Analyst Lawson Winder of Bank of America Securities maintained a Hold rating on Barrick Gold (GOLD – Research Report), retaining the price target of $18.00.
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Lawson Winder has given his Hold rating due to a combination of factors impacting Barrick Gold. The company reported a significant increase in their year-end 2024 gold and copper reserves, largely driven by the conversion of resources from the Reko Diq and Lumwana Super Pit projects into reserves. Despite this positive development, there are concerns about potential risks to near-term production.
Specifically, production challenges are anticipated at the Loulo-Gounkoto mine in Mali, which is currently halted, and the Pueblo Viejo mine in the Dominican Republic facing ramp-up difficulties. Meanwhile, the gold reserve price assumption has been increased, aligning with industry peers, which reflects higher long-term input costs. While the updates to reserves are positive, these operational challenges and risks have led to the maintenance of a Neutral, or Hold, rating, as the stock is close to its price objective of $18.00.