African Barrick Gold Share Discussion Threads

[dr biotech] 24/4/2014 08:57

I bought some of these last year around the 110p region. This was after the price had plunged and most of the analysts were suggesting fair value of 80p. Funny how they then changed their target prices after the share price rose. I don't think most of them have a clue what the company is worth.

Of course thats not to say I was any better as I sold at 140. :-(

[addison17] 24/4/2014 08:17

Interim statement with at least some positive news. Up nearly 7% this morning.

[sanks] 13/3/2014 15:47

I see another knocker wobble.
Gonna wait to see if the knocker does another wobble.

Hope this makes some sense
Sanks....level 4 target 73p

[elephantintheroom] 12/3/2014 15:47

Hmm, DCB or has the rot stopped I wonder?

[shaf200] 12/3/2014 15:46

talk about volatility: 230 to 260 in one day!

[mechanical trader] 12/3/2014 13:08

Canaccord sees buying opportunity at African Barrick Gold after sell-off
12 March 2014 11:24

The 17 per cent share price slump of African Barrick Gold (ABG) has created a buying opportunity, according to Canaccord Genuity on Wednesday.

The broker kept a 'buy' recommendation and 315p target price for ABG.

Shares fell sharply on Tuesday after parent company Barrick Gold disposed of 41m shares - representing a 10% stake - to lower its holding to 63.9%.

"We believe the magnitude of the price drop was exacerbated by the profit taking following the best performance among UK peers since mid-2013. The fall we think opens up a buying opportunity," said analysts Dmitry Kalachev and Peter Mallin-Jones.

Among their key reasons to buy the stock, the analysts highlighted free cashflow (FCF) which is expected to average $230m per annum between 2015 and 2020.

This translates into a FCF yield of 13% which is the highest among ABG's London-listed peers under Canaccord's coverage. Adding growth projects would see FCF rise to $280m per annum at a 16% yield.

They also pointed to a robust balance sheet, strong production growth and easing upwards pressure on costs.

Addressing recent speculation that Barrick Gold could move to sell-down its remaining stake, Kalachev and Mallin-Jones said ABG now represents only 7% of the parent company's annual production so even a total disposal of the entire 63.9% stake will improve Barrick's costs by only around 2%.

"The sale at any cost in order to improve cost profile looks out of the question and this, we think, reduces the overhang risk from the remaining stake," they said.

The stock, which hit a low of 229.3p in early trading on Wednesday, had trimmed losses to trade just 1.4% down at 246.5p by 11:45.

BC

Related Companies: ABG

[drewz] 12/3/2014 12:39

Buy on weakness.

Gold to $10,000 by 2017.

There's a firestorm brewing with US$ in the crosshairs.

[bobsidian] 12/3/2014 09:20

The market reaction to the next staged scaling back of Quantitative Easing by the US will be interesting. It makes me laugh when the less knowledgeable market commentators talk about a gold spike because of the Ukraine situation. After all the price of gold was moving higher long before that situation emerged.

[forwood] 12/3/2014 09:03

200 SMA at 173 is below citis target and implies another 28% fall. These things do have a habit of overshoot.

'Course this must all depend on PoG. Citis target there I think is $1250 average thru 2014. They're already wrong on that tho, as 1250 was their prediction for Q1

In Nov they said :

For 2014, in the face of expected continued negative investor flows, we project prices to slip further, averaging $1,250/oz in Q1, which will spark stronger Chinese demand, and therefore imports through 2014," Citi said. "Chinese physical retail buying/ investment represents a key source of price support for the gold market, and we believe renewed positive buying momentum in China will prevent a wholesale rout of gold prices next year."

Citi forecast gold will average $1,230 in the second quarter, then bounce back to average of $1,260 in the third quarter and $1,280 in the fourth. Citi then projects higher yearly averages of $1,350 in 2015, $1,370 in 2016, $1,400 in 2017 and $1,420 in 2018.

[bobsidian] 12/3/2014 08:55

Probably when the share price has been moved back down to test the 200 day Simple Moving Average.

The silence of Goldman Sachs on the move up is noteworthy. It would not be surprising to see it using all its tricks to drive the share price back down. Doubtless ABG will appear on its "conviction sell" list.

[forwood] 12/3/2014 08:22

coz they're all crooks.

Wonder where the selling will stop?

[karateboy] 11/3/2014 19:41

Why did these 5 analysts disclose their analysis after Barrick group sold 10% of their shares for 275p...Why they did not do it on Monday...strange that they kept quite until Tusday...

[sanks] 11/3/2014 17:56

Sheila told me to wait till it hits 73p
Sensible replies appreciated

Sanksaot

[smurfy2001] 11/3/2014 16:34

forwood,

The pump and dump you mention is common. BARC rose signicantly before Abu Dhabi quietly cashes out of Barclays. Ocado rose signicantly before John Lewis sells out...you get the picture.

[forwood] 11/3/2014 15:25

This is harsh

African Barrick Gold PLC Given "Sell" Rating at Citigroup Inc. (ABG)

African Barrick Gold PLC (LON:ABG)'s stock had its "sell" rating reiterated by research analysts at Citigroup Inc. in a report released on Tuesday, Analyst Ratings News reports. They currently have a GBX 179 ($2.99) price objective on the stock. Citigroup Inc.'s price target would indicate a potential downside of 41.90% from the company's current price.

etc.
"

[forwood] 11/3/2014 11:25

Makes you wonder if the current run was a pump and dump exercise. ABG had significantly outperformed all the other goldies and I couldn't see a good reason for it. Now I can

[karateboy] 11/3/2014 10:32

Market did not like it...I guess uncertainty about the remaining shares is an issue. Barrick holding appears to be ready to offload its remaining shares or at least up to 20% and still be a controlling majority share holder.That might be adding uncertainty to this share....

[drewz] 11/3/2014 09:51

The city spivs inevitably have to be given their pound of flesh before they'll play ball.

I expect gold to keep heading higher towards $2000 as this year plays out and the dire state of the US economy becomes apparent to all. Ms Yellen will reverse her taper attempt and crank up the dollar printing to try and stave off depression.

As 2014 unfolds, the dollar and US bond markets will tank and gold will spike higher.

In which case ABG will keep marching north through 450p, this hiatus notwithstanding.

[typo56] 11/3/2014 09:07

Placed at 275p apparently

[mrthomas] 11/3/2014 08:59

So is this good news or bad as now more in free float am sure will go over 3 in due course

[addison17] 11/3/2014 08:15

mmmmmmmm weakness in deed, down 12% this morning.

[pineapple1] 10/3/2014 17:40

Barrick are going to sell 41m shares in ABG or 13.5% of its holding.
Guess that may cause some weakness going forward.
UBS and JPM book runners.

[elephantintheroom] 05/3/2014 11:44

Sssshhhh! you've scared it back down

[addison17] 05/3/2014 10:42

Broken 300p, hasn't been this high for a very long time.