Barrick Gold Corporation (GOLD – Free Report) has stated that it is still banned from shipping gold from its Loulo-Gounkoto mining complex in Mali. In addition, the current gold reserves on site have been provisionally seized, preventing their export and disrupting routine operations. GOLD believes that the interim attachment order is unjustified and contrary to the agreed dispute resolution mechanisms.
GOLD noted that this ban on shipping gold not only impacts business operations, but also the local economy. Barrick will have to temporarily suspend operations in Loulo-Gounkoto if the problem is not resolved in the coming week.
Barrick remains committed to working constructively with the Malian government to amicably resolve outstanding disputes. As previously announced, the Company has commenced arbitration through the International Center for the Settlement of Investment Disputes (“ICSID”) as a recognized process to resolve these disagreement issues while maintaining the integrity of the current agreements.
Barrick continues to work with the Malian government to agree a memorandum of understanding to resolve existing conflicts, redefine the future of the partnership and increase the state’s share of the benefits of the Loulo-Gounkoto complex. Barrick remains a steadfast ally of Mali and its people and has contributed significantly to the country’s economic and social development over the past thirty years.
Barrick shares have lost 12.4% in the past year, versus the industry’s gain of 14.5%.
Image source: Zacks Investment Research
For 2024, Barrick expects attributable gold production to be at the lower end of the previously announced guidance of 3.9-4.3 million ounces.
GOLD’s Zacks Rank and Top Picks
GOLD currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials space include Timmermans Technology Company (CRS – Free report), Sylvamo company (SLVM – Free report) and Silvercorp Metals Inc. (SVM – Free report).
Carpenter Technology currently carries a Zacks Rank #1 (Strong Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. The company’s shares are up 176.6% in the past year. You can see it The complete list of today’s Zacks #1 Rank stocks can be found here.
Sylvamo, which currently has a Zacks Rank of #2 (Buy), beat the consensus estimate in each of the trailing four quarters. Over this period, the company has delivered an earnings surprise of approximately 16.7% on average. SLVM shares are up 60.5% in the past year.
Silvercorp, which currently has a Zacks Rank of #1, beat the consensus estimate in three of the last four quarters and matched it once, with the average earnings surprise being 16.5%. SVM is up about 24% over the past year.