Why We’re Raising Our Price Estimate For Barrick Gold To $19
We are raising our price estimate for Barrick Gold to $18.86, which is primarily driven by an improvement in the outlook for gold prices. An increase in macroeconomic uncertainty leading up to, and in the wake of, the UK’s EU referendum has increased risk aversion among investors and consequently, the demand for safe haven assets. This has resulted in a spike in the investment demand for gold and the prices of the commodity. Though the long term impact of the referendum would depend upon how quickly and amicably the UK and the EU recalibrate their geopolitical and trade relationships, uncertainty created as a result of the outcome of the referendum would certainly boost the short term demand for gold. Moreover, the Fed is unlikely to raise interest rates in the midst of rising global macroeconomic uncertainty, which would provide further support to gold prices. We have accordingly modified our realized price and margin forecasts for Barrick’s gold mining divisions, resulting in our new price estimate for the company.
Have more questions about Barrick Gold? See the links below.
- What Is Barrick Gold’s Revenue And EBITDA Breakdown?
- What Is Barrick Gold’s Fundamental Value Based On 2015 Results?
- By What Percentage Did Barrick Gold’s Revenue & EBITDA Decline In The Last 2 Years?
- How Has Barrick Gold’s Revenue Composition Changed Over The Last 2 Years?
- How Will Barrick Gold’s Revenue Composition Change by 2020?
- Barrick Gold: A Look Back At The Year 2015
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