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6 days ago
- Business
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Barrick Mining Eclipses 50-Day SMA: What Should Investors Do Now?
Barrick Mining Corporation's B stock broke out above its 50-day simple moving average (SMA) last Friday, flashing a bullish signal. The B stock has gained roughly 6% in a week. This comes on an uptick in gold prices due to heightened trade and geopolitical tensions, triggering safe-haven demand. The Trump administration's plan to double steel and aluminum tariffs to 50% has amped up trade tensions. Further, escalating Russia-Ukraine tensions have led to heightened geopolitical risks. The B stock 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. Image Source: Zacks Investment Research Barrick's shares have gained 20.3% over the past year, underperforming the Zacks Mining – Gold industry's 52.6% increase while outperforming the S&P 500's rise of 10.8%. Among its gold mining peers, Newmont Corporation NEM, Kinross Gold Corporation KGC and Agnico Eagle Mines Limited AEM have racked up gains of 34.6%, 97% and 85.3%, respectively, over the same period. Newmont's gains are partly aided by the strong production performance of its managed Tier 1 portfolio. Kinross Gold's impressive performance has been driven by its strong operational execution, advancement of growth strategy and consistent strong performance of Tasiast and Paracatu, its two biggest assets. Agnico Eagle's shares have performed remarkably on the bourses, thanks to its forecast-topping earnings performance, higher realized prices and strong production. Image Source: Zacks Investment Research Let's take a look at Barrick's fundamentals to better analyze how to play the stock. Barrick is well-placed to benefit from the progress in key growth projects that 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 being executed. 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 October 2024, Barrick announced the commencement of the development of a Super Pit at its Lumwana copper mine in Zambia. The Super Pit Expansion entails doubling the present process circuit's throughput and substantially boosting mining volumes. Upon completion, the $2 billion project has the potential to transform Lumwana into a long-term, high-yielding, top-25 copper producer and Tier One copper mine. The expansion is expected to deliver 240,000 tons of copper production annually over the life of the mine. Gold prices have rallied roughly 28% this year, courtesy of the aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump, 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. Prices of the yellow metal catapulted to a record high of $3,500 per ounce on April 22 amid President Trump's criticism of Federal Reserve Chair Jerome Powell and call for an immediate reduction in interest rates. Increased purchases by central banks, hopes of interest rate cuts, and geopolitical tensions are expected to support gold prices. Despite the pullback from the April high due to the U.S.-China trade negotiations, gold prices remain above the $3,300 per ounce level. Higher gold prices should translate into strong profit margins and free cash flow generation for Barrick. 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 repurchase 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 healthy dividend yield of 2% 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 5.1%. Barrick is challenged by higher costs, which may eat into its margins. Its cash costs per ounce of gold and all-in-sustaining costs (AISC) — the most important cost metric of miners — increased around 16% and 20% year over year, respectively, in the first quarter. AISC increased due to higher total cash costs per ounce and higher minesite sustaining capital expenditures. For 2025, the company projects total cash costs per ounce of $1,050-$1,130 and AISC in the range of $1,460-$1,560 per ounce. These projections suggest a year-over-year increase at the midpoint of the respective ranges. Increased mine-site sustaining capital spending and higher labor costs may lead to higher costs. The company provided a tepid forecast for 2025, with attributable gold production expected in the range of 3.15-3.5 million ounces, excluding production from Loulo-Gounkoto, which is temporarily suspended. While a potential restart of the mine would provide an upside, this projection suggests a year-over-year decline from 3.91 million ounces in 2024. Higher production from Pueblo Viejo, Turquoise Ridge, Porgera and Kibali, along with stable performance across Carlin and Cortez, is projected to be offset by reduced production across Veladero and Phoenix. Lower production is expected to weigh on the company's performance in 2025. Barrick's total gold production fell roughly 19% year over year to 758,000 ounces in the first quarter. 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. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Image Source: Zacks Investment Research B stock is currently trading at a forward price/earnings of 10.67X, a roughly 23.6% discount to the industry's average of 13.97X. It also has a Value Score of A. Barrick is also trading at a discount to Newmont, Agnico Eagle and Kinross Gold. Image Source: Zacks Investment Research Barrick's actions to boost production, robust financial health, rising earnings estimates, attractive valuation and a safe dividend yield paint a promising picture. Higher gold prices should also boost its profitability and drive cash flow generation. The stock trading above its 50-day SMA also suggests bullish momentum. However, its high costs and downbeat production outlook warrant caution. Therefore, retaining this Zacks Rank #3 (Hold) stock will be prudent for investors who already own it. You can see the complete list of today's Zacks #1 Rank (Strong Buy) 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 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
Yahoo
20-05-2025
- Business
- Yahoo
B vs. KGC: Which Gold Mining Stock is the Better Pick Now?
