Barrick Gold (ABX) Message Board

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Gold/Mining/Energy : Barrick Gold (ABX)

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To: nickel61 who wrote (1925)	1/12/2000 5:05:00 PM
From: Exsrch	of 3558

Nickel61, I haven't been following this thread recently. However, it seems you have a pretty good point that ABX's cost are no different than any large producer (adding capex, explr, etc). Your note says that ABX realized $400 per ounce on the revenue side. If I subtract your estimate of the cost, $305, from $400 (1999 realized gold price)than ABX is making $95 per ounce sold. Is that right? I thought ABX was a shitty colluding, manipulating unprofitable company? I don't understand? Can you help? I did some back of the envelop calc and the follow confuses me even more: - ABX is debt free (for all intent and purposes) - If I scale (mathematically) the percentage of capex to peer companies (as percentage of reserves, revenue, ounces produced etc) ABX is spending in some cases 500% more while showing robust earning growth. While peer companies are doing poorly (operationally not by stock price) - Effectively ABX functions and meets all its obligations from internal cash flow (free cash flow). - Why are they operationally so good? - How do they make $95 an ounce when everyone else is losing money? - If ABX's stock price is lagging does this mean that ABX is the best buy? Your help is much appreciated. Exsrch

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