Latest news with #Barrick
Yahoo
2 days ago
- Business
- Yahoo
Investors: How to Benefit From Surging Gold Prices
Written by Demetris Afxentiou at The Motley Fool Canada When market volatility hits, seasoned investors often turn towards the perceived safety of precious metals. That presents an opportunity for those investors to benefit from surging gold prices. Here's a look at some of the ways you can benefit from those surging gold prices without being exposed to significant risk. Opportunities are growing Economic uncertainty leads to surging gold prices. It's no coincidence, then, that gold prices are up an astonishing 26% year-to-date to over US$3,330 per ounce. This presents an opportunity for investors to consider because of those surging gold prices. Two options for investors to consider right now are Wheaton Precious Metals (TSX:WPM) and Barrick Mining Corporation (TSX:ABX). Both of these stocks can offer a different take on how to benefit from the current gold rally we're seeing unfold. Meet Barrick Barrick is a traditional miner and one of the largest gold miners on the planet. The company has a well-diversified portfolio of 18 active mines on four continents. Barrick also boasts a number of projects currently under exploration and development. Traditional miners like Barrick earn profits by selling off the precious metals produced from their mines. The cost of mining is largely fixed, whereas the price at which those extracted metals sell is based on the market. In other words, as gold prices rise, Barrick becomes more profitable. That's a key reason why Barrick is a great option for investors looking to benefit from surging gold prices. By extension, it's also the reason why Barrick's stock price has soared a whopping 32% this year. In fact, in the most recent quarter, Barrick posted an incredible 59% increase in net earnings when compared to the prior year. The company also reported free cash flow of $375 million in the quarter. That stellar performance helped Barrick trim 5% of its net debt in the quarter. Prospective investors looking at Barrick should also note that the company offers a quarterly dividend. As of the time of writing, the yield on that dividend works out to 1.9%. Meet Wheaton While Barrick provides the direct operational upside, Wheaton provides an alternative, lower-risk option for investors. Part of the reason for that is because Wheaton is a precious metals streamer. Streamers like Wheaton do not own or operate precious metal mines. Instead, they provide upfront capital to traditional miners, who will then set up the mine and begin operations. In exchange for that upfront capital, streamers are permitted to purchase an amount of the metals that are produced from the mine at discounted rates. Let's clarify that further – streamers purchase those metals at extremely discounted rates. As mentioned above, the spot price for gold currently sits just over US$3,3300 per ounce. For silver, the market price is US$38 per ounce. The price that streamers like Wheaton pay for an ounce of gold sits near US$450 per ounce. Turning to silver, that number is near US$4.00 per ounce. In other words, Wheaton benefits from the market rally like Barrick, but has the bonus of considerably lower risk. And like Barrick, Wheaton also pays out a quarterly dividend, although its dividend currently sits at a yield of 0.7%. That being said, prospective investors should note two key points about Wheaton's dividend. First, the dividend is based on the average operating cash flow from the prior four quarters. This means that investors can expect a bump if the current surge continues. Second, the dividend is well supported, with a payout ratio of just 33% of cash flow. Again, this leaves room for growth. Will you benefit from surging gold prices? No stock is without risk. Both Wheaton and Barrick offer investors a unique opportunity to buy into the surging precious metals market. In my opinion, a small position in one or both of these stocks would do well in any larger, well-diversified portfolio. The post Investors: How to Benefit From Surging Gold Prices appeared first on The Motley Fool Canada. Should you invest $1,000 in Barrick Gold right now? Before you buy stock in Barrick Gold, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Barrick Gold wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $24,927.94!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 3 Canadian Companies Powering the AI Revolution A Commonsense Cash Back Credit Card We Love Fool contributor Demetris Afxentiou has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025
Business Recorder
3 days ago
- Business
- Business Recorder
USA's Fluor gets final go-ahead for Reko Diq project in Pakistan
