More and bigger gold (and copper) mines will boost Barrick Gold

Barrick Gold’s strategic operations, including the recent regulatory approval to start up the Goldrush underground mine and the resumption of operations at the Porgera mine, indicate a strong potential for future growth and profitability.

What’s more, the company’s mining operations across the U.S., Canada, Africa, South America, and more spread the geopolitical risk and make the firm a safer investment.

The stock trades at just 15.8 times the company’s 2024 earnings forecast.

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BARRICK GOLD CORP. (Symbol ABX on Toronto; www.barrick.com) is the second-largest gold miner in the world after Newmont (symbol NEM on New York, and a recommendation of our Wall Street Stock Forecaster newsletter).

Barrick now has regulatory approval to start up the Goldrush underground mine at the Cortez Complex near Beowawe, Nevada. Goldrush is a part of the Nevada Gold Mines—a joint venture between Barrick and Newmont Corp.— and is operated by Barrick.

Barrick and Nevada Gold Mines have invested more than $370 million in the project to date and the company anticipates spending a total of about $1 billion to get to planned production levels.

The mine is expected to start production in 2024. It is forecast to produce 130,000 ounces of gold in 2024 and increase to about 400,000 ounces per annum by 2028.

Barrick is also reporting that its Porgera mine in Papua New Guinea resumed operations and started pouring gold again in the first quarter of 2024. The mine was placed on care and maintenance in April 2020 following a dispute over benefit-sharing terms between the government, local communities and Barrick, as part of renewing the mining lease.

Mining Stocks: Barrick Gold’s African expansions are underway too

Barrick also said recently that it was ready to explore for new gold and copper deposits in the Democratic Republic of Congo (DRC), in partnership with the government.

The company wants to boost its exploration efforts after its success with its Kibali gold mine in the northeast DRC. The mine produced 343,000 ounces of gold in 2023, which was nearly 8.5% of Barrick’s output for the year.

Barrick is now investing almost $2 billion U.S. in an expansion project designed to increase annual production at its Lumwana mine in Zambia to an estimated 240,000 tonnes of copper annually from the current 50 million tonnes. The major investment should place Lumwana in the top tier of global copper producers. The project’s accelerated work program aims to complete the feasibility study by the end of 2024; that would bring completion of the expanded processing plant forward to 2028.

The company also plans to look for more copper deposits in Zambia as it looks to expand its presence on the African copper belt.

Zambia, where the company has the Lumwana mine, is Africa’s second-largest copper producer, just behind its northern neighbour, Congo.

The shares currently yield a solid 2.3%.

Recommendation in Power Growth Investor: Barrick Gold Corp. is a buy.

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Scott Clayton

Scott is an associate editor at TSI Network. He is the lead reporter and analyst for Dividend Advisor, Power Growth Investor and Canadian Wealth Advisor and a member of the Investment Planning Committee. Scott began his investment and financial career working with Pat McKeough at The Investment Reporter in the 1980s. Subsequently, he worked at the Financial Post Corporation Service for 10 years. He joined TSI Network in 1998. He is a Bachelor of Economics graduate of York University, and he also has an M.B.A. from the Schulich School of Business.

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