Barrick Gold CorporationS (GOLD – Free report) Shares return after a Matte 2024, thanks to covering gold prices. The prices of the Goudreus have so far increased by 19.1% after last year by around 14% in the midst of high production costs and operational issues in certain mines that influenced production, as well as the dispute with the Malian government about distributing the economic benefits of its Loulo-Gounkoto Gold Mine Complex. With the prices of precious metal prices that continue to zoom in in the midst of economic and geopolitical uncertainties, gold mining shares, including Barrick, are well placed to take advantage of this rally.
While the gold supply has modestly left the Zacks – my construction – the increase of the year of 19.5% to date from 19.5%, it has the decline of the S&P 500 of 2% at the top. Among his peers, Newmont Corporation ((Senior – Free report), Kinross Gold Corporation ((KGC – Free report) and Agnico Eagle Mines Limited ((Aem – Free report) have achieved the profit of 17.8%, 23.4%and 27.3%in the same period respectively.
Gold’s YTD -PRIJS PERFORMATION
Image source: Zacks Investment Research
The shares of Gold act approximately 13.5% below 52 weeks high of $ 21.35, reached on October 21, 2024.
Technical indicators show that gold yesterday above his 200-day simple advancing average (SMA) broke out. The share also trades above its 50-day SMA since January 30, 2025, which indicates Bullish Momentum.
Gold trade above 50-day SMA
Image source: Zacks Investment Research
Is the time good to buy Gold’s shares for potential benefits? Let’s look at the basic principles of the share.
Important projects to support the production growth for gold
Barrick is well placed to take advantage of the progress in important growth projects that should contribute considerably to its production. The most important growth projects for gold and copper, including Goldrush, the expansion of the Pueblo Viejo factory and my life extension, Donlin Gold, Fourmile, Lumwana Super Pit and Reko DIQ are currently executed. These projects are based on schedule and within the budget, underlie the next generation of profitable production.
The Goldrush mine hangs up to a targeted 400,000 grams of production per year by 2028. Bordering Goldentrush is the 100% Barrick ownership of four miles, which yields figures that double from Goldrush and is expected to become a different tier-mine. The project has been switched to the preferred study about a arrears of drilling program. The Reko DIQ Copper-Gold project in Pakistan is designed to produce 460,000 tonnes of copper and 520,000 our gold annually in its second development phase.
In October 2024, Barrick announced the start of a super pit in his Lumwana Copper Mine in Zambia. The super pit expansion includes the double the transit of the current process circuit and the significant stimulation of mining volumes. After completion, the $ 2 billion project has the potential to transform Lumwana into a high-quality, high-productive, top-25 copper producer and Tier One Copper Mine. The expansion is expected to deliver 240,000 tons of copper production annually during the life of the mine.
Zoom in gold prices to stimulate Gold’s margins and cash flow
Gold is one of the best performing assets in 2024. Gold prices collected about 27%last year, driven by a strong demand from central banks, monetary relaxation in the United States, global uncertainties and an increase in demand for safe haven thanks to increased tensions in the Middle East and Russia. Gold prices are getting up this year, because the intense rate war in the US china has stimulated the demand for safe port for precious metal. Prices reached a record high of $ 2,956 per ounce on 24 February, because President Trump’s trade policy caused the uncertainties and about 11% has risen this year. Gold prices will probably continue to receive support in an uncertain environment caused by the rate war. Expectations of raised purchases by central banks, hope for interest rates and geopolitical tensions are other factors that are expected to help the yellow metal to support the rally. Higher gold prices must translate into strong profit margins and generating free cash flow for gold.
Gold’s strong liquidity and attractive dividend messenger messenger
Barrick has a solid liquidity position and generates healthy cash flows, which positions it well to take advantage of attractive development, exploration and acquisition possibilities, to stimulate shareholder value and reduce the debts. At the end of 2024, Barrick’s cash and cash equivalents amounted to around $ 4.1 billion. It generated strong operational cash flows of around $ 4.5 billion in 2024, an increase of 20% years after year. Free cash flow rose by 104% years after year to around $ 1.3 billion for 2024 years. Gold returned to around $ 1.2 billion in shareholders in 2024 by dividends and returns. The Barrick board has authorized a new program for the repurchase of a maximum of $ 1 billion of its outstanding ordinary shares.
Goud offers a healthy dividend yield of 2.3% against the current share price. The payment ratio is 31% (a ratio under 60% is a good indicator that the dividend will be sustainable), with a five -year dividend growth of around 7%.
High production costs a resistance to gold stock
Gold is challenged by higher costs that can eat in its margins. The cash costs per ounce of gold and all-in-evaluating costs (AISC)-the most important cost size metriek of miners-to-acting year after year by approximately 11% in 2024. Ais rose due to higher total cash costs per ounce and higher mines that support capital expenses. In the fourth quarter of 2024, the cash costs per ounce of gold increased by around 7% year after year, while AISC rose around 6%. For 2025, the company projects the total cash costs per ounce between $ 1,050- $ 1,130 and AISC in the range of $ 1,460- $ 1,560 per ounce. These projections suggest an increase in the year on an annual basis at the center of the respective series. Increased mine location that retain capital expenditure and higher labor costs can lead to higher costs.
Tepid FY25 Production Outlook Clouds Prospects
Certain operational issues affected Barrick’s gold production in 2024. The company that is too susceptible to 3% fell to 3% to 3.91 million ounces in 2024, at the bottom of the guidance of 3.9-4.3 million grams. The company provided a lukewarm forecast for 2025, with gold production that is expected to be in the range of 3.15-3.5 million ounces, excluding the production of Loulo-Gounkoto, which is temporarily suspended. Although a potential restart of the mine would offer an advantage, this projection suggests a decrease of the year on an annual basis. Higher production of Pueblo Viejo, Turquoise Ridge, Porgera and Kibali, together with stable performance in Carlin and Cortez, is expected to be compensated by reduced production in Veladero and Phoenix. The lower production is expected to weigh on the performance of the company in 2025.
Appreciation looks attractive for gold supply
The attractive appreciation of Gold should lure investors who are looking for value. The share is currently being traded with a forward profit of 12 months of 11.94x, lower than his five -year -old median. This represents a discount of approximately 16.6% when it is stacked with the sector average of 14.31x.
Image source: Zacks Investment Research
Barrick’s income estimates in a southerly direction
The estimates of the win for Barrick have been revised in the last 60 days. The estimate of the Zacks -Consensus for 2025 and 2026 has been revised lower in the same time frame.
Find the latest income estimates and surprises on the Zacks profit calendar.
Image source: Zacks Investment Research
Last thoughts: Hold gold supply
Barrick’s growth initiatives, promotions to stimulate production, solid financial health and a safe dividend yield, painting a promising picture. The rising gold prices must also increase its profitability and stimulate the generation of cash flow. Despite the attractive appreciation of Gold, the high costs, weak production outlook and falling income estimates are careful. That is why holding these Zacks Rank #3 (Hold) supply will be wise for investors who already possess it.
You can see it The complete list of the shares of today Zacks #1 Rank (Strong Buy).