Healthy cash flow, an attractive price-to-book ratio, and a great global reach. These characteristics make Barrick Gold a great choice for investors looking for a safe haven during the ebb and flow of the global economy.
Barrick Gold Inc. (TSX—ABX; NYSE—GOLD)
A great choice for investors looking for a safe haven
Barrick generates revenue of $11.55 billion and is a Canada-based gold and copper producer. The company is engaged in 16 operating mines and projects in 18 countries spread over North and South America, Africa, Papua New Guinea and Saudi Arabia.
Barrick has proven a healthy cash flow book record in the last 12 months, and has and continues to trade at an attractive price.
In attendance at the November 2022 investor presentation was Barrick Gold’s President and CEO, Mark Bristow. He provided others present with an outlook of what’s to come for the company. He debriefed the merger between Barrick and Randgold, emphasizing that in order for any company “to be world class, you have to be global.”
He underscored the ability of Barrick to continue on its path of “creating shareholder value from gold and copper” and of generating “disciplined shareholder returns” based on an “industry-leading dividend framework that provides an opportunity for enhanced returns while delivering financial flexibility and predictability throughout the cycle”.
With its well-considered strategy of share buybacks through their ongoing buyback program and careful design to fit the cyclical nature of its industry, this firm is proving to be a reliable source of income and security for its shareholders even amidst the uncertainty of the global economy.
This is an edited version of an article that was originally published for subscribers in the December 2022/First Report of The MoneyLetter. You can profit from the award-winning advice subscribers receive regularly in The MoneyLetter.
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The MoneyLetter •4/2/23 •