US Market News
4週前
Newmont Transaction Highlights Rising Valuations For Undeveloped Gold AssetsMay 13, 2026 8:30 AM
PR Newswire (US) Issued on behalf of Greenland Mines Ltd.Newmont reported $4,900/oz realized in Q1. Kinross reported $4,873. Agnico Eagle posted record operating margins. Barrick is preparing a NewCo IPO of its North American gold assets. The deposits that priced at $1,800 are now sitting on a different planet — and the ones with the most ounces have the most to gain.The gold price reset is over. Senior producers won it in Q1 2026 earnings, well before the analysts finished updating their decks. The market is still catching up. Newmont's (NYSE: NEM) $4,900-per-ounce realized price and $3.1 billion in quarterly free cash flow already reflect what the mining industry figured out two quarters ago[1]: when the price deck moves from $1,800 to $4,900 on the same ore body, undeveloped ounces in the ground are effectively being revalued — and the deposits that the 2022 economics treated as long-dated optionality now screen as potential near-term development candidates at the new deck.CHARLOTTE, N.C., May 13, 2026 /PRNewswire/ -- Baystreet.ca News Commentary — That repricing has now been quantified on one of the largest undeveloped palladium-gold-platinum systems on Earth. Greenland Mines Ltd. (NASDAQ: GRML) released SLR Consulting's independent metal-price sensitivity analysis on its Skaergaard Project on May 7, 2026. Same block model. Same drill database. Same 1.43 g/t PdEq cut-off. Same 3.12 t/m³ bulk density. The only thing that changed was the price deck. The result: 16.58 million ounces of palladium-equivalent Indicated and 21.92 million ounces Inferred — a 45% grade uplift in the Indicated category and 55% in the Inferred, on a block model that hasn't been touched since 2022[2]. These figures are sensitivity scenarios, not new Mineral Resource or economic estimates; they illustrate how Skaergaard reads under different long term metal price assumptions. That is what the senior-producer realized prices look like when you push them through an undeveloped resource estimate.THE STRUCTURAL POSITIONThe 2022 NI 43-101 Mineral Resource on Skaergaard, prepared by SLR Consulting (Canada) Ltd., established a Total Indicated and Inferred Resource of 364.37 million tonnes at 2.17 g/t PdEq, with the Indicated category alone at 158.95 million tonnes grading 2.22 g/t PdEq. That equates to 25.4 Moz palladium-equivalent and 23.5 Moz gold-equivalent across the combined Indicated and Inferred categories, which on an illustrative basis and before any technical or economic factors, corresponds to a gross undiscounted in-situ metal value of approximately $68 billion at February 2026 metal prices[3]. Greenland Mines holds an 80% direct interest in the Project and an option on the remaining 20%.The 2022 base case used $1,725/oz Pd, $1,800/oz Au, and $1,250/oz Pt. SLR's three sensitivity scenarios — Low, Medium, and High — applied updated metal price assumptions ranging from $3,000/oz Au in the Low case to $5,000/oz Au in the High case, leaving every other technical input untouched[2]. The dominant variable in the read is the gold price.Senior gold producers are currently realizing approximately $4,800 to $4,900 per ounce. The high-price sensitivity scenario is broadly aligned with that realized-price range, while still representing an upside long-term price case in SLR's framework. SLR explicitly notes that the increases in equivalent grades and contained PdEq metal are primarily driven by higher gold prices, and considers the high-price sensitivity case relatively aggressive, viewing the Low and Medium price sets as more reasonable long-term reference points[2]. The 2026 field, drill, and bulk-sample campaign is fully funded.President Bo Møller Stensgaard, Ph.D., described the result as the kind of scale and price leverage that long-term institutional and strategic partners look for in the next generation of precious- and critical-metal projects[2].
