Barrick Gold +1.5% as Goldman adds to Conviction List

|About: Barrick Gold Corporation (ABX)|By:, SA News Editor

Barrick Gold (ABX +1.5%) is added to the Conviction Buy List at Goldman Sachs, highlighting at least some more potential upside for the gold mining giant.

Goldman cites several key positive catalysts, including an improving operational profile; the firm expects ABX’s high-quality core assets to contribute ~80% to total cash flows leading to a decline in overall costs.

The firm estimates ABX should turn free cash flow positive beginning in Q3, generating more than $5B of free cash flow over 2014-18.

Goldman also likes ABX's path toward continued portfolio optimization, seeing continued divestments in 2014 and beyond which, combined with strong FCF generation, should lower net debt and improve financial flexibility.