BARRICK Mining Corporation has witnessed its most dramatic share price surge in five years following revelations about a potentially transformative gold discovery in Nevada.
The Canadian mining giant’s stock has climbed to 12-year highs after preliminary assessments of its Fourmile project indicated annual production capacity of up to 750,000 ounces, said Bloomberg News in a report on Monday.
The company described the find as “one of the century’s greatest gold discoveries” in a statement released on September 16.
Shares closed 7.2% higher at $35.36 in New York on Monday, marking the highest level since January 2013. The stock has gained 23% since the Fourmile announcement, representing the steepest four-day rally since early 2020.
TD Cowen analyst Steven Green elevated his price target for Barrick, describing the project as a “game changer,” said the newswire. Green said that the discovery significantly improves the company’s prospects after years of underperformance. “We believe the stock still has significant room to catch up on valuation,” he said.
The optimism surrounding Fourmile comes as Barrick seeks to rebuild investor confidence following operational disruptions at projects in Mali, Papua New Guinea and Pakistan, which had previously dampened valuations, said Bloomberg News.
Rival analysts have also expressed bullish sentiment, with Stifel’s Ralph Profiti estimating Fourmile’s value at over $10bn, whilst BMO Capital Markets’ Matthew Murphy projected $9.2bn.
The discovery gains particular significance amid record gold prices, with the precious metal reaching fresh highs as investors seek safe-haven assets. New deposits are increasingly difficult and costly to develop, making substantial finds increasingly valuable to shareholders demanding improved returns.