READ THE ENTIRE REPORT ON GREENLAND MINES LTD HERETHE SENIOR GOLD CYCLEFour U.S.-listed senior gold producers reported Q1 2026 results in the same window as the Greenland Mines sensitivity work — each one a different read on what realized gold prices in the $4,800 to $4,900 range are doing to the precious-metals industry.Newmont (NYSE: NEM) — the world's largest gold producer — reported Q1 2026 results on April 23, 2026, with all-time record free cash flow of $3.1 billion, revenue of $7.31 billion (up 46% year-on-year), and adjusted earnings per share of $2.90 (an all-time quarterly record). Average realized gold price was $4,900 per ounce; gold by-product all-in sustaining cost was $1,029 per ounce; attributable gold production was 1.3 million ounces[1]. The Board authorized an additional $6.0 billion for share repurchases. Newmont remains on track for full-year 2026 production guidance of 5.3 million attributable gold ounces. CEO Natascha Viljoen credited "strong operational and financial performance"[1]. For investors trying to understand what the gold supercycle looks like at the income-statement level of the largest producer in the world, Newmont's Q1 is the cleanest available data point.Barrick Mining (NYSE: B) (TSX: ABX) rebranded from "Gold" to "Mining" in May 2025, with its NYSE ticker changing from GOLD to B — a structural acknowledgment that the Company is now a substantial gold-and-copper producer rather than a pure gold play. Q4 2025 results, released February 5, 2026, included record quarterly operating cash flow of $2.73 billion, free cash flow of $1.62 billion, and net earnings per share of $1.43 — the highest in the Company's history. Full-year 2025 production was 3.26 million ounces of gold and a record 220,000 tonnes of copper. The 2026 guidance range is 2.9 to 3.25 million gold ounces at a $4,500/oz price assumption, with all-in sustaining costs guided to $1,760 to $1,950 per ounce[4]. The Board has authorized preparations for an Initial Public Offering of a new entity ("NewCo") holding Barrick's North American gold assets — including its joint venture interests in Nevada Gold Mines and Pueblo Viejo, plus the wholly owned Fourmile discovery in Nevada — targeted for completion by late 2026. The structural signal is straightforward: the largest producers are now actively unlocking value through asset-level repricings and corporate restructurings.Agnico Eagle Mines (NYSE: AEM) (TSX: AEM) reported Q1 2026 results on April 30, 2026, with payable gold production of 825,109 ounces, record quarterly operating margins, record adjusted net income of $1.7 billion (up 121% year-on-year), and free cash flow of $732 million[5]. All-in sustaining cost was $1,483 per ounce. Operations were led by Detour Lake (record quarterly mill throughput at Macassa), Canadian Malartic, and Fosterville. The Hope Bay project in Nunavut, Canada is expected to advance to a construction decision in May 2026. Full-year 2026 production guidance is 3.3 to 3.5 million gold ounces — a 20% to 30% production growth pipeline over the next decade. Agnico Eagle is the operational illustration of what an Arctic and Tier-1 jurisdiction-focused gold producer looks like at current realized prices.Kinross Gold (NYSE: KGC) (TSX: K) reported Q1 2026 results on April 29, 2026, with revenue of $2.41 billion (up 61% year-on-year), production of 492,563 gold-equivalent ounces, and an average realized gold price of $4,873 per ounce[6]. Most importantly, free cash flow was approximately $840 million — the fourth consecutive quarterly record. Margins reached a record $3,476 per gold-equivalent ounce, outpacing the rise in the gold price itself. The Company ended Q1 with $2.2 billion in cash and $1.4 billion in net cash. Full-year 2026 guidance remains 2.0 million gold-equivalent ounces at a production cost of sales of $1,360 per ounce and an all-in sustaining cost of $1,730 per ounce. Kinross is targeting return of approximately 40% of free cash flow to shareholders in 2026 through dividends and buybacks. For investors evaluating the cash-flow conversion economics of the senior gold cycle, Kinross's margin expansion is the cleanest measure available.THE GRML POSITIONAgainst that backdrop — four senior gold producers reporting record financial metrics on realized gold prices in the $4,800 to $4,900 range — Greenland Mines' May 7 sensitivity work translates the cycle into a tangible deposit-level number on one of the largest undeveloped Pd-Au-Pt systems on Earth.The H5 horizon — historically the highest-grade zone in the Skaergaard deposit — moves from 2.85 g/t PdEq Indicated in the 2022 base case to 6.56 g/t PdEq Indicated in the High case. Total Indicated PdEq content moves from 11.41 Moz (2022) to 16.58 Moz; total