Up 26% in August, Is Barrick Mining a Buy Now?

Barrick Mining stock surged 26% in August. With gold breaking US$3,500/oz and copper growth ahead, is it still a buy?

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Key Points

  • Barrick Mining's stock surged 26% in August on strong earnings and rising gold prices.
  • The gold stock's attractive valuation and copper growth add long-term investment returns potential.
  • While geopolitical risks exist, diversification helps balance the outlook for ABX stock.

Barrick Mining (TSX:ABX) stock has been glimmering brightly lately, with the Canadian gold stock surging 26% in August and printing new 52-week highs. It has been a thrilling ride for investors with stakes in the gold mining sector. But after such a strong run, is there still room for ABX stock to shine in September and beyond?

Let’s dig in.

What’s behind Barrick Mining stock’s recent run?

Barrick Mining stock’s August rally didn’t come out of nowhere. The gold mining giant’s second-quarter earnings, released in August, gave investors plenty to cheer about. The company reported adjusted net earnings per share of US$0.47 — a 47% jump year over year, and its highest quarterly performance since 2013. That’s the kind of performance that turns heads, especially when it’s backed by stronger gold prices and operational improvements across the board.

Speaking of gold prices, they’ve been on a tear in 2025, up 35% year-to-date. In September, gold has hit new all-time highs above US$3,500 an ounce. That’s more than a pretty number; it means Barrick is selling each ounce of production at a much higher price, which flows directly to its revenue, margins, earnings, and ultimately, free cash flow.

Barrick is riding the gold wave while executing strongly on operational goals. All regions are on track to meet 2025 production and cost guidance. Its all-in sustaining costs (or AISC, a key industry metric that captures the total cost of producing an ounce of gold) actually fell by 5% quarter-over-quarter. That’s a sign of efficiency gains and disciplined management.

In Nevada, production was up 11% over the previous quarter. In the Dominican Republic, Pueblo Viejo saw output surge 28%, thanks to improved throughput and operational debottlenecking. And it’s not just about gold. Barrick is also a growing copper producer. Copper output rose 34% sequentially, driven largely by the Lumwana mine in Zambia, where production jumped 63% sequentially. Higher volumes mean lower unit costs, and that’s what we saw last month.

Is ABX stock still undervalued?

Barrick Mining stock still looks attractively priced even after its recent run in August. The Canadian gold stock trades at a forward price-to-earnings (P/E) ratio of around 10, which is well below the industry’s trailing average of 24. Even more compelling is its forward price-earnings-to-growth (PEG) ratio, which sits between 0.3 and 0.8. A PEG below 1.0 typically suggests a stock may be undervalued relative to its future earnings growth potential. That’s a strong signal for long-term investors to keep holding, or add more ABX stock.

Barrick is also returning plenty of cash to shareholders. In the first half of the year, the company spent over US$410 million on share buybacks. That’s a confident move, one that signals management believes the stock is worth owning.

A copper-charged upside

There’s more to the story than just gold, though. Barrick Mining is strategically positioning itself for the future with copper. Its Reko Diq project in Pakistan, once fully developed, is expected to become one of the world’s largest copper mines. As the global transition to renewable energy and electrification sustains pace, copper demand is likely to soar. Barrick’s push into copper isn’t a side project anymore — it’s a core part of ABX stock’s future growth strategy.

Near-term risks to assess

Barrick’s operations were in Mali, where it holds an 80% stake in the Loulo-Gounkoto complex, are currently under provisional administration due to a legal dispute. The company has deconsolidated the operation while it seeks a resolution. Geopolitical risk is a reality in mining, and it’s something investors must keep in mind.

Still, Barrick has a long history of navigating complex jurisdictions. Its diversified portfolio of mines across North America, Latin America, Africa, and the Middle East helps spread that risk. And with about two decades of gold reserves in the ground, and exciting growth projects in the pipeline, the gold and copper miner is built for the long haul.

Time to buy Barrick Mining stock?

So, is Barrick Mining stock a buy after a 26% August rally? If you believe gold prices will hold strong in September and beyond, and if you see copper as a highly valued critical metal for the future, then Barrick stock offers a compelling way to play both themes. It’s a well-run company with improving operations, attractive valuation metrics, and a shareholder-friendly capital returns policy. Barrick Mining stock deserves a closer look for investors looking for a gold stock to buy in September.

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Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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