Is it a good company at a reasonable price? I bought this as a tracking stock as I like to keep an eye on resource stocks because the TSX has lots of resource stocks. I do not plan on buying any more. It is a positive that officers are buying more stock. The dividend yield tests say that the stock price is on the cheap side, so it probably is, although the P/S Ratio test did not confirm this.
I own this stock of Barrick Mining Corp (TSX-ABX, NYSE-GOLD). I bought some of this stock in April 2013 because its stock price had fallen hard. I believed the market over reacted. I just bought 100 shares as I am living off my portfolio and do not have much to invest. I bought another 100 shares in 2016. However, this is a resource stock and I only buy resource stocks so I pay attention to that aspect of the TSX. I plan to have only a small stack in any resource stock.
When I was updating my spreadsheet, I noticed that I have made a total return of 7.51% with 5.65% from capital gains and 1.86% from dividends. I have had this stock for 12 years. I have very little invested in this stock as I am using it as a tracking stock (that is to keep an eye on gold and gold mining because Canada is a resource country).
I noticed that a lot of officers bought more shares in the past year, including the CFO and CEO. The company recently changed its name from Barrick Gold Corp to Barrick Mining Corp.
If you had invested in this company in December 2014, for $1,001.60 you would have bought 80 shares at $12.52 per share. In December 2024, after 10 years you would have received $370.03 in dividends. The stock would be worth $1,783.20. Your total return would have been $2,153.23. This would be a total return of 8.48% per year with 5.94% from capital gain and 2.55% from dividends. (Note dividends might vary a bit from above depending on exchange rate used as dividends are paid in US$.)
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $12.52 | $1,001.60 | 80 | 10 | $370.03 | $1,783.20 | $2,153.23 |
The current dividend yield is low with dividend growth moderate. The current dividend yield is low (below 2%) at 1.98%. The 5 year median dividend yield is moderate (2% to 4% range) at 2.27%. 10 year and historical median dividend yields are low at 1.39% and 1.26%. The dividend growth is moderate (8% to 14% ranges per year) at 14.9% per year over the past 5 years. The last increase was in 2025 and it was for 11%. Dividends are paid in US$.
The Dividend Payout Ratios (DPR) are currently good. The DPR for 2024 for Earnings per Share (EPS) is good at 33% with 5 year coverage is too high at 61%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 32% with 5 year coverage is too high at 55%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 11% with 5 year coverage at 17%. The DPR for 2024 for Free Cash Flow (FCF) is good at 41% with 5 year coverage at 39%. (There is no agreement on what FCF is.)
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 32.79% | 60.87% |
| AEPS | 31.75% | 54.66% |
| CFPS | 11.31% | 16.77% |
| FCF | 40.94% | 39.33% |
Debt Ratios are good. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.18 and currently at 0.18. The Liquidity Ratio for 2024 is good at 2.89 and 2.89. The Debt Ratio for 2024 is good at 3.31 and 3.31 currently. The Leverage and Debt/Equity Ratios for 2024 are good at 1.96 and 0.59 and currently at 1.96 and 0.59.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.18 | 0.13 |
| Intang/GW | 0.12 | 0.09 |
| Liquidity | 2.89 | 2.89 |
| Liq. + CF | 4.33 | 4.60 |
| Debt Ratio | 3.31 | 3.31 |
| Leverage | 1.96 | 1.96 |
| D/E Ratio | 0.59 | 0.59 |
The Total Return per year is shown below for years of 5 to 38 to the end of 2024 in CDN$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 17.25% | 1.64% | -1.57% | 3.21% |
| 2014 | 10 | 9.51% | 8.48% | 5.94% | 2.55% |
| 2009 | 15 | 2.12% | -2.49% | -4.05% | 1.57% |
| 2004 | 20 | 3.96% | 0.40% | -1.31% | 1.71% |
| 1999 | 25 | 2.80% | 1.31% | -0.42% | 1.73% |
| 1994 | 30 | 4.82% | 0.29% | -1.13% | 1.43% |
| 1989 | 35 | 6.20% | 7.72% | 4.62% | 3.10% |
| 1986 | 38 | 10.79% | 9.40% | 5.77% | 3.62% |
The Total Return per year is shown below for years of 5 to 38 to the end of 2024 in US$. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 14.87% | -0.31% | -3.57% | 3.26% |
| 2014 | 10 | 7.18% | 6.25% | 3.73% | 2.52% |
| 2009 | 15 | 0.00% | -4.44% | -6.03% | 1.59% |
| 2004 | 20 | 3.03% | -0.32% | -2.21% | 1.89% |
| 1999 | 25 | 2.81% | 1.47% | -0.53% | 2.00% |
| 1994 | 30 | 4.73% | 0.43% | -1.20% | 1.63% |
| 1989 | 35 | 7.68% | 4.14% | 1.94% | 2.20% |
| 1986 | 38 | 10.48% | 9.49% | 5.69% | 3.80% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 15.44, 18.59, 23.98. The corresponding 10 year ratios are 12.10, 16.39 and 19.55. The corresponding historical ratios are 16.93, 24.72 and 29.00. The current P/E Ratio is 12.46 based on a stock price of $28.02 and EPS estimate for 2025 of $2.25 ($1.62 US$). This ratio is between the low and median ratios of the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in CDN$.
