Barrick Gold Corp is back on top as Canada’s best-performing stock and the world’s most valuable gold company – FINANCIAL NEWS-ecozik.com
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Barrick Gold Corp is back on top as Canada’s best-performing stock and the world’s most valuable gold company

Barrick's stock is benefiting from the run up in gold more than its competitors because of its high debt.

Barrick Gold Corp. has surged to become Canada’s best-performing stock as a two-month rally within the rare metal gives added lift to the company’s turnaround efforts.

Barrick’s shares are up 29 per cent this year in Toronto, which makes it the best-performing stock on the Standard & Poor’s/TSX Composite Index. It’s also overtaken its two biggest competitors, Goldcorp Inc. and Newmont Mining Corp., in market capitalization, allowing it to reclaim the title of the world’s best gold company.

“Guys like me, in the pub, we had given Goldcorp the crown within the senior sector,” Barry Allan, an analyst with Mackie Research Capital Corp., said by phone from Toronto. “And Barrick actually pulled some rabbits from a hat. Not enough to get these to nirvana however they were seriously making some hard moves plus some hard calls.”

In the last year, those hard calls have included a lot more than US$3-billion worth of asset sales and joint ventures as well as aggressive cost cuts. That helped the company achieve its target of cutting its US$13.1-billion debt by $3 billion in 2015. Longer term, the goal would be to pare operations back to roughly a half-dozen core mines in the Americas that may withstand reduced gold prices compared to those seen today.

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