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Barrick Gold Corp
Symbol ABX
Shares Issued 1,164,669,608
Close 2015-01-08 C$ 12.79
Market Cap C$ 14,896,124,286
Recent Sedar Documents

Post says analyst targets Barrick at lowly $11 a share

2015-01-09 09:45 ET - In the News

The Financial Post reports in its Friday edition despite Barrick Gold shares having dropped more than 70 per cent over the past three years, they should still be avoided. The Post's Peter Koven writes that is the conclusion of Macquarie Capital analyst Ron Stewart. Over the course of a 17-page report released Wednesday, Mr. Stewart pointed to a lot of faults at Barrick: lack of growth, excess debt, poor strategic clarity, operating risk and a head office that appears to be in turmoil. Nearly every retail analyst calls Barrick a buy or a hold, but Mr. Stewart downgraded it to underperform with a target of $11 a share, noting the company has "limited options" to repair its balance sheet and needs more time to regain investor confidence. "Barrick ... has dug itself into a huge financial hole." Of course, he noted the company's two biggest errors of the last few years: the botched construction of the Pascua-Lama project in South America and the $7.3-billion purchase of the Lumwana mine, which is set to be shuttered because of a massive royalty hike in Zambia. Mr. Stewart estimated these two investments cost the company $15.9-billion (U.S.), and resulted in an astounding $14.2-billion (U.S.) of writedowns to date.

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