Barrick Gold Corporation (USA)(NYSE:ABX): The Stock is Economical With Improved Financial Flexibility


Dallas, Texas 11/14/2013 (Financialstrend) – Barrick Gold Corporation (USA)(NYSE:ABX) is a one of the largest producer of yellow metal all around the world. To improve its financial flexibility, the company is making all efforts like, suspending its biggest development project, cutting costs, and also raising $3 billion in equity. The company has a high quality asset base and is also the lowest cost senior producer of gold. It continued the optimization of its portfolio, seeking operational improvements at all its mines and is also looking for the reduction of higher cost mines. It is changing into more leaner, proactive and profitable company.

Cost Reduction Initiatives:

After posting solid quarterly results, the company reported operating EPS (Earnings per Share) of $0.58 during the third quarter of 2013, which is more than the consensus estimates of $0.51. Better than expected copper business results and higher production of gold contributed to its beat.  Pascua-Lama which is its largest development project, the company has suspended its work and it also intends to raise $3 billion in equity.

Barrick Gold Corporation (NYSE:ABX) is also expecting to save $500 million in costs p.a. as a result of lower overhead due to a streamlined management structure,  procurement and other items. After the reduction of a price of a metal during this year, Gold miners are scrambling to cut costs

Portfolio Optimization:

The decision of the company for the suspension of the Pascua-Lama development project, raised $3 billion in equity and also the targeted $500 million in annual cost savings increases the financial position of the company. It keeps on focusing on optimization of its assets portfolio through sale of assets and closing of mines.

Price update:

While trading on November 13, 2013, the shares of Barrick Gold Corporation (NYSE:ABX)              ’s percentage change plunged +0.39% to close at $18.10 with the total traded volume of 13.87 million shares and average volume of 17.88 million. The 52 week low of the stock is $13.43 and 52 week high is $36.08.

Subscribe to get your free report!

* indicates required
*Past performance is not a predictor of future results. All investing involves risk of loss and individual investments may vary. The examples provided may not be representative of typical results. Your capital is at risk when you invest – you can lose some or all of your money. Never risk more than you can afford to lose.By submitting your information you agree to the terms of our Privacy Policy • Cancel Newsletter Any Time.This is a FREE service from Finacials Trend. Signing up for our FREE daily e-letter also entitles you to receive this report. We will NOT share your email address with anyone.