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  5. ABX: Good morning , Please comment on the last 1/4 Earnings report and your view on ABX stock. [Barrick Gold Corporation]
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Q: Good morning , Please comment on the last 1/4 Earnings report and your view on ABX stock. Its trading at an yrly, 3yr , and 5 yr low but its in a much better position now wrt Debt levels and the gold price staying above $2000 for the last 3 months near all time highs.
Thanks, George
Asked by George on February 29, 2024
5i Research Answer:

EPS of 27c beat estimates of 22c. Revenue of $3.05B slightly missed estimates. The midpoint of Barrick's gold-output guidance of 3.9-4.3 million ounces looks well within reach, keeping production flat vs. 2023. Improving output from low-cost Pueblo Vieja (PV), as commissioning setbacks are remedied, can offset the dip in Barrick's Cortez mine (part of the Nevada Gold Mine complex), where a fault in the Crossroad open-pit mine reduced the availability of high-grade ore. Total cash costs could average slightly above the midpoint of guidance of $940-$1,020 an ounce, amid sticky expenses and higher royalties. Should gold hold at the current spot price of $2,000 an ounce, Barrick's full-year Ebitda could reach $6.2 billion, with the larger contributions from Barrick's low-cost mines the main drivers of year-over-year earnings momentum. With the stock down 18% YTD, this one is getting more attractive.