Why We’re Revising Our Price Estimate For Barrick Gold To $17

May 6th, 2016 by Trefis Team

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.

Price Revision to $17

Have more questions about Barrick Gold? See the links below.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Barrick Gold

 

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