Inferred from 14.11 Moz to 21.92 Moz[2]. SLR also recommends that any future Mineral Resource updates be reported on a net smelter return (NSR) basis rather than using metal equivalents, in line with evolving practice under SK 1300 and NI 43-101.The Skaergaard intrusion has been studied since the 1990s. Approximately $30 million of historical exploration investment has gone into building the 2022 NI 43-101 Mineral Resource. SLR Consulting (Canada) Ltd. is the Qualified Person firm. GTK Mintec is driving metallurgy and pilot processing at the Geological Survey of Finland's Outokumpu facility. WSP is leading the environmental baseline. Greenland Mines and its 80%-owned subsidiary Major Precious Greenland A/S were admitted to the European Raw Materials Alliance on April 22, 2026[7]. The 2026 field, drill, and bulk-sample campaign is fully funded.The 2026 program will begin evaluating open-pit and bulk-mining scenarios alongside the underground concept — a separate, mine-method-based lever independent of any further metal-price assumption[2].The deposit didn't change. The math around it did.FREQUENTLY ASKED QUESTIONSWhat did the May 7, 2026 SLR sensitivity study actually conclude?Applied to the existing 2022 underground-constrained Mineral Resource model, with all geologic and technical inputs held constant, the high-price sensitivity case indicates 16.58 million ounces of palladium-equivalent Indicated and 21.92 million ounces of palladium-equivalent Inferred — a 45% grade uplift in the Indicated category and 55% in the Inferred versus the 2022 base case[2].Why is gold the dominant variable in the sensitivity analysis?Approximately 73% of the contained metal at Skaergaard is in the platinum group metals and 27% is in gold by ounce count, but on a value basis, gold accounts for the majority of the in-situ value at $5,000/oz Au in the high-price case. That is why a move in the gold price deck from $1,800 (2022) to $5,000 (2026 high case) drives the dominant share of the 45% to 55% PdEq grade uplift[2].What is the 2026 program?A fully funded summer field, drill, and bulk-sample campaign supported by SLR Consulting (geology / Qualified Person), GTK Mintec (metallurgy and pilot processing at the Geological Survey of Finland's Outokumpu facility), and WSP (environmental baseline). The program will begin evaluating open-pit and bulk-mining scenarios alongside the underground concept[2].Has GRML completed a feasibility study?No. The most recent technical work is the 2022 NI 43-101 Mineral Resource Estimate. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. No preliminary economic assessment, pre-feasibility study, or feasibility study has been completed on the Skaergaard Project.For more information about Greenland Mines Ltd. (NASDAQ: GRML), visit the Baystreet GRML profile.Article Sources:Newmont Corporation, "Newmont Generates Record Quarterly Earnings and Free Cash Flow, Reports First Quarter 2026 Results and Announces Increased Share Repurchase Authorization," April 23, 2026.Greenland Mines Ltd., "Greenland Mines Reports Up To 45% – 55% Increase in Palladium Equivalent (PdEq) Grades at Skaergaard in Sensitivity Study," May 7, 2026.Klotho Neurosciences, Inc., Form 8-K and accompanying disclosures regarding the acquisition of Greenland Mines Corp., March 4, 2026; Greenland Mines Ltd. corporate disclosures.Barrick Mining Corporation, "Barrick Reports Full Year and Fourth Quarter 2025 Results," February 5, 2026; Barrick NewCo IPO authorization announcement.Agnico Eagle Mines Limited, "Agnico Eagle Reports First Quarter 2026 Results, Including Record Quarterly Operating Margins and Adjusted Net Income," April 30, 2026.Kinross Gold Corporation, "Kinross reports strong 2026 first-quarter results," April 29, 2026.Greenland Mines Ltd., admission to the European Raw Materials Alliance announcement, April 22, 2026.CONTACT:
BAYSTREET.CA
info @acblanke1Cautionary Note Regarding Mineral Resources: Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The sensitivity cases referenced in this article are illustrative of the deposit's leverage to long-term metal price environments rather than economic estimates. No preliminary economic assessment, pre-feasibility study, or feasibility study has been completed on the Skaergaard Project. There is no certainty that any portion of the Mineral Resources will be converted to Mineral Reserves or that the Project will be brought into commercial production.DISCLAIMER:Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Baystreet.ca is a wholly-owned subsidiary of B Street Media Inc. ("BAY"). The owners of BAY also own MIQ. BAY has not been paid directly by Greenland Mines Ltd.; however, the owner(s) of BAY also own MIQ, which has been paid a fee by Greenland