The strategic restructuring of Barrick Gold’s operations as well as the output of its new mines could potentially boost its share price, said Barron’s.
The April 10th edition of the Barron’s has reported that the shares of Barrick Gold have the potential to rise by 30% in the next year.
Barrick Gold’s shares have a tailwind since it could significantly benefit from its restructuring process which it began 3 years ago. It could also benefit from increase in production in its existing mines as well as production from new projects.
The financial newspaper reported that its fourth quarter profits have beaten its estimates. The miner has also raised its production levels and outlook as well as its dividend.
Toronto-based Barrick Gold is expected to focus on the development of its projects in Lagunas Nortes in Peru and in Nevada which has the potential to improve its free cash flow and thus reduce its debt.
Barron’s has also reported that Barrick Gold is strategically moving towards offloading its non-core assets outside of the U.S.
As per Barron’s gold is “among the most spurned and under-owned assets,” although the price of the precious metal has increased by 9% this year.