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

May 04, 2022 11:09 AM EDT | By Raza Naqvi
 Is Barrick (ABX) a trending undervalued gold stock to buy right now?
Image source: © Pookpiik | Megapixl.com

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.

Also Read: Lightweights in 2022: 5 junior Canadian stocks to buy in May

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.

Also Read: Activision soars as Berkshire ups stake: Does Buffett own TSX stocks?

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.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.


Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.