Barrick Mining Gains 19% in 3 Months: Is it the Right Time to Buy?
B's 3-month Price Performance
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The B stock broke out above its 50-day simple moving average (SMA) on May 30, 2025. Barrick is also currently trading above its 200-day SMA, suggesting a long-term uptrend. The 50-day SMA is reading higher than the 200-day SMA since the golden crossover on April 9, 2025, indicating a bullish trend.
B Trades Above 50-Day SMA
Image Source: Zacks Investment Research
Let's take a look at Barrick's fundamentals to better analyze how to play the stock.
Key Projects to Underpin Production Growth for Barrick
Barrick is well-placed to benefit from the progress in key growth projects, which should significantly contribute to its production. Its major gold and copper growth projects, including Goldrush, the Pueblo Viejo plant expansion and mine life extension, Fourmile, Lumwana Super Pit and Reko Diq, are underway. These projects are advancing on schedule and within budget, laying the groundwork for the next generation of profitable production. The Goldrush mine is ramping up to the targeted 400,000 ounces of production per annum by 2028. Bordering Goldrush is the 100% Barrick-owned Fourmile, which is yielding grades double those of Goldrush and is anticipated to become another Tier One mine. The project has progressed to a prefeasibility study on the back of a successful drilling program. The Reko Diq copper-gold project in Pakistan is designed to produce 460,000 tons of copper and 520,000 ounces of gold annually in its second development phase. The first production is expected by the end of 2028. Also, the $2 billion Super Pit Expansion Project at its Lumwana mine is progressing steadily, accelerating its shift into a Tier One copper mine. Barrick recently stated that the Lumwana expansion is the result of a significant turnaround, transforming the mine from an underperforming asset into a vital part of both its global copper portfolio and Zambia's long-term development strategy.
Higher Gold Prices to Drive B's Margins and Cash Flow
Gold prices have rallied roughly 29% this year, largely attributable to aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump that have intensified global trade tensions and heightened investor anxiety. Also, central banks worldwide have been accumulating gold reserves, led by risks arising from Trump's policies. Gold prices shot up to a record high of $3,500 per ounce on April 22. While gold prices have fallen from their April 2025 high, they remain favorable, aided by geopolitical tensions, and are currently hovering near the $3,400 per ounce level. Increased purchases by central banks and geopolitical tensions are factors expected to help the yellow metal sustain the rally. Higher gold prices should translate into strong profit margins and free cash flow generation for Barrick.
Barrick's Strong Liquidity & Attractive Dividend Bode Well
Barrick has a solid liquidity position and generates healthy cash flows, positioning it well to take advantage of attractive development, exploration and acquisition opportunities, drive shareholder value and reduce debt. At the end of first-quarter 2025, Barrick's cash and cash equivalents were around $4.1 billion. It generated strong operating cash flows of roughly $1.2 billion in the quarter, up 59% year over year. Free cash flow surged to around $375 million in the first quarter from $32 million in the prior-year quarter. Barrick returned $1.2 billion to its shareholders in 2024 through dividends and repurchases. Barrick's board, in February 2025, authorized a new program for the buyback of up to $1 billion of its outstanding common shares. It repurchased shares worth $143 million under this program during the first quarter. Barrick offers a dividend yield of 1.8% at the current stock price. Its payout ratio is 28% (a ratio below 60% is a good indicator that the dividend will be sustainable), with a five-year annualized dividend growth rate of roughly 3%.
Barrick's Earnings Estimates Northbound
Earnings estimates for Barrick have been revised upward over the past 60 days. The Zacks Consensus Estimate for 2025 and 2026 has been revised higher over the same time frame. The Zacks Consensus Estimate for B's 2025 and 2026 earnings implies a year-over-year rise of 55.6% and 24.1%, respectively.
Image Source: Zacks Investment Research
A Look at Barrick Stock's Valuation
B stock is currently trading at a forward price/earnings of 10.12X, a roughly 24.8% discount to the industry's average of 13.45X. It also has a Value Score of A. Barrick is also trading at a discount to Newmont, Agnico Eagle and Kinross Gold.
B's P/E F12M Vs. Industry, NEM, AEM & KGC
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How Should Investors Play the B Stock?
Barrick presents a compelling investment case with a strong pipeline of growth projects, solid financials, rallying gold prices and a healthy growth trajectory. Its actions to boost production, rising earnings estimates, attractive valuation and a safe dividend yield paint a promising picture. Higher gold prices should boost its profitability and drive cash flow generation. B's cheap valuation also offers an attractive entry point. Investors seeking exposure to the gold mining sector, particularly in a market environment that favors gold as a safe-haven asset, may find this Zacks Rank #1 (Strong Buy) stock a worthwhile addition as it has upbeat growth prospects. You can see the complete list of today's Zacks #1 Rank stocks here.
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Newmont Corporation (NEM) : Free Stock Analysis Report
Kinross Gold Corporation (KGC) : Free Stock Analysis Report
Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report
Barrick Mining Corporation (B) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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