By The Gold Report
Source: Streetwise Reports 01/04/2019
A CIBC report highlighted why investors should take a new look at this senior mining company with holdings on five continents.
In a Jan. 2 research note, analyst Anita Soni reported CIBC resumed coverage of Barrick Gold Corp. (ABX:TSX; GOLD:NYSE) with an Outperformer rating and a US$17 per share price target as it is “a new era for a new Barrick.”
Soni added, “There remains a 26% return to our price target at current multiples and the potential for further upside opportunity with delivery of the strategic plan.”
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CIBC’s current target price and rating compare to its previous US$14.50 target price and Neutral rating on the miner. Barrick’s current share price is about US$13.05.
The new Barrick, having merged with Randgold, Soni noted, owns five of the world’s Top-10 tier 1 gold assets along with sizable land positions in established gold districts. The senior mining company’s portfolio consists of 21 mines and six projects in North America, South America, Africa, Australia and Asia. These assets present “significant opportunities for production growth, asset rationalization, operational improvement and optimization through exploration additions and mineral resources management,” Soni indicated. The company’s management team is “known for delivering industry-leading returns for investors.”
All of the above, along with CEO Mark Bristow’s strict method of evaluating new projects, afford investors in the name the chance to yield a premium multiple, Soni concluded.
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Disclosures from CIBC, Barrick Gold Corp., January 2, 2019
Each CIBC World Markets Corp./Inc. research analyst named on the front page of this research report, or at the beginning of any subsection hereof, hereby certifies that (i) the recommendations and opinions expressed herein accurately reflect such research analyst’s personal views about the company and securities that are the subject of this report and all other companies and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.
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Equity research analysts employed by CIBC World Markets Corp./Inc. are compensated from revenues generated by various CIBC World Markets Corp./Inc. businesses, including the CIBC World Markets Investment Banking Department. Research analysts do not receive compensation based upon revenues from specific investment banking transactions. CIBC World Markets Corp./Inc. generally prohibits any research analyst and any member of his or her household from executing trades in the securities of a company that such research analyst covers. Additionally, CIBC World Markets Corp./Inc. generally prohibits any research analyst from serving as an officer, director or advisory board member of a company that such analyst covers.
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Important Disclosure Footnotes for Barrick Gold Corp. (GOLD)
· CIBC World Markets Inc. expects to receive or intends to seek compensation for investment banking services from Barrick Gold Corporation in the next 3 months.
( Companies Mentioned: ABX:TSX; GOLD:NYSE,