Barrick Mining Corporation B and Kinross Gold Corporation KGC are two prominent players in the gold mining space with global operations. While gold prices have fallen from their April 2025 highs amid U.S.-China trade negotiations and easing U.S. inflation, they remain favorable, aided by economic uncertainties, and are currently hovering above the $3,200 per ounce level. Amid this backdrop, comparing these two major gold producers is particularly relevant for investors seeking exposure to the precious metals the recent pullback due to easing trade tensions, gold prices have gained roughly 23% this year. The aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump, intensified global trade tensions and heightened investor anxiety, leading to the price rally. Also, central banks worldwide have been accumulating gold reserves, led by risks arising from Trump's policies. Prices of the yellow metal catapulted to a record high of $3,500 per ounce on April 22 amid President Trump's criticism of Federal Reserve Chair Jerome Powell and call for an immediate reduction in interest rates. Increased purchases by central banks, hopes of interest rate cuts, and geopolitical tensions are expected to support gold prices. Let's dive deep and closely compare the fundamentals of these two Canada-based gold miners to determine which one is a better investment now. Barrick is well-placed to benefit from the progress in key growth projects that 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 being executed. 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 a 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 October 2024, Barrick announced the commencement of the development of a Super Pit at its Lumwana copper mine in Zambia. The Super Pit Expansion entails doubling the present process circuit's throughput and substantially boosting mining volumes. Upon completion, the $2 billion project has the potential to transform Lumwana into a long-term, high-yielding, top-25 copper producer and Tier One copper mine. The expansion is expected to deliver 240,000 tons of copper production annually over the life of the 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 repurchase 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 healthy dividend yield of 2.2% 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 5.1%. Kinross has a strong production profile and boasts a promising pipeline of exploration and development projects. Its key development projects and exploration programs, including Great Bear in Ontario and Round Mountain Phase X in Nevada, remain on track. These projects are expected to boost production and cash flow and deliver significant value. KGC also completed the commissioning of its Manh Choh project and commenced production during the third quarter of 2024, leading to a substantial increase in cash flow at the Fort Knox and Paracatu, the company's two biggest assets, remain the key contributors to cash flow generation and production. Tasiast remains the lowest-cost asset within its portfolio, with consistently strong performance. Tasiast achieved record annual production and cash flow in 2024 and is on track to meet its full-year 2025 guidance. Paracatu saw a strong start to the year, with first-quarter production rising on strong grades and improved mill recoveries. KGC has a strong liquidity position and generates substantial cash flows, which allows it to finance its development projects, pay down debt and drive shareholder value. The company ended the first quarter with solid liquidity of roughly $2.3 billion. Kinross also generated record free cash flows of around $1.3 billion in 2024, driven by the strength in gold prices and strong operating margins. Free cash flow also more than doubled year over year to $370.8 million in the first quarter. KGC repaid $800 million of debt during 2024 and the remaining $200 million of its term loan in the first quarter, reducing its net debt to around $540 million. Its long-term debt-to-capitalization is 14.4% compared with Barrick's 12.3%. KGC also offers a dividend yield of 0.9% at the current stock price. It has a payout ratio of 14%, with a five-year annualized dividend growth rate of about -0.1%. Year to date, Barrick stock has gained 17.4%, while KGC stock has rallied 50.6% compared with the Zacks Mining – Gold industry's increase of 36.4%. Image Source: Zacks Investment Research Barrick is currently trading at a forward 12-month earnings multiple of 9.74, lower than its five-year median. This represents a roughly 28% discount when stacked up with the industry average of 13.57X. Image Source: Zacks Investment Research Kinross is trading at a premium to