Analyst Actions: Barrick Gold Target Cut $2, Keeps Outperform at Credit Suisse; Shares Rise 1%

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Analysts at Credit Suisse have lowered their target price on shares of Barrick Gold Corporation ( ABX ) to $38 from $40, while maintaining their Outperform rating on the stock.

"On April 10th Barrick announced that it is suspending construction on the Chilean side of Pascua while working to address environmental and other regulatory requirements to the satisfaction of the Chilean authorities," said Credit Suisse. "Barrick stated that it is too early to assess the impact, if any, on the overall capital budget and schedule of the project: Barrick's current capital budget is $8.0 to $8.5B, with $4.2B spent to December 31, 2012. Additionally, Barrick has budgeted $0.25-$0.325B for "Projects-infrastructure" capital at Pascua in 2013. Barrick's current target for first production is H2/14."

The firm added "Construction activities in Argentina are not affected, where the majority of Pascua-Lama's critical infrastructure is located, including the process plant and tailings storage facility. The major operations on the Chilean side are construction of the tunnel to the plant and construction of the primary crusher. ABX has already suspended pre-stripping of the pit on the Chilean side due to dust control issues."

Shares of ABX are up 1.3% to $24.78, in the low end of a 52-week range of $24.26 - $43.30.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: ABX

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