|Bid||11.76 x 4000|
|Ask||0.00 x 2900|
|Day's Range||11.65 - 11.92|
|52 Week Range||11.65 - 1,298.11|
|Beta (3Y Monthly)||-1.42|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.28 (2.27%)|
|1y Target Est||94.23|
This weekend's Barron's cover story features the top picks from the 2019 Barron's Roundtable. Other featured articles offer bargain gold mining stocks and how to play the life sciences boom. Also, the ...
Both Barrick and Newmont have made big acquisitions and their shares offer an opportunity to profit when the metal regains its luster.
Could the Newmont-Goldcorp Merger Form ‘The Go-To Gold Equity’?(Continued from Prior Part)Newmont’s and Goldcorp’s valuation Among senior miners (GDX), Newmont Mining (NEM) has the highest EV1-to-EBITDA multiple, 8.2x, which is 2% lower
Could the Newmont-Goldcorp Merger Form ‘The Go-To Gold Equity’?(Continued from Prior Part)Transaction highlightsNewmont Mining (NEM) and Goldcorp (GG) held a joint conference call on January 14 to brief investors and analysts about their merger,
Could the Newmont-Goldcorp Merger Form ‘The Go-To Gold Equity’?(Continued from Prior Part)Newmont to pay a 17% premium for GoldcorpNewmont Mining (NEM) has agreed to pay a 17% premium to acquire stock from Goldcorp (GG), which has been
“Holy camoly, I missed out on a great opportunity!” is how Bristow described anyone not involved in Barrick Gold Corp.’s purchase of Randgold Resources Ltd. in September. With Newmont Mining Corp. poised to become the No. 1 producer through a $10 billion takeover of Goldcorp Inc. announced Monday, the pressure on those left behind will be even greater. The newly combined companies are also expected to put several unloved assets up for sale, leaving lots of room for maneuvering by those that missed out on the dealmaking so far.
Gold miner shares were slightly lower in midday trade Friday, as Newmont Mining Corp.'s $10 billion stock deal to buy Goldcorp Inc. actually had a negative affect on the sector. The VanEck Vectors Gold Miners ETF slipped 0.1%, although 25 of the 47 equity components traded higher. Acquiree Goldcorp's stock ran up 7.3% to pace the gainers, but acquirer Newmont shares tumbled 8.3% to lead the losers, amid concerns over the dilutive effect of an all-stock deal. As of Friday's close, Newmont's weighting in the ETF was 8.96% of net assets while Goldcorp's weighting was 4.50%. Among other more active U.S.-listed ETF components, shares of Barrick Gold Corp. fell 0.4%, Hecla Mining Co. tacked on 0.9%, Gold Fields Ltd. gave up 1.5% and Kinross Gold Corp. advanced 0.2%. Meanwhile, gold futures gained 0.2% and the S&P 500 declined 0.4%.
Gold should be considered an "insurance policy" for investors to hedge their portfolio against economic uncertainty and market volatility, Cramer said during his daily "Mad Money" show. Investors with sufficient cash on hand to buy and store physical gold bars at around $1,255 per ounce should do so, Cramer said.
