Barrick Gold Corporation (USA) (NYSE:ABX) Revives After Gold Future Prices Rise


Dallas, Texas 02/28/2014 (FINANCIALSTRENDS) – Barrick Gold Corporation (USA) (NYSE:ABX) stock has recovered a major part of the market losses it had suffered post its 4Q results announcement earlier this month, during trading in the past one week. This was on the back of increase in the price of gold at the futures market due to the dip in consumer sentiment as per the analysts at the New York Mercantile Exchange and the Conference board. The consumer sentiment measured in points had slipped to 78.1 this week, from previously reported 80.7 reported for beginning of February.

Gold Rally On Back Of Global Uncertainty

The price of gold recorded a $14 increase per ounce during trading in the past one week of trading on the back of uncertainty prevailing in the market related to the current political standoff in Ukraine. In the past 60 days, the price of gold has gone up by an impressive 7.5 percent and this has had a beneficial impact on the valuations of host of gold producers including Barrick Gold Corporation (USA) (NYSE:ABX).

4Q Results Had Driven Barrick Stock Down

These gains in the past week, were preceded by a bout of lack of investor confidence in the stock of Barrick Gold Corporation (USA) (NYSE:ABX) earlier this month, when the firm announced losses to the tune of $0.37 per share, before tax calculations from its fourth quarter operations. To put the losses reported in context, one should note that the gold miner had reported earnings per share of $1.16 per share in 4Q12. At that time of reporting the quarter results, the firm had reported that it had realized lower than expected price of gold and copper during the last quarter of 2013, which had also coupled with dip in sales volume for both the metals. These negative pressures had led to the drop in earnings per share of the firm.