Source: Seeking Alpha
- The progress at Barrick Gold (ABX +1.6%) is akin to “turning the battleship on a measured pace," Sterne Agee analysts say, but at least it's progress, and shares have added nearly 8% since reporting Q4 results that missed on earnings but beat on revenue.
- Sterne Agee likes ABX's free cash flow position after the miner's series of transactions in 2013 to improve its balance sheet extended debt maturities, improved financial flexibility; as a result, net debt dropped by nearly 20%, and ABX now has only $300M of debt repayments due in next two years.
- The firm now expects ABX to be almost free cash neutral in 2014 with potential for almost $1B in free cash generation in 2015.
- Some analysts see the beginnings of a turnaround: ABX's problems discussed yesterday were well telegraphed, gold production remains solid in many mines and the cut in the reserve price to $1,100/oz. from $1,500/oz. was conservative and so likely to see upside.
