ABX:CC - Barrick Gold: Even More Emerging Risks
2024-06-12 03:17:24 ET
Summary
- Barrick Gold underperformed compared to Agnico Eagle due to poor financial performance, including lower gold production and free cash flow.
- Agnico Eagle has stronger financials and a higher market premium despite lower book value, reflecting market optimism about its future prospects.
- Geopolitical risks, such as nationalisation of resources and political changes in countries like Mexico, add additional layers of risk for investors considering Barrick Gold.
Preamble
This is not the first article I have penned warning investors about investing in Barrick Gold ( GOLD ). The first was published on May 17th 2023, and, at the time, Barrick was trading at CAD 24.34, and now it is down to CAD 22.64, despite the huge rise in the price of gold. At the time I wrote the piece, I felt that miners with the majority of their operations within "safe" jurisdictions would fare better; Agnico Eagle ( AEM ) for instance.
A couple of days ago, I got onto Seeking Alpha and produced the chart below then, with a degree of gusto, patted myself on the shoulder, metaphorically speaking, and grinned broadly thinking to myself; "another good call mate!"...
Barrick Gold: Even More Emerging Risks