Barrick Forecasts Strong Organic Growth By 2030, CEO Bristow Touts Undervaluation

The leading gold miner, Barrick Gold GOLD, is projecting a 30% growth in gold-equivalent ounces from its existing assets by the end of the decade.

Speaking at the Gold Forum Americas in Colorado Springs on Tuesday, CEO Mark Bristow pointed out the company's differing approach in the era of M&A, with the latest multi-billion transaction occurring just days ago.

"Chronic underinvestment in exploration, which I have often flagged at this forum, has led to a dearth of new projects, forcing companies into M&A," Bristow noted, elaborating on the company's asset base for prolonged organic growth.

"We have six Tier One gold mines with more in the making, and our long-term plans are based on quality orebodies with industry-leading grades," he said.

Now read: Goldman Sachs Sees Gold Higher, Takes A Downbeat Stance On Iron Ore

One of Barrick's key growth regions is Nevada, which Bristow described as "the world's premier mining jurisdiction." The newly commissioned Goldrush mine is set to ramp up to 400,000 ounces per year by 2028. Adjacent to Goldrush is the 100% Barrick-owned Fourmile project, which boasts gold grades double that of Goldrush, making it a tier-one mine in the making.

Additionally, the 14-million-ounce Leeville project is positioned to significantly enhance Carlin's reserves, potentially extending its life beyond 2045 and becoming a major growth driver for the company.

Beyond gold, Barrick is also expanding its copper portfolio, leveraging the rising demand for the strategic metal. In its second phase, the Reko Diq copper-gold project in Pakistan is expected to produce 400,000 tonnes of copper and 500,000 ounces of gold annually.

Meanwhile, the Lumwana Super Pit in Zambia, which should complete a feasibility study by year's end, is slated to double its production over a 30-year life. This move should expand Barrick's presence in the copper sector and diversify its revenue streams.

Barrick's growth plans get a boost from prudent financial management. Since 2019, the company has reduced its net debt by $3.5 billion, invested $11.2 billion in long-term mine plans, and returned over $5 billion to shareholders.

This solid financial position and robust operating cash flows provide Barrick with the flexibility to fund usually expansive commodity production growth.

However, Bristow believes the market is undervaluing the company, which trades at 14.4 times its forward earnings.

"Based on analysts' consensus net asset value calculations, the value of just our interest in Nevada Gold Mines and our copper portfolio almost exceeds our current market capitalization," he said.

Read Next:

• BHP Group Sounds Alarm on Copper Supply, AI and EV Growth Could Drive Prices Soaring: Report

Benzinga Mining is the bridge between mining companies and retail investors. Reach out to licensing@benzinga.com to get started!

Image via Shutterstock