Barrick Mining Corp: A Stock Still Priced to Fall
Barrick Mining Corp’s shares, trading at CAD 41.52 on 17 September 2025, sit almost flush with their 52‑week high of CAD 41.54, yet the company remains a textbook case of under‑valuation. With a market cap of over 70 billion CAD and a price‑earnings ratio of just 12.45, the stock is far cheaper than the gold‑sector peers that have surged 200–300 percent in the last year.
1. The Gold Rally – Why Barrick Still Lags
Gold prices have been on a relentless climb, feeding the fortunes of gold miners worldwide. Yet Barrick’s recent price surge has not translated into proportional market confidence. Analysts at sharedeals.de argue that the stock’s forward P/E—derived from projected earnings—remains low, indicating that investors still perceive excess upside. The forward P/E, though not listed in the fundamentals, is inferred to be higher than the current 12.45, implying that earnings growth is expected to outpace the current price. In a sector where earnings can be highly volatile, this conservatism is a red flag.
The Precious Metals Index performance, reported by deraktionaer.de, further underscores the disparity. While Hecla, Gold Fields, and Coeur Mining have posted returns above 200 % since the beginning of the year, Barrick’s gains lag behind. The index itself has risen 280 % since August 2017, yet Barrick’s share price has barely broken a 20‑percent threshold since then. Investors are increasingly favouring companies with sharper earnings momentum, leaving Barrick’s 12.45 P/E in a competitive disadvantage.
2. Legal Headwinds: Mali’s Detained Staff
The company’s operations in Mali are under scrutiny, as reported by Bloomberg. Malian prosecutors have appealed a judge’s decision to release four Barrick employees on bail. While the legal dispute is localized, it casts a broader shadow on Barrick’s operational stability in politically volatile regions. A sustained legal entanglement could hamper the company’s ability to extract and produce, thereby depressing future cash flows—exactly the kind of risk investors are wary of in a commodity‑heavy business.
3. Market Context: Rising Demand for Resource Shares
Across Europe, the Frankfurt exchange has seen a surge in resource‑sector stocks, as highlighted by finanzen.net. Gold and silver stocks have become key drivers in the “Top‑Performer” list from South and Eastern Europe. Even though technology giants dominate revenue rankings, commodity‑based companies are attracting capital, signalling a shift towards tangible assets. In this environment, Barrick should leverage its international footprint—from the United States to Africa—to capture upside, yet the market still prizes higher growth multipliers than its current valuation offers.
4. The Bottom Line
Barrick Mining Corp’s stock sits in a price range that is nearly at its 52‑week peak, yet the company’s fundamentals and recent performance paint a picture of under‑appreciation. The forward P/E indicates that earnings growth has not yet been fully priced in, while the recent legal controversy in Mali adds a layer of operational risk. Moreover, the gold‑sector peers that have capitalised on the price rally are delivering more aggressive returns, further undercutting Barrick’s valuation.
For investors who are not satisfied with a 12.45 price‑earnings ratio, Barrick’s current price represents a missed opportunity. The gold market is still poised for further upside, and a company with Barrick’s diversified geographic exposure could reap significant benefits. Until the market corrects the under‑valuation—either through earnings acceleration or a shift in risk perception—the stock remains an attractive value play for those willing to take on the associated geopolitical and operational risks.