Is Barrick (ABX) a trending undervalued gold stock to buy right now?

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Is Barrick (ABX) a trending undervalued gold stock to buy right now?

ABX stock
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Highlights

  • Barrick Gold is one of the largest gold producers worldwide and has business operations in Australia, Africa, South America, and North America.
  • Mark Bristow, President and Chief Executive Officer at Barrick Gold said that the company had a net cash balance of US$ 743 million at the end of Q1 2021.
  • In Q1 2022, Barrick Gold produced 990,000 ounces of gold and 101 million pounds of copper.

Barrick Gold Corporation (TSX:ABX) released financial results for the first quarter of this year on Wednesday, May 5. The gold producer maintained a strong cash position and doubled its dividend payable to shareholders.

Barrick Gold said its Board of Directors have given a nod to increase its quarterly dividend to C$ 0.2 per unit. This includes a C$ 0.1 per share performance component as per the new dividend policy of the company.

Mark Bristow, President and Chief Executive Officer at Barrick Gold said that the company had a net cash balance of US$ 743 million at the end of Q1 2021.

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Compared to its 52-week high of C$ 33.5 per share, the stock appears to be undervalued and it was declining during the trading session on Wednesday morning.

As of writing, the ABX stock was down by 0.03 per cent to C$ 28.78 apiece. However, the stock could later pick up due to the company's strong fundamentals as of the end of the first quarter of this year.

Barrick Gold (TSX:ABX): Key financial details

Barrick Gold said that its realized gold price was US$ 1,876 per ounce in Q1 2022. This was up from US$ 1,777 per ounce in the first quarter of 2021.

The company's operating cash flow was US$ 1,004 million and free cash flow was US$ 393 million. Meanwhile, the net earnings per share was US$ 0.25 and adjusted net earnings per share was US$ 0.26.

The company has announced an increased dividend in Q1 and that could attract investors' attention.

Barrick Gold stock

Bottom line

Barrick Gold is one of the largest gold producers worldwide and has business operations in Australia, Africa, South America, and North America.

In Q1 2022, Barrick Gold produced 990,000 ounces of gold and 101 million pounds of copper. On April 14, the company said that it was on track to achieve 2022 targets and copper production is expected to remain higher in the second half of this year.

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Please note, the above content constitutes a very preliminary observation or view based on digital trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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