Cowen’s Adam Graf and Misha Levental try to answer that question about Barrick Gold (ABX):
REUTERS [At a] recent investor conference, [Barrick Gold] management commented that 2013 production guidance has been achieved and that 2014 production is expected to be lower.
Over the last several months, ABX has been divesting non-core assets. Starting in mid-2013, the company sold its non-core energy assets. Since then, focus has been on selling Australian gold assets. As we have stated previously, we believe the company will continue to sell noncore assets, focusing primarily on its interests in North America. Barrick had been previously seeking a suitor for its 74% interest in African Barrick (ABGLF); to date, the company remains unsuccessful in disposition of the ABG interest. In addition, we would not be averse to seeing Barrick sell off some or all of its copper assets, if they can get the right price.
As a result of the divestitures, Graf and Levental lowered their price target slightly to $15.37 from $15.46.
Shares of Barrick Gold have dropped 1.6% to $19, among the biggest losers in the gold mining sector. Goldcorp (GG) has dropped 0.2% to $24.01, Newmont Mining (NEM) is off 1% at $24.93 and the Market Vectors Gold Miners ETF (GDX) fallen 0.5% to $23.61.
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