We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Barrick to Focus on Tier One Assets, Divests Stake in Morila
Read MoreHide Full Article
Barrick Gold Corporation (GOLD - Free Report) and AngloGold Ashanti Limited have agreed to divest their 80% interest in the Mali-based Morila gold mine to Mali Lithium Limited. Notably, the remaining 20% interest of Morila is held by the state of Mali.
The cash consideration for the deal is estimated at $22-$27 million, based on closing adjustments. Further, the sale of stake is subject to certain conditions that includes acknowledgement of the transaction by the state of Mali. The companies are expecting the deal to close before the end of October 2020.
Per Barrick, the move will enable it to focus on its strategy of discovering, owning, developing and operating Tier One assets (a mine that produce more than 500,000 ounces of gold per year and has a mine-life of minimum 10 years).
Morila poured its first gold in October 2000. The discovery and development of the mine paved way for Barrick’s legacy company Randgold Resources’ growth into one of the leading gold miners across the globe. The mine produced 6.9 million ounces of gold and paid more than $2.5 billion to its stakeholders in the form of dividends and taxes. It has also served as the base for Randgold’s expansion of footprint into Africa. In 2015, the mine transitioned to a stockpile and tailings treatment facility and was forecasted to close in 2021.
Barrick’s shares have surged 51% in the past year compared with the industry’s 42.2% rally.
For 2020, Barrick continues to anticipate attributable gold production in the range of 4.6-5 million ounces. All-in sustaining cost is expected in the range of $920-$970 per ounce, unchanged from the prior view. Cost of sales is expected in the range of $980-$1,030 per ounce, unchanged from the previous guidance.
Zacks Rank & Other Key Picks
Barrick currently sports a Zacks Rank #1 (Strong Buy).
Kinross has an expected earnings growth rate of 100% for 2020. The company’s shares have surged 76.7% in the past year.
Eldorado Gold has an expected earnings growth rate of 2,325% for 2020. Its shares have returned 20.5% in the past year.
Yamana has an expected earnings growth rate of 76.9% for 2020. The company’s shares have soared 68.6% in the past year.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
Image: Bigstock
Barrick to Focus on Tier One Assets, Divests Stake in Morila
Barrick Gold Corporation (GOLD - Free Report) and AngloGold Ashanti Limited have agreed to divest their 80% interest in the Mali-based Morila gold mine to Mali Lithium Limited. Notably, the remaining 20% interest of Morila is held by the state of Mali.
The cash consideration for the deal is estimated at $22-$27 million, based on closing adjustments. Further, the sale of stake is subject to certain conditions that includes acknowledgement of the transaction by the state of Mali. The companies are expecting the deal to close before the end of October 2020.
Per Barrick, the move will enable it to focus on its strategy of discovering, owning, developing and operating Tier One assets (a mine that produce more than 500,000 ounces of gold per year and has a mine-life of minimum 10 years).
Morila poured its first gold in October 2000. The discovery and development of the mine paved way for Barrick’s legacy company Randgold Resources’ growth into one of the leading gold miners across the globe. The mine produced 6.9 million ounces of gold and paid more than $2.5 billion to its stakeholders in the form of dividends and taxes. It has also served as the base for Randgold’s expansion of footprint into Africa. In 2015, the mine transitioned to a stockpile and tailings treatment facility and was forecasted to close in 2021.
Barrick’s shares have surged 51% in the past year compared with the industry’s 42.2% rally.
For 2020, Barrick continues to anticipate attributable gold production in the range of 4.6-5 million ounces. All-in sustaining cost is expected in the range of $920-$970 per ounce, unchanged from the prior view. Cost of sales is expected in the range of $980-$1,030 per ounce, unchanged from the previous guidance.
Zacks Rank & Other Key Picks
Barrick currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the basic materials space include Kinross Gold Corporation (KGC - Free Report) , Eldorado Gold Corporation (EGO - Free Report) and Yamana Gold Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kinross has an expected earnings growth rate of 100% for 2020. The company’s shares have surged 76.7% in the past year.
Eldorado Gold has an expected earnings growth rate of 2,325% for 2020. Its shares have returned 20.5% in the past year.
Yamana has an expected earnings growth rate of 76.9% for 2020. The company’s shares have soared 68.6% in the past year.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>