Gold has had an incredible run lately, and that could temporarily make gold stocks look even more appealing. But I wouldn’t buy any gold stock today simply because I expect the yellow metal to keep climbing. After all, when the metal and mining shares have already climbed sharply, it’s natural to start wondering how much upside may still be left.
But any stock with solid fundamentals could still offer long-term value even after a strong rally. That is why Barrick Mining (TSX: ABX) remains interesting even as gold prices stay elevated. Notably, ABX stock has surged 26% over the last year, yet its underlying business momentum is getting stronger.
Let’s find out whether Barrick Mining stock still offers enough operational strength and long-term growth potential to be worth buying today.
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Barrick Mining stock
In short, Barrick mainly produces gold and copper across a wide global footprint, with major assets including Nevada Gold Mines, Pueblo Viejo, and Lumwana.
This Toronto-based miner’s stock currently trades at $61.81 per share and has a market cap of about $102 billion. Its shares have surged 164% over five years. The stock offers a 1.6% dividend yield at the current market price.
The recent rally in ABX stock has mainly been supported by its improving operating momentum. In the second quarter, Barrick produced 796,000 ounces of gold, up 11% from the first quarter and above its guidance range of 730,000 to 770,000 ounces.
Several factors helped drive that stronger production. For example, its Loulo-Gounkoto complex restarted ahead of schedule, Pueblo Viejo recovered faster than expected following planned maintenance, and the Cortez mine delivered record underground tonnes.
Robust financials backed by strengthening operations
Barrick’s second-quarter revenue jumped 44% year over year (YoY) to US$5.3 billion, as higher realized gold and copper prices boosted results. The company’s net earnings also climbed 50% YoY to US$1.2 billion, while adjusted earnings per share were even stronger, increasing 74% YoY to US$0.82.
Last quarter, the gold miner also generated US$1.7 billion in operating cash flow, up 28% YoY. However, investors shouldn’t overlook rising costs. Barrick’s gold all-in sustaining costs in the latest quarter rose 11% YoY, mainly because of lower grades at some operations, higher fuel expenses, and increased royalties linked to stronger gold prices.
Nonetheless, Barrick kept its full-year gold production guidance unchanged at 2.9 million to 3.25 million ounces. That operational consistency strengthens its investment appeal while gold prices remain elevated.
Growth beyond high gold prices
Investors looking at Barrick today may want to focus not only on strong gold prices but also on the company’s long-term growth pipeline.
The company continues to advance its Fourmile project in Nevada, where decline development is expected to begin in the third quarter this year. At the same time, its Lumwana Super Pit Expansion remains on schedule, with first copper production targeted for the end of the first quarter of 2028.
Barrick’s agreement with Newmont is another major development to watch. As part of the arrangement, Fourmile will be added to the Nevada Gold Mines joint venture, while Newmont will contribute the Fiberline and Mike developments and pay Barrick US$1.95 billion.
Taken together, its stronger production, rising earnings, and major expansion projects make Barrick an attractive gold stock even after its strong rally. Although high gold prices are certainly helping, the company’s improving fundamentals give long-term investors more than one reason to buy it today.
