- J.P. Morgan reiterates its Neutral rating on Barrick Gold (ABX -5.7%) and lifts its target price to $19 from $18 after the miner's launch of a $3B public equity offering to pay down debt and get its capital structure under control.
- The equity issue could be a demonstration of financial prudence or it could suggest weaker than expected 2014 operating results, JPM says.
- News of the suspension of the Pascua-Lama project and continuing cost cuts should strengthen ABX's near-term cash flow, the firm adds.
- The equity issuance creates ~16% dilution, but the firm says simultaneous progress with current costs and the promise of another $500M in savings seems to mitigate the impact of the higher share count, assuming the cost cuts are sustainable.
From other sites
at Nasdaq.com (Feb 24, 2015)
at Benzinga.com (Feb 23, 2015)
at Benzinga.com (Feb 19, 2015)
at CNBC.com (Jan 13, 2015)
at Nasdaq.com (Jan 6, 2015)
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