Company Update (NYSE:ABX): Barrick Gold Corporation (USA) Achieves 2016 Production Guidance

Barrick Gold Corporation (NYSE:ABX) announced preliminary full-year gold production of 5.52 million ounces for 2016, at the high end of the Company’s guidance of 5.25-5.55 million ounces. The Company produced 1.52 million ounces of gold in the fourth quarter. Cost of sales applicable to gold is expected to be at the low end of our guidance range of $800-$850 per ounce for 2016. Full-year all-in sustaining costs1 are expected to be at or slightly below the low end of our full-year guidance range of $740-$775 per ounce of gold.

Preliminary full-year copper production was 415 million pounds, also in line with production guidance of 380-430 million pounds for 2016. Copper production in the fourth quarter was 101 million pounds. Full-year cost of sales applicable to copper is expected to be $1.35-$1.55 per pound for 2016, with all-in sustaining costs2 of $2.00-$2.20 per pound.

“Our portfolio delivered progressively stronger performance over the course of 2016 as we focused on driving improvements in productivity and efficiency across our operations,” said Barrick President Kelvin Dushnisky. “Through the acceleration of Best-in-Class initiatives, we are driving down costs, expanding margins, and maximizing free cash flow across the portfolio. This will remain a focus in 2017 as we target step changes in performance.”

Shares of Barrick Gold are currently trading at $17.93, down $0.20 or -1.10%. ABX has a 1-year high of $23.47 and a 1-year low of $9.23. The stock’s 50-day moving average is $15.94 and its 200-day moving average is $17.65.

On the ratings front, Barrick Gold has been the subject of a number of recent research reports. In a report issued on January 17, Berenberg Bank analyst Yuriy Vlasov reiterated a Sell rating on ABX, with a price target of $15.20, which implies a downside of 16% from current levels. Separately, on January 10, Barclays’ Matthew Korn maintained a Hold rating on the stock and has a price target of $20.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Yuriy Vlasov and Matthew Korn have a yearly average loss of 12.4% and 25.3% respectively. Vlasov has a success rate of 20% and is ranked #3700 out of 4372 analysts, while Korn has a success rate of 45% and is ranked #4291.

Overall, one research analyst has rated the stock with a Sell rating, 4 research analysts have assigned a Hold rating and 2 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $21.50 which is 18.6% above where the stock closed yesterday.

Barrick Gold Corp. mines and explores for gold, copper and nickel. It operates through its projects in Canada, the United States, the Dominican Republic, Australia, Papua New Guinea, Peru, Chile, Argentina, Zambia, Saudi Arabia and Tanzania. The company’s gold operating units are: Cortez, Goldstrike, Pueblo Viejo, Lagunas Norte, Veladero, North-America other and Australia Pacific. 


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