TORONTO - Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) has announced an exploration earn-in agreement with Geophysx Jamaica Ltd., marking a significant expansion into Jamaica's underexplored territories. The agreement grants Barrick access to around 4,000 square kilometers of land with geological features similar to those found in the Dominican Republic, where Barrick operates the Pueblo Viejo mine.
Under the terms of the partnership, Barrick can earn up to an 80% joint venture interest in certain properties by meeting specific spending and study-deliverable milestones. Barrick will serve as the operator, working in conjunction with Geophysx's local expertise and resources.
Geophysx, a leading mineral exploration entity in Jamaica, has been conducting comprehensive exploration activities over the last six years, including geochemical sampling, geological mapping, and advanced airborne geophysical surveys. These efforts have provided a substantial dataset that will help the two companies rapidly advance to target definition and potentially expedite new resource discoveries.
Barrick's President and CEO, Mark Bristow, expressed enthusiasm for the partnership, highlighting the opportunity to leverage both companies' strengths to uncover new world-class discoveries in Jamaica and contribute to the country's and local communities' prosperity.
Robert "Bobby" Stewart, Founder and Managing Director of Geophysx, shared his excitement about the collaboration, noting Barrick's alignment with Geophysx's commitment to environmentally responsible exploration and mining. Stewart also emphasized the potential economic benefits for Jamaica stemming from the partnership.
The collaboration aligns with Barrick's strategy to explore new geographic areas with prospective mineral wealth, as well as Geophysx's established presence and expertise in Jamaica.
Investors and media seeking further information can contact Kathy du Plessis at Barrick Gold Corporation. This announcement is based on a press release statement and contains forward-looking information regarding Barrick's exploration initiatives and potential outcomes. These forward-looking statements involve risks and uncertainties, as detailed in the cautionary statement provided by Barrick.
InvestingPro Insights
Barrick Gold Corporation's (NYSE:GOLD) strategic move into Jamaica comes at a time when the company's financial metrics reflect a stable foundation for such expansionary efforts. With a market capitalization of 29.15 billion USD, Barrick is positioned as a significant player in the gold mining sector.
The company's P/E ratio stands at 23.08, indicating a valuation that is reasonable when aligned with its near-term earnings growth potential. This is further substantiated by a low PEG ratio of 0.12 for the last twelve months as of Q4 2023, suggesting that the stock may be undervalued relative to its earnings growth.
Barrick Gold's commitment to shareholder returns is evidenced by its impressive track record of maintaining dividend payments for 38 consecutive years. Moreover, the company has managed to keep its financial health in check, with liquid assets surpassing short-term obligations and operating with a moderate level of debt.
These factors, combined with a gross profit margin of 30.4% for the last twelve months as of Q4 2023, paint a picture of a company that is not only profitable but also prudently managed.
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