Barrick Continues Shift to Copper as Mine Advances

Source: Adrian Day 04/21/2025

Some gold companies, including royalty companies, reported preliminary results for the first quarter, some with more fulsome detail than others. Most will report full financials next month.

Barrick Gold Corp. (ABX:TSX; GOLD:NYSE) announced that the Reko Diq joint venture had approved the project’s updated feasibility study as well as the budget to advance the major works this year. First production is expected by the end of 2028. This massive project, in which Barrick holds 50% and which it derisked by bringing in regional partners, will significantly boost the