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Cristina Tov  

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  • Barrick Gold: Tough Times Ahead [View article]
    Yes, Barrick Gold operates at lower costs as compared to its peers. The company provides a better investment opportunity on the basis of forward price-to-earnings ratio and a dividend yield of 2.7%. However, the company's change in gold price assumption would render some of its projects uneconomical to mine, causing asset write-downs. This will affect the company's cash flows in the longer-term. Moreover, the company's debt-to-equity ratio of 1.1 is extremely high as compared to the industry's average of 0.4. Considering all these factors, it would be better to wait for the company's upcoming results (Feb 13, 2014), in order to have more clarity on impairments and debt position.
    Feb 7, 2014. 11:29 AM | Likes Like |Link to Comment
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