Barrick Gold Corporation GOLD reported that it closed the sale of its 50% stake in Kalgoorlie Consolidated Gold Mines (â€śKCGMâ€ť) to Saracen Mineral Holdings Limited for cash consideration of $750 million.
With the divestiture, the company marked the first step in the plan to realize more than $1.5 billion from the disposal of non-core assets by the end of 2020. Per Barrick, the Western Australia-based KCGM asset is not relevant to its strategy of operating mines. Further, the divestment will enable the company to focus on core operations.
Barrick plans to use the proceeds from the sale to strengthen its balance sheet, make investments and deliver returns to shareholders.
The companyâ€™s shares have gained 29.4% in the past year compared with the industryâ€™s 50.4% rally.
For 2019, Barrick continues to expect attributable gold production of 5.1-5.6 million ounces at all-in sustaining costs (AISC) of $870-$920 per ounce. However, cost of sales is projected to increase $940-$990 per ounce, up from previously mentioned $910-$970 per ounce.
The company continues to expect copper production of 375-430 million pounds at AISC of $2.40-$2.90 per pound. It also anticipates cost of sales of $2.30-$2.70 per pound for the same.
Barrick Gold Corporation Price and Consensus
Zacks Rank & Stocks to Consider
Barrick currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are General Moly, Inc GMO, Franco-Nevada Corporation FNV and Agnico Eagle Mines Limited AEM, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of todayâ€™s Zacks #1 Rank (Strong Buy) stocks here.
General Moly has an expected earnings growth rate of 12.5% for the current fiscal year. The companyâ€™s shares have gained 57.6% in the past year.
Franco-Nevada has a projected earnings growth rate of 46.2% for 2019. The companyâ€™s shares have rallied 41.9% in a year.
Agnico Eagle has an estimated earnings growth rate of 168.6% for the current year. Its shares have moved up 66.2% in the past year.
Free: Zacksâ€™ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the companyâ€™s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.