Barrick Gold Corporation
GOLD
recently announced that its subsidiary Bulyanhulu Gold Mine Limited would acquire new prospective lisenses in Tanzania. Bulyanhulu entered into an agreement with Barrick, Tembo Gold Corp. and its wholly-owned subsidiary, Mineral Industry Promotion and Consulting Company Limited (“MIPCCL”). The purchase agreement dated Dec 7, 2021, is related to the acquisition of certain prospecting lisenses.
Bulyanhulu will acquire 100% interest in six prospecting lisenses from MIPCCL. The lisenses are situated near the Bulyanhulu mine and have the potential to add significant mineral reserves to Barrick’s asset base in Tanzania.
Per the agreement, Bulyanhulu is expected to pay a consideration of $6 million plus certain other contingent payments. These contingent payments will be calculated subject to the inferred, indicated and measured gold mineral resources identified in the areas of land which are covered by the licenses. The calculation will be conducted per Barrick standards for determining mineral resources.
Bulyanhulu must make a minimum investment of $9 million in the License area over four years post the closing of the transaction. Along with the execution of the purchase agreement, Bulyanhulu agreed to subscribe for 5,518,764 common shares of Tembo for 27 Canadian cents per share.
Barrick stated that the acquisition is a significant step forward in its strategy of increasing investment in new growth opportunities in Tanzania and a further demonstration of the value-creation potential of its partnership with the government.
Shares of Barrick have declined 20.6% in the past year compared with a 13.3% fall of the
industry
.
Image Source: Zacks Investment Research
The company, in its last earnings call, stated that it anticipates attributable gold production in the range of 4.4-4.7 million ounces. All-in sustaining costs (AISC) is expected in the range of $970-$1,020 per ounce and the cost of sales is projected in the band of $1,020-$1,070 per ounce.
The company also expects copper production in the range of 410-460 million pounds at AISC of $2.00-$2.20 per pound and cost of sales of $1.90-$2.10 per pound.
Capital expenditures are projected between $1,800 million and $2,100 million.
Barrick Gold Corporation Price and Consensus
Barrick Gold Corporation price-consensus-chart
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Barrick Gold Corporation Quote
Zacks Rank & Key Picks
Barrick currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the basic materials space are
Celanese Corporation
CE
,
The Chemours Company
CC
and
Nucor Corporation
NUE
.
Celanese has an expected earnings growth rate of 139.5% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised 8.7% upward in the past 60 days.
Celanese beat the Zacks Consensus Estimate for earnings in each of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 12.7%, on average. The stock has increased around 21.1% in a year. CE currently carries a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Chemours has an expected earnings growth rate of 105.1% for the current year. The Zacks Consensus Estimate for the current year has been revised 10% upward in the past 60 days.
Chemours beat the Zacks Consensus Estimate for earnings in all of the last four quarters. The company has a trailing four-quarter earnings surprise of roughly 34.2%, on average. CC has increased around 23.5% over a year. Chemours currently carries a Zacks Rank #2.
Nucor has a projected earnings growth rate of 583.2% for the current year. The consensus estimate for the current year has been revised 7.2% upward in the past 60 days.
Nucor beat the Zacks Consensus Estimate for earnings in two of the last four quarters. NUE has a trailing four-quarter earnings surprise of 2.7%, on average. The company’s shares have gained around 99.3% in a year. It currently carries a Zacks Rank #2.
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