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Barrick (GOLD) Wraps Up Sale of Interest in Lagunas Norte Mine

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Barrick Gold Corporation GOLD recently completed the divestiture of its interest in the Lagunas Norte mine to Boroo Pte Ltd (Singapore). It sold 100% of its interest in the mine for $81 million, plus the assumption by Boroo of Barrick’s closure liability relating to Lagunas Norte of $226 million backed by an existing $173 million bonding obligation.

Boroo assumes 100% of the $173 million reclamation bond obligations for Lagunas Norte in two tranches— 50% on closing and 50% within a year of closing. The contingent payments, the deferred payments and the obligation to replace the second tranche of the reclamation bond obligations will be secured.

This sale was in sync with Barrick's policy of divesting non-core interests to focus its portfolio on Tier One assets. The acquisition will benefit the mine’s stakeholders in Peru by giving Boroo the opportunity to expand life by accessing satellite resources and adapting the infrastructure, the company noted.

Shares of Barrick have dropped 0.3% in the past year compared with 14.4% rise of the industry.

Zacks Investment Research
Zacks Investment Research

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Barrick, in its last earnings call, stated that it anticipates attributable gold production in the range of 4.4-4.7 million ounces for 2021. All-in sustaining costs (AISC) is expected in the range of $970-$1,020 per ounce and cost of sales is expected in the range of $1,020-$1,070 per ounce.

The company also expects copper production in the range of 410-460 million pounds at AISC of $2.00-$2.20 per pound and cost of sales of $1.90-$2.10 per pound.

Capital expenditures are projected between $1,800 million and $2,100 million.

Barrick Gold Corporation Price and Consensus

Barrick Gold Corporation Price and Consensus
Barrick Gold Corporation Price and Consensus

Barrick Gold Corporation price-consensus-chart | Barrick Gold Corporation Quote

Zacks Rank & Key Picks

Barrick currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Dow Inc. DOW, Nucor Corporation NUE and Cabot Corporation CBT.

Dow has a projected earnings growth rate of around 268.7% for the current year. The company’s shares have surged 60.5% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Nucor has an expected earnings growth rate of around 238% for the current year. The company’s shares have gained 135.4% in the past year. It currently sports a Zacks Rank #1.

Cabot has an expected earnings growth rate of roughly 126% for the current fiscal. The company’s shares have surged 56% in the past year. It currently flaunts a Zacks Rank #1.

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Barrick Gold Corporation (GOLD) : Free Stock Analysis Report

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