out for any changes that might affect us as shareholders within Barrick as a company and within the market in general, i would think we are looking at a timeline measured in years with Barrick Gold.
Until next time,
Frank
