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Barrick Gold Corp ABX

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Morningstar’s Analysis

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Despite Barrick’s Solid Second Quarter, Unsustainably High Gold Price Makes Shares Overvalued

Analyst Note

| Kristoffer Inton |

On Aug. 10, Barrick Gold announced second-quarter results highlighted by solid performance and few surprises. Despite the COVID-19 pandemic, most of the company’s operations have continued to operate with the proper safety precautions in place. Second-quarter gold production declined by about 8% from a year ago to 1.1 million ounces and all-in sustaining costs (AISC) rose about 8% to $1,031 per ounce. Nevertheless, Barrick maintained its full-year guidance of 4.6 million to 5 million ounces at AISC of $920 to $970 per ounce.

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Company Profile

Business Description

Based in Toronto, Barrick Gold is one of the world's largest gold producers, operating mines in North America, South America, Australia, and Africa. In 2019, the firm produced nearly 5.5 million attributable ounces of gold and more than 430 million pounds of copper, boosted by the acquisition of Randgold at the end of 2018. As of Dec. 31, 2019, Barrick had 71 million ounces and 13.5 billion pounds of proven and probable gold and copper reserves, respectively.

Contact
161 Bay Street, Brookfield Place, Suite 3700, P.O. Box 212
Toronto, ON, M5J 2S1, Canada
T +1 416 307-7405
Sector Basic Materials
Industry Gold
Most Recent Earnings Jun 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type
Employees 22,500