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Barrick Gold: A Solid Year Despite Operational Challenges
Mar. 04, 2021 9:35 AM ETBarrick Gold Corporation (GOLD)7 Likes
Summary
Barrick Gold released its Q4 and FY2020 results last month, reporting annual gold production of ~4.76 million ounces, a 13% drop year over year.
This sharp decline was partially due to Porgera being placed on care & maintenance, and Barrick lapping over 200,000 ounces of lost production from the Super Pit sale in 2019.
Fortunately, the much higher metals prices easily made up for the lost ounces with Barrick achieving zero net debt, enjoying significant margin expansion, and posting annual EPS growth of 115%.
Looking ahead to FY2021, Barrick has proposed a special dividend of $0.42, and is currently valued at a very reasonable 14x FY2021 earnings estimates.