Mines Ltd. directly. There may be 3rd parties who may have shares of Greenland Mines Ltd., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this publication as the basis for any investment decision. BAY owns shares of Greenland Mines Ltd. which were purchased in the open market, and reserves the right to buy and sell, and will buy and sell shares of Greenland Mines Ltd. at any time without any further notice commencing immediately and ongoing. We also expect further compensation as an ongoing digital media effort to increase visibility for the company, no further notice will be given, but let this disclaimer serve as notice that all material disseminated has been approved by Greenland Mines Ltd.; this is a paid advertisement, and we own shares of Greenland Mines Ltd. that we will sell, and we also reserve the right to buy shares of Greenland Mines Ltd. in the open market or through private placements, and/or other investment vehicles. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.Logo: https://mma.prnewswire.com/media/2973736/Baystreet_Logo.jpg View original content:https://www.prnewswire.com/news-releases/newmont-transaction-highlights-rising-valuations-for-undeveloped-gold-assets-302770489.htmlSOURCE Baystreet Original: Newmont Transaction Highlights Rising Valuations For Undeveloped Gold Assets
iHub News
4週前
Barrick Mining (B) Tops Q1 Expectations on Strong Gold Production and Cash Flow GrowthMay 11, 2026 10:15 AM
IH Market News Barrick Mining Corporation (NYSE:B) reported first-quarter results on Monday that came in ahead of analyst expectations, supported by stronger gold output, lower costs and sharply higher cash flow.The company posted adjusted earnings per share of $0.98, comfortably above the consensus forecast of $0.81. Revenue and Production Rise Sharply Quarterly revenue reached $5.22 billion, beating analyst estimates of $4.84 billion and rising 67% from $3.13 billion in the same quarter last year.Barrick produced 719,000 ounces of gold during the quarter, exceeding its own guidance range of 640,000 to 680,000 ounces.The stronger production performance was driven by solid underground mining and processing activity at Nevada Gold Mines, higher throughput and grades at Veladero, and a faster-than-anticipated ramp-up at Loulo-Gounkoto.Gold all-in sustaining costs declined 4% year-over-year to $1,708 per ounce.Copper production also increased, rising 11% year-over-year to 49,000 tonnes. Cash Flow Surges on Higher Gold Prices The operational strength translated into significantly improved profitability and cash generation.Operating cash flow climbed 111% year-over-year to $2.55 billion, while attributable free cash flow rose 195% to $1.21 billion.Shares of Barrick gained 0.6% in premarket trading following the earnings release.“We started the year with another strong quarter. Building on momentum from Q4, we operated safely and outperformed our plan on both gold production and costs,” said President and Chief Executive Officer Mark Hill. “Our performance allowed us to capture even more of the higher gold price, producing significantly higher earnings and cash flow compared to a year ago.” Company Maintains Full-Year Guidance Barrick said it expects second-quarter gold production to range between 730,000 and 770,000 ounces, with the midpoint indicating another sequential increase in output.The miner maintained its full-year 2026 gold production forecast of 2.90 million to 3.25 million ounces.Copper production guidance was also unchanged at 190,000 to 220,000 tonnes for the year. Dividend and Buyback Program Announced Barrick declared a quarterly dividend of $0.175 per share, payable on June 15 to shareholders on record as of May 29.The company also unveiled a new $3 billion share repurchase program.In addition, Barrick confirmed that the planned initial public offering of North American Barrick remains on track for completion before year-end.The new entity is expected to include the company’s stakes in Nevada Gold Mines and Pueblo Viejo, as well as the Fourmile project.Barrick Mining stock price Original: Barrick Mining (B) Tops Q1 Expectations on Strong Gold Production and Cash Flow Growth
US Market News
3月前
Number of shares and votes in BioArctic AB (publ) as of February 27, 2026February 27, 2026 12:57 PM
PR Newswire (US)
