This gold producer beat analysts’ earnings estimates by $0.02 last quarter, and four brokerage firms have boosted their EPS forecasts for the company in the last month.
Barrick Gold Corporation (GOLD)
From Adrian Day’s Global Analyst
Barrick Gold said it expects Nevada Gold Mines (NGM), which it owns jointly with Newmont (NEM) 61.5%/38.5% and of which it is the operator, to produce around 3.5 million ounces annually for the next 10 years. This year and next, production is expected to decline, followed by a boost in 2023 and fairly stable projection after that.
The Nevada operations consist of 10 underground and 12 open-pit mines, and 18 processing facilities. Reserves are 45 million ounces, and NGM expects to replace reserves over the 10-year period. Nevada still has significant exploration potential, both in near-term extensions at North Leeville, Goldrush and Turquoise Ridge, longer-term exploration projects.
On a stand-alone basis, NGM would be the third largest gold miner in the world, after Barrick and Newmont themselves. It represents 31% of the NAV for Barrick, 19% for Newmont. Barrick is a buy; Newmont a hold.
Adrian Day, Adrian Day’s Global Analyst, adriandayglobalanalyst.com, 410-224-8885, June 6, 2021