Barrick (GOLD) to Invest $2 Billion in Zambia Mine Expansion
Barrick Gold Corporation GOLD is undergoing a significant transformation at its Lumwana mine, according to the company's president and chief executive, Mark Bristow, following a meeting with Zambian President Hakainde Hichilema. This transformation is expected to boost Zambia's copper industry and transform this formerly unprofitable operation into the forerunner of copper producers.
Barrick is committed to investing nearly $2 billion in an expansion project aimed at elevating the Lumwana mine into a world-class copper producer. The project seeks to increase Lumwana's annual copper production to approximately 240,000 tons from a 50 million ton per annum processing plant, extending the mine's operational life to 36 years. The accelerated work program is targeting the completion of a full feasibility study by the end of 2024, with expanded production expected to commence by 2028.
Since taking over Lumwana's operations in 2019, Barrick has significantly contributed to the Zambian economy, providing nearly $3 billion in the form of taxes, royalties, employee salaries and local procurement of goods and services. The company is also dedicated to hiring local talent, with 99.3% of Lumwana's current workforce being Zambian nationals.
Barrick Gold Corporation Price and Consensus
Barrick Gold Corporation price-consensus-chart | Barrick Gold Corporation Quote
Barrick places great importance on considering host countries as essential partners and strives to ensure that the economic advantages arising from its mining activities are shared with governments and local communities. To achieve this, Barrick launched several initiatives, including the Business Accelerator Program. This program is designed to strengthen the capabilities of Zambian contractors within Lumwana's supply chain and help them realize their expansion objectives. Barrick is actively engaged in partnerships with the Ministry of Small and Medium Enterprises to facilitate growth and development of local businesses in the region.
Regarding Lumwana's current performance, Bristow expressed confidence that it is on track to meet its production targets for 2023. The mine is also increasing owner-mining activities, including the reopening of the Malundwe pit and the delivery of a new owner mining pre-stripping fleet.
Barrick stock has lost 7.2% in the past year against the industry’s rise of 6.8% in the same period.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Barrick currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are WestRock Company WRK and Hawkins, Inc. HWKN, both sporting a Zacks Rank #1 (Strong Buy), and The Andersons Inc. ANDE, carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The earnings estimate for Westrock’s current fiscal year is pegged at $3.02. In the past 60 days, the earnings estimate has been revised upward by 29%. WRK beat the Zacks Consensus Estimate in three of the last four quarters while missing in one quarter, with the average earnings surprise being 30.7%. The company’s shares have rallied 14.4% in the past year.
The consensus estimate for Hawkins’ current-year earnings is pegged at $3.40, indicating year-over-year growth of 18.9%. In the past 60 days, HWKN’s current-year earnings estimate has been revised upward by 32.3%. HWKN beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 25.6%. The company’s shares have surged 56.9% in the past year.
The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 3.3% upward over the past 60 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4% on average. ANDE shares have rallied around 57.3% in a year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The Andersons, Inc. (ANDE) : Free Stock Analysis Report
Barrick Gold Corporation (GOLD) : Free Stock Analysis Report
WestRock Company (WRK) : Free Stock Analysis Report
Hawkins, Inc. (HWKN) : Free Stock Analysis Report
