| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 17.50 | 3 |
| Intrinsic value (DCF) | 7.29 | -57 |
| Graham-Dodd Method | 10.60 | -38 |
| Graham Formula | 22.20 | 31 |
Barrick Gold Corporation (ABR.DE) is a leading global gold and copper mining company headquartered in Toronto, Canada. With a diversified portfolio of high-quality assets, Barrick operates gold mines in key regions including Argentina, Canada, Côte d'Ivoire, the Democratic Republic of Congo, Dominican Republic, Mali, Tanzania, and the United States. Additionally, the company has significant copper mining interests in Chile, Saudi Arabia, and Zambia. Founded in 1983, Barrick Gold is renowned for its operational excellence, sustainable mining practices, and strong financial performance. As one of the largest gold producers in the world, Barrick plays a pivotal role in the Basic Materials sector, contributing to global gold supply while maintaining a commitment to environmental and social responsibility. The company's strategic focus on tier-one assets and cost efficiency positions it as a key player in the precious metals industry.
Barrick Gold Corporation presents a compelling investment opportunity due to its strong portfolio of tier-one gold and copper assets, robust financial health, and disciplined capital allocation. The company's low beta of 0.245 suggests lower volatility compared to the broader market, making it an attractive option for risk-averse investors. With a market capitalization of approximately €29.2 billion, Barrick benefits from economies of scale and operational efficiencies. The company generated €12.9 billion in revenue and €2.14 billion in net income, with a diluted EPS of €1.22. Barrick's strong operating cash flow of €4.49 billion supports its dividend yield and reinvestment in growth projects. However, investors should be mindful of geopolitical risks in some operating regions and fluctuations in gold and copper prices, which could impact profitability.
Barrick Gold Corporation holds a competitive edge in the gold mining industry through its focus on tier-one assets, which are characterized by long mine lives, low costs, and high production potential. The company's diversified geographic presence mitigates risks associated with any single jurisdiction. Barrick's joint venture with Newmont in Nevada (Nevada Gold Mines) creates the world's largest gold mining complex, enhancing operational synergies and cost efficiencies. The company's strong balance sheet, with €4.07 billion in cash and equivalents and manageable total debt of €5.26 billion, provides financial flexibility. Barrick's commitment to sustainability and stakeholder engagement further strengthens its reputation and social license to operate. Compared to peers, Barrick's disciplined approach to capital allocation and focus on free cash flow generation stand out, positioning it as a leader in the sector. However, the company faces competition from other major gold producers, and its performance remains closely tied to commodity price movements.