Fluor Corporation, an American engineering and construction firm, has received final notice to proceed from Barrick Mining Corporation on its Reko Diq Project in Balochistan, Pakistan. The company, headquartered in Texas, was selected as Barrick's lead engineering, procurement and construction management (EPCM) partner in April 2025 and recognised its portion of the undisclosed contract in the second quarter, Fluor said in a statement on Tuesday. 'Fluor and Barrick share a strong commitment to delivering large-scale mining projects safely, responsibly and efficiently,' said Harish Jammula, President of Fluor's Mining & Metals business. 'Reko Diq will be a major contributor to Pakistan's economy, which is expected to have a transformative impact on Balochistan province. The mine will create jobs, stimulate regional economic growth and support long-term investment in development programs.' 'Fluor's selection as our EPCM partner strengthens our ability to execute the Reko Diq project with the technical rigor, operational discipline and socio-environmental responsibility that are hallmarks of both companies,' said Mark Bristow, President and CEO of Barrick. 'We look forward to working closely with Fluor to ensure that Reko Diq delivers lasting value to the equity partners, both local and international, as well as the many in-country stakeholders, including the people of Balochistan and Pakistan.' Japan's Komatsu to establish $100mn maintenance facility in Karachi: report Barrick Gold owns a 50% stake in the Reko Diq mine and the governments of Pakistan and the province of Balochistan own the other 50%. The mines are considered one of the world's largest underdeveloped copper-gold areas, and their development is expected to have a significant impact on Pakistan's economy. According to Fluor, Reko Diq is a generational project that is expected to have a life that will extend well beyond 40 years as a truck-and-shovel open pit operation with processing facilities producing a high-quality copper-gold concentrate. The project will comprise multiple open pit mines and associated infrastructure, concentrate process facilities and a transportation network for moving goods, consumables and concentrate between the site and port. Construction will begin later this year and will be built in two phases. First production is targeted for 2028. When fully operational, the site will be capable of a total throughput of 90 million tonnes per annum.
Yahoo
3 days ago
- Business
- Yahoo
Will Higher Expected Costs Put a Dent in Kinross Gold's Margins?
Kinross Gold Corporation KGC saw a roughly 6% year-over-year rise in production costs of sales per ounce to $1,043 in the first quarter. All-in-sustaining costs (AISC), a key indicator of cost efficiency in mining, rose nearly 3% year over year to $1,355 per gold equivalent ounce sold. While KGC's margins benefited from a 9% rise in average realized gold prices to $2,857 per ounce in the quarter, the rise in unit costs underscores a spike in guidance indicates cost pressures to intensify throughout 2025, with the company expecting full-year AISC per gold equivalent ounce to reach $1,500 and production cash costs to be around $1,120 per ounce. Costs are expected to rise in the remaining quarters of 2025 due to weaker expected production and inflationary impacts. Also, higher sustaining capital spending and accounting changes to reflect stripping costs at Round Mountain Phase S and Fort Knox Phase X as operating costs are expected to push up unit costs. Among its peers, Barrick Mining Corporation B faced cost pressure in the March quarter. Barrick saw a 22% sequential increase in AISC, reaching $1,775 per ounce. This upside was influenced by operational challenges, higher total cash costs per ounce and an uptick in minesite sustaining capital expenditures. Lower production, partly due to the suspension of operations at Barrick's Loulo-Gounkoto mine, also contributed to the rise. For 2025, Barrick projects AISC in the range of $1,460-$1,560 per ounce, indicating a year-over-year increase at the midpoint. Newmont Corporation's NEM first-quarter 2025 results also showed increases in unit costs. Newmont's gold costs applicable to sales (CAS) rose 16% year over year to $1,227 per ounce. AISC was $1,651 per ounce for the same period, reflecting a roughly 13% sequential and 15% year-over-year increase. The rise was attributed to a decline in production due to non-core asset divestments as Newmont shifts its focus to Tier 1 assets. Kinross' modest cost uptick in the first quarter reflects early signs of inflation-driven pressure. While KGC's AISC remained lower in absolute terms compared with Barrick and Newmont in the first quarter, higher expected costs in the remainder of 2025 signal margin compression risks. The Zacks Rundown for KGC Kinross Gold's shares have shot up 73.6% year to date against the Zacks Mining – Gold industry's rise of 58.7%, largely driven by the gold price rally. Image Source: Zacks Investment Research From a valuation standpoint, KGC is currently trading at a forward 12-month earnings multiple of 11.72, a 7.9% discount to the industry average of 12.73X. It carries a Value Score of A. Image Source: Zacks Investment Research The Zacks Consensus Estimate for KGC's 2025 and 2026 earnings implies a year-over-year rise of 94.1% and 7.5%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days. Image Source: Zacks Investment Research KGC stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Newmont Corporation (NEM) : Free Stock Analysis Report Kinross Gold Corporation (KGC) : Free Stock Analysis Report Barrick Mining Corporation (B) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
TimesLIVE
24-07-2025
- Business
- TimesLIVE
China's Zijin in lead to buy Barrick's Ivory Coast Tongon gold mine: sources
