Barrick Gold seen at "turning point," with or without Newmont Mining


Newmont Mining (NEM +0.1%) may still be open to a merger with Barrick Gold (ABX +0.3%), but Newmont may need Barrick more than Barrick needs Newmont; in fact, RBC analysts think ABX is “reaching a key turning point" and sees a strong operational rebound in 2015.

In raising its price target for ABX shares to $25 from $23, RBC also lifts its NAV estimate to $14.77/share from $14.05, driven primarily by cost improvements achieved YTD that should carry forward.

With company-wide all-in sustaining costs tracking below the guidance range YTD and key mines production expected to begin a rebound in 2015, RBC estimates operating free cash flow of $1.5B in 2015; the firm says ABX also offers upside optionality through its Goldrush and Turquoise Ridge projects in Nevada.

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Comments (3)
  • Mark0f0
    , contributor
    Comments (2789) | Send Message
     
    There never was really anything wrong with Barrick. Okay, they got beaten up on the Pascua Lama over-runs, but that project is almost completed, and will be, pending a few bribes to the proper officials, and higher gold prices, brought into production.

     

    Who even conjured up the idea that Barrick would even want to merge with Newmont? It was, and always will be, a giant bunch of nonsense.
    7 Aug 2014, 03:36 PM Reply Like
  • Brian58
    , contributor
    Comments (284) | Send Message
     
    Finally an analyst with cojones, unlike all the other FED bought puppets
    7 Aug 2014, 04:12 PM Reply Like
  • james.
    , contributor
    Comments (1318) | Send Message
     
    The above article contending that NEM needs ABX more than ABX needs NEM is ludicrous and totally without merit; namely, NEM is in solid profit for 1Q and 2Q 2014, and things are only getting better from here, whereas ABX must wait until 2015 and 2016 to get rolling according to the above article ! Aug 7, 2014 at 2:30 pm PDT.
    7 Aug 2014, 05:32 PM Reply Like
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