Barrick Gold Corporation GOLD stressed the need to ensure the long-term sustainability of the Loulo-Gounkoto gold mining complex to support Mali's mining industry and its significant economic contributions.
In a recent address to local media and stakeholders, Barrick highlighted its investment of over $10 billion into Mali's economy in the past 29 years. The company's mines have consistently accounted for between 5% and 10% of the country’s GDP annually. In the past year alone, Barrick's contributions to the Malian economy have surpassed $1 billion.
Barrick is actively working toward a comprehensive resolution of existing differences, seeking common ground on the key issue of sharing the economic benefits of its operations without compromising the future viability of these important economic contributors.
The company stated that its successful benefit-sharing partnership in Tanzania has been used as a model for the reopened Porgera mine in Papua New Guinea.
However, GOLD warned that the current economic and political climate in Mali has led to many exploration companies reducing or halting their operations, which could negatively impact long-term gold production.
In contrast, the company is engaging with the National Directorate of Geology and Mines (DNGM) to expand its exploration footprint, ensuring the ability to deliver real value to Mali and its stakeholders.
Barrick’s shares have gained 4.4% in the past year compared with a 17.9% rise of the industry.
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In 2023, gold production at the Loulo-Gounkoto complex reached 547,000 ounces. The cost of sales was $1,198 per ounce, with total cash costs amounting to $835 per ounce and all-in sustaining costs (AISC) at $1,166 per ounce.
For 2024, the company projects gold production for the Loulo-Gounkoto complex to be between 510,000 and 560,000 ounces. The cost of sales is forecast in the range of $1,190-$1,290 per ounce, with total cash costs expected to be between $780 and $860 per ounce. The forecast for AISC is between $1,150 and $1,250 per ounce.
Zacks Rank & Other Key Picks
Barrick currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS, Eldorado Gold Corporation EGO and Ecolab Inc. ECL. Carpenter Technology and Eldorado Gold sport a Zacks Rank #1 (Strong Buy), and Ecolab carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CRS’s current-year earnings is pegged at $4.35, indicating a year-over-year rise of 282%. CRS’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, the average earnings surprise being 15.1%. The company’s shares have soared 90.2% in the past year.
The Zacks Consensus Estimate for EGO’s current-year earnings is pegged at $1.09, indicating a year-over-year rise of 91.2%. EGO’s earnings estimates have gone up 10% in the last 60 days. EGO beat the consensus estimate in each of the last four quarters, the average earnings surprise being 430.7%. The stock has rallied 55% in the past year.
The Zacks Consensus Estimate for Ecolab's current-year earnings is pegged at $6.59, indicating a rise of 26.5% from the year-ago levels. ECL beat the consensus estimate in each of the last four quarters, the average earnings surprise being 1.3%. The stock has rallied nearly 31.2% in the past year.
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