Its interest in Tongon comes after Chinese state-owned enterprises have invested more than $50bn (R880.91bn) in African mining projects since 2010, with a strong focus on bauxite, copper, cobalt, and gold. One of the sources, a mining industry executive, said Zijin is leading the bidding for Tongon due to its deep financial resources, adding that the asset is valued at around $300m (R5.29bn) and that Zijin is expected to offer significantly more to secure it, potentially up to $500m (R8.81bn). A second mining executive confirmed Zijin's lead but said a local Ivorian company, which he declined to name, was also in contention. The executive added that Zijin did not appear to favour forming a partnership to acquire the Tongon mine, despite that being the Ivorian government's preferred option. Zijin did not respond to a request for comment. Officials at the Ivory Coast ministry of mines said they did not have up-to-date information on the proposed sale, declining to comment further on the government's requirements for the deal. A final decision on the winning bidder is expected later this month, pending regulatory approval, the first executive said. The deal could also fall through or be delayed. Barrick has been reshaping its portfolio, completing a $1bn (R17.62bn) sale of its 50% stake in the Donlin Gold Project in Alaska and agreeing to divest its historic Hemlo mine in Canada, marking its exit from domestic gold production. In Mali, a military helicopter airlifted gold from the Loulo-Gounkoto site earlier this month, just days after a court-appointed administrator announced plans to sell bullion from the facility to fund operations. Zijin took a 9.9% stake in Canada-based Montage Gold , which is developing the Koney Gold project in Ivory Coast last July before paying $1bn for Newmont's Akyem gold mine in October. Barrick holds an 89.7% stake in Tongon, with the Ivorian state owning 10% and local investors holding the remaining 0.3%.
Yahoo
24-07-2025
- Business
- Yahoo
Barrick Mining's Cash-Fueled Capital Return Strategy Signals Upside
Barrick Mining Corporation B is harnessing its robust cash flow and healthy balance sheet to reward its shareholders, reinforcing its position as a capital return-focused gold producer. It generated strong operating cash flows of roughly $4.5 billion in 2024, with a significant portion funneled back to investors. Barrick returned about $1.2 billion to its shareholders in 2024 through dividends and repurchases. Barrick's board, in February 2025, authorized a new program for the repurchase of up to $1 billion of its outstanding common shares. It repurchased shares worth $143 million under this program and paid dividends worth $172 million during the first quarter. The company's commitment to a sustainable base dividend, bolstered by performance-linked distributions, also reflects a disciplined approach to capital allocation. The performance-linked dividend policy enhances shareholder returns when its liquidity is strong. Barrick offers a dividend yield of 1.8% at the current stock price with a payout ratio of 28% (a ratio below 60% is a good indicator that the dividend will be sustainable). B ended the first quarter with cash and cash equivalents of around $4.1 billion. Barrick's solid liquidity position and healthy cash flow position it well to take advantage of attractive development and exploration opportunities while driving shareholder value. It has ample financial flexibility to continue returning capital while investing in organic its major peers, Newmont Corporation NEM has already delivered $1 billion to its shareholders through dividends and share repurchases since the beginning of 2025. Newmont generated a record free cash flow of $1.2 billion in the first quarter, reflecting strong financial health supporting growth initiatives and shareholder returns. Newmont is well-placed to strengthen its balance sheet and continue returning capital to its shareholders following the completion of its divestment Eagle Mines Limited AEM is capitalizing on robust free cash flow to aggressively enhance shareholder value through dividends and share repurchases. Last year, Agnico Eagle returned nearly $1 billion to its shareholders. In the first quarter, Agnico Eagle delivered a robust free cash flow of $594 million and returned around 42% of that through dividends and buybacks. B's Price Performance, Valuation & Estimates Barrick's shares have surged 39.4% year to date compared with the Zacks Mining – Gold industry's rise of 58.7%, courtesy of the gold price rally. Image Source: Zacks Investment Research From a valuation standpoint, B is currently trading at a forward 12-month earnings multiple of 9.81, a roughly 23.4% discount when stacked up with the industry average of 12.8X. It carries a Value Score of A. Image Source: Zacks Investment Research The Zacks Consensus Estimate for B's 2025 and 2026 earnings implies a year-over-year rise of 55.6% and 23.1%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days. Image Source: Zacks Investment Research B stock currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Newmont Corporation (NEM) : 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 Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
