Given growing fears of a global recession and high inflation rates, gold mining stocks can be an attractive choice for all types of investors. As commodity prices rise, so will the yellow metal’s value, generating sustainable profits for gold miners and investors over time.
However, there are several micro and macroeconomic events that can affect gold prices. Thus, investing in a company with a strong foundation, relatively attractive valuation, and superb growth potential is a must. In this regard, investors may want to consider Barrick Gold (TSX: ABX). That’s because Barrick is among the best Canadian gold miners out there, also providing investors exposure to copper.
Here are a few reasons why investors should consider buying this stock.
Production is ramping up
Barrick has been ramping up production to achieve its 2023 target, increasing throughput at the Pueblo Viejo expanded plant, improving performance at its Turquoise Ridge mine and converting the Goldstrike mine’s autoclave to a carbon-in-leach process are some of the steps taken in this regard.
Barrick is also developing a new project in Pakistan’s Reko Diq mine. It has one of the biggest unexplored gold and copper deposits in the world. The company is currently conducting a feasibility study and expects to begin operations by 2028.
Additionally, Barrick Gold’s mines in the Middle East and Africa have started production before schedule. The organization has also started mining in the new Gena open pit at its North Mara mine in Tanzania.
For those bullish on a rising price of gold, this production ramp up should be viewed as a positive.
Canadian gold mining company is hunting for new ventures
Notably, Barrick is also currently on the lookout for new opportunities. In the last quarter, it has started several new ventures in Tanzania, Saudi Arabia, Canada, Peru, the U.S., and the Dominican Republic.
The company is also taking steps in order to transition to clean energy. It has started work on the TS Solar project and a natural gas co-fire project at the TS Power Plant. At Loulo, it is currently expanding its solar plant, along with adding a battery storage system. Furthermore, Barrick is developing a battery backup system for three hydropower stations in the Democratic Republic of Congo’s Kibali province.
Resumption of production in the Porgera gold mine
According to reports published at the end of March, mining operations have restarted in the Porgera mine in Papua New Guinea. This mine holds approximately 10 million ounces worth of measured and indicated resources, suggesting a potential average annual production capacity of 70,000 ounces.
Barrick has a 47% stake in that mine and the successful resumption of operations will help the organization stay put on its production target.
Bottom line
Barrick’s increasing production and plans to explore new ventures can offer the company a sustainable growth trajectory in the years to come. Thus, this stock is indeed a hidden gem, which investors can consider buying.