STOCKHOLM, Feb. 27, 2026 /PRNewswire/ -- BioArctic AB (publ) (Nasdaq Stockholm: BIOA B) announced today that the company issued 78,000 Class B shares during February for delivery of shares to participants in the 2019/2028 stock option program resolved at the Annual General Meeting on May 9, 2019. The shares were issued through an exercise of 78,000 stock options of series 2019/2028.As of February 27, 2026, the last trading day of the month, the total number of shares in BioArctic AB amounted to 88,719,485 shares, of which 74,319,489 listed Class B shares and 14,399,996 unlisted Class A shares. The A share has ten votes per share and the B share has one vote per share. The total number of votes in the company amounts to 218,319,449.This information is information that BioArctic AB (publ) is obliged to disclose pursuant to the EU Market Abuse Regulation. The information was released for public disclosure, through the agency of the contact person below, on February 27, 2026, at 18.30 CET.For more information, please contact:
Oskar Bosson, VP Communications and Investor Relations
E-mail: oskar.bosson@bioarctic.com
Tel: +46 704 10 71 80Anders Martin-Löf, CFO
E-mail: anders.martin-lof @Matt043 79 77
About BioArctic AB
BioArctic AB (publ) is a Swedish research-based biopharma company focusing on innovative treatments that can delay or stop the progression of neurodegenerative diseases. The company invented Leqembi® (lecanemab) – the world's first drug proven to slow the progression of the disease and reduce cognitive impairment in early Alzheimer's disease. Leqembi has been developed together with BioArctic's partner Eisai, who are responsible for regulatory interactions and commercialization globally. In addition to Leqembi, BioArctic has a broad research portfolio with antibodies against Parkinson-related diseases and ALS as well as additional projects against Alzheimer's disease. Several of the projects utilize the company's proprietary BrainTransporter™ technology, which has the potential to actively transport antibodies across the blood-brain barrier to enhance the efficacy of the treatment. BioArctic's B share (BIOA B) is listed on Nasdaq Stockholm Large Cap. For further information, please visit www.bioarctic.com.This information was brought to you by Cision http://news.cision.comhttps://news.cision.com/bioarctic/r/number-of-shares-and-votes-in-bioarctic-ab--publ--as-of-february-27--2026,c4314113The following files are available for download:https://mb.cision.com/Main/9978/4314113/3956238.pdfNumber of shares and votes in BioArctic AB (publ) as of February 27, 2026
View original content:https://www.prnewswire.co.uk/news-releases/number-of-shares-and-votes-in-bioarctic-ab-publ-as-of-february-27-2026-302699841.html
Original: Number of shares and votes in BioArctic AB (publ) as of February 27, 2026
tootalljones
2年前
i bought around another 25,000 shares of barrick this a.m.....here is a nice article on why is it much cheaper than AEM....
https://www.pgpf.org/blog/2022/07/national-debt-could-be-over-twice-the-size-of-the-economy-in-just-30-years
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Dividends Analysis
Barrick Gold Vs. Agnico Eagle Mines: Only One Of These Is A Strong Buy
Dec. 23, 2023 7:15 AM ETBarrick Gold Corporation (GOLD) Stock, AEM Stock, ABX:CA Stock, AEM:CA StockGDX, NEM, NGT:CA129 Comments
Samuel Smith profile picture
Samuel Smith
Investing Group Leader
About this article
Ticker
Analyst rating
STRONG BUY
Price at publication
$18.31
Last price
$15.68
Change since publication
-14.39%
S&P 500 change since publication
3.44%
Days since publication
39
Summary
Barrick Gold and Agnico Eagle Mines are leading gold miners with strong balance sheets and diversified asset portfolios.
While we are bullish on the long-term outlook for gold, we think only one of these miners is a Strong Buy at the moment.
We compare them side-by-side and offer our take on which is the better buy right now.
I am Samuel Smith, Vice President of Leonberg Capital. I lead the investing group High Yield Investor where we do our best to find the right balance between safety, growth, yield, and value.
Stack of gold bars
brightstars
Barrick Gold Corporation (NYSE:GOLD) and Agnico Eagle Mines Limited (NYSE:AEM) are leading blue-chip gold miners (GDX) with decent dividends and promising growth profiles alongside high-quality asset portfolios and strong balance sheets. In this article, we will compare them side by side and offer our take on which one is a Strong Buy right now.
GOLD Stock Vs. AEM Stock: Asset Portfolios
Agnico Eagle is the third-largest gold miner in the world, with a strong presence in low geopolitical risk geographies such as Canada, Mexico, Finland, and Australia. The company's portfolio includes five main assets: Detour Lake, Canadian Malartic, Meadowbank, Meliadine, and Fosterville. These mines contribute significantly to Agnico's annual production of 3.1 million ounces of gold, along with minor production of copper, zinc, and silver. That being said, the company's overall portfolio contains both low-cost and higher-cost mines, resulting in an average all-in-sustaining cost (AISC) of USD $1,100 per ounce in 2022.
