04. Barrick Gold Corporation (NYSE:GOLD)
Upside Potential: 51%
Forward P/E Ratio: 8.48
Year To Date Share Price Gain: N/A
Barrick Gold Corporation (NYSE:GOLD) is a heavyweight in the gold mining industry, and with its forward P/E ratio of 8.48 and an impressive upside potential of 51% based on a target price of $23.02 compared to its current share price of $15.23, it’s a compelling choice for investors. This Toronto-based company, founded in 1983, operates gold and copper mines across Argentina, Canada, Africa, and the U.S., with additional ventures in Asia and the Americas, making it a global powerhouse.
Barrick's Q3 2024 earnings call underscored its resilience and strategic focus. The company reported earnings per share (EPS) of $0.31, in line with expectations, reflecting strong operational discipline. A 33% year-over-year increase in adjusted net earnings per share is particularly noteworthy, especially when paired with a 24% rise in free cash flow to $444 million. This robust cash generation supports shareholder returns, with Barrick maintaining a steady dividend of $0.10 per share and repurchasing $95 million in shares.
Gold production held steady, while copper output surged 12% quarter-over-quarter, thanks to improved operational efficiency and reduced costs. The company's flagship Nevada Gold Mines complex remains a cornerstone, with ongoing investments ensuring its productivity for the next decade. Exploration efforts at Greater Leeville and other promising sites are paving the way for future growth, potentially doubling Carlin’s reserves and extending its lifespan well beyond 2045.
On the balance sheet front, Barrick continues to shine. Net debt was slashed by 27% quarter-over-quarter to $500 million, reinforcing its financial stability. This strong position enables the company to fund growth projects like Pueblo Viejo, which has seen a 23% production increase following its plant expansion, and the promising Reko Diq copper-gold project in Pakistan, slated for production by 2028.
In a market driven by rising gold prices, Barrick’s disciplined cost management, strategic investments, and commitment to sustainability make it a standout. Its diversified portfolio and forward-thinking approach position it as a top choice for those looking to invest in gold stocks now.