Why We’re Revising Our Price Estimate For Barrick Gold To $17
We are raising our price estimate for Barrick Gold by 32%, which is primarily driven by an upward revision to our pricing forecasts for gold. An increase in the investment demand for gold has driven up the prices of the metal, which is reflected in our revised price forecasts. A moderation in the Fed’s stance pertaining to the pace of interest rate hikes and economic weakness in economies such as the Eurozone and Japan has increased the attractiveness of gold as a safe haven investment, driving up gold prices. We have also revised our shipment forecasts consistent with the improved pricing outlook. Besides the improved pricing and shipment outlook for Barrick’s gold mining operations, the success of the company’s cost rationalization efforts has prompted us to revise upwards our margin forecasts for the gold mining divisions, translating into a revised price estimate for the company’s stock.
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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