It's official. Barrick Gold Corporation (NYSE:GOLD) and Randgold Resources have merged, creating one massive gold-mining outfit. Shares of newly-issued GOLD stock began trading at the beginning of the year. The deal was overwhelmingly approved by Barrick shareholders, with more than 99% of them voting in favor of the pairing. Randgold's investors weren't quite as keen, though with 95.2% of investors on board with the merger plan, there was still more than enough support to combine the two outfits. In both cases, owners were desperate to try anything that might provide a much-needed lift to their stakes; neither company has thrived in the shadow of tepid gold prices. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 A-Rated Stocks the Smart Money Is Piling Into But, here comes the hard part… two strong-willed chiefs working together. The sale of unwanted assets, which should be a simple project, will be the first test of the combined company's management structure. Especially given the more recent announcement that Newmont Mining will buy Goldcorp to become the largest gold producer. ### Gold Stock and the Merger There's no denying Barrick Gold is a powerhouse within the industry. The two companies jointly owned and operated five of the world's top ten mines, in terms of potential output at a lower-than-average cost. As one, the new Barrick will be able to produce six million ounces of gold per year. The merger gives Barrick an effective toehold in Africa too, where it has struggled of late, but where Randgold has thrived. Of course, Randgold should have thrived in Africa. It was built from the ground up there, led by South African-born Mark Bristow since 1995. He knows his way around the continent's gold-mining industry, but perhaps more than that, he's well-versed in the art of navigating Africa's increasingly tricky political environment. The latest case(s) in point: Wrangling with Mali over taxes linked to the company's Loulo-Gounkoto mine, and recent changes in the DRC's mining codes that could cost Randgold another $20 million in annual expenses. Some have suggested not all of Randgold's mines will remain with the new company though. Namely, BMO has speculated that the aforementioned Tongon could be on the chopping block, along with its Massawa and Morila properties. Meanwhile, Barrick (the piece of the company that wasn't Randgold before the merger) may be looking to offload its Lumwana copper mine in Zambia as well as Chile's Zaldivar mine. There's even speculation that Barrick is interested in pairing up its Nevada operations with Newmont Mining (NYSE:NEM). The recent announcement might change that, though. The ultimate end goal? BMO's analyst believes asset sales will be "aimed at positioning the company as the lowest cost western-based gold producer, but not necessarily the largest." ### Management and GOLD Stock That's assuming Barrick's two most powerful employees can agree on which properties to keep, and which to shed. They might not. Bristow brings with him not just decades of experience within the gold mining industry (and Africa's gold mining landscape in particular), but a reputation of being something of a "one man show." He's been known to personally fly to investors to mines on his private plane, and he's got something of a penchant for big-game hunting. He'll also be sharing some of the leadership responsibilities with Barrick's executive chairman John Thornton, putting him in an unfamiliar position. Thornton's title isn't a merely honorary one. Prior to the merger, Thornton eliminated his other job as CEO altogether, limiting the top leadership position to President, thus ceding even more control of the company to himself. Adding to the awkwardness is that prior to the pairing, Bristow was a fairly regular critic of Barrick. Underscoring that awkwardness is the wealth of experience Bristow has compared to Thornton. Prior to being named executive chairman, Thornton had only been CEO of Barrick since early 2017, and the former banker had never been in an underground mine until 2016. That's in contrast with Bristow, who as founder of Randgold in 1995 has walked underground mines countless times. The latter easily could feel compelled to take charge. The fact that neither executive intends to live or work in Toronto, where Barrick is based, doesn't suggest a personal friendship will be forged either. ### Looking Ahead for GOLD Stock Still, it might be a deal that pays off exactly as prescribed. Indeed, it will probably pay off as prescribed. Though observers have cast doubts on how well the two chiefs will mesh, most worst-case scenarios are rarely realized in full. Not only are Thornton and Bristow adults, Barrick and Randgold were two of the most respected, reliable names in industry. The fact that the combined companies will not only have plenty of prime properties but also will be able to shed their unwanted ones only bolsters the bullish case. Again, it might take some time to account for Newmont's purchase of Goldcorp, announced today. Limiting itself to higher-quality mines means, according to Barrick, a cash cost of only $538 per-ounce of gold mined. Wood Mackenzie anticipates that cash cost being a bit higher, at $611. Even at the higher figure though, Barrick still boasts one of the lowest per-ounce cash costs in the business. The biggest threat to the value of GOLD stock for the foreseeable future? The sheer process of combing two highly disparate companies while divesting properties that won't necessarily be easy to sell. As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can follow him on Twitter, at @jbrumley. ### More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Key Emerging-Market Stocks to Buy for Contrarian Investors * 7 Stocks at Risk of the Global Smartphone Slowdown * 7 Pharmaceutical Stocks That Just Raised Prices This Year Compare Brokers The post Personality Clashes Could Be a Real Hurdle for GOLD Stock appeared first on InvestorPlace.
