2. Barrick Gold Corporation (NYSE: GOLD)
Number of Hedge Fund Holders: 49
Barrick Gold Corporation (NYSE: GOLD) is a Canadian mining company that mainly produces gold and copper. The company has mining operations in 13 countries, including Saudi Arabia, North and South America, Africa, etc. In 2020, Barrick Gold Corporation (NYSE: GOLD) produced over 4.8 million ounces of gold, with Nevada Gold Mines accounting for 3.5 million ounces of the total production.
In Q1 2021, Barrick Gold Corporation (NYSE: GOLD) reported a net income of $830 million, up from $663 million during the same period last year. The EPS for the quarter stood at $0.29, beating the market estimate of $0.27. The revenue showed a 9% year-over-year growth at $2.9 billion. The strong numbers are driven by copper production as revenue from copper mines grew by 31%. In Q1, Barrick Gold Corporation (NYSE: GOLD) announced a quarterly dividend of $0.09 per share. According to Wall Street Journal, 14 analysts maintain a buy rating on the GOLD stock, with an average price target of $29.
At the end of Q1 2021, 49 hedge funds have positions in Barrick Gold Corporation (NYSE: GOLD), worth $1.3 billion. Southport Management is the biggest shareholder of the company, with shares worth $544 million.
GoodHaven Capital, in its Q4 2020 investor letter, mentioned Barrick Gold Corporation (NYSE: GOLD). Here is what the firm has to say:
“Barrick’s recent results have been consistent with our expectations. Barrick has begun inching up the dividend as planned, which should continue increasing absent them finding a large acquisition (they want more copper assets) or a materially lower price of gold. We’d also expect periodic special dividends during stronger gold price environments. At current gold prices we estimate normalized free cash flow at Barrick of over $1.60/share. The company is now about net-debt free. We see plenty of upside and absent a collapse in gold not too much downside. Missing from much of the public discussions about gold, but potentially interesting, is the supply/demand backdrop. As the Wall Street Journal (8/16/20) recently said “gold is amongst the rarest metals in the earth’s crust and much of the easier to get to ore has already been mined. What is left is harder to find and more expensive to extract…” According to the World Platinum Council, it was forecasted that there will be a supply and demand imbalance of 1.2 million ounces globally. The potential macro tailwinds that could add value to an alternate currency like gold including currency concerns, excessive debt and continuing negative real interest rates are still out there. While the shares performed well for the year they were weak in the second half and now stand more attractively priced.”
