Barrick Gold’s Lessons Learnt: No More Ounces for Their Own Sake?

During its investor day on February 22, Barrick Gold’s (ABX) chairman, John Thornton, mentioned that its goal is to grow the free cash flow per share rather than growing “ounces for their own sake.” He added that the company has examined and passed on a range of external opportunities in 2017. Barrick acquired Equinox Mineral for $7.3 billion, with a major asset of a copper mine in Zambia. Thornton stated during the investor day call, “When times are good, companies overpay for mediocre assets and invest in projects with low returns.