BofA/Merrill Lynch analyst Michael Jalonen reiterated a Neutral rating on Barrick Gold (NYSE: ABX) with a price target of $16.50 following a Q3 EPS beat on higher gold sales and lower cash costs.

Jalonen notes for 2014, Barrick tightened its gold production forecast to 6.1-6.4mn ozs from 6.0-6.5mn oz. Adjusted operating costs were maintained at $580-$630/oz for 2014. However, AISC was reduced from $900-$940/oz to $880-$920/oz, the second reduction in AISC cost guidance in 2014.

Net debt improved quarter-over-quarter and the company Barrick set out a number of priorities to drive shareholder value. These include: 1) Operational excellence; 2) Best asset and regions (focus on best assets in core regions); 3) Strong partnerships (with governments, suppliers and local communities); 4) Financial flexibility (restore balance sheet to a position of strength); and 5) Focus on returns (improve free cash flow generation and returns through operating efficiencies)

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Shares of Barrick Gold closed at $12.83 yesterday.