The Investment Reporter, in its Oct. 30, 2015, issue, says buy Barrick Gold Corp., recently $10.10. 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 $7,251. Barrick scored well on the Reporter's scoring system for gold producers. The senior gold producer is expected to produce 6.25 million ounces of gold in 2015. Barrick's price-to-cash-flow ratio is attractively low at four times, and its cash flow is expected to increase to $4.18 a share from $4.14 a share last year. The company's shares trade at a forward P/E ratio of 29.1, which is under the Reporter's criteria of 30. Barrick expects to reduce its all-in sustaining costs to $880 (U.S.) an ounce in 2015 from $840 (U.S.) an ounce last year, well below the gold price of $1,173 (U.S.) an ounce. The company has introduced a dividend reinvestment plan, which is a low-risk way for shareholders to acquire Barrick. The Reporter cautions investors about gold's drawbacks, including excessive trading prices and volatile gold prices. If you can accept these drawbacks, Barrick Gold is now a buy.
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