- "Barrick (ABX) shares are no higher than they stood in 2003 when gold was around $400 an ounce," Andrew Bary writes, in a Barron's article that makes the case for the world's largest gold miner.
- ABX — which expects to produce around 7.2M ounces this year — is one of the more highly levered names in the space, but this "probably means more upside if gold rebounds" compared to large competitors like Newmont (NEM) and Goldcorp (GG).
- Reasons the stock is in the proverbial penalty box: The ill-advised Equinox purchase, a 75% dividend cut, and a lack of cash flow generation partially due to spiraling costs tied to Pascua-Lama.
- Still, at 7x FY13 operating profit, the stock might be a bargain.
- Earlier: Gold equities lure investors
Barrick may be attractive levered play on gold rebound: Barron's
Sep 14 2013, 10:42 ET