Canada’s Barrick Mining Corp. shares have surged to their highest level in 12 years, driven by the promising potential of its Fourmile gold project in Nevada.
The mining giant is experiencing its largest four-day rally since 2020, following a positive preliminary assessment that estimates the project could produce up to 750,000 ounces of gold annually.
The news has prompted analysts to raise their price forecasts for Barrick. On September 16, the company described the Fourmile discovery as “one of the century’s greatest gold discoveries.” This statement comes at a time when new gold deposits are becoming increasingly difficult and costly to develop, making Fourmile a significant breakthrough for the company.
Gold’s record-high prices have further fueled interest in the project, with Barrick benefiting from the rising demand for the precious metal. TD Cowen analyst Steven Green called the discovery a “game changer” for Barrick, noting that the Fourmile update could improve the company’s narrative following setbacks in its projects in Mali, Papua New Guinea, and Pakistan.
Analysts have expressed optimism about Barrick’s prospects, with Stifel’s Ralph Profiti estimating the Fourmile project’s value at over US$10 billion, while BMO Capital Markets’ Matthew Murphy pegged it at US$9.2 billion.
On Monday, Barrick’s stock jumped 7.2% to close at US$35.36 per share, the highest level since January 2013. Since the release of the Fourmile update, Barrick’s stock has rallied 23%, benefitting from both the promising project and the ongoing rise in gold prices.
