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Barrick (GOLD) Inks Deal Related to Restart Porgera Mine
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Barrick Gold Corporation (GOLD - Free Report) announced that the Papua New Guinea government, along with Barrick Niugini Limited and New Porgera Limited, inked a deal to resume operations at the Porgera gold mine, which has been halted since 2020.
The Porgera gold mine possesses mineral deposits with measured and indicated resources of 10 million ounces and inferred resources of 3.4 million ounces. Once the Wangima pit is optimized and operational, the mine is expected to produce an average of 700,000 ounces annually, which is a significant step toward its goal of attaining a Tier One status.
Per the New Porgera Progress Agreement, all parties involved are committed to resuming operations at the Porgera gold mine as soon as possible, aligning with the conditions stipulated in the Porgera Project Commencement Agreement and the New Porgera Limited Shareholders Agreement, which were both finalized in 2022. The team working on the New Porgera project will proceed with the necessary filings for a special mining lease and fulfill the other requirements outlined in the Commencement Agreement to facilitate the mine's reopening.
The ownership of New Porgera is divided, with 51% being held by stakeholders from Papua New Guinea (PNG), which include local landowners and the Enga provincial government. The economic gains will be divided 53% between the PNG stakeholders and 47% to Barrick Niugini Limited, the entity responsible for operating the mine.
The reopening of the mine would mark a significant achievement for GOLD and its host-country partnership approach. This strategy has proven highly effective in Tanzania and is now being applied to the Reko Diq copper-gold venture in Pakistan.
The company also stated that New Porgera will prioritize sourcing goods and services from businesses that are genuinely situated and owned in Porgera, the Enga province and Papua New Guinea, wherever feasible. Similarly, when recruiting employees for the reopened mine, preference will be given to individuals from the local community.
Barrick’s shares are down 25.3% over the past year compared with a 15.4% decline recorded by its industry.
Image Source: Zacks Investment Research
The company, in its fourth-quarter call, said that it anticipates attributable gold production in the range of 4.2-4.6 million ounces for 2023 compared with 4.14 million ounces produced in 2022. It also witnesses stronger year-over-year production performance from Cortez, Pueblo Viejo and Turquoise Ridge. The company projects all in sustainable cost (AISC) in the range of $1,170-$1,250 per ounce, cash costs per ounce in the band of $820-$880 and cost of sales in the band of $1,170-$1,250 per ounce for 2023.
The company also projects copper production in the range of 420-470 million pounds for 2023 compared with 440 million pounds produced in 2022. It also expects copper AISC of $2.95-$3.25 per pound and cost of sales of $2.60-$2.90 per pound.
Capital expenditures are projected between $2,200 million and $2,600 million for 2023.
Olympic Steel’s shares have gained 43.3% in the past year. The Zacks Consensus Estimate for ZEUS’ current-year earnings has been revised 33.1% upward in the past 60 days. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 26.2% on average.
Steel Dynamic’s shares have gained 35.3% in the past year. The Zacks Consensus Estimate for STLD’s current-year earnings has been revised 31% upward in the past 60 days. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 11.3% on average.
Linde’s shares have gained 10.6% in the past year. The company has an earnings growth rate of 8.1% for the current year. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 2.5% upward in the past 60 days.
LIN topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 6% on average.
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Barrick (GOLD) Inks Deal Related to Restart Porgera Mine
Barrick Gold Corporation (GOLD - Free Report) announced that the Papua New Guinea government, along with Barrick Niugini Limited and New Porgera Limited, inked a deal to resume operations at the Porgera gold mine, which has been halted since 2020.
The Porgera gold mine possesses mineral deposits with measured and indicated resources of 10 million ounces and inferred resources of 3.4 million ounces. Once the Wangima pit is optimized and operational, the mine is expected to produce an average of 700,000 ounces annually, which is a significant step toward its goal of attaining a Tier One status.
Per the New Porgera Progress Agreement, all parties involved are committed to resuming operations at the Porgera gold mine as soon as possible, aligning with the conditions stipulated in the Porgera Project Commencement Agreement and the New Porgera Limited Shareholders Agreement, which were both finalized in 2022. The team working on the New Porgera project will proceed with the necessary filings for a special mining lease and fulfill the other requirements outlined in the Commencement Agreement to facilitate the mine's reopening.
The ownership of New Porgera is divided, with 51% being held by stakeholders from Papua New Guinea (PNG), which include local landowners and the Enga provincial government. The economic gains will be divided 53% between the PNG stakeholders and 47% to Barrick Niugini Limited, the entity responsible for operating the mine.
The reopening of the mine would mark a significant achievement for GOLD and its host-country partnership approach. This strategy has proven highly effective in Tanzania and is now being applied to the Reko Diq copper-gold venture in Pakistan.
The company also stated that New Porgera will prioritize sourcing goods and services from businesses that are genuinely situated and owned in Porgera, the Enga province and Papua New Guinea, wherever feasible. Similarly, when recruiting employees for the reopened mine, preference will be given to individuals from the local community.
Barrick’s shares are down 25.3% over the past year compared with a 15.4% decline recorded by its industry.
Image Source: Zacks Investment Research
The company, in its fourth-quarter call, said that it anticipates attributable gold production in the range of 4.2-4.6 million ounces for 2023 compared with 4.14 million ounces produced in 2022. It also witnesses stronger year-over-year production performance from Cortez, Pueblo Viejo and Turquoise Ridge. The company projects all in sustainable cost (AISC) in the range of $1,170-$1,250 per ounce, cash costs per ounce in the band of $820-$880 and cost of sales in the band of $1,170-$1,250 per ounce for 2023.
The company also projects copper production in the range of 420-470 million pounds for 2023 compared with 440 million pounds produced in 2022. It also expects copper AISC of $2.95-$3.25 per pound and cost of sales of $2.60-$2.90 per pound.
Capital expenditures are projected between $2,200 million and $2,600 million for 2023.
Barrick Gold Corporation Price and Consensus
Barrick Gold Corporation price-consensus-chart | Barrick Gold Corporation Quote
Zacks Rank & Key Picks
Barrick currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Olympic Steel, Inc. (ZEUS - Free Report) , Steel Dynamics, Inc. (STLD - Free Report) and Linde plc (LIN - Free Report) . LIN currently carries a Zacks Rank #2 (Buy), while ZEUS and STLD sport a Zacks Rank #1(Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Olympic Steel’s shares have gained 43.3% in the past year. The Zacks Consensus Estimate for ZEUS’ current-year earnings has been revised 33.1% upward in the past 60 days. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 26.2% on average.
Steel Dynamic’s shares have gained 35.3% in the past year. The Zacks Consensus Estimate for STLD’s current-year earnings has been revised 31% upward in the past 60 days. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 11.3% on average.
Linde’s shares have gained 10.6% in the past year. The company has an earnings growth rate of 8.1% for the current year. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 2.5% upward in the past 60 days.
LIN topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 6% on average.