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Is Barrick Gold Corp (NYSE:ABX) Stock Price Too Cheap To Ignore?


Barrick Gold Corp (NYSE:ABX) Stock is trading near 52-week lows as Gold hits $1300.00 an ounce. Moreover, ABX is the world’s largest gold producer, with low operating costs of around $750/oz (AISC), which is one of the lowest operating costs amongst peers. 2017 saw a slight decline in gold production and analysts are therefore cautious on Barrick Gold (NYSE:ABX) Stock for 2018, especially with a forecast significant fall in net profit margins. 







According to a November 20, 2017 CNBC.com report, “Citibank projected gold prices are on track to notch levels of $1,270 per ounce by the end of 2018, before climbing to around $1,350 per ounce and $1,370 per ounce over the next two calendar years.”  This should be good news for ABX Stock, as Barrick Gold Corp. is mining gold at $750/OZ~AISC. 


Barrick Gold Corp. (NYSE:ABX) engages in the production and sale of gold and copper, as well as related activities such as exploration and mine development. It operates through the following segments: Barrick Nevada, Veladero, Turquoise Ridge, Acacia, and Pascua-Lama. The company was founded by Peter D. Munk in 1983 and is headquartered in Toronto, Canada. 


Barrick Gold Corp. has a market cap of $16.9 Billion and an enterprise value of  $21.7 Billion. 
2017 PE is 10.1, and 2018 PE is 19.1. Net profit margins for 2017 are forecast to be 20.0% and 10.4% in 2018. Company debt is $4.8 Billion. Dividend yield is 0.80%.




Analyst consensus estimates are for a target price of US $19.06, with a hold rating. I am positive on Barrick Gold Corp (NYSE:ABX) Stock, as they reduce their debt levels and hopefully raise their gold production in 2018, I rate them an accumulate on dips or Buy now for long-term.