I also have Adjusted Earnings per Share (AEPS) Data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 15.09, 20.06 and 24.32. The corresponding 10 year ratios are 17.18, 22.37 and 30.43. The corresponding historical ratios are 14.78, 20.61 and 27.18. The current ratio is 13.32 based on AEPS estimate for 2025 of $1.52 and a stock price of $20.25. The current ratio is below the low ratio for the 10 year median ratios. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get a similar result in CDN$.
I get a Graham Price of $30.26. The 10-year low, median, and high median Price/Graham Price Ratios are 0.93, 1.33 and 1.71. The current P/GP Ratio is 0.93 based on a stock price of $28.02. This ratio is at the low ratio for the 10 year median ratios. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in CDN$.
I get a 10-year median Price/Book Value per Share Ratio of 1.58. The current P/B Ratio is 1.44 based on a stock price of $20.25, Book Value of $24.290M, and Book Value per Share of $14.06. The current ratio is 9% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$. You will get a similar result in CDN$.
I also have a Book Value per Share estimate for 2025 of $15.37. This implies a P/B Ratio of 1.32 with a Book Value of $26,246M and a stock price of $20.25. This ratio is 17% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$.
I get a 10-year median Price/Cash Flow per Share Ratio of 8.02. The current P/CF Ratio is 6.71 based on Cash Flow per Share estimate for 2025 of $3.02, Cash Flow of $5,216M and a stock price of $20.25. The current ratio is 16% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$. You will get a similar result in CDN$.
I get an historical median dividend yield of 1.26%. The current dividend yield is 1.98% based on Dividends of $0.40 and a stock price of $20.25. The current dividend yield is 57% above the historical median dividend yield. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get a similar result in CDN$.
I get a 10 year median dividend yield of 1.39%. The current dividend yield is 1.98% based on Dividends of $0.40 and a stock price of $20.25. The current dividend yield is 53% above the 10 year median dividend yield. This stock price testing suggests that the stock price is relatively cheap. This testing is in US$. You will get a similar result in CDN$.
The 10-year median Price/Sales (Revenue) Ratio is 2.52. The current P/S Ratio is 2.47 based on Revenue estimate for 2025 of $14,138M, Revenue per Share of $8.19 and a stock price of $20.25. The current ratio is 2% below the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable and below the median. This testing is in US$. You will get a similar result in CDN$.
Results of stock price testing is that the stock price is testing as reasonable, but maybe cheap. The dividend yield test says that the stock price is cheap. However, the P/S Ratio testing is only saying it is reasonable, but below the median. The rest of the testing is saying that the stock price is either cheap or reasonable and below the median.
When I look at analysts’ recommendations, I find Strong Buy (9), Buy (4), and Hold (9). The consensus would be a Buy. The 12 months stock price consensus is $33.96 ($24.45 US$) with a high of $44.52 ($32.05 US$) and low of $26.39 ($19.00 US$). The consensus stock price of $33.96 implies a total return 23.19% with 21.20% from capital gains and 1.98% from dividends.
Analysts on Stock Chase mostly do not like this stock. Daniel Da Costa on Motley Fool says to get exposure to gold as its price rises, but high quality stocks like this one.
Joey Frenette on Motley Fool says gold stocks are shining stocks this quarter. The company put out a Press Release about their fourth quarter of 2024.
An item on Zacks via Yahoo Finance discusses recent stock moments by this company. Simply Wall Street via Yahoo Finance reviews this stock. They say that this company’s Return on Capital Employed (ROCE) is impressive. They have no warnings out on this stock.
Based in Toronto, Barrick Mining Corp is one of the world’s largest gold miners. The company also has growing copper exposure. It operates mines in 19 countries in the Americas, Africa, the Middle East, and Asia. Its web site is here Barrick Mining Corp.
The last stock I wrote about was about was Leon’s Furniture Ltd (TSX-LNF, OTC-LEFUF) … learn more. The next stock I will write about will be Pembina Pipelines Corp (TSX-PPL, NYSE-PBA) … learn more on Monday, April 21, 2025 around 5 pm.
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