AEM's portfolio growth has been notable over the years, expanding from one operating mine in 2008 to 11 by 2022, including the addition of high-grade, low-cost mines through its recent merger with Kirkland Lake Gold. However, recently, the company's return on invested capital has fallen below its weighted average cost of capital, indicating challenges in generating sustainable economic returns. Agnico's strategic focus on the Abitibi region, along with developments like Hope Bay and Hammond Reef projects, aims to increase production, but cost management and capital efficiency remain critical for long-term success.
Meanwhile, Barrick Gold ranks one spot ahead of AEM as the world's second-largest gold miner, with operations in more geographically diverse and geopolitically risky regions, including the Americas, Africa, the Middle East, and Asia. The acquisition of Randgold in 2019 and the formation of Nevada Gold Mines ("NGM") in a joint venture with Newmont (NEM) were significant steps in its expansion and increased focus on what it calls "tier 1" mines in a strong move to improve production quality and efficiency. NGM exemplifies the company's emphasis on cost reduction through its operational synergies. However, despite the quality of its assets, GOLD's significant presence in higher geopolitical risk areas poses lingering risks to the company's bottom line despite its efforts to adhere to high environmental standards and contribute to local communities at all of its operations.
Like AEM, GOLD's asset base is diversified across both low-cost and higher-cost mines, leading to an average AISC of USD $1,200 per ounce in 2022. Barrick's growth prospects include expanding production at the NGM joint venture, Pueblo Viejo mine, and Lumwana copper mine, with potential developments like Fourmile and Reko Diq promising substantial increases in production (including a large increase in copper production) in the years to come.
Despite their diversified portfolios, both companies face similar challenges in generating returns above their cost of capital. Agnico Eagle's focus on lower-risk areas is a strategic advantage, but its portfolio's cost structure and return metrics suggest a need for improved efficiency. Barrick's diversified global presence, coupled with strategic joint ventures like NGM, highlights its scale and operational synergies. However, Barrick also grapples with balancing its portfolio's costs and maximizing returns on invested capital while also dealing with higher geopolitical risks.
Both companies are focusing on optimizing existing operations and expanding through strategic organic projects whenever possible instead of pursuing expensive acquisitions such as their peer Newmont recently did through its acquisition of Newcrest. Agnico Eagle's attention to the Abitibi region and its expansion through mergers and acquisitions highlight its growth-oriented approach. In contrast, Barrick's emphasis on organic growth, as seen in developments like Fourmile and Reko Diq, suggests a long-term view aimed at leveraging existing infrastructure and maximizing resource potential.
GOLD Stock Vs. AEM Stock: Balance Sheets
Both Barrick Gold and Agnico Eagle Mines Limited have solid balance sheets. Barrick Gold has a strong liquidity profile (with billions of dollars in cash and undrawn liquidity on its credit line), an investment-grade credit rating, and basically zero net debt. Moreover, it also consistently generates free cash flow from its operations, giving it a steady stream of cash combined with existing balance sheet liquidity to pay a nice dividend to shareholders, buy back shares opportunistically, and also be positioned to make other opportunistic growth investments that align with its overall corporate strategy and long-term vision.
Agnico Eagle Mines also has a strong balance sheet with a very manageable amount of debt and also has plenty of liquidity and consistently generates free cash flow. Moreover, its less geopolitical risk than Barrick puts less potential stress on its balance sheet should a worst-case scenario play out for either company.
As the chart below shows, GOLD has come a long way in reducing its debt burden over the years whereas AEM has had consistently low debt levels.
Chart
Data by YCharts
GOLD Stock Vs. AEM Stock: Growth Profiles
Barrick Gold plans to double its copper production by the end of the decade and increase it further to an estimated 1 billion pounds or 450,000 tonnes per annum by 2031. The Reko Diq project in Pakistan and the Lumwana Super Pit Expansion are two critical projects that will help achieve this growth. When at full production, Reko Diq is expected to be among the world's top 10 copper mines, while the Lumwana Super Pit Expansion is expected to deliver up to 240,000 tonnes of copper per year.
