BMO Capital analyst Matt Murphy maintained a Hold rating on Barrick Mining today and set a price target of C$53.00.
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Matt Murphy’s rating is based on a combination of factors including Barrick Mining’s strategic focus on operational stability and safety, particularly in relation to the Nevada Gold Mines (NGM). The company is undergoing an operational review aimed at achieving steady performance, though no significant changes to guidance or assets are anticipated in the near term. While mergers and acquisitions are not a current priority for management, investor interest in potential transactions to address valuation discounts remains.
Furthermore, the emphasis on NGM as a potential growth asset suggests a need for increased capital allocation and improved technical coordination. Despite ongoing development projects like Reko Diq and the Lumwana expansion, the company is not rushing to alter its investment plans. The recent hedging strategy, intended to secure returns on a potential acquisition, reflects a cautious approach amid a volatile gold market. Consequently, Barrick is expected to perform in line with its peers over the next year, justifying the Hold rating.