Newmont and Goldcorp Merger to Create World’s Leading Gold Miner ## Newmont-Goldcorp merger Today, Newmont Mining (NEM) and Goldcorp (GG) announced that they have entered an agreement in which NEM will acquire all of the outstanding shares of Goldcorp in a stock-for-stock transaction valued at $10 billion. Newmont will acquire each share of Goldcorp in exchange for 0.3280 NEM shares, which represents a premium of 17% based on the companies’ 20-day volume weighted average stock prices. ## Sector-leading gold combination Newmont Goldcorp’s reserves will be among the largest in the gold sector (GDX) (GDXJ). Moreover, the combined entity is targeting $1.0 billion–$1.5 billion in divestitures over the next two years to optimize gold (GLD) production at a sustainable rate. As per the press release, “In addition to providing shareholders the largest gold Reserves per share, Newmont Goldcorp will offer the highest annual dividend among senior gold producers.” ## Following Barrick-Randgold merger This transaction comes on the heels of the merger of Barrick Gold (GOLD) with Randgold Resources, which was completed on January 2, 2019. On September 24, Barrick Gold agreed to acquire Randgold Resources in a share-for-share deal. The merger created a sector-leading gold company, which owns five of the industry’s top ten Tier 1 gold assets. The combined entity has a market cap of ~$23.75 billion. It will also have the largest gold reserves among its senior gold peers (GDX) (NUGT). You can read Is Barrick Worth a Look after Its Merger with Randgold? for more details about the merger.
Jim Cramer Suggests Nervous Investors Buy Gold Now ## Cramer suggests adding gold Mad Money host Jim Cramer is advising investors to invest in gold (IAU) if they’re concerned about the Fed’s interest rate policy and the trade conflict between the US (SPY) (IVV) and China (FXI). Cramer said, “If you’re looking for an insurance policy against volatility and economic uncertainty, gold is a great way to go.” He added, “While I like the stock market here, as you know, now that the Fed has decided to be more patient, the whole point of diversification is to be prepared in case something goes wrong … and your thesis doesn’t pan out.” Read Bulls versus Bears on Wall Street: Time to Buy Gold in 2019? for major analysts’ take on the gold price outlook in 2019. ## What should investors buy? However, Cramer doesn’t recommend buying the actual metal. Instead, he recommends direct exposure through the SPDR Gold Shares (GLD), which is the largest gold-backed ETF. He thinks that GLD and other gold mining ETFs (GDX) (NUGT) reduce risk and inconvenience. In addition to GLD, Cramer also recommends a high-quality gold producer like Barrick Gold (GOLD). Recently, Barrick Gold and Randgold Resources’ merger was finalized, which canceled Randgold’s London listing. ## Barrick-Randgold merger created a mining behemoth Regarding the Barrick Gold and Randgold Resources merger, Cramer likes the merged company. He said, “The company has the lowest total cash costs among its peers — I like that — [and] it has a nicely diversified portfolio of assets across the world — I love that.” Read Is Barrick Worth a Look after Its Merger with Randgold? for more details on the new company’s operating metrics and its outlook after the merger.
Goldman Sachs noted that rising volatility (VXX) and the potential for an additional sell-off in equities makes it bullish on gold despite the higher interest rate outlook. In a report published on November 26, Goldman Sachs reiterated its positive views on commodities, especially oil (USO) and gold. Goldman Sachs expected slower US growth to benefit gold since its appeal as a safe-haven asset increases.
TORONTO, Jan. 10, 2019 -- Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) (“Barrick” or the “company”) will release its fourth quarter results to end December 2018 on Wednesday,.
“The mine has not yet received any supporting reports, findings or testings data,” Acacia said. The fine comes as Barrick Gold has renewed attempts to find a solution to the protracted dispute with the east African country, which began in 2017 following accusations by Tanzania’s President John Magufuli that the company owed $190bn in taxes.
