Skip to main content

NEW YORK (TheStreet) -- Barrick Gold (ABX) stock is gaining by 6.19% to $6.95 in late morning trading on Thursday, after the company reported earnings results that met estimates for the second quarter of 2015 and announced a new streaming agreement.

The company posted earnings of 5 cents per diluted share on revenue of $2.23 billion, as analysts has estimated, for the quarter ended June 30.

Barrick Gold produced 1.45 million ounces of gold during the quarter with all-in sustaining costs of $895 per ounce.

"The implementation of a lean, decentralized operating model designed to maximize free cash flow and take costs out of the business has helped to mitigate the impact of recent gold price declines," the company said in a statement.

Barrick Gold lowered its gold production guidance for 2015 to 6.1 million to 6.4 million ounces, from 6.2 million to 6.6 million ounces, to reflect recent asset sales.

All-in sustaining costs guidance was also reduced, to $840 to $880 per ounce from $860 to $895 per ounce.

Additionally, Barrick gold agreed to a gold and silver streaming agreement with Royal Gold (RGLD) - Get Royal Gold, Inc. Report, which made an upfront payment of $610 million, for production in the Pueblo Viejo mine in the Dominican Republic.

TheStreet Recommends

Separately, TheStreet Ratings team rates BARRICK GOLD CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate BARRICK GOLD CORP (ABX) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, weak operating cash flow, generally disappointing historical performance in the stock itself and unimpressive growth in net income."

You can view the full analysis from the report here: ABX Ratings Report

Image placeholder title


data by