The Globe and Mail reports in its Friday, July 7, edition that BMO Capital Markets
analyst Andrew Kaip says there is uncertainty over Barrick
Gold's ($15.66 (U.S.)) 63.9-per-cent interest
in Acacia Mining, which "has
been in an escalating dispute
with the Tanzanian government
that has led to the initial steps
toward arbitration and now radical
changes to the mining and
tax law." The Globe's Gillian Livingston writes in the Eye On Equities column that Mr. Kaip downgraded the stock
to "market perform" from "outperform"
and lowered his target
price to $18 (U.S.) from $21 (U.S.). Analysts on average target the shares at $20.20 (U.S.). Mr. Kaip says in a note, "ABX is increasingly being drawn into the discussion given its interest in ACA and the Tanzanian government's demand to negotiate directly with ABX." He lowered his share target "based on an equal weighting of 1.5 times NPV [net present value], 5 per cent and 10 times 2018E CFPS [cash flow per share]. Trading at 2.4 times NPV5 per cent versus the large producer peers at 2.0 times, shares of ABX are trading above peers with risk to the downside, in our view."
© 2024 Canjex Publishing Ltd. All rights reserved.