{"id":310763,"date":"2025-11-27T18:41:09","date_gmt":"2025-11-27T18:41:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/310763\/"},"modified":"2025-11-27T18:41:09","modified_gmt":"2025-11-27T18:41:09","slug":"some-money-managers-bullish-amid-flurry-of-news","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/310763\/","title":{"rendered":"Some money managers bullish amid flurry of news"},"content":{"rendered":"\n

Executive shakeups, an activist investor, a review that could split up the company, and a report of a nine-figure payment to a West African government under a military regime. Barrick Mining (ABX.TO<\/a>)(B<\/a>) has racked up an hefty volume of headlines in recent weeks, leaving shareholders to guess at what the company will look like when the dust settles.<\/p>\n

Despite the chaos, Barrick\u2019s Toronto-listed stock<\/a> is up over 150 per cent year-to-date, owing largely to gold\u2019s (GC=F<\/a>) ripping run in 2025. Of course, shares of smaller and less newsworthy peers like Kinross Gold (K.TO<\/a>)(KGC<\/a>) have risen nearly 200 per cent.<\/p>\n

Canadian money managers say this gap, rallying gold prices, and the potential for transformational changes at Barrick, from the boardroom to boots on the ground, create a compelling investment opportunity in one of the world\u2019s top gold producers.<\/p>\n

Colin Cieszynski, chief market strategist at Calgary-based SIA Wealth Management, says Barrick\u2019s stock is known as a perpetual laggard. Much to his surprise, a technical breakout, when a stock moves decisively above a key resistance level, put the stock on his radar as a buy in September.<\/p>\n

\u201cThe very first thing we were saying in our investment committee was, \u2018I can\u2019t believe this. But we think Barrick is a buy for the first time in forever,\u2019\u201d Cieszynski told Yahoo Finance Canada. \u201cClearly, there has been a major change in sentiment toward Barrick. It has broken out to its highest levels in at least 15 years, and continues to rally.\u201d<\/p>\n

The stock\u2019s recent rise has been coupled with big changes in Barrick\u2019s boardroom, and beyond.<\/p>\n

On Wednesday, the company provided no reason for the announcement of the\u00a0departure of Ben van Beurden<\/a>, a lead independent director who had\u00a0joined in May. In September, Barrick abruptly cut ties with CEO Mark Bristow<\/a>. Company veteran Mark Hill is leading on an interim basis.<\/p>\n

Craig Aucoin, a portfolio manager at ValueTrend Wealth Management, calls Bristow\u2019s sudden departure \u201cconcerning.\u201d He says he purchased Barrick shares for clients eight months ago.<\/p>\n

\u201cWe reduced the position in half about a month ago. That was just based on the price movement. We\u2019re keeping half thinking that there\u2019s still opportunity there,\u201d Aucoin said in an interview.<\/p>\n

Earlier this month, Barrick announced a companywide operational review of its assets. This followed pressure from activist investor Elliott Investment Management to unlock value for shareholders by splitting up the company\u2019s North American assets from its riskier international mines. Florida-based Elliott reportedly has a roughly $1 billion stake in Barrick.<\/p>\n

Story continues <\/p>\n

\u201cWith these initiatives that they\u2019re taking, the stock will get a boost,\u201d Aucoin said.<\/p>\n

\u201cThey have a greater asset base to break up to recognize value than in the past,\u201d he added. \u201cI think the bankers will have some fun with Barrick, and recognize some value for shareholders.\u201d<\/p>\n

On Tuesday, Bloomberg News reported Barrick will pay US$430 million to settle a dispute with the government of Mali in order to resume operations at its mines in the West African country, which have been shuttered for two years.<\/p>\n

\u201cAll charges brought against Barrick, its affiliates and employees will be dropped and the legal steps for the release of the four detained Barrick employees will be undertaken,\u201d Barrick stated in a Nov. 24 news release, without confirming a financial settlement.<\/p>\n

Ross Healy, chairman at Toronto-based research firm Strategic Analysis Corporation, says Barrick\u2019s troubled Mali operation has been extremely costly for the company.<\/p>\n

\u201cBarrick has lagged way, way, way behind the other gold companies,\u201d he told Yahoo Finance Canada. \u201cMali has been an enormous drag.\u201d<\/p>\n

Healy holds no Barrick shares for clients. He says regardless of the company\u2019s actions, shareholders can count on gold prices pushing higher, as the Federal Reserve continues to raise America\u2019s national debt to record highs.<\/p>\n

\u201cMy suspicion is that most of the gain the company has had so far this year is on gold. Never mind all the other bits and pieces,\u201d Healy said.<\/p>\n

\u201cIf Barrick can shuck off the baggage of Mali, the stock would do well,\u201d he added. \u201cMy inclination would be very strong to hold on, and hope the Barrick board does the right thing.\u201d<\/p>\n

On Wednesday, TD Cowen analyst Steven Green published a research note on Barrick, declaring it a \u201ctop idea for 2026.\u201d He has a $46 price target on New York-listed shares, with a \u201cbuy\u201d rating.<\/p>\n

\u201cWe believe there is significant value to be unlocked at Barrick, as it undergoes a management transition, through potential portfolio streamlining or reorganizing, increased capital returns, and renewed focus on North America,\u201d Green wrote.<\/p>\n

\u201cThe stock continues to trade at a discount to peers, which is unwarranted given the strategic value and upside in their Fourmile discovery and in Nevada in general.\u201d<\/p>\n

Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on X @jefflagerquist<\/a>.<\/p>\n

Download the Yahoo Finance app, available for Apple<\/a> and Android<\/a>.<\/p>\n