The sharp selloff in Barrick Gold (NYSE:GOLD) shares is continuing today after investors were disappointed with the company’s preliminary fourth quarter-production update. The company produced 4.05 million ounces of gold and 420 million pounds of copper during 2023. It had guided for copper production of between 420-470 million pounds for the year.
In Q4, Barrick produced 1.05 million ounces of gold and 113 million pounds of copper. This was the highest quarterly gold production at the company’s Cortez, Phoenix, and Pueblo Viejo locations. However, these gains were offset by lower production at Loulo-Gounkoto. Furthermore, the company expects 6%-8% higher costs of sales per ounce for gold and 8%-10% higher cost of sales per pound for copper.
Additional details are awaited on February 14, when Barrick is slated to report its fourth-quarter results. Analysts expect the company to post an EPS of $0.25 on revenue of $3.16 billion for the quarter. In the comparable year-ago period, Barrick’s EPS of $0.13 had outpaced expectations by $0.02.
Is Barrick Gold a Good Stock to Buy?
Shares of the company have trended nearly 12% lower so far this month amid rising global geopolitical tensions and fading hopes of rapid rate cuts. Additionally, the rising dollar (DXY) and the latest remarks from fed officials hinting at a wait-and-watch approach before embarking on rate cuts could continue to weigh on gold prices and Barrick Gold. Overall, the Street has a Moderate Buy consensus rating on Barrick Gold, and the average GOLD price target of $21.39 implies a 34% potential upside in the stock.
Read full Disclosure