Is Barrick Worth a Look after Its Merger with Randgold? (Continued from Prior Part) ## Valuation Among senior miners (GDX), Barrick (GOLD) has the second-highest EV-to-EBITDA (enterprise value-to-EBITDA) multiple of 6.6x, which represents a premium of 1% to its historical multiple. Its multiple has rerated since its announcement of its merger with Randgold Resources (GOLD) to form an industry-leading gold company (SGDM) with the greatest concentration of Tier 1 gold (GLD) assets. Since the announcement of the merger, GOLD’s multiple has expanded 18.5%. Among its peers, Newmont Mining (NEM), Goldcorp (GG), and Kinross Gold (KGC) are trading at multiples of 8.2x, 6.2x, and 4.9x, respectively. ## Catalysts As we discussed in Is the Barrick-Randgold Merger Enough of a Reason to Bet on ABX? Barrick’s costs are expected to fall, and its production profile is expected to improve on low-cost, high-quality assets after the merger. Since it owns five of the top ten Tier 1 assets in the world, its unit costs are expected to be significantly lower than its peers’. However, its new position will also add to its geopolitical risk. ## Problems to overcome Most of Randgold’s operations are in Africa. Due to many African countries’ rising resource nationalism and ambition to secure bigger shares in mining activities, many mining companies are facing difficult times operating in these jurisdictions. Political problems in these countries could add to Barrick’s operational risks. In addition, market participants worry that the working styles of John Thornton, the new company’s executive chair, and Mark Bristow, its CEO, will clash, leading to problems for the company down the line. As we discussed earlier in the series, the resolution of the company’s dispute with the Tanzanian government could be another major catalyst for its stock. To achieve further upside, the company will need to show more execution on its projects and resolve its disputes successfully. Browse this series on Market Realist: * Part 1 - Is Barrick Worth a Look after Its Merger with Randgold? * Part 2 - Will the GOLD Merger Expedite the Tanzania Dispute’s Resolution? * Part 3 - Barrick Could Emerge Leaner and Stronger after an Asset Review
Is Barrick Worth a Look after Its Merger with Randgold? (Continued from Prior Part) ## Factors affecting Barrick’s estimates Barrick Gold (GOLD) significantly outperformed its peers in 2018. Its stock performance improved after the announcement of its merger with Randgold Resources. Most analysts are positive about the new company’s prospects following the merger. However, they’re waiting for the combined entity’s execution on its stated priorities and its resolution of other matters, such as its Tanzanian tax issues. ## Analysts’ revenue estimates Wall Street analysts expect Barrick to see revenue of $7.3 billion in 2018, implying a 13.0% fall YoY (year-over-year). The company expects its production to fall 11.0% between 2017 and 2018. This expected fall in production has been the main driver of analysts’ lower revenue estimates for the company in 2018. For 2019 and 2020, however, analysts expect Barrick’s revenue to rise 11.9% and 1.0%, respectively, due to the merger of Barrick and Randgold. Prior to the merger, Barrick’s revenue profile was on the decline. Among Barrick’s close peers (GDX) (JNUG), Newmont Mining (NEM), Goldcorp (GG), Agnico Eagle Mines (AEM), and Kinross Gold (KGC) have strong production growth profiles. ## Earnings estimates Analysts expect rather impressive growth in EBITDA for Barrick post-2018 due to merger synergies. While the company’s expected EBITDA for 2018 is $2.97 billion, implying a fall of 26% YoY, its growth in 2019 and 2020 is expected to be 11.1% and 10.2%, respectively, higher mainly due to the expectation of cost improvements in the new company. Continue to Next Part Browse this series on Market Realist: * Part 1 - Is Barrick Worth a Look after Its Merger with Randgold? * Part 2 - Will the GOLD Merger Expedite the Tanzania Dispute’s Resolution? * Part 3 - Barrick Could Emerge Leaner and Stronger after an Asset Review
