1 Canadian Mining Stock Worth a Long-Term Investment

Here’s why Barrick Gold (TSX:ABX) remains a top Canadian mining stock long-term investors may want to consider on dips right now.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Canadian mining stocks are increasingly becoming more attractive for investors to consider. The rising price of gold has boosted the value of companies like Barrick Gold (TSX:ABX) in recent quarters. In fact, this stock is now trading near its highest level over the past year, with the potential to hit multi-year highs in short order.

Created with Highcharts 11.4.3Barrick Gold PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

This Canadian gold miner is one of the largest in the world, meaning it provides excellent exposure for investors looking to play gold. If gold prices continue to rise, that should be bullish for investors in Barrick Gold. Here’s why.

What Barrick Gold does

A top precious metals miner based in Canada, Barrick Gold operates a number of mines around the world. These mines span North America, Australia, Africa, and South America. The company develops and explores mineral properties and owns and operates mines, such as Nevada Gold Mines, Buzwagi, Hemlo, North Mara, and others.

Barrick Gold also produces commodities such as silver, gold, and copper and sells gold bullion in the gold spot market. Furthermore, it executes copper operations in Lumwana, Zaldivar, and Jabal Sayid mines.

Rising gold prices boosting Barrick’s financial performance

In the first quarter of 2024, Barrick Gold reported revenue of US$2.7 billion and cost of sales of US$1.9 billion. This translated into net earnings for the period of US$295 million and adjusted net earnings of US$333 million. In addition, the company highlighted attributable EBITDA of US$907 million and attributable EBITDA margin of 41%, an increase of 5% year over year. 

These strong results were mainly due to rising gold prices, which are currently trading near an all-time high. With most of the company’s debt denominated in dollars and its revenue a function of precious metals prices, the recent surge we’ve seen across certain commodities has boosted the profile of this miner. Trading around 21 times earnings with a 2.2% dividend yield, this is an attractive stock at current levels. On future dips, this is a stock that could become even more attractive as both a value and dividend play.

A mining stock worth buying and holding long-term

Barrick Gold is one of the largest gold producers in the world, delivering unparalleled growth of reserve base and maintaining the highest gold reserves grade among its competitors. Since the year-end 2019, the company has replaced over 140% of mined gold reserves and has returned US$4.9 billion to shareholders in the form of dividends, share buybacks, and returns of capital. 

In the industry-leading shareholder alignment, Barrick Gold has approved a US$1 billion share-buyback program and reduced net debt by US$ 3.5 billion. Furthermore, the company has invested US$9.8 billion since 2019 to grow and expand its operations globally. These cash flows and robust business models should assist the company in generating higher revenue and increasing its ability to pay even higher dividends to shareholders. 

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 $20,697.16!*

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 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris MacDonald 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.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Metals and Mining Stocks

Man holds Canadian dollars in differing amounts
Stocks for Beginners

Cash Is King? Think Again During Today’s Market Dip

Sure, cash is great, but during a market dip investors may want to consider using some of the cash to…

Read more »

todder holds a gold bar
Metals and Mining Stocks

2 Canadian Dividend Stocks Worth Their Weight in Gold

Agnico Eagle Mines (TSX:AEM) and Barrick Gold (TSX:ABX) are shining stocks on the TSX this quarter!

Read more »

Safety helmets and gloves hang from a rack on a mining site.
Metals and Mining Stocks

First Quantum Minerals: Buy, Sell, or Hold in 2025?

First Quantum stock is a strong stock, but what about the future of this TSX stock?

Read more »

man touches brain to show a good idea
Metals and Mining Stocks

Tariff Troubles: How Canadian Investors Can Weather the Storm

This market is going bananas over tariffs, but there's one area of the market that can still protect your investments.

Read more »

top TSX stocks to buy
Metals and Mining Stocks

The Best Stocks to Invest $1,000 in Right Now

Investing in undervalued TSX stocks such as New Gold should you deliver outsized gains in 2025 and beyond.

Read more »

Man data analyze
Metals and Mining Stocks

Trump Tariffs Send Copper Prices Skyward: Are Canadian Copper Stocks a Buy Now?

Here’s why Trump’s new auto tariffs are sending copper prices soaring and putting Canadian copper stocks in the spotlight.

Read more »

A worker wears a hard hat outside a mining operation.
Metals and Mining Stocks

Better Materials Stock: Nutrien vs Mattr?

Nutrien stock still looks like a strong, long-term buy, but so does Mattr. So, which comes out on top?

Read more »

nugget gold
Stocks for Beginners

Precious Metals Are a Hot Commodity Under Trump Tariffs: 2 TSX Stocks to Consider

Gold is looking like a shiny opportunity for investors right now, so should you dive in?

Read more »