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The new CEO of the world’s largest precious metals miner tells CNBC gold could climb above...

The new CEO of the world’s largest precious metals miner tells CNBC gold could climb above $2,000 and even higher in the next year. But Barrick (ABX +0.6%) "can't just rely on gold prices to drive our earnings," Jamie Sokalsky says, touting ABX's more disciplined capital allocation program that he hopes will enable more cash to eventually be returned to shareholders.
Comments (6)
  • New Low Observer
    , contributor
    Comments (2150) | Send Message
    Ya think a gold mining executive would say anything less? Let's turn back the dial on Barrick executives and their expectations for gold:


    "Peter Munk of Barrick Gold, sees higher bullion prices ahead, and he is putting his money where his mouth is."


    Bary, Andrew. "Glittering Still." Barron's. February 19, 1996. page 5.


    Gold was at $405 then fell to $252, a decline of -37.77%. Many more examples, too little time.


    11 Sep 2012, 03:03 PM Reply Like
  • Calpha Male
    , contributor
    Comments (42) | Send Message
    All stick, no carrot, ad infinitum.
    11 Sep 2012, 03:39 PM Reply Like
  • highlarche
    , contributor
    Comments (124) | Send Message
    2000 is light I think 2500
    11 Sep 2012, 04:59 PM Reply Like
  • Mongoose
    , contributor
    Comments (144) | Send Message
    $2500 may be light also.
    11 Sep 2012, 05:18 PM Reply Like
  • Tom Ricciardi
    , contributor
    Comments (18) | Send Message
    From BarrickDailyClose@Face...

    Barrick (NYSE:ABX) led the GDX down in negative selloff. Today, September 11, 2012, the poor performance of Barrick (ABX) was breathtaking after Jamie Sokalsky, its CEO, appeared on CNBC at approximately 11:30 AM. As a 15% holding of the GDX ETF (NYSE:GDX), Barrick's poor performance resulted in a surprising downdraft in trading throughout the afternoon session for ABX and GDX as well. Barrick's stock price hit the red line at the start of the final hour and declined to $39.26 before it rebounded to a very slight gain at the close. On a day when gold bullion rose to $3.10 to close at $1732.30, the poor performance of Barrick was especially shocking with pervasive institutional selloff and short sellers. The stock price of most other gold miners far surpassed Barrick's price today. In some cases, such as Newmont Mining (NYSE:NEM), this was at a gain of +1.28% with Barrick barely clawing back to +.20% by the end of the day.


    CEO, Jamie Sokalsky did an interview this morning on CNBC with Carl Quintanilla. Needless to say it was more of the same old same old that Sokalsky used in the last quarterly announcement on July 26, 2012 while Barrick was tanking to $31. Quintanilla did not ask him what he was doing about Barrick cost overruns while has was Treasurer and CFO of Barrick for the past 20 years. Nor did Quintanilla inquire about Barrick's poor stock performance, especially since his appointment as CEO. It was a very "patronizing" interview that failed to identify key issues of Barrick's management complacency and inept financial, marketing, operational, and strategic management.


    Taken in the context of Barrick's performance over the past year, the Sokalsky interview this morning, and the performance of the stock since he became CEO is further conclusive evidence as to why institutional investors have lost confidence in Barrick. There was further negative news regarding cuts to Barrick's copper forecast by Reuters and other media.


    Barrick (Sokalsky) stated that they have "recently been informed" by the Saudi Arabian government that their Jabil Sayid project doesn't conform to Saudi Arabia's regulations and that it was built in accordance with Australia's regulations. It looks like Barrick needs a map of their project locations and a compliance rule book.


    Today, the day of the CEO's interviews on prime business media at the Gold Forum in Denver, Barrick made no mention of this on their website or in the interview. This was yet another illustration of their inept marketing, public relations, and investor relations strategy and management. Mr. Sokalsky's interview was a clear illustration of more of Barrick's "content free" bluster and the squandering of a major media opportunity to instill and reinvigorate confidence as well as to set investor expectations about Barrick.


