Mali’s military-led government has escalated tensions with gold producer Barrick Gold (GOLD) by issuing an arrest warrant for CEO Mark Bristow on money laundering allegations as part of a broader dispute over mine revenues in the West African country. The warrant also targets Abbas Coulibaly, who is the general manager of Barrick’s Loulo-Gounkoto gold mining complex, according to Bloomberg.
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The conflict is the result of disagreements over revenue sharing at Mali’s largest gold mine, which led to four Barrick employees being arrested last month. Barrick has denied the allegations and stated that it is working with the Malian government to resolve the issue. The company previously offered $370 million to settle a tax claim from a government audit, but Mali’s exact demands remain unclear, and it has threatened to reclaim the Loulo mine concession when the permit expires in 2026.
This comes after a similar case involving Resolute Mining Ltd., whose CEO Terry Holohan and two employees were arrested but later released following a $160 million settlement over a tax dispute.
CME Group to Launch a One-Ounce Gold Futures Contract
Unsurprisingly, Barrick’s stock has been struggling during the past three months, falling by more than 10% to bring the year-to-date returns to -4%. However, the price of Gold (GLD) itself has been on a tear, with year-to-date returns of almost 28%. This has led to a surge in demand from retail traders. As a result, CME Group (CME) announced that it will launch a One-Ounce Gold futures contract on January 13, 2025, pending regulatory approval. This will make it easier for retail traders by allowing them to invest with smaller amounts of cash.
The new contract builds on the success of CME Group’s Micro Gold and Micro Silver futures, which have seen record-breaking participation in 2024. Micro Gold futures averaged 105,000 daily contracts, while Micro Silver futures averaged 19,000 contracts, which demonstrates the strong demand for smaller and more accessible financial products.
Is Barrick Gold a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on Barrick Gold stock based on eight Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average Barrick Gold price target of $23.91 per share implies 41.5% upside potential.
