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Inv Reporter says buy Barrick Gold

2020-05-29 08:47 ET - In the News

The Investment Reporter, in its May 22, 2020, issue, says buy Barrick Gold Corp., recently $36.60. The Reporter said buy 27 times from Nov. 17, 1995, to Oct. 5, 2018, at prices ranging from $10.10 to $47.75. Assuming an investment of $1,000 for each of the 27 buys, the $27,000 position would now be worth $37,917. Barrick is one of the largest gold producers in the world, owning mining properties mostly in North America, South America and Australia. Despite challenges presented by COVID-19, Barrick did well in Q1 2020. For the three months ended March 31, 2020, Barrick had adjusted earnings of $285-million (U.S.), or 16 U.S. cents a share, compared with adjusted earnings of $184-million (U.S.), or 11 U.S. cents a share, in the same period last year. The difference was primarily from the price of gold rising to $1,589 (U.S.) per ounce this year, up from $1,307 (U.S.) a year ago. The stock trades at a somewhat high 33.3 times the $1.10 a share that Barrick is expected to earn in 2020, but it looks more affordable when you consider it trades at 9.4 times its projected cash flow for 2020. Its annual dividend of 39 cents a share has a yield equal to 1.1 per cent. The Reporter says buy Barrick Gold.

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