Barrick Mining Corp (NYSE: B)

Sector: Basic Materials Industry: Gold CIK: 0000756894
Market Cap 82.76 Bn
P/B 3.29
P/E 23.10
P/S 5.67
ROIC (Qtr) 16.33
Div Yield % 0.63
Rev 1y % (Qtr) 23.16
Total Debt (Qtr) 4.71 Bn
Debt/Equity (Qtr) 0.19

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 6.36B provides robust 1.35x coverage of total debt 4.71B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 5.04B provide 70.94x coverage of short-term debt 71M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 45.17B provides 9.58x coverage of total debt 4.71B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 6.36B provides exceptional 27.51x coverage of interest expenses 231M, showing strong debt service capability.
  • Strong operating cash flow of 6.36B provides 38.05x coverage of SG&A expenses 167M, showing efficient operational cost management.

Bear case

  • Operating cash flow of 6.36B barely covers its investment activities of (2.29B), with a coverage ratio of -2.77, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (2.29B) provide weak support for R&D spending of 324M, which is -7.07x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 6.36B provides thin coverage of dividend payments of (768M) with a -8.27 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating earnings of 5.37B show weak coverage of depreciation charges of 1.79B, with a 3 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of 6.36B barely covers operating expenses of (64M) with a -99.30 ratio, suggesting thin operational efficiency margins and limited flexibility.

Segments [axis] Breakdown of Revenue (2024)

Geographical areas [axis] Breakdown of Revenue (2024)

Peer comparison

Companies in the Gold
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NEM NEWMONT Corp /DE/ 121.63 Bn 16.92 5.66 5.65 Bn
2 AEM Agnico Eagle Mines Ltd 96.06 Bn 27.86 9.09 0.34 Bn
3 B Barrick Mining Corp 82.76 Bn 23.10 5.67 4.71 Bn
4 WPM Wheaton Precious Metals Corp. 56.61 Bn 56.52 30.93 0.01 Bn
5 FNV FRANCO NEVADA Corp 44.11 Bn 47.96 28.52 0.00 Bn
6 KGC Kinross Gold Corp 38.43 Bn 21.85 5.96 1.24 Bn
7 PAAS Pan American Silver Corp 19.78 Bn 31.19 6.08 0.86 Bn
8 AGI Alamos Gold Inc 17.45 Bn 32.41 10.85 0.28 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.71 3.17
EV to Cash from Ops. EV/CFO 13.01 -11.55
EV to Debt EV to Debt 17.54 548.67
EV to EBIT EV/EBIT 15.41 12.24
EV to EBITDA EV/EBITDA 9.82 3.14
EV to Free Cash Flow [EV/FCF] EV/FCF 30.07 12.17
EV to Market Cap EV to Market Cap 1.00 1.72
EV to Revenue EV/Rev 5.66 7.50
Price to Book Value [P/B] P/B 3.29 5.26
Price to Earnings [P/E] P/E 23.10 -1.39
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 4.67 1.54
Dividend Payout Ratio % Div Payout % (Qtr) 14.50 5.40
Dividend per Basic Share Div per Share (Qtr) 0.30 0.17
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 18.61 10.25
Interest Coverage Int. cover (Qtr) 23.23 406.21
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -14.66 -97.36
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 19.22 130.91
Dividend Growth (1y) % Div 1y % (Qtr) -25.00 -5.27
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 115.37 518.35
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 58.42 53.19
EBIT Growth (1y) % EBIT 1y % (Qtr) 91.13 679.30
EBT Growth (1y) % EBT 1y % (Qtr) 95.43 144.05
EPS Growth (1y) % EPS 1y % (Qtr) 122.58 224.62
FCF Growth (1y) % FCF 1y % (Qtr) 188.87 171.65
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 66.77 84.25
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.30 0.26
Cash Payout Ratio Cash Payout (Qtr) 0.08 0.03
Cash Ratio Cash Ratio (Qtr) 1.66 3.14
Current Ratio Curr Ratio (Qtr) 2.94 4.90
Debt to Equity Ratio Debt/Equity (Qtr) 0.19 0.27
Interest Cover Ratio Int Coverage (Qtr) 23.23 406.21
Times Interest Earned Times Interest Earned (Qtr) 23.23 406.21
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 49.00 -19.19
EBIT Margin % EBIT Margin % (Qtr) 36.74 -44.57
EBT Margin % EBT Margin % (Qtr) 35.15 -34.79
Gross Margin % Gross Margin % (Qtr) 48.30 30.59
Net Profit Margin % Net Margin % (Qtr) 24.50 -40.44