Barrick Gold Corporation (USA) (NYSE:ABX) announced the resumption of normal operations at the Veladero mine in Argentina following approval from San Juan provincial authorities.
Operations at the mine were suspended on September 15, a week after falling ice damaged a pipe carrying process solution in the leach pad area, causing some material to leave the leach pad. This material, primarily crushed ore saturated with process solution, was contained on the mine site and returned to the leach pad. Extensive water monitoring in the area has confirmed the incident did not result in any environmental impacts. The company has completed a series of remedial works required by provincial authorities designed to prevent such an incident from reoccurring, including increasing the height of the perimeter berms that surround the leach pad.
As normal operations resume, the company will continue to assess the impact of the temporary suspension on Veladero’s production for 2016. However, Barrick continues to expect total gold production for 2016 in the range of 5.0-5.5 million ounces at a cost of sales applicable to gold of $5.2-$5.5 billion and all-in sustaining costs1 of $750-$790 per ounce. (Original Source)
Shares of Barrick Gold are currently trading at $6.30, down $1.09 or 6.30%. ABX has a 1-year high of $23.47 and a 1-year low of $6.90. The stock’s 50-day moving average is $18.50 and its 200-day moving average is $18.53.
On the ratings front, Barrick Gold has been the subject of a number of recent research reports. In a report issued on August 15, Morgan Stanley analyst Evan Kurtz maintained a Hold rating on ABX, with a price target of $20, which implies an upside of 19.4% from current levels. Separately, on August 9, Argus’ Bill Selesky reiterated a Buy rating on the stock and has a price target of $26.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Evan Kurtz and Bill Selesky have a total average return of -0.2% and 3.9% respectively. Kurtz has a success rate of 50% and is ranked #2844 out of 4197 analysts, while Selesky has a success rate of 60% and is ranked #1011.
The street is mostly Bullish on ABX stock. Out of 10 analysts who cover the stock, 6 suggest a Buy rating and 4 recommend to Hold the stock. The 12-month average price target assigned to the stock is $26.00, which implies an upside of 55.2% from current levels.
Barrick Gold Corp. mines and explores for gold, copper and nickel. The company operates its projects in Canada, the United States, the Dominican Republic, Australia, Papua New Guinea, Peru, Chile, Argentina, Zambia, Saudi Arabia and Tanzania. Its gold operating units are: Cortez, Goldstrike, Pueblo Viejo, Lagunas Norte, Veladero, North America-other and Australia Pacific.