B Stock Forecast & Price Target

Barrick Mining's strong outlook is underpinned by its production of approximately 3.9 million attributable ounces of gold and around 195,000 metric tons of copper in 2024, supported by about two decades of gold reserves. The development of the Fourmile project is expected to enhance production and reduce costs due to its low capital intensity, leveraging existing infrastructure, which could lead to stable production for about a decade. Additionally, the expansion of copper exposure through projects like Lumwana in Zambia and Reko Diq in Pakistan positions Barrick favorably in the growing demand for copper, further bolstering its long-term growth potential.

Barrick Mining's stock faces a negative outlook due to high EBITDA multiples for its Nevada Gold Mines (NGM) and copper divisions, stemming from a lack of near-term production from key projects like Fourmile and Reko Diq. Additionally, the company's shares trade at a slight discount to their worst-case breakup value, with non-Nevada assets reflecting an implied valuation of less than 0.4 times net asset value (NAV), indicating potential undervaluation risks. Moreover, significant geopolitical challenges and safety concerns in regions where Barrick operates, such as Papua New Guinea, could further exacerbate operational difficulties and impact overall financial stability.