Barrick Gold Corporation (GOLD - Free Report) has landed a deal to divest its 50% interest in Kalgoorlie Consolidated Gold Mines (“KCGM”) to Saracen Mineral Holdings Limited for total cash consideration of $750 million. The transaction is slated to be closed in fourth-quarter 2019, subject to customary closing conditions.
The move highlights Barrick’s plan to realize more than $1.5 billion from the disposal of non-core assets by the end of 2020. Per the company, the Western Australia-based KCGM asset does not fit with its strategy of operating mines. Moreover, the divestment enables the company to focus on core operations.
Barrick’s shares have gained 26.6% in the past year compared with the industry’s 51.6% rally.
Barrick recorded net earnings of $2,277 million or $1.30 per share in third-quarter 2019 against net loss of $412 million or 35 cents in the year-ago quarter. Adjusted earnings per share came in at 15 cents, which beat the Zacks Consensus Estimate of 10 cents.
Revenues surged 46% year over year to $2,678 million in the quarter and surpassed the Zacks Consensus Estimate of $2,619.8 million.
For 2019, the company continues to anticipate attributable gold production in the range of 5.1-5.6 million ounces at AISC of $870-$920 per ounce. However, cost of sales is projected to increase in the range of $940-$990 per ounce, up from previous expectation of $910-$970 per ounce.
Barrick continues to expect copper production in the range of 375-430 million pounds at AISC of $2.40-$2.90 per pound and at cost of sales of $2.30-$2.70 per pound.
Zacks Rank & Stocks to Consider
Barrick currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Kirkland Lake Gold Ltd , Franco-Nevada Corporation (FNV - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kirkland Lake Gold has an expected earnings growth rate of 96.3% for the current year. The company’s shares have surged 146.5% in the past year.
Franco-Nevada has projected earnings growth rate of 46.2% for 2019. The company’s shares have rallied 46.8% in a year.
Agnico Eagle has an estimated earnings growth rate of 168.6% for the current year. Its shares have moved up 64.1% in the past year.
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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
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Barrick Gold Corporation (GOLD - Free Report) has landed a deal to divest its 50% interest in Kalgoorlie Consolidated Gold Mines (“KCGM”) to Saracen Mineral Holdings Limited for total cash consideration of $750 million. The transaction is slated to be closed in fourth-quarter 2019, subject to customary closing conditions.
The move highlights Barrick’s plan to realize more than $1.5 billion from the disposal of non-core assets by the end of 2020. Per the company, the Western Australia-based KCGM asset does not fit with its strategy of operating mines. Moreover, the divestment enables the company to focus on core operations.
Barrick’s shares have gained 26.6% in the past year compared with the industry’s 51.6% rally.
Barrick recorded net earnings of $2,277 million or $1.30 per share in third-quarter 2019 against net loss of $412 million or 35 cents in the year-ago quarter. Adjusted earnings per share came in at 15 cents, which beat the Zacks Consensus Estimate of 10 cents.
Revenues surged 46% year over year to $2,678 million in the quarter and surpassed the Zacks Consensus Estimate of $2,619.8 million.
For 2019, the company continues to anticipate attributable gold production in the range of 5.1-5.6 million ounces at AISC of $870-$920 per ounce. However, cost of sales is projected to increase in the range of $940-$990 per ounce, up from previous expectation of $910-$970 per ounce.
Barrick continues to expect copper production in the range of 375-430 million pounds at AISC of $2.40-$2.90 per pound and at cost of sales of $2.30-$2.70 per pound.
Zacks Rank & Stocks to Consider
Barrick currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Kirkland Lake Gold Ltd , Franco-Nevada Corporation (FNV - Free Report) and Agnico Eagle Mines Limited (AEM - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kirkland Lake Gold has an expected earnings growth rate of 96.3% for the current year. The company’s shares have surged 146.5% in the past year.
Franco-Nevada has projected earnings growth rate of 46.2% for 2019. The company’s shares have rallied 46.8% in a year.
Agnico Eagle has an estimated earnings growth rate of 168.6% for the current year. Its shares have moved up 64.1% in the past year.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.5% per year. So be sure to give these hand-picked 7 your immediate attention.
See them now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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