Barrick Gold Corporation engages in the exploration, mine development, production, and sale of gold and copper properties. It has ownership interests in producing gold mines that are located in Argentina, Canada, Côte d’Ivoire, the Democratic Republic of Congo, Dominican Republic, Mali, Tanzania, and the United States. This week, I fundamentally analyze Barrick Gold’s stock. I review Barrick Gold’s business, look at its key ratios, and derive the intrinsic value using Discounted Cash Flow (DCF) analysis. Since this is a long video, please feel free to use the time stamps in the video if you only wish to watch certain topics.
I review various key ratios such as Revenue, Net Income, Shares outstanding, Dividends, Payout Ratio, Free Cash Flows (FCF), Financial Leverage, Current Ratio, Debt to Equity Ratio, Return on Equity (ROE), Days Sales Outstanding (DSO), Days Inventory, Payable Period, Cash Conversion Cycle, Inventory Turnover, etc.
After taking into account Barrick Gold’s 2021 free cash flow of $1,943 million figure, a 6% growth rate of FCF (growth for the next 10 years), 10% discount rate, 2.723% long term growth rate (growth from 10 year mark in the future to perpetuity), 1,779 million shares outstanding, and $5,396 million of long term debt, the DCF analysis yields us an intrinsic value of $16.18 per share.
Timestamp
0:00 Introduction
0:21 Business Overview
3:40 Key Ratios Analysis
14:34 Discounted Cash Flow Analysis / Intrinsic Value
17:09 Conclusion
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References:
Barrick’s Website: here.
Morningstar Key Ratios Link: here.
Useful Resources here.
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