1. Barrick Gold Corporation (NYSE:GOLD)
Overall Score: 1
Reddit Score: 1
Robinhood Score: 1
Number of Hedge Fund Holders: 51
With $11.4 billion in revenue recorded in 2023, Barrick Gold Corporation (NYSE:GOLD) is the top 11th mining company in the world by revenue, operating in over 13 countries, primarily engaged in producing copper and gold.
In Q1 of 2024, the YoY net earnings per share of the company rose 143%, while the adjusted EPS of $0.19 per share (up from $0.14 in Q1 2023) beat the analysts’ estimate as well. Moreover, the EBITDA margin was up 5%, reaching 41%, whereas the cash flow position of the company stands firm as well, with its operating cash flow amounting to $760 million. The company has attributed this performance to higher gold prices in the quarter, along with successful ramp up of Goldrush mine.
The latest development in the company’s assets is regarding the new Goldrush mine at Cortez which got underway, and expects an initial ramp up production of 130,000 ounces in 2024, which would eventually hit 400,000 ounces market by 2028. Barrick owns 61.5% of the share in the mine. With rapid developments taking place at Goldrush mine, along with other projects, and post its Q1 earnings announcement, the stock has gained 14% in the last one month!
This growth seems to continue for the stock, as the company has reported Q2 production of 948,000 ounces of gold, up from 940,000 ounces of gold recorded in Q1 2024. This was on the back of higher production at Turquoise Ridge, Porgera, Tongon, North Mara and Kibali. Furthermore, the market price of gold recorded by the company in Q2 is even higher at $2,338 per ounce; thus, the company’s guided production increasing every quarter for this year, and with the increasing gold prices, along with decreasing costs, the company’s growth looks crystal clear in the quarters to come.
Furthermore, the dividend policy is one in favor of the investors as well, as it offers a dividend yield of 2.3% while paying out an annual dividend of $0.4, which helped it bag a place in the list of best dividend stocks. Another plus point of this stock is the company’s engagement with tier-1 mining assets, which squeeze in profits even in times of low prices, due to cost efficiency. Moreover, the stock is carrying an upside of an impressive 25.26%, while 74% of the Robinhood analysts are giving out buy ratings for the stock.
The company is looks to be going smooth in meeting its full-year production guidance of copper and gold, hence, we are in for a continued organic growth of the stock in the rest of the year.
While we acknowledge the potential of Newmont Corporation as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than Newmont Corporation but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Analyst Sees a New $25 Billion “Opportunity” for NVIDIA and Jim Cramer is Recommending These 10 Stocks in June.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
