Barrick offers growth—and an inflation hedge

Article Excerpt

Barrick has moved down—along with gold prices—since earlier this year. Gold does move generally up along with inflation; however, while inflation remains high, interest rate hikes (such as the U.S. Fed’s recent 75 basis-point rise) are aimed at controlling and bring down the inflation rate. That has pushed down inflationary assets like gold and pushed up the U.S. dollar. But going forward, we think top-quality gold stocks like Barrick are still buys—in part because the prospects for increased production and cash flow—regardless of gold prices or inflation—remain intact. This stock is a Power Buy. BARRICK GOLD, $21.40, is a buy. The miner (Toronto symbol ABX; TSINetwork Rating: Average) (www.barrick.com; Shares o/s: 1.8 billion; Market cap: $38.0 billion; Dividend yield: 2.4%) is the second-largest gold producer in the world after Newmont Corp. (symbol NEM on New York). Barrick produced 990,000 ounces of gold in the quarter ended March 31, 2022. That’s down 10.1% from 1.01 million ounces a year earlier as it shifted into lower-grade ore zones…

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