Company Analysis - Barrick Gold Corp -CA0679011084 - ABX US EquityBarrick Gold Corp., the world’s largest producer of the metal, reported a 2.8 percent increase in first-quarter profit after gold prices rose. Net income advanced to $1.03 billion, or $1.03 a share, from $1 billion, or $1, a year earlier, Toronto-based Barrick said today in a statement. Profit excluding one-time items was $1.09 a share, matching the average of 18 estimates compiled by Bloomberg. Sales rose to $3.64 billion from $3.09 billion. The company raised its quarterly dividend to 20 cents a share from 15 cents and reiterated its 2012 production forecast. “Barrick has a reputation as being one of the best operators and being the ‘Steady Eddie’ of the gold-mining sector, and it’s deserved,” George Topping, an analyst at Stifel Nicolaus & Co. in Toronto, said in a telephone interview yesterday. Chief Executive Officer Aaron Regent plans to boost annual production to about 9 million ounces of gold in five years, from as much as 7.8 million ounces forecast this year. Gold, which has risen for 11 straight years, averaged $1,694 an ounce in the quarter in New York, 22 percent more than a year earlier. First-quarter gold production was 1.88 million ounces, down from 1.96 million ounces a year earlier. Topping estimated 1.79 million ounces. Higher Costs So-called total cash costs rose 25 percent to $545 an ounce. Brian Yu, an analyst at Citigroup Inc. in San Francisco, estimated $559 while Stephen Walker, a Toronto-based analyst at RBC Capital Markets, estimated $577. Barrick reiterated that gold production in 2012 will be 7.3 million to 7.8 million ounces with total cash costs of $520 to $560 an ounce. Barrick’s Pueblo Viejo project in the Dominican Republic is expected to start production in the middle of this year, the company said Feb. 16. The $5 billion Pascua-Lama mine, on the border between Chile and Argentina, will begin production in mid-2013, it said at the time. Barrick fell 0.2 percent to C$39.89 yesterday in Toronto. The shares have dropped 13 percent this year, in line with the decline in the 64-company S&P/TSX Global Gold Index.
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02.05.2012 Ticker: Barrick Gold Corp Benchmark: Currency: New York: ABX, Currency: USD S&P 500 INDEX (SPX) Sector: Materials Industry: Metals & Mining Year: Telephone 1-416-861-9911 Revenue (M) Business Segments in USD Sales (M) Geographic Segments in USD Sales (M) Website www.barrick.com No of Employees Gold Mines 12263 Unallocated Sales 1 Address Brookfield Pl,CanadaTrustTower 161 Bay Street, Suite 3700 Toronto, ON M5J 2S1 Canada Copper Mines 1714 Share Price Performance in USD Barrick Energy (Oil & Gas) 177 Price 40.44 1M Return -8.5% Other Metals 158 52 Week High 55.95 6M Return -19.5% 52 Week Low 38.46 52 Wk Return -17.6% 52 Wk Beta 0.55 YTD Return -10.4% Credit Ratings Bloomberg IG6 S&P A- Date 19.05.2011 Outlook NEG Moody’s Baa1 Date - Outlook STABLE Fitch - Date - Outlook - Valuation Ratios 12/08 12/09 12/10 12/11 12/12E 12/13E 12/14E P/E 20.2x 16.6x 15.6x 9.7x 8.2x 6.7x 7.2x EV/EBIT 17.2x 17.0x 11.6x 8.4x - - - EV/EBITDA 11.7x 12.0x 9.3x 7.0x 5.8x 4.8x 5.0x P/S 4.2x 4.4x 4.8x 3.2x 2.5x 2.2x 2.3x P/B 2.1x 2.6x 2.7x 1.9x 1.5x 1.2x 1.1x Div Yield 1.1% 1.0% 0.8% 1.1% 1.5% 1.5% 1.5% Profitability Ratios % 12/08 12/09 12/10 12/11 12/12E 12/13E 12/14E Gross Margin 38.7 40.0 53.1 55.9 64.0 66.3 62.0 EBITDA Margin 39.5 44.1 56.5 58.2 57.6 60.4 61.2 Operating Margin 27.0 30.9 45.4 48.3 48.4 53.9 51.1 Profit Margin 10.3 -52.5 32.6 31.3 31.5 35.1 33.7 Return on Assets 3.4 -16.7 11.6 10.7 9.8 11.5 9.1 Return on Equity 5.1 -28.2 20.7 20.9 19.7 20.1 16.2 Leverage and Coverage Ratios 12/08 12/09 12/10 12/11 Current Ratio 2.2 2.8 2.8 2.2 Current Capitalization in USD Quick Ratio 0.9 1.6 1.7 1.1 Common Shares Outstanding (M) 1000.4 EBIT/Interest 8.4 7.7 10.8 11.4 Market Capitalization (M) 40462.1 Tot Debt/Capital 0.2 0.3 0.2 0.3 Cash and ST Investments (M) 2745.0 Tot Debt/Equity 0.3 0.4 0.3 0.5 Total Debt (M) 13369.0 Eff Tax Rate % 39.7 - 30.8 33.5 Preferred Equity (M) 0.0 LT Investments in Affiliate Companies (M) 0.0 Investments (M) 2191.0 Enterprise Value (M) 53277.1 Barrick Gold Corporation is an international gold company with operating mines and development projects in the United States, Canada, South America, Australia, and Africa. ABX US 14’312 #N/A N/A Company Analysis - Overview 86% 12% 1% 1% Gold Mines Copper Mines Barrick Energy (Oil & Gas) Other Metals 100% Unallocated Sales Q.M.S Advisors | tel: +41 (0)78 922 08 77 | e-mail: [email protected] |
Transcript
02.05.2012
Ticker: Barrick Gold Corp Benchmark:
Currency: New York: ABX, Currency: USD S&P 500 INDEX (SPX)
Sector: Materials Industry: Metals & Mining Year:
Telephone 1-416-861-9911 Revenue (M) Business Segments in USD Sales (M) Geographic Segments in USD Sales (M)Website www.barrick.com No of Employees Gold Mines 12263 Unallocated Sales 1Address Brookfield Pl,CanadaTrustTower 161 Bay Street, Suite 3700 Toronto, ON M5J 2S1 Canada Copper Mines 1714Share Price Performance in USD Barrick Energy (Oil & Gas) 177Price 40.44 1M Return -8.5% Other Metals 15852 Week High 55.95 6M Return -19.5%52 Week Low 38.46 52 Wk Return -17.6%52 Wk Beta 0.55 YTD Return -10.4%Credit Ratings
Bloomberg IG6S&P A- Date 19.05.2011 Outlook NEGMoody's Baa1 Date - Outlook STABLEFitch - Date - Outlook -
12/08 12/09 12/10 12/11Current Ratio 2.2 2.8 2.8 2.2 Current Capitalization in USDQuick Ratio 0.9 1.6 1.7 1.1 Common Shares Outstanding (M) 1000.4EBIT/Interest 8.4 7.7 10.8 11.4 Market Capitalization (M) 40462.1Tot Debt/Capital 0.2 0.3 0.2 0.3 Cash and ST Investments (M) 2745.0Tot Debt/Equity 0.3 0.4 0.3 0.5 Total Debt (M) 13369.0Eff Tax Rate % 39.7 - 30.8 33.5 Preferred Equity (M) 0.0
LT Investments in Affiliate Companies (M) 0.0Investments (M) 2191.0Enterprise Value (M) 53277.1
Barrick Gold Corporation is an international gold company with operating mines and development projects in the United States, Canada, South America, Australia, and Africa.
