Barrick Gold Corp remains a “Buy” for analysts at Stifel GMP following an announcement this week that the company plans to undertake a new share repurchase program to buy back additional common shares.
In a flash note published Wednesday, the firm pointed to the buyback plan as well as Barrick’s recently announced fourth-quarter financial results.
“Q4 earnings results came in largely as expected but FCF generation was negative,” analysts said. “Headline adjusted EPS of $0.13 came in line with our forecast of $0.13 (but ahead of consensus $0.11).”
READ: Barrick Gold unveils new share buyback program of up to $1 billion shares over the next 12 months
“Unlike peers, Barrick did not revise its original 2022 cost guidance and was anticipated that costs would exceed guidance,” analysts said. “For the full-year, total cash costs/ [all-in sustaining costs] of $862 / $1,222/oz came in broadly in line with our estimates (of $864 / $1,218/oz). Gold AISC coming about $100/oz higher than original guidance.”
Stifel estimates a 7% production increase in 2023 compared to 2022 based on a production forecast of approximately 4.43Moz.
Barrick is a huge gold and copper producer, operating mines and projects in 18 countries in North and South America, Africa, Papua New Guinea and Saudi Arabia.
Shares of Barrick traded 1.5% lower at US$16.91 in New York and 1.3% lower at C$22.71 in Toronto midday Thursday.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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