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Barrick Gold Corp
Symbol ABX
Shares Issued 1,164,669,708
Close 2015-06-12 C$ 13.86
Market Cap C$ 16,142,322,153
Recent Sedar Documents

Inv Reporter says hold Barrick

2015-06-12 21:06 ET - In the News

The Investment Reporter, in its June 5, 2015, issue, says hold Barrick Gold Corp., recently $15.11. The Reporter said buy 22 times from Nov. 17, 1995, to March 1, 2013, at prices ranging from $23.52 to $47.75. Assuming an investment of $1,000 for each of the 22 buys, the $22,000 position would now be worth $10,848. The Reporter thinks Barrick carries too much debt. The gold producer's net debt at March 31, 2015, was $10.64-billion (U.S.); divide that by cash flow of $2.43-billion (U.S.) over the last four quarters and you get a ratio of nearly 4.4. This ratio is well above the newsletter's comfort zone of two or less; this is especially true for Barrick since the price of gold is volatile and unpredictable. Barrick is planning to repay debt with cash from asset sales. For example, it is selling its Cowal mine in Australia to Evolution Mining for $550-million (U.S.); this deal should close in the third quarter of 2015. The move should also help Barrick reduce its general and administrative costs as it will close its Australian office. The company pays a 20-U.S.-cent dividend, which is an annual yield of 1.7 per cent. The stock remains a hold for fair dividends while you wait for a share price recovery.

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