Barrick Gold Corp. (TSX:ABX) is increasing its dividend by 14% as the company benefits from the run up in gold prices.
Barrick Chief Executive Officer Mark Bristow said gold has more room to go higher on a real-dollar basis, but the company will continue to make decisions based on a long-term price of $1,200 U.S. an ounce.
Barrick is the world’s second-largest producer of gold, and the price of gold has shot past its record set in September 2011 and is currently trading above $2,000 U.S. an ounce.
Barrick said in its second-quarter earnings statement that it will increase its quarterly cash dividend by 14% to eight cents a share. Barrick’s stock price is up 56% this year to just under $30 per share.
On an earnings call, Bristow said Barrick will continue to pursue deal-making, but its overall acquisition strategy won’t change because of higher gold prices. The company’s adjusted earnings came in at 23 cents a share versus the average analyst estimate of 18 cents. Barrick reiterated it’s on track to meet its guidance for 2020 production estimated at a range of 4.6 million to five million ounces of gold.