Is Barrick Worth a Look after Its Merger with Randgold? (Continued from Prior Part) ## Multiple upgrades for Barrick Most analysts are positive on Barrick (GOLD) regarding its merger with Randgold Resources. Immediately after the merger announcement, Citi (C) analyst Alexander Hacking upgraded Barrick Gold from a “neutral” to a “buy” and raised its target price from $11 to $14. According to The Fly, the analyst believes that the acquisition is a win on two levels. Barrick Gold gets a new CEO, who is one of the most successful CEOs in the sector, and the move adds “significant credibility” to the turnaround. TD Securities also upgraded Barrick Gold from a “hold” to a “buy” after the announcement of the acquisition. ## CIBC resumed coverage with an “outperform” On January 2, CIBC analyst Anita Soni said that following the merger, there’s a 26% upside for the stock from its 2018 closing price. CIBC resumed coverage of Barrick with an “outperform” rating and a target price of $17. The company believes that the new entity’s strong management team and high concentration of Tier 1 assets should drive industry-leading returns. ## Barrick’s outperformance since the merger Overall, the merger seems to be positive news for the market as well. Barrick stock has risen 25% since the announcement of the merger as of January 4. In comparison, the VanEck Vector Gold Miners ETF (GDX) and the SPDR Gold Shares ETF (GLD) have risen just 13.4% and 7.0%, respectively. Peers Goldcorp (GG) and Yamana Gold (AUY) have returned -8.4% and -2.4%, respectively, in the same period. Continue to Next Part Browse this series on Market Realist: * Part 1 - Is Barrick Worth a Look after Its Merger with Randgold? * Part 2 - Will the GOLD Merger Expedite the Tanzania Dispute’s Resolution? * Part 3 - Barrick Could Emerge Leaner and Stronger after an Asset Review
Is Barrick Worth a Look after Its Merger with Randgold? (Continued from Prior Part) ## Focus on superior assets The new Barrick (GOLD) is mainly focused on assets with superior costs, long mine lives, and high grades. The company already has five out of the top ten Tier 1 gold assets (GLD) in Cortez, Loulo-Gounkoto, Pueblo Viejo, Kibali, and Goldstrike, which have total cash costs of $426, $578, $623, $649, and $697 per ounce, respectively. Barrick is planning to sell noncore assets to further improve its cost and grade profile. In addition to the five Tier 1 assets, the company has two other potential Tier 1 assets: Fourmile/Goldrush and Turquoise Ridge. The company is also in the process of identifying noncore assets to be disposed of, which should allow its management to focus on mines and projects that are delivering the most value to the company and its shareholders. Shareholder returns will likely be driven by returns on invested capital, internal rates of return, and free cash flow per share growth. ## Increased returns The management of Barrick and Randgold, which previously significantly increased their dividends in anticipation of growth, have said that they’ll increase dividends (DVY) in connection with the merger. While Randgold increased its dividend for 2018 from $2.00 to $2.69 per share, Barrick increased its dividend for the fourth quarter to $0.07 per share instead of the originally planned $0.05. Barrick declared an even higher quarterly dividend of $0.093 per share on December 17, which will be paid on January 14. Barrick has attributed the increased dividends to its strong current fundamentals and the strong fundamentals it expects after the completion of the merger, which will mean more cash flow generation, cost savings, and potential asset sale proceeds along with lower interest costs. Continue to Next Part Browse this series on Market Realist: * Part 1 - Is Barrick Worth a Look after Its Merger with Randgold? * Part 2 - Will the GOLD Merger Expedite the Tanzania Dispute’s Resolution? * Part 3 - Barrick Could Emerge Leaner and Stronger after an Asset Review
The following are the top stories from selected Canadian newspapers. Reuters has not verified these stories and does not vouch for their accuracy. THE GLOBE AND MAIL ** Barrick Gold Corp's new chief executive ...
