Could Barrick Gold Be Your Long-Term Gold Bet after Q1?



Barrick Gold’s first-quarter results

Barrick Gold (GOLD) released its first-quarter earnings results on May 8. Its EPS of $0.11 beat analysts’ estimate by $0.02, whereas its top line of $2.09 billion missed analysts’ average estimate by ~$60 million.

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Stock momentum

Barrick Gold stock had fallen 9.1% this year as of May 13, while the VanEck Vectors Gold Miners ETF (GDX) had fallen 7.7%. Barrick has also underperformed most peers. Newmont Goldcorp (NEM), Yamana Gold (AUY), Agnico Eagle Mines (AEM), and IAMGOLD (IAG) have returned -2.5%, 2.8%, 27.1%, and 5.0% this year, respectively. The initial euphoria created by Barrick’s merger seems to be over, and analysts and investors are now waiting for its benefits and execution plan.

Peers’ results

Most of Barrick’s peers (GDX) have released their results. Kinross Gold (KGC) released its earnings results on May 7. Whereas it missed analysts’ revenue estimate, its EPS of $0.07 beat their EPS estimate. Meanwhile, Yamana Gold’s (AUY) EPS of $0.02 beat analysts’ estimate by $0.01 but its top line of $407 million beat their estimate by ~1%, and Newmont Goldcorp (NEM) beat analysts’ EPS estimate of $0.27 by $0.06. Its revenue of $1.8 billion missed analysts’ estimate by $10 million.


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