1. Barrick Gold Corporation (NYSE:GOLD)
1-Year Performance: 24.95%
Number of Hedge Fund Holders: 44
Analyst Upside Potential: 23.61%
Barrick Gold Corporation (NYSE:GOLD) is a Canadian company that primarily produces gold and copper. The company has mines in several countries, including Argentina, Canada, Chile, and others, producing gold, copper, and sometimes silver.
The company aims to be the best gold and copper producer while focusing on sustainability. During the fiscal fourth quarter of 2024, Barrick Gold Corporation (NYSE:GOLD) reported a 15% subsequent increase in gold production with a focus on cost efficiencies. Management noted that the Nevada operations played a crucial role in increased throughput and production. In addition, the company also added significant new gold and copper reserves, including 12.7 million ounces of gold and 13 million tons of copper.
More recently, Barrick Gold Corporation (NYSE:GOLD) filed technical reports for two significant projects including the Lumwana copper mine expansion and the Reko Diq project. The Lumwana copper mine expansion is estimated to cost nearly $2 billion, with construction set to begin by the end of 2024 and first production anticipated in 2028. It is the best-performing large-cap stocks to buy according to analysts.
Sound Shore Management stated the following regarding Barrick Gold Corporation (NYSE:GOLD) in its Q3 2024 investor letter:
“For example, global gold and copper miner Barrick Gold Corporation (NYSE:GOLD) rose after posting earnings that topped forecasts driven by improved cost performance as well as higher metals prices. We initiated our investment earlier this year when the stock was trading at below normal price to earnings and price to book valuations. The depressed valuation was largely due to long-term issues driven by poor acquisitions and shorter-term inflationary pressures that had been a drag on profitability. Following Barrick’s 2019 merger with Randgold, the latter’s senior management team took the reins and have since streamlined and optimized the company’s once sprawling asset base. Today, Barrick is set to improve operations and drive organic growth which, along with a better price environment, we believe should improve returns on capital. Bolstered by a nearly debt-free balance sheet and strong free cash flows, the company is well positioned to increase dividends, share buybacks and improve its valuation.”
While we acknowledge the potential of Barrick Gold Corporation (NYSE:GOLD) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GOLD but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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