Is Barrick Worth a Look after Its Merger with Randgold? (Continued from Prior Part) ## Tanzanian tax dispute One of the major overhangs on Barrick (GOLD) stock of late has been its subsidiary Acacia Mining’s issues with the Tanzanian government regarding taxes. The Tanzanian government banned mineral concentrate exports from the country in March 2017. It believed it wasn’t getting a fair share of profits from mining in the country. On October 19, 2017, Barrick announced that it and the government had agreed on a framework for a new partnership between Acacia and the government. The partnership would include the sharing of economic benefits generated by Acacia on a 50-50 basis going forward. However, this framework has yet to be implemented, and the issues are still ongoing. ## Bristow on resolution Mark Bristow, the CEO of the combined company, has expressed confidence that this conflict will be resolved. In a phone interview with Reuters, Bristow said that Barrick could buy the remainder of Acacia it doesn’t own or split the company among other options. He added, “This conflict has destroyed lots of value. We need to make sure there’s enough value to work out a solution that various interested and affected parties get something that’s fair and proper for them.” ## Bristow’s experience to come in handy Bristow has experience in resolving tax and other issues with governments in Africa. Lately, many miners (GDX) (NUGT) have been facing issues related to resource nationalism and governments demanding increased shares of mining from their countries in Africa. This phenomenon has also affected the likes of Kinross Gold (KGC) and Newmont Mining (NEM). Barrick expects more details on the resolution of the Tanzanian issue in the second week of February. In addition to a possible resolution, the company is expected to see a lot of other changes in February. It’s also reviewing the possible sale of a number of assets, and it could even acquire new assets. We’ll discuss more about these changes and other portfolio restructuring initiatives in the next article. Continue to Next Part Browse this series on Market Realist: * Part 1 - Is Barrick Worth a Look after Its Merger with Randgold? * Part 3 - Barrick Could Emerge Leaner and Stronger after an Asset Review * Part 4 - Could the Cleanup at GOLD Lead to Increased Shareholder Returns?
Is Barrick Worth a Look after Its Merger with Randgold? ## Barrick-Randgold merger complete The Barrick Gold–Randgold Resources (GOLD) merger recently completed, with the trading of new shares starting on January 2, 2019. The new company’s name remains Barrick, but its symbol will now be GOLD—previously Randgold’s symbol on the NASDAQ—on the NYSE. Randgold’s London listing has been canceled. The new company’s executive chair will be John Thornton, and its CEO will be Mark Bristow, former CEO of Randgold. ## Leading market position On September 24, Barrick Gold agreed to acquire Randgold Resources in a share-for-share deal. The merger has created a sector-leading gold company that owns five of the industry’s top ten Tier 1 gold assets. Along with owning five of the top ten Tier 1 gold assets (GLD), the combined company will have two high-potential Tier 1 assets in Fourmile and Turquoise Ridge. The combined entity has a market cap of ~$23.75 billion. It will also have the largest gold reserves among its senior gold peers (GDX) (NUGT). Moreover, Barrick has the lowest total cash cost position among its peers. ## Shareholder returns Proven management should drive returns, successful exploration, cost reduction, and efficiency throughout the new company’s combined asset portfolio. In a joint letter, Thornton and Bristow said that Barrick is placed to become the world’s most valued gold mining business, saying, “We will do so by optimising our existing operations, pursuing new opportunities that meet strict investment criteria and developing them with disciplined efficiency.” Continue to Next Part Browse this series on Market Realist: * Part 2 - Will the GOLD Merger Expedite the Tanzania Dispute’s Resolution? * Part 3 - Barrick Could Emerge Leaner and Stronger after an Asset Review * Part 4 - Could the Cleanup at GOLD Lead to Increased Shareholder Returns?
Wednesday marked the first trading day of the new company, still known as Barrick, which was created from the merger between Barrick Gold Corp. (ABX)(TSX:ABX) and Randgold Resources Ltd. (GOLD). Warning! GuruFocus has detected 6 Warning Signs with GOLD. The new Barrick will trade under the new symbol GOLD on the New York Stock Exchange and remain under the symbol ABX on the Toronto Stock Exchange.
CNBC's "Squawk on the Street" team breaks down the details of the Newmont-Goldcorp $10 billion deal. The deal will create the world’s biggest gold producer by output. It is the second high-profile merger in the mining industry since Barrick Gold agreed...
Jim Cramer shares his favorite ways to add gold to a portfolio and encourages investing in the precious metal if you're nervous about 2019.