Seeking Alpha

Barrick Gold +1.5% as Goldman adds to Conviction List

  • 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.
Comments (3)
  • Jeb Handwerger
    , contributor
    Comments (630) | Send Message
     
    Barrick will need to build resources in the Cortez Trend...http://bit.ly/1qCKZE6
    8 Aug 2014, 04:57 PM Reply Like
  • DougRk
    , contributor
    Comments (1619) | Send Message
     
    Can't say I saw this one coming. Their analyst's PT is $22 and the stock sits at $18.70. I don't see why that's a conviction buy, especially with its future tied to the ever unstable price of a mined element.
    8 Aug 2014, 06:25 PM Reply Like
  • bberuch
    , contributor
    Comments (314) | Send Message
     
    my confidence level in Goldman recommendations is on par with my confidence level in ABX management. 2 against a perfect score of 10.
    12 Aug 2014, 07:32 AM Reply Like
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