Trading Barrick Gold After Fiscal Q2 2024 Performance
Barrick Gold is one of the world's largest gold mining companies. Headquartered in Toronto, Canada the company operates gold and copper mines in Africa, the Middle East and North and South America.
Learn more about Barrick Gold's most recent fiscal second-quarter 2024 performance and what analysts are forecasting for the stock below.
| Stock: | Barrick Gold Corporation |
| Symbol for Invest.MT5 Account: | GOLD.US |
| Date of Idea: | 27 August 2024 |
| Time Line: | 1 - 6 months |
| Entry Level: | $21.00 |
| Target Level: | $28.00 |
| Position Size for Invest.MT5 Account: | Max 5% |
| Risk: | High |
- The Invest.MT5 account allows you to buy real stocks and shares from some of the largest stock exchanges in the world.
All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose, as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing.
Barrick Gold Fiscal Q2 2024 Performance
Here are some of the key highlights from the fiscal second-quarter 2024 earnings report from Barrick Gold:
- Adjusted net earnings per share up 68% to $0.33 vs $0.27 forecasted
- Free cash flow up 400% to $340 million from a year earlier
- Quarterly dividend of $0.10 per share maintained
- Gold margins up 39% due to flat costs and higher gold prices
- Copper revenues up 34% due to lower costs at the Lumwana mine and higher copper prices
Barrick Gold reported quarterly results that beat analyst estimates on most metrics, largely thanks to higher commodity prices and increased production. The potential of a U.S. interest rate cut later in the year, global geopolitical tensions and uncertainty regarding elections helped to lift gold's safe-haven status and reach new all-time highs.
The company's mines in Nevada and Papua New Guinea reported higher production levels of gold of 948,000 ounces. That beat analyst estimates of 905,800 ounces for the last quarter. The management team also highlighted that its free cash flow of $340 million will be used to expand its mining projects across the globe.
However, the company is still dealing with the United Nations Human Rights Council regarding allegations of human rights violations at its North Mara Gold mine. This could weigh on its share price if the issue escalates.
Another important consideration is how much of the uncertainty regarding elections, geopolitical tensions and potential interest rate cuts in the U.S. has already been priced into the price of gold. While gold's price has been rising, reaching a record high this month, it is susceptible to a pullback at some point. Lower gold prices may have a negative impact on Barrick Gold's earnings, margins, overall profitability and subsequently its share price.
Barrick Gold Stock Forecast - What do the Analysts Say?
According to analysts polled by TipRanks for an Barrick Gold stock forecast in the past 3 months, there are currently 9 buy, 0 hold and 0 sell ratings on the stock. The highest price level for a Barrick Gold stock forecast is $28.13 with the lowest price target at $20.00.
The average price target for a Barrick Gold stock forecast is $23.68.
An Example Trading Idea for the Barrick Gold Stock Price
An example trading idea for the Barrick Gold share price could be as follows:
- Buy the stock on a break above $21.00 to allow for volatility.
- Target just below the highest analyst price target of $28.00.
- Keep your risk small at a maximum of 5% of your total account.
- Time Line = 1 – 6 months
- If you buy 10 Barrick Gold shares:
- If target is reached = $70.00 potential profit [($28.00 - $21.00) * 10 shares].
Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially as Barrick Gold's share price is linked to the state of gold prices which could be due a pullback at some point.
Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.
With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Barrick Gold stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.
However, there is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall.
How to Buy Barrick Gold Stock in 4 Steps
With Admirals, you can buy shares with a commission of just $0.02 per share and a low minimum commission of just $1 on US stocks.
- Open an account with Admirals to access the dashboard.
- Click on Trade or Invest on one of your live or demo accounts to open the web platform.
- Search for your stock in the search window at the top.
- Input your entry, stop-loss and take profit levels in the trading ticket.
Click on the banner below to trade Barrick Gold stock today ▼▼▼
Do You See the Barrick Gold Stock Price Moving Differently?
Remember that all analytics and trading ideas are based on the personal view and experience of the author.
If you believe there is a higher chance Barrick Gold share price will move lower, then you can also trade short from a CFD trading account which Admirals also provide.
The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.
This means you can trade long and short to potentially profit from rising and falling stock prices.
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:
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- The Analysis is prepared by an independent analyst Jitanchandra Solanki, Freelance Contributor (hereinafter "Author") based on personal estimations.
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