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My investment in Barrick Gold (GOLD) - 23 Oct 2021
23 Oct 2021 (257 views)  

I bought 2,000 shares in Barrick Gold about 2 years ago at an average price of $28.61 USD. My total investment was $57,200.

The price of this stock has dropped 32% to the current price of $19.48, giving me a loss of $18.300.

This has been a bad investment. 

The key reasons for the poor performance were:

a)  There was a dispute with the Papua New Guinea government over mining in that country. Report

b) The price of gold dropped from $1,900 (around the time that I bought the share) to the current level of $1,795. 

Although the price of gold dropped by 6%, the price of this stock dropped by 32%.

I am monitoring the price of gold to see if the trend has now reversed and the price will become stronger. If this is the case, I expect the price of this stock to increase more, due to the gearing factor.

I estimate that the price change for this stock will be 2 to 3 times of the price change for gold. 

According to this report, the production for the mines are on target. The Q3 financial results will be released on 3 Nov 2021. See report. 

If the results are positive, the price of this stock will recover from its depressed levels. 

The financial indicators are:

Prospective PE ratio: 13.72 times
Dividend yield: 1.85%
Total debt to equity ratio: 22.98%
Market capitalization: 34 billion.

These indicators are satisfactory. They are not exceptionally good.

I will study the report in more detail. 

Note - this is my personal observation. It is not investment advice.

Tan Kin Lian


My investment in Barrick Gold (GOLD) - 23 Oct 2021
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I bought 2,000 shares in Barrick Gold about 2 years ago at an average price of $28.61 USD. My total investment was $57,200.

The price of this stock has dropped 32% to the current price of $19.48, giving me a loss of $18.300.

This has been a bad investment. 

The key reasons for the poor performance were:

a)  There was a dispute with the Papua New Guinea government over mining in that country. Report

b) The price of gold dropped from $1,900 (around the time that I bought the share) to the current level of $1,795. 

Although the price of gold dropped by 6%, the price of this stock dropped by 32%.

I am monitoring the price of gold to see if the trend has now reversed and the price will become stronger. If this is the case, I expect the price of this stock to increase more, due to the gearing factor.

I estimate that the price change for this stock will be 2 to 3 times of the price change for gold. 

According to this report, the production for the mines are on target. The Q3 financial results will be released on 3 Nov 2021. See report. 

If the results are positive, the price of this stock will recover from its depressed levels. 

The financial indicators are:

Prospective PE ratio: 13.72 times
Dividend yield: 1.85%
Total debt to equity ratio: 22.98%
Market capitalization: 34 billion.

These indicators are satisfactory. They are not exceptionally good.

I will study the report in more detail. 

Note - this is my personal observation. It is not investment advice.

Tan Kin Lian