Barrick Mining's Free Cash Flow Shines: Can It Power Future Growth?

Barrick Mining Corporation B impressed with robust free cash flow generation in the first quarter of 2025, reporting $375 million, a nearly 12-fold rise from $32 million in the prior-year quarter. The surge was driven by higher operating cash flows led by an uptick in realized gold and copper prices.  Barrick generated strong operating cash flows of roughly $1.2 billion in the quarter, up 59% year over year. 

Among its major peers, Newmont Corporation NEM achieved a record first-quarter free cash flow of $1.2 billion, marking a significant turnaround from a negative $74 million in the same period a year ago. This substantial improvement came on the back of Newmont's enhanced operational efficiency and the strength of its Tier 1 portfolio. Strong free cash flow positions Newmont to strengthen its balance sheet and pursue strategic growth investments. 

Agnico Eagle Mines Limited AEM also generated solid first-quarter free cash flows of $594 million, up around 50% year over year, backed by the strength in gold prices and operational results. This growth reflects Agnico Eagle's consistent operational execution and cost management. Agnico Eagle remains focused on paying down debt using excess cash flow, with net debt reducing by $212 million sequentially to just $5 million at the end of the first quarter. 

The solid cash flow performance not only strengthens Barrick’s balance sheet but also enhances its flexibility to fund shareholder returns and invest in long-life, high-margin projects. Barrick’s healthy free cash flow generation positions it well to take advantage of attractive development, exploration and acquisition opportunities, drive shareholder value and reduce debt. 

Barrick’s strategic focus on high-quality assets continues to deliver, despite cost inflation pressures. Its major gold and copper growth projects, including Goldrush, the Pueblo Viejo plant expansion and mine life extension, Fourmile, Lumwana Super Pit and Reko Diq, are being executed, laying the groundwork for the next generation of profitable production. Barrick’s free cash flow momentum is a key positive, but with its major peers also executing well, sustained discipline and reinvestment strategy will be vital to maintain its competitive edge.

B’s Price Performance, Valuation & Estimates

Barrick’s shares have surged 39.3% year to date against the Zacks Mining – Gold industry’s rise of 58.5%, courtesy of the gold price rally.

From a valuation standpoint, B is currently trading at a forward 12-month earnings multiple of 10.99, a roughly 23.7% discount when stacked up with the industry average of 14.41X. It carries a Value Score of A.

The Zacks Consensus Estimate for B’s 2025 and 2026 earnings implies a year-over-year rise of 39.7% and 25.3%, respectively. The EPS estimates for 2025 and 2026 have been trending higher over the past 60 days.

B stock currently carries a Zacks Rank #3 (Hold). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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