Gold Miners: ABX, NEM

Barrick Gold Corporation

Industrial/Transportation, Macro


Presented:12/01/2016
Price:$15.02
Cap:$17.50B
Current Price:$20.21
Cap:$35.06B

Presented

Date12/01/2016
Price$15.02
Market Cap$17.50B
Ent Value$28.84B
P/E RatioN/A
Book Value$6.42
Div Yield0.01%
Shares O/S1,165.00M
Ave Daily Vol17,381,742
Short Int1.57%

Current

Price$20.21
Market Cap$35.06B
Barrick Gold Corp. mines and explores for gold, copper and nickel. It operates through its projects in Canada, the United States, the Dominican Republic, Australia, Papua New Guinea, Peru, Chile, Argentina, Zambia, Saudi Arabia and Tanzania. The company's gold operating units are: Cortez, Goldstrike, Pueblo Viejo, Lagunas Norte, Veladero, North-America other and Australia Pacific. Barrick Gold was founded by Peter D. Munk in 1983 and is headquartered in Toronto, Canada.

Publicly traded companies mentioned herein: Barrick Gold Corp (ABX), Newmont Mining Corp (NEM)

Highlights

Gold mining companies have enjoyed solid gains in 2016, with GDX (the Market Vectors Gold Miners ETF) having gained >50%. The presenter thinks the timing is good for a short position in gold mining companies now because short interest is still low and the price of gold itself is collapsing. Large buyers/ importers of gold such as China and India are not in the market at this time, and the recent sell-off (~11%) will have to be reflected in Street models at some point if the price of the yellow metal does not recover. He noted that the Street still seems to be using $1,300 - $1,350 per ounce in its forecasts. As such, shares of Barrick, Newmont, and the rest of the peer group could potentially have 30-40% downside over the next 6-12 months by his modeling.

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Idea Discussion

Commentor 1 - 2 weeks ago

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