Barrick. The KGC stock is currently trading at a forward 12-month earnings multiple of 12.88, below the industry. Image Source: Zacks Investment Research The Zacks Consensus Estimate for B's 2025 sales and EPS implies a year-over-year rise of 15.2% and 34.9%, respectively. The EPS estimates for 2025 have been trending higher over the past 60 days. Image Source: Zacks Investment Research The consensus estimate for KGC's 2025 sales and EPS implies year-over-year growth of 13.9% and 52.9%, respectively. The EPS estimates for 2025 have been trending northward over the past 60 days. Image Source: Zacks Investment Research (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Both Barrick and Kinross are well-positioned to capitalize on the current gold price environment. Both have a strong pipeline of development projects, solid financial health and strong earnings growth prospects, and are seeing favorable estimate revisions. Barrick appears to have an edge over Kinross due to its more attractive valuation and higher dividend yield. B's lower leverage also suggests lower financial risks. Investors seeking exposure to the gold space might consider Barrick as the more favorable option at this time.B currently sports a Zacks Rank #1 (Strong Buy), whereas KGC has a Zacks Rank #2 (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 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
Yahoo
08-02-2025
- Business
- Yahoo
Barrick reports 23% increase in gold reserves in 2024
Canadian miner Barrick Gold has reported a 23% increase in its overall proven and probable gold reserves, reaching 17.4 million ounces (moz) at the end of 2024. This rise is primarily attributed to the Reko Diq copper-gold project in the Chagai district of Balochistan, Pakistan. The company's attributable proven and probable gold reserves stood at 89moz at 0.99 grams per tonne (g/t) in 2024, up from 77moz at 1.65g/t in 2023. This year-on-year increase was driven by the conversion of Reko Diq's copper-gold resources into mineral reserves, contributing 13moz of gold at a grade of 0.28g/t on an attributable basis, after the completion of the feasibility study. Prior to this, Barrick achieved a fourth consecutive year of replacing annual depletion at a 4% higher grade. The Reko Diq mine, in which Barrick owns a 50% stake, is considered 'one of the world's largest underdeveloped copper-gold areas' and is expected to commence production by the end of 2028, reported Reuters. In the Africa and Middle East region, the company's reserves slightly increased by around 1.1% to 19moz in 2024, with contributions from the Loulo-Gounkoto mine in Mali and the Bulyanhulu mine in Tanzania. Barrick replaced more than 180% of its depleted gold reserves, adding almost 46moz of attributable proven and probable reserves across its managed assets, since the end of 2019. The company's measured and indicated gold resources for 2024 have remained consistent at 180moz at 1.06g/t, with inferred resources increasing by 5% from 2023 to 41moz at 0.9g/t. Additionally, copper mineral reserves have grown by 224% year-on-year on an attributable basis, with a more than 13% higher grade, resulting in 18 million tonnes (mt) of copper at 0.45%. This increase in copper reserves is due to the completion of the Lumwana and Reko Diq feasibility studies, which affirmed both as Tier 1 copper projects. The Lumwana Super Pit Expansion feasibility study alone added 5.5mt of copper reserves, while the Reko Diq study contributed an additional 7.3mt of copper to the company's reserves. The Latin America and Asia-Pacific region, driven by Pueblo Viejo mine in the Dominican Republic, replaced 115% of the regional gold reserve depletion for 2024, prior to the inclusion of Reko Diq. The Porgera mine saw a 22% growth in attributable gold reserves year-on-year. Barrick president and chief executive Mark Bristow said: 'In order for our industry to help build a better world, we have to invest in our own future, with transformational projects like the Lumwana Super Pit Expansion, Pueblo Viejo Expansion, Reko Diq and Fourmile. Barrick's vision for these projects extends beyond mining, ensuring the benefits of these investments provide multi-generational benefits to our host countries and local communities through the development of local service provider partnerships and investment in the sustainability of our operating environments.' Barrick faced a setback last month when its operations at the Mali mine were suspended following the seizure of three tonnes of gold by the military-led government. "Barrick reports 23% increase in gold reserves in 2024" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
