Gold price recovery helps Barrick declare dividend

Canada’s Barrick (TSX, NYSE: ABX), the world’s biggest gold producer, said Wednesday the board has declared a dividend for the quarter of US 2 cents per share, payable on March 15 this year.

As most of its peers, the Toronto-based miner has benefitted from a gold price recovery, which are up 13% this year and has risen about 7% this month alone.

Barrick’s shares have climbed 58% since Jan. 4 and the company became the Toronto Stock Exchange’s top gainer in January.

Barrick’s board has declared a dividend for the quarter of US 2 cents per share, payable on March 15.

The pick-up in gold price and demand, combined with the idea that the commodity may be recession-proof, is a boon for precious metals producers, which have struggled for profitability in recent times.

But experts warn the rally may only be a short-term event. Goldman Sachs analysts say it will sink as far as US$1,000, while others are hedging on whether the metal is a good bet.

Barrick is set to report fourth-quarter results after markets close on Wednesday.