    Barrick's CEO should be ashamed of himself and his "handlers" for putting him behind the microphone at this stage without more vision, strategy, outlook, confidence, expectation setting, and CEO presence. Barrick is referred to by most analyst sources as the largest gold mining company in the world. Big isn't always better it appears.


    On the other hand, Charles Jeannes, CEO of Goldcorp (NYSE:GG) was informative, clear, strategic, visibly knowledgeable and confident. Jeannes also presents a much broader view of global gold and leadership driven persona than Sokalsky. Based on the CNBC interviews today, it's no wonder that since Sokalsky was named CEO at Barrick, ABX's stock has performed well under its price on the day Aaron Regent was terminated, July 5, 2012.


    ABX, as the largest gold mining company in the world, clearly reflects continued negative sentiment. Barrick has established a losing bias among institutional investors during the past two years and three months especially. No news of any kind, regarding their revised performance, is visible on Barrick's web site. There are no new updates by way of PR or its web site on any of their methodologies and initiatives to reduce project costs since speaking out on this at the last quarterly announcement and making it a priority. There is a continued absence of any news on John L. Thornton who recently joined Barrick as Peter Munk's co-chairman. What is his role? Is he active in the company affairs? Is he using his China connections to shop Barrick around? What is he actually doing?


    Please visit our web site at Facebook at BarrickDailyClose, and Tweet us @barrickanalysis. Thanks for subscribing to our news or email us: barrickdailyclose@gmai... to unsubscribe.
    (c) BarrickDailyClose September 11, 2012


    11 Sep 2012, 07:03 PM Reply Like
  • TDWelander
    , contributor
    Comments (639) | Send Message
    Beating up on ABX seems to have become fashionable; when trying to find ways to help them would be much more appropriate. Being critical of ABX will only detract from the goal of producing more gold; or cause more management turmoil detracting ABX management from running the company more effectively than it otherwise would. It certainly looks like a conspiracy to keep the world's largest gold producer from becoming any larger.


    No matter how much bashing is done, ABX still has 26 gold mines and the most diverse gold supply portfolio on the planet. I am happy institutional funds have divested themselves from ABX. If the institutional funds have a majority stake in any stock, as an individual I am not likely to go there. Institutional investors come and go like flies and need to be treated like flies; figuratively swatted whenever you get near them. And getting governments to do the same with institutional investors should be highly encouraged. All the appearances are institutional investors are bunch of damn unlawful market manipulators governments have not taken the time to investigate, yet, yet, yet. Hope springs eternal.


    What could the Saudis possibly have against Australian mining rules? It is out of the ordinary for the Saudis to cause trouble. It will be highly interesting to hear what possible objections the Saudis have against Australian mining rules. In business, time is of the essence always. Using the most stringent rules around is usually prudent; what ABX has likely done. So it appears the new cowboys are Saudis jumping the gun here.


    What appears to be a fundamentally political analysis by Mr. Ricciardi, while useful, is too much of a distraction from the fundamentals on gold to have any long term use. But thanks to Mr. Ricciardi in any case. Mr. Ricciardi appears to be on the side of the ABX detractors. As asserted, most of the issues cited appear political, or distractions from making ABX more profitable;
    not helpful, not helpful at all.


    Some constructive suggestions from Mr. Ricciardi on how to make ABX more productive are requested; instead of the whining. Encouraging or demanding management change of such a diverse company will only encourage more chaos; resulting in less profitability; but fortunately still likely to be better than any ABX competitors; but last choice in any case.


    Continuity and anything that promotes continuity is essential for more profitability and more growth. Joining the adult children around by offering up distractions instead of problem fixes that are proven to work is highly counter productive. Please focus on growth and profitability and solutions which will provide growth and profitability instead of distractions.
    12 Sep 2012, 11:20 AM Reply Like
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