Barrick Gold $GOLD Bullish Option Flow Detected After Stock Price Decimated

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GuerillaStockTrading has detected a whale trade in Barrick Gold $GOLD on July 24, 2022.

The $25 call with January 20, 2023, strike date has seen a consistent uptrend in Open Interest.

Gold Option Chart

GuerillaStockTrading detected bullish option flow in $GOLD stock on Friday, July 22, 2022.

Gold Option Flow

Make sure to review this lesson on option flow so that you understand the image above.

Notice the action in the September 16, 2022, $16 call with a value worth $99,000. We see volume and Open Interest surging higher.

Gold Sept Otion Contract

The bullish option flow and whale trades in $GOLD stock may have to do with the company working on a deal with Pakistan.

Barrick Gold price target lowered to C$35.25 from C$41 at Stifel

On July 20, 2022, Stifel analyst Ingrid Rico dropped the firm’s price target on $GOLD to C$35.25 from C$41 but kept a Buy rating on the shares.

Barrick Gold price target lowered to $25 from $28 at Barclays

On July 19, 2022, Barclays analyst Matthew Murphy lowered the firm’s price target on $GOLD to $25 from $28 but kept an Overweight rating on the shares. Murphy tells investors in a research note that copper equities are “reflecting better value at these levels,” but they still face headwinds on both macro and fundamental levels. The analyst is “becoming less negative” but expects margin pressure to continue.

Reko Diq Alliance Between Pakistan and Barrick Set to Create Long-Term Value

On July 18, 2022, Finance Minister Miftah Ismail and Barrick president and chief executive Mark Bristow said that they shared a vision of the national strategic importance of the Reko Diq copper-gold project and were committed to developing it as a world-class mine that would create value for the country and its people through multiple generations.

Reko Diq is one of the world’s largest undeveloped copper-gold deposits. An agreement in principle reached between the government of Pakistan, the provincial government of Balochistan, and Barrick earlier this year provides for the reconstitution and restart of the project, which has been on hold since 2011. It will be operated by Barrick and owned 50% by Barrick, 25% by the Balochistan Provincial Government, and 25% by Pakistani state-owned enterprises.

Teams from Barrick and Pakistan are currently finalizing the definitive agreements underlying the framework agreement. Once this has been completed and the necessary legalization steps have been taken, Barrick will update the original feasibility study, a process expected to take two years. Construction of the first phase will follow that, with the first production of copper and gold expected in 2027/2028.

“During the negotiations, the federal government and Barrick confirmed that Balochistan and its people should receive their fair share of the benefits as part of the Pakistan ownership group,” Bristow said.

“At Barrick, we know that our long-term success depends on sharing the benefits we create equitably with our host governments and communities. At Reko Diq, Balochistan’s shareholding will be fully funded by the project and the Federal Government, allowing the province to reap the dividends, royalties, and other benefits of its 25% ownership without having to contribute financially to the project’s construction or operation. It’s equally important that Balochistan and its people should see these benefits from day one. Even before construction starts, when the legalization process has been completed, we will implement a range of social development programs, supported by an upfront commitment to the improvement of healthcare, education, food security, and the provision of potable water in a region where the groundwater has a high saline content.”

Finance Minister Ismail said the development of Reko Diq represented the most significant direct foreign investment in Balochistan and one of the largest in Pakistan.

“Like Barrick, we believe that the future of mining lies in mutually beneficial partnerships between host countries and world-class mining companies. The Reko Diq agreement exemplifies this philosophy and also signals to the international community that Pakistan is open for business,” he said.

Subject to the updated feasibility study, Reko Diq is envisaged as a conventional open pit and milling operation, producing a high-quality copper-gold concentrate. It will be constructed in two phases, starting with a plant that will be able to process approximately 40 million tonnes of ore per annum which could be doubled in five years. With its unique combination of large scale, low strip, and a good grade, Reko Diq will be a multi-generational mine with a life of at least 40 years. During peak construction, the project is expected to employ 7,500 people, and once in production, it will create 4,000 long-term jobs. Barrick’s policy of prioritizing local employment and suppliers will positively impact the downstream economy.

📺 INSIDER ALERT – Why I Just Made This Investment Move in Precious Metals

📉 Barrick Gold $GOLD Chart

The chart of $GOLD is in a strong downtrend. It is too early to take a long position in the stock. The price is below all the moving averages, and the TTM Squeeze bands are still giving a bearish signal. While I have a long-term buy-and-hold position in gold, it’s still too early to take a long position in $GOLD stock, IMO.

Gold Barchart Interactive Chart
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