Chilean Problems Won’t Hurt Barrick Gold Corporation (USA) (ABX)

However, Silver Wheaton has made arrangements to purchase silver from three other Barrick Gold Corporation (USA) (NYSE:ABX) mines if the Pascua-Lama project does not start in time. These mines are Lagunas Norte, Pierina and Veladero. When commenting on the Pascua-Lama delay, Silver Wheaton has stated that it is sure these three mines would deliver the necessary amount of silver — should the Pascua-Lama project be late — on time. I think that Silver Wheaton Corp. (USA) (NYSE:SLW) is out of danger. Silver Wheaton’s unique business model presents a wonderful way to play silver if you are bullish on this metal.

Fluor Corporation (NEW) (NYSE:FLR) was awarded a construction contract on the project. Pascua-Lama is a big project, but it is one of many for Fluor. The company serves energy, chemicals, industrial, infrastructure, life science, mining, power and transportation sectors. The delay of Pascua-Lama would not be a major drag on Fluor’s earning power. The company is trading with an attractive forward P/E of 13.6. Fluor Corporation (NEW) (NYSE:FLR) is well positioned to profit from the improvement of the world’s economy.

Bottom line

Gold miners face big pressure this year. Barrick Gold Corporation (USA) (NYSE:ABX) is one of the biggest gold miners of the world. The company has a diversified portfolio of mines. The delay of such a big project is unpleasant news, but it is already reflected in the stock price. The company is trading at a very attractive forward P/E of 5.7. It pays a healthy 4.2% dividend. Barrick Gold is well positioned to profit when gold prices recover. Don’t be afraid of the Pascua-Lama problems. Consider adding Barrick Gold to your portfolio.

Vladimir Zernov has no position in any stocks mentioned. The Motley Fool owns shares of Fluor. Vladimir is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Chilean Problems Won’t Hurt Barrick originally appeared on Fool.com and is written by Vladimir Zernov.

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