Barrick Gold Corp.(TSE:ABX, Mkt cap 16.04B, P/E – , Div/yield 0.03/0.77, EPS -3.67, Shares 1.17B) shares have soared by 29% this year in Toronto, making it Canada’s best-performing stock, the Financial Post reports.
The Standard & Poor’s/TSX Composite Index also reveals that Barrick has overtaken its two biggest competitors, Goldcorp Inc. and Newmont Mining Corp., in market capitalization, allowing it to win back the title of the world’s most valuable gold company.
The ascendency up the Index has not been straight forward for Barrick, with more than US$3-billion worth of asset sales having taken place, while it has also worked hard to formulate joint ventures and aggressively cost cuts.
Those efforts saw the company achieve its target of cutting its US$13.1-billion debt by $3 billion in 2015, setting it on course to put itself in a position where it can withstand much lower gold prices than those seen today.
“It’s great to see that our shareholders are starting to recognize the progress that we’ve made but, make no mistake, there’s a lot of lifting we have to do in 2016,” Barrick President Kelvin Dushnisky said in a phone interview Wednesday.
He added that the primary objective this year will continue to be to cut operating costs and improve productivity as a means to further reduce the company’s debt.
Dushnisky would not be drawn on any debt-reduction targets for 2016 until it posts its fourth-quarter earnings on Feb. 17. However, he was prepared to say that the US$3-billion debt reduction last year “wasn’t the final step – that was the first step.”
Barrick Gold Corporation is a Toronto based gold mining company. The Company is engaged in the production and sale of gold and copper, as well as related activities, such as exploration and mine development. The Company operates in segments: eight individual gold mines, Acacia and Pascua-Lama project. The remaining operating segments have been grouped into two other categories: its remaining gold mines and its two copper mines. The Company sells its production in the world market through the distribution channels: gold bullion is sold in the gold spot market; gold and copper concentrate is sold to independent smelting companies, and copper cathode is sold to various manufacturers and traders. The Company has 14 producing gold mines, located in Canada, the United States, Peru, Argentina, Australia, the Dominican Republic and Papua New Guinea. It also holds a 63.9% equity interest in Acacia Mining plc (Acacia) that owns gold mines and exploration properties in Africa.
More from Reuters »
What is Successful Investing? Learn more here>>
Download Our Free Special Report – How to Hunt For Value Stocks. Michael Sprung will share with you 5 stocks set for long-term gains here>>
We believe that investment management is about managing risk, not chasing speculative returns. Like to learn more? Please contact us here>>
The opinions expressed here are ours alone. They are provided for information purposes only and are not tailored to the needs of any particular individual or company, are not an endorsement, recommendation, or sponsorship of any entity or security, and do not constitute investment advice. We strongly recommend that you seek advice from a qualified investment advisor before making any investment decision.