Latest news with #RekoDiq
Yahoo
6 hours ago
- Business
- Yahoo
B vs. AEM: Which Gold Mining Stock Should You Bet on Now?
Barrick Mining Corporation B and Agnico Eagle Mines Limited AEM are two leading players in the gold mining space with global operations and diversified portfolios. While gold prices have fallen from their April 2025 peak, they remain favorable, aided by geopolitical tensions, and are currently hovering close to the $3,400 per ounce level. Against this backdrop, comparing these two major gold producers is particularly relevant for investors seeking exposure to the precious metals prices have rallied roughly 29% this year, largely attributable to aggressive trade policies, including sweeping new import tariffs announced by President Donald Trump that have intensified global trade tensions and heightened investor anxiety. Also, central banks worldwide have been accumulating gold reserves, led by risks arising from Trump's policies. Prices of the yellow metal catapulted to a record high of $3,500 per ounce on April 22. Increased purchases by central banks and geopolitical tensions worsened by the Israel-Iran conflict are factors expected to help the yellow metal sustain the rally. Let's dive deep and closely compare the fundamentals of these two Canada-based gold miners to determine which one is a better investment now. Barrick is well-placed to benefit from the progress in key growth projects that should significantly contribute to its production. Its major gold and copper growth projects, including Goldrush, the Pueblo Viejo plant expansion and mine life extension, Fourmile, Lumwana Super Pit and Reko Diq, are being executed. These projects are advancing on schedule and within budget, laying the groundwork for the next generation of profitable production. The Goldrush mine is ramping up to the targeted 400,000 ounces of production per annum by 2028. Bordering Goldrush is the 100% Barrick-owned Fourmile, which is yielding grades double those of Goldrush and is anticipated to become another Tier One mine. The project has progressed to a prefeasibility study on the back of a successful drilling program. The Reko Diq copper-gold project in Pakistan is designed to produce 460,000 tons of copper and 520,000 ounces of gold annually in its second development phase. The first production is expected by the end of October 2024, Barrick announced the commencement of the development of a Super Pit at its Lumwana copper mine in Zambia. The Super Pit Expansion entails doubling the present process circuit's throughput and substantially boosting mining volumes. Upon completion, the $2 billion project has the potential to transform Lumwana into a long-term, high-yielding, top-25 copper producer and Tier One copper mine. The expansion is expected to deliver 240,000 tons of copper production annually over the life of the has a solid liquidity position and generates healthy cash flows, positioning it well to take advantage of attractive development, exploration and acquisition opportunities, drive shareholder value and reduce debt. At the end of first-quarter 2025, Barrick's cash and cash equivalents were around $4.1 billion. It generated strong operating cash flows of roughly $1.2 billion in the quarter, up 59% year over year. Free cash flow surged to around $375 million in the first quarter from $32 million in the prior-year quarter. Barrick returned $1.2 billion to its shareholders in 2024 through dividends and repurchases. Barrick's board, in February 2025, authorized a new program for the repurchase of up to $1 billion of its outstanding common shares. It repurchased shares worth $143 million under this program during the first quarter. Barrick offers a dividend yield of 1.9% at the current stock price. Its payout ratio is 28% (a ratio below 60% is a good indicator that the dividend will be sustainable), with a five-year annualized dividend growth rate of roughly 5.1%.Barrick, however, is challenged by higher costs, which may eat into its margins. Its cash costs per ounce of gold and all-in-sustaining costs (AISC) — the most important cost metric of miners — increased around 16% and 20% year over year, respectively, in the first quarter. AISC increased due to higher total cash costs per ounce and higher minesite sustaining capital expenditures. For 2025, the company projects total cash costs per ounce of $1,050-$1,130 and AISC in the range of $1,460-$1,560 per ounce. These projections suggest a year-over-year increase at the midpoint of the respective ranges. Increased mine-site sustaining capital spending and higher labor costs may lead to higher costs. Agnico Eagle is focused on executing projects that are expected to provide additional growth in production and cash flows. It is advancing its key value drivers and pipeline projects, including the Odyssey project in the Canadian Malartic Complex, Detour Lake, Hope Bay, Upper Beaver and San Nicolas. The Hope Bay Project, with proven and probable mineral reserves