At the start of the year, market analysts predicted that the benchmark for Canadian stocks would outperform the S&P 500 Index in the U.S. in 2025. They are on point, notwithstanding the elevated volatility due to trade tensions. As of this writing, the S&P/TSX Composite is up 3.3%-plus thus far compared to -0.6% for its counterpart across the border.
Oil and gas stocks were poised to dominate the market, but instead, the materials sector stole the limelight. As of this writing, the year-to-date gain is 19.24%-plus, while the energy sector is down 3%. Pessimism turned to optimism in the sector where metals and mining stocks belong. Investors want safety nets against a possible tariff-induced recession.
Most of the outperformers are mining stocks. Among the standouts with 40%-plus market-beating returns are Orla Mining, Dundee Precious Metals, Kinross Gold, and K92 Mining.
However, Barrick Mining Corporation (TSX: ABX) remains the smartest materials stock to buy right now. You can invest $3,700 in this gold stock and accumulate more shares in the future. At $25.46 per share, current investors enjoy a 14.9%-plus year-to-date gain on top of the modest but safe 2% dividend (30.3% payout ratio).
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Foundation for future growth
Barrick Mining, a $46.6 billion gold and copper producer, steadfastly focuses on future growth and sustainable value creation. Its President and CEO, Mark Bristow, said, “Barrick stands alone in the industry as no other company matches our ability to replace the gold and copper we mine while simultaneously adding to our reserves through exploration and development.”
In 2024, Barrick replaced all its mined gold and copper sites and added substantially to reserves to reinforce its foundation for future growth. “Our integrated resource and exploration strategy has allowed us to build a foundation that supports a projected 30% growth in gold equivalent ounces out to the end of the decade,” Bristow added.
Moreover, the strong balance sheet and keen eye on operational excellence will enable Barrick to solidify its industry-leading position without compromising financial strength or shareholder returns.
Financial review
2024 was an exceptional year for Barrick, evidenced by the 69% and 20% year-over-year net earnings and operating cash flow growth. In Q1 2025, revenues and net earnings increased 14% and 61% to $3.1 billion and $474 million, respectively, compared to Q1 2024. Free cash flow (FCF) climbed 1,072% to $375 million from a year ago.
Two growth projects, Reko Diq and Lumwana, will materially boost Barrick’s copper and gold production and support its goal to grow organically. Also, in February 2025, the Board of Directors authorized a new share buyback program as part of its commitment to shareholder returns. Barrick will purchase up to $1 billion in outstanding common shares over the next 12 months.
3 investment takeaways
Barrick Mining’s competitive advantage is its strong asset portfolio comprising six Tier One gold mines. Management sees no need to raise new equity or increase debt to fund our growth. Bristow said, “We’ve built a global mining company with the financial strength, technical capacity, and operational depth to grow organically.”