Barrick's gold growth initiatives are expected to increase the company's production by around 30% to 6.8 million gold-equivalent ounces by 2031. The company is also exploring the high-grade opportunity at Horsham in the Carlin District and multi-million-ounce potential growth opportunities at Turquoise Ridge.
Agnico Eagle aims to expand its mill at Detour beyond 28Mtpa and conduct a study for an underground component, combining to potentially contribute around 300koz pa to production. Meanwhile, the Canadian Malartic Complex is progressing with the Odyssey development and evaluating exploration opportunities. Agnico Eagle has partnered with Teck Resources in a 50/50 joint venture for the San Nicolás copper-zinc project in Zacatecas, Mexico. The San Nicolás project is one of the largest undeveloped volcanic-hosted massive sulfide deposits globally and is expected to produce 63 thousand tonnes per annum of copper and 147 ktpa of zinc in concentrate over its initial five years.
In addition to both GOLD's and AEM's production growth initiatives, we are bullish on the long-term outlook for both copper and gold prices. We expect factors such as accelerating central bank purchases of gold, escalating geopolitical tensions, and the likelihood of Federal Reserve interest rate cuts next year to drive gold prices meaningfully higher. Moreover, Goldman Sachs has predicted a significant jump in copper prices in the coming years due to an existing supply deficit and strong anticipated demand growth, particularly from electrification and electric vehicle growth.
Combining strong production volume growth potential with favorable price outlooks for the underlying metals produced gives both businesses a substantial long-term growth outlook. Production costs will also have a significant impact on profitability levels, though increased robotics and artificial intelligence technologies should help provide some deflationary relief on that side of the profitability equation as well (and some already is via increased digitization of mining operations and the growing use of autonomous trucks at some mining sites), though it may be several years before any noticeable impact is felt.
GOLD Stock Vs. AEM Stock: Valuations
On a head-to-head basis, GOLD is more attractively priced than AEM. GOLD's Price to Net Asset Value (P/NAV) ratio stands at 1.04x, indicating that its stock is trading near its net asset value. In contrast, AEM's P/NAV ratio is significantly higher at 1.48x, indicating that its stock is priced at a premium relative to its net assets.
On an EV/EBITDA basis, GOLD is trading at just 6.05x, which is significantly lower than AEM's 8.19x. This lower ratio for GOLD implies a more attractive valuation in terms of operational earnings. Furthermore, GOLD's NTM Price-to-earnings (P/E) ratio of 16.78x is substantially lower than AEM's 28.51x, which further highlights that investors are paying a higher price for AEM's earnings compared to GOLD's. In terms of free cash flow generation, the Price to Free Cash Flow (P/FCF) ratio for GOLD is 20.42x, compared to AEM's higher 24.91x, further reinforcing the narrative that GOLD is cheaper than AEM.
Both offer pretty attractive dividend yields by gold mining industry standards (north of 2%), with AEM paying out a stable quarterly dividend that has grown over time:
Chart
Data by YCharts
Meanwhile, GOLD has a variable rate dividend payout policy based on the amount of cash on hand at the end of each quarter. While not as attractive as a fixed policy like AEM's, GOLD's policy gives it much more capital allocation flexibility and also enables management to buy back stock aggressively whenever it is opportunistic to do so without compromising its balance sheet strength. Given the nature of the mining industry, we think that GOLD's dividend policy actually makes more sense.
After comparing them across the spectrum of major valuation metrics, we can confidently conclude that GOLD stock is far less expensive than AEM at the moment, and we also think that its dividend/buyback/capital allocation policy makes more sense for the gold mining business model than AEM's does.
GOLD Stocks Vs. AEM Stock: Investor Takeaway
Both GOLD and AEM are blue-chip stocks, and - given our bullish long-term outlook on gold and copper - we think both are reasonable, if not attractive, investments right now. While AEM has the edge in terms of lower geopolitical risk in its locations, GOLD is larger, has a stronger balance sheet at the moment, and also has more promising growth potential in copper.
Last but not least, GOLD's stock price is far cheaper than AEM's. As a result, we rate Barrick Gold Corporation a Strong Buy and rate Agnico Eagle Mines Limited a Buy.
This article was written by
Samuel Smith profile picture
Samuel Smith
28.84K Followers
Samuel Smith is Vice President of Leonberg Capital,