S&P Equity Research Picks ABX Focus Stock Of The Week

NEW YORK, Aug. 1, 2011 /PRNewswire/ -- Barrick Gold (NYSE: ABX: $48) has been picked by Standard & Poor's Equity Research as its Focus Stock of the Week.  ABX carries S&P's highest investment recommendation of 5-STARS, or Strong Buy.  

"We view shares of Barrick Gold as a compelling investment vehicle to seek to benefit from a continued bull market in gold," said Leo Larkin, Metals & Mining Equity Analyst at Standard & Poor's Equity Research.  "Barrick is currently in the process of implementing plans to expand its annual gold production to 9 million ounces by 2015 from 2010's 7.8 million ounces.  The company has built seven mines in the last five years."  

Larkin thinks the sell-off that greeted the company's announced plans in April 2011 to acquire Equinox Minerals Limited for $7.6 billion in cash has created a potential opportunity to buy the shares at a very attractive price.  He observes that the completion of the Equinox acquisition in July doubles its copper reserves.  "While the acquisition will result in Barrick being less of a pure investment in gold in the future, we think the negative impact on its valuation has been exaggerated," said Mr. Larkin.  

To view a video of Mr. Larkin discussing ABX, paste the following link into your browser.  

http://link.delvenetworks.com/media/?mediaId=78df77c99ced40bfa866105b6e97eddc&width=480&height=411&playerForm=DelvePlayer&autoplay=true

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