Canadian Gold Miner Barrick (B) Delays New Projects Over Security Concerns

Canadian gold producer Barrick Mining B -0.74% ▼ is delaying its massive Reko Diq copper-gold project in Pakistan due to security concerns related to war in the Middle East.

Claim 30% Off TipRanks Premium

• Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions

• Stay ahead of the market with the latest news and analysis and maximize your portfolio’s potential

Toronto-based Barrick said that it is slowing development of new mine projects globally amid heightened geopolitical risks. The delays also come with the price of gold having suffered its worst decline in 15 years this month. Since the start of March, the price of gold has dropped 15% to $4,450 per ounce.

Barrick, which is one of the world’s largest gold producers, said that it is reviewing budgets and timelines for a number of new mine projects around the world. The Reko Diq project in Pakistan is home to the world’s biggest undeveloped copper and gold deposits.

Barrick’s Gold Gamble

Barrick said its decision to delay future projects follows a recent review of capital allocations amid mounting security concerns. The company said that its review of the Reko Diq project will now be extended by another year, while development activity elsewhere in the world will be slowed.

Barrick said the extended timeline for the review will allow it to assess potential risks and refine its delivery strategy for the project. Barrick’s stock has come under pressure lately as the price of gold has slipped lower. So far this year, B stock has declined 12%.

Is B Stock a Buy?

Barrick Mining’s stock has a consensus Strong Buy rating among 15 Wall Street analysts. That rating is based on 13 Buy and two Hold recommendations issued in the last three months. The average B price target of $59.67 implies 53% upside from current levels.

Disclaimer & DisclosureReport an Issue