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Warren Buffett was drawn to Barrick Gold for all the usual reasons

Michael McCrae

Kitco News

Barrick Gold's moat makes the company a natural fit for Warren Buffett and his investment philosophy, said Kitco's special correspondent Paul Harris during the Kitco Podcast recorded on Friday.

Harris was joined by Kitco editor Neils Christesen and mining audiences manager Michael McCrae. Special guests were the executive team from American Pacific Mining (CSE:USGD), CEO Warwick Smith and president and director Eric Saderholm.

Buffett has long been drawn to company's that have a structural advantage--businesses that can escape competition and demand higher prices.

Harris said Barrick doesn't have a classic moat, but rather put itself "within its own realm" with its decade-long production pipeline, high margins, and strong assets in stable mining jurisdictions like Nevada.

"It does have a moat where it differentiates itself from other companies and makes itself a very investable proposition," said Harris.

The panel also talked gold volatility, the coup in Mali, strategic metals at Pebble and junior-miner partnerships.

By Michael McCrae

For Kitco News

Contact mmccrae@kitco.com
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