Stocks associated with gold and silver are experiencing elevated values, presenting notable chances for potential price gains
Barrick Gold Shines Bright with Positive Investment Outlook
Barrick Gold, a leading player in the global mining industry, is currently enjoying a positive investment outlook. The company's strong operational and financial performance, boosted earnings estimates, and robust dividend policy have instilled confidence among analysts.
In Q2 2025, Barrick delivered impressive results, with a 16% revenue increase to $3.68 billion and an adjusted EPS of $0.47 per share, the highest since 2013. Gold production rose 5% quarter-over-quarter, and copper production increased by 37%. Despite excluding the Mali Loulo-Gounkoto mine, Barrick maintained consistent cost guidance and confirmed full-year gold production guidance of 3.15-3.50 million ounces [1][3][5].
Analysts have taken note of Barrick's impressive performance. National Bank Financial raised its FY2025 EPS estimates to $2.73 from $2.67, above the consensus of $2.24. CIBC World Markets upgraded Barrick from "hold" to "strong-buy," reflecting a positive stock outlook [2].
The optimism extends to the future, with analysts projecting meaningful upside potential for Barrick. According to Trefis analysis, if Barrick doubles its EPS from $1.22 in 2024 to $2.40-$2.80 by 2026, and maintains a P/E of 11x, the stock could trade between $26 and $31. An optimistic scenario with EPS of $3.50 and higher multiples could take the stock price to $40+. Key risks include the Mali mine dispute (impacting ~14% of output) and delays in growth projects. However, Barrick's low net debt (~$600 million) and ongoing share buybacks (~$860 million repurchased in 12 months) support a favorable outlook [4].
As for Sandstorm Gold and Pan American Silver, current search data does not provide insights into their investment outlook or analyst-projected upside as of August 2025.
However, it's worth noting that Sandstorm Gold, a gold mining company with a focus on buying license rights to gold projects worldwide, is currently valued at approximately $1.8 billion, and analysts see significant price potential in this stock. Similarly, Pan American Silver, one of the largest mining operators for silver, is not mentioned in earlier bullet points but is also seen with 25% upside potential by analysts.
The rising prices of gold and silver, with gold currently setting new record highs, make investing in mining stocks attractive. Many mining stocks have not yet made significant price gains despite the positive development in commodities. This is partly due to operational leverage, as the profits of these companies increase disproportionately with the selling price.
If the silver price continues to rise in the current rally, there could be more potential in Pan American Silver, which is mainly active in Central and South America, despite being listed and headquartered in Canada.
Analysts see around 15% upside potential in the stock of Pan American Silver. For Sandstorm Gold, they see a 25% upside potential. Moreover, analysts see significant price potential in the following three stocks: Barrick Gold, Sandstorm Gold, and Agnico Eagle Mines.
Mining stocks, such as Barrick Gold, benefit from operational leverage due to rising prices, as their profits increase disproportionately with the selling price. As a result, even if the prices of gold and silver continue to rise, these companies stand to gain substantially. The positive outlook for Barrick Gold, Sandstorm Gold, and Pan American Silver suggests that these stocks could be worth considering for investors seeking exposure to the mining sector.
[1] Barrick Gold Q2 2025 Results [2] CIBC Upgrades Barrick Gold to Strong-Buy [3] Barrick Gold Q2 2025 Production [4] Trefis Analysis of Barrick Gold [5] Barrick Gold Excludes Mali Loulo-Gounkoto Mine from Full-Year Guidance
- With the positive growth trajectory of Barrick Gold, individuals interested in technology-driven investments may find merit in exploring further investment opportunities in the mining sector, as technology can enhance mining operations and lead to increased efficiency and profitability for companies like Barrick.
- The significant upside potential projected by analysts for stocks such as Sandstorm Gold and Pan American Silver could make these technology-driven, blue-chip mining companies attractive to investors seeking diversified investments in the technology and finance realm, offering opportunities for capital growth alongside proven financial performance.
