Barrick Gold Stocks: These Factors Make It A Great Buy Today
Barrel gold (TSX: ABX) (NYSE: GOLD) is engaged in the exploration, mining development, production and sale of gold and copper properties. In 2020, the company met Barrick Gold production targets, generated strong operating cash flow of $ 5.4 billion and set a new annual record of $ 3.4 billion in cash flow available, which has grown more than nine-fold over the past two years.
The company’s focus on strategic assets unlocked significant synergies and opportunities and achieved $ 1.5 billion through the sale of secondary interests. The Barrick-led establishment of the Nevada Gold Mines Joint Venture established the largest gold mining complex in the world under the leadership of the company and added a sixth tier-one mine to the company’s portfolio in the form of the combined operation of Turquoise Ridge and Twin Creeks.
In Tanzania, Barrick has solved many production issues and is currently building a potential tier one complex there. The company has established Lumwana as a profitable long-lived copper mine in Zambia. In Canada, Barrick is working to transform a previously precarious operating mine into a robust level two operation.
None of this could have been achieved without a strong, globally proven management philosophy based on an appropriate organizational structure with lean regional management teams. Barrick’s decentralized structure, one of the most suitable in the extractive industry for its size, promotes high performance and agile and efficient decision-making, provides the business leader with direct access to operational operations and enables regional management teams to achieve the business objectives of the service.
Barrick has more than 20,000 employees and 23,000 contractors in company operations in 13 countries around the world. The company seeks to make an employee’s job safer and more rewarding every day. Barrick’s Board of Directors believes that a modern mining company needs people who share the company’s vision and values, who are entrepreneurial and profit-oriented, and responsive to technological and societal advancements. Through Barrick’s Talent Development Framework, the company is building an effective multicultural and multigenerational workforce capable of leading Barrick into the future.
For most companies, environment, social and governance (ESG) is an issue that has only recently moved from margins to the heart of investment decision making and therefore operational management. For Barrick, however, sustainability has long been an integral part of the way it does business. In fact, ESG principles are deeply rooted in organizational culture.
Focused on sustainability
The effectiveness of Barrick’s ESG strategy, which is based at all levels on a long-established partnership philosophy and close relationship with all stakeholders, from investors to host communities, has been a key factor in the performance of Barrick last year. This was particularly evident in the company’s successful COVID-19 containment programs, which have mitigated the impact of the pandemic on the company’s businesses and people and enabled it to provide much-needed and welcome support to countries. Barrick hosts.
Overall, Barrick has a clear roadmap for reducing greenhouse gas emissions, which is based on climate science and operational realities rather than aspirations. All of the company’s operations are in transition to cleaner and more efficient sources of energy.
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The Motley Fool has no position in any of the stocks mentioned. Foolish contributor Nikhil Kumar has no position on any of the stocks mentioned.