of 3.4 million ounces, is expected to play a significant role in generating cash flow in the coming years. The processing plant expansion at Meliadine was completed and commissioned in the second half of 2024, with mill capacity expected to increase to roughly 6,250 tons per day in merger with Kirkland Lake Gold established Agnico Eagle as the industry's highest-quality senior gold producer. The integrated entity now has an extensive pipeline of development and exploration projects to drive sustainable growth. It also has the financial flexibility to fund a strong pipeline of growth has a robust liquidity position and generates substantial cash flows, which allow it to maintain a strong exploration budget, finance a strong pipeline of growth projects, pay down debt and drive shareholder value. Its operating cash flow jumped roughly 33% year over year to record $1,044 million in the first generated solid first-quarter free cash flows of $594 million, up around 50% year over year, backed by the strength in gold prices and strong operational results. It remains focused on paying down debt using excess cash, with net debt reducing by $212 million sequentially to just $5 million at the end of the first quarter. Its long-term debt-to-capitalization is just around 5%, lower than Barrick's 12.3%. AEM also returned around $920 million to its shareholders through dividends and repurchases last year and $251 million in the first quarter. AEM offers a dividend yield of 1.3% at the current stock price. It has a five-year annualized dividend growth rate of 10.3%. AEM has a payout ratio of 32%.Despite these positives, Agnico Eagle is still exposed to higher production costs. In the first quarter, its total cash costs per ounce of gold were up modestly from the previous year to $903. While AISC declined in the quarter due to the deferral of certain sustaining capital expenditures, AEM projects the same to increase in the remainder of 2025. AEM forecasts total cash costs per ounce in the range of $915 to $965 and AISC per ounce between $1,250 and $1,300 for 2025, suggesting a year-over-year increase at the midpoint of the respective ranges. While AEM is taking actions to control costs, the inflationary pressure is likely to continue over the near term, weighing on its profit margins and overall financial performance. Year to date, Barrick stock has gained 36.3%, while AEM stock has rallied 56.8% compared with the Zacks Mining – Gold industry's increase of 55.4%. Image Source: Zacks Investment Research Barrick is currently trading at a forward 12-month earnings multiple of 10.73, lower than its five-year median. This represents a roughly 23.8% discount when stacked up with the industry average of 14.08X. Image Source: Zacks Investment Research Agnico Eagle is trading at a premium to Barrick. The AEM stock is currently trading at a forward 12-month earnings multiple of 20.27, above the industry. Image Source: Zacks Investment Research The Zacks Consensus Estimate for B's 2025 sales and EPS implies a year-over-year rise of 13.7% and 43.7%, respectively. The EPS estimates for 2025 have been trending higher over the past 60 days. Image Source: Zacks Investment Research The consensus estimate for AEM's 2025 sales and EPS implies year-over-year growth of 23.6% and 43%, respectively. The EPS estimates for 2025 have been trending northward over the past 60 days. Image Source: Zacks Investment Research (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Both B and AEM currently have a Zacks Rank #3 (Hold), so picking one stock is not easy. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks Barrick and Agnico Eagle are well-positioned to capitalize on the current gold price environment. Both have a strong pipeline of development projects, solid financial health and strong earnings growth prospects, and are seeing favorable estimate revisions. On the flip side, both are buffeted by higher production costs. AEM's higher dividend growth rate suggests that it may offer better investment prospects in the current market environment. AEM's lower leverage also indicates lesser financial risks. Investors seeking exposure to the gold space might consider Agnico Eagle as the more favorable option at this time. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Agnico Eagle Mines Limited (AEM) : Free Stock Analysis Report Barrick Mining Corporation (B) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Express Tribune
21 hours ago
- Business
- Express Tribune
Govt pursues Russian investment in mining
Pakistan has already chalked out a $1.9 billion funding plan to execute the Reko Diq copper and gold mining project. Total project funding has been estimated at $4.297 billion. Photo: File Listen to article Federal Minister for Energy Ali Pervaiz Malik is leading Pakistan's delegation to the St Petersburg International Economic Forum (SPIEF) 2025 from June 1821, 2025. According to an official statement issued Thursday, Malik held key meetings on the sidelines of the forum, including one with his Russian counterpart, Sergei Tsivilev, who also chairs the Pakistan-Russia Inter-Governmental Commission (IGC). Both sides discussed avenues for cooperation in energy, connectivity, trade, investment, banking, insurance, mining, and people-to-people exchanges. Russia expressed strong interest in expanding bilateral cooperation and welcomed the upcoming 10th session of the IGC, scheduled for the second quarter of 2025 in Islamabad. Malik also met with Alexey Shemetov, First Deputy Director of Rosatom Minerals, and invited the corporation to invest in Pakistan's mining sector, particularly in technology transfer and sharing expertise on enhancing safety and efficiency. Shemetov agreed to explore investment opportunities and submit proposals for collaboration in Pakistan's mining sector. In a high-level panel discussion titled 'The Responsibility of World Leaders for Mineral Reserves and Production for the Sustainable Development of Global Economy,' Malik presented Pakistan's recent reforms in the mining sector at the SPIEF 2025. He highlighted the newly launched Mining Framework Policy and the completion of the Reko Diq Mine feasibility study as major steps toward creating an investor-friendly environment for sustainable mineral development. He underscored the successful Pakistan Minerals Investment Forum, held in Islamabad in April 2025, as a turning point for the sector. "Under the leadership of Prime Minister Muhammad Shehbaz Sharif, Pakistan has undertaken comprehensive reforms to become a top destination for mining investment," said Malik. "Our new policy offers unparalleled opportunities in copper, gold, and critical minerals, while ensuring environmental stewardship and community benefits." He added that Pakistan has harmonised its legal framework with international standards through consultations with global legal firms. These reforms, he said, would unlock vast mineral resources through responsible development. Pakistan's mineral wealth, he added, is not limited to copper or gold but there are vast reserves of lithium and other rare earth elements. The minister noted that these initiatives were successfully unveiled at the Pakistan Minerals Investment Forum 2025, which saw strong participation from global mining leaders. He extended a formal invitation to international investors to participate in the next edition of Pakistan's Mineral Investment Forum. Multiple international mining companies expressed keen interest in participating in Pakistan's minerals forum. The positive engagement reflects growing confidence in Pakistan's reformed mining landscape.
Hans India
2 days ago
- Politics
- Hans India
Six coaches of Jaffar Express derail after explosion in Pakistan's Balochistan
Balochistan: At least six coaches of Pakistan's Jaffar Express derailed on Wednesday following a blast on railway tracks near Jacobabad in Sindh province, as per reports in Pakistani media. The train was en route from Quetta to Peshawar when the explosion occurred. According to police officials, the blast created a crater approximately three feet wide and deep, damaging nearly six feet of railway track. Authorities suspect that the explosion was caused by an improvised explosive device (IED) planted along the line. Officials stated that no casualties have been reported and that the area has been secured. A formal investigation is currently underway, said railway officials. The Baloch Republican Guards, an armed Baloch separatist organisation, has claimed responsibility for the attack on the Jaffar Express, as well as for targeting containers linked to the Reko Diq project in Chagai, Balochistan, The Balochistan Post reported. The group's spokesperson, Dosteen Baloch, issued a statement claiming the blast was executed by their operatives using a remote-controlled device near the Jacobabad cattle market. "In today's attack, six coaches of the train derailed. The Jaffar Express is used by the occupying Pakistani army for the movement of its personnel, and our attacks will be severe in the future," the spokesperson said (rough English translation). "Our organisation accepts responsibility for these attacks. Our such attacks will continue until the independence of Balochistan," the statement added. Videos circulating on social media showed passengers, including families with children, safely disembarking from the derailed train and retrieving their belongings. Despite the derailment, there was no report of injury or death. Notably, this is not the first time the Jaffar Express has been targeted. In March, insurgents from the Balochistan Liberation Army (BLA) hijacked the train near Quetta, taking hundreds of passengers hostage and killing over two dozen security personnel. The military claimed that the operation to neutralise the attackers and rescue the hostages had concluded successfully. Security sources confirmed that at least 346 hostages were rescued, and around 50 attackers were neutralised.
Business Recorder
3 days ago
- Business
- Business Recorder
PM for linking Reko Diq project to Railways network
ISLAMABAD: In a bold move aimed at bolstering economic development and enhancing cargo transport infrastructure, Prime Minister Shehbaz Sharif on Tuesday directed that Reko Diq mining project in Balochistan be connected to Pakistan Railways network by 2028. The announcement was made as the prime minister chaired a high-level meeting attended by senior cabinet members, including Deputy Prime Minister and Foreign Minister Ishaq Dar, Defence Minister Khawaja Asif, and other federal ministers. The Reko Diq project, which has been described as one of the largest undeveloped copper and gold deposits in the world, is expected to generate up to $90 billion in operating cash flow over its lifetime. Canadian mining firm Barrick Gold holds a 50 per cent stake, with the remaining ownership shared between the federal and Balochistan governments. 'This will develop the mines and minerals sector of Balochistan and create new employment opportunities for the local population,' Sharif said. He described Pakistan Railways as the backbone of the country's economy and communication, highlighting its affordability, speed, and environmental benefits. The proposed rail link is expected to involve upgrades to key sections of the network, including the Main Line-1 (ML-1) and Main Line-3 (ML-3), to accommodate future freight traffic from the mine. An inter-ministerial committee has been tasked with developing a financing strategy and implementation plan for the rail project. It will also oversee infrastructure development to ensure the network is capable of handling large-scale mineral transport once the mine becomes operational. International interest in Reko Diq has been growing. In January, Saudi Arabia's Manara Minerals expressed plans to acquire a 10-20 per cent stake in the venture, potentially investing between $500 million and $1 billion. In April, stakeholders approved a revised feasibility study and granted initial approval for Phase-1 development, contingent on securing up to $3 billion in funding. The prime minister's directive signals a renewed focus on leveraging the country's mineral resources to drive economic growth, particularly in underdeveloped regions such as Balochistan. Copyright Business Recorder, 2025
Arab News
3 days ago
- Business
- Arab News
Pakistan plans rail link to Reko Diq by 2028 as PM sets up committee for project
ISLAMABAD: Pakistan plans to upgrade its railway infrastructure and extend the network to Reko Diq, a massive copper and gold mining project in southwestern Balochistan province, as Prime Minister Shehbaz Sharif on Tuesday instructed officials to set up an inter-ministerial committee for the project. The move aims to support future cargo and transport needs, particularly as Reko Diq, one of the world's largest undeveloped copper-gold deposits, is set to begin production within three years. The mine is being developed by Barrick Gold, which holds a 50 percent stake, with the remaining share held jointly by Pakistan's federal and provincial governments. The company has projected the project will generate up to $74 billion in free cash flow over its expected 37-year lifespan. 'The Prime Minister directed that Reko Diq be connected to the railway network by 2028,' Sharif's office said in a statement circulated after the meeting. 'The Prime Minister instructed the formation of an inter-ministerial committee to explore financing options for the upgrade and expansion of the railway system.' 'The committee will present concrete proposals regarding the financing required for the development of Pakistan Railways and its extension to Reko Diq,' it added. Calling railways a 'backbone' of Pakistan's economy and communications network, the prime minister said it was an affordable, fast and environmentally friendly mode of transport. He added extending rail connectivity to Reko Diq would boost the mining and minerals sector in Balochistan and create new employment opportunities for residents in the province. The mineral-rich but underdeveloped province of Balochistan is vital to Beijing's $65 billion China-Pakistan Economic Corridor (CPEC), the flagship Pakistan arm of President Xi Jinping's Belt and Road Initiative. However, while the province is viewed as vital for Pakistan's economic future, it remains marred by separatist violence, posing serious challenges to the implementation of large-scale infrastructure and mining projects. The railway network, despite being a key mode of transport for the province's widely dispersed population, has also come under threat from militant attacks. Earlier this year, armed separatists took a passenger train hostage in Balochistan, triggering a military rescue operation in which security forces said all the militants were killed.
