B Stock Forecast & Price Target

Barrick Mining reported an impressive production of nearly 3.9 million attributable ounces of gold and approximately 195,000 metric tons of copper in 2024, reflecting its strong operational capacity. The company benefits from low capital intensity in the development of its Fourmile project by leveraging existing infrastructure, and it anticipates stable production from its Nevada Gold Mines (NGM) for about 10 years, with potential for further exploration upside. Additionally, the expansion of the Lumwana mine in Zambia and the development of the Reko Diq project in Pakistan enhance Barrick’s growth prospects, particularly in the copper sector.

Barrick Mining's financial outlook is hindered by the high EBITDA multiples reflecting a lack of near-term production from key projects such as Fourmile and Reko Diq, raising concerns about future earnings generation. Additionally, the company's shares are trading at a slight discount to their worst-case breakup value, with non-Nevada assets valued at less than 0.4 times net asset value, indicating potential undervaluation and operational inefficiencies. Compounding these challenges is the company's exposure to significant geopolitical risks and instability, particularly affecting its Porgera asset in Papua New Guinea, which could jeopardize employee and community safety and impact operational continuity.