Barrick Gold Corporation
GOLD
recently announced that it has entered into a purchase and sale deal dated Mar 23, 2022 with a Canadian investment dealer. Per the deal, Barrick agreed to sell and the dealer agreed to purchase, 8,831,250 common shares of Skeena Resources Ltd. for resale on a bought deal basis, subject to terms and conditions in the purchase agreement.
The gross consideration in cash for the common shares consists of a total amount of C$132,468,750 (or C$15 per common share). Before the shutting down of the disposition, Barrick will have ownership, control and direction over 8,831,250 common shares of Skeena, reflecting around 12.9% of the issued and outstanding common shares of Skeena, 2,812,500 of which were purchased due to Barrick’s exercise of 2,812,500 common share purchase warrants on Mar 23, 2022.
Post closing of the sale, Barrick will not have any beneficial ownership or control of Skeena’s issued and outstanding shares. It is selling the shares for investment portfolio management purposes.
Barrick might acquire securities of Skeena or dispose of some or all of the securities of the latter it owns at the time, depending on market conditions and other factors like Skeena’s business and financial conditions.
Shares of Barrick have declined 24.2% in the past year compared with 20.6% rise of the
industry
.
Image Source: Zacks Investment Research
Barrick, in its last earnings call, anticipated attributable gold production in the range of 4.2-4.6 million ounces for 2022. All-in sustaining costs (“AISC”) are expected in the range of $1,040-$1,120 per ounce and cash costs per ounce are projected in the band of $730-$790 per ounce.
The company also expects copper production in the range of 420-470 million pounds at AISC of $2.70-$3.00 per pound and cost of sales to be $2.20-$2.50 per pound.
Capital expenditures are projected between $1,900 million and $2,200 million.
Barrick Gold Corporation Price and Consensus
Barrick Gold Corporation price-consensus-chart
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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
The Mosaic Company
MOS
,
AdvanSix Inc.
ASIX
and
Allegheny Technologies Incorporated
ATI
.
Mosaic has a projected earnings growth rate of 125% for the current year. The Zacks Consensus Estimate for MOS’ current-year earnings has been revised 33.3% upward in the past 60 days.
Mosaic’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once. It delivered a trailing four-quarter earnings surprise of roughly 3.7%, on average. MOS has rallied around 116.9% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 64.8% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 58% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 91.1% in a year. The company sports a Zacks Rank #1.
Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 661.5% for the current year. The Zacks Consensus Estimate for ATI’s earnings for the current year has been revised 45.6% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 27.2% over a year.
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