{"id":22170,"date":"2025-10-25T03:03:57","date_gmt":"2025-10-25T03:03:57","guid":{"rendered":"https:\/\/finderica.com\/?p=22170"},"modified":"2025-10-25T03:03:57","modified_gmt":"2025-10-25T03:03:57","slug":"the-low-cost-gold-play-that-wall-streets-missing","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=22170","title":{"rendered":"The Low-Cost Gold Play That Wall Street\u2019s Missing"},"content":{"rendered":"
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Gold finally exhaled.<\/p>\n

After sprinting to record highs, it posted its sharpest drop in years this week as traders took profits and reset their positions. But big moves like that don\u2019t kill a bull market; they clear the deck.<\/p>\n

\"Chart:<\/a><\/p>\n

If the longer-term drivers \u2013 central bank buying, deficit worries, and a firm dollar trend that can turn \u2013 stay in place, the metal still has room. Pullbacks are simply the toll you pay on the highway.<\/p>\n

That sets the stage for Barrick Mining<\/strong> (NYSE: B).<\/p>\n

Barrick is a diversified operator, not a one-mine bet. It runs Tier One gold assets in Nevada, the Dominican Republic, Tanzania, and Congo, plus a growing copper arm in Zambia and a huge copper-gold project in Pakistan.<\/p>\n

The company\u2019s playbook is simple: Keep a strong balance sheet, push costs down, and fund the next wave of growth from internal cash rather than debt or dilutive deals.<\/p>\n

Its latest numbers back that up. In the second quarter of 2025, revenue was $3.7 billion. Net earnings were $811 million, or $0.47 per share, with adjusted EPS also $0.47. Attributable EBITDA (earnings before interest, taxes, depreciation, and amortization) hit $1.69 billion with a 55% margin.<\/p>\n

Free cash flow was $395 million even as Barrick stepped up spending at Lumwana (the copper mine in Zambia) and Reko Diq (the copper-gold project in Pakistan). The company ended the quarter with $4.8 billion in cash and a small net-cash position of $73 million. Shareholders got a $0.15 quarterly dividend \u2013 including a $0.05 enhancement tied to net cash \u2013 and $268 million of buybacks during the quarter.<\/p>\n

Operations are trending the right way. Gold production rose 5% quarter over quarter. Production at Nevada Gold Mines increased 11% from the first quarter on better grades and throughput, while output jumped 28% in the Dominican Republic as plant upgrades took hold. Copper production climbed 34% as Lumwana improved mining rates and unit costs fell.<\/p>\n

Now to the Value Meter breakdown.<\/p>\n

\"Value<\/a><\/p>\n

On valuation, Barrick\u2019s average EV\/NAV is 1.64, versus a universe average of 3.79. That tells us the stock is cheaper than its peers, because you pay less for each dollar of net assets.<\/p>\n

On cash efficiency, the company\u2019s average FCF\/NAV is 0.84%, versus 1.11% for its peers. That\u2019s a notch worse, meaning Barrick turns assets into free cash a bit less efficiently than the average company in our universe right now.<\/p>\n

But there\u2019s more to the story here. On momentum of the cash engine, Barrick\u2019s 12-quarter FCF growth rate is 54.50% versus 46.25% for its peers. That\u2019s better, suggesting cash generation is trending faster than the pack.<\/p>\n

What about the stock?<\/p>\n

<\/a>\"Chart:<\/a><\/p>\n

Shares have ripped from the mid-teens last winter to the low $30s now, with a brief spike toward the mid $30s as gold went vertical. (The recent dip tracks the metal\u2019s cooldown more than any change to Barrick\u2019s story.)<\/p>\n

If bullion finds support and copper stays firm, Barrick\u2019s blend of low-cost gold and expanding copper should keep free cash flow coming. The pipeline \u2013 including the ramp-up in the Dominican Republic, Reko Diq, and a \u201cSuper Pit Expansion\u201d at Lumwana \u2013 adds real torque to 2026 through 2028 without stretching the balance sheet today.<\/p>\n

So aside from the dip in gold prices, this is a quality operator priced below the peer pack with improving operations and a clean balance sheet. For investors who want leverage to the metal without betting the farm, Barrick still looks like the adult in the room.<\/p>\n

The Value Meter rates Barrick Mining as \u201cSlightly Undervalued.\u201d<\/p>\n

\"The<\/p>\n

What stock would you like me to run through The Value Meter next? Post the ticker symbol(s) in the comments section below.<\/p>\n<\/p><\/div>\n