GOLD - Barrick Gold: Still Trading At A Discount Despite Record Gold Prices

2024-04-11 06:44:18 ET

Summary

• Gold has continued to set record highs driven by buying out of China and uncertainty around the actions of the Federal Reserve.
• Gold and copper appear to be entering a new commodity super cycle where demand outstrips supply, leading to high prices for many years to come.
• Barrick has a very strong balance sheet that can support their ongoing expansion projects and provide shareholder returns.
• Barrick’s share price has lagged, and they are trading at a discount to their historical valuation making this a great opportunity to get in prior to earnings reflecting high gold prices.

Investment Thesis

Gold prices continue to set new all-time highs almost every day, but you wouldn’t know looking at gold mining equities, including Barrick ( GOLD ). Despite the bull market for gold, Barrick currently trades at a discount to its trailing historical averages and looks downright cheap when accounting for revenue to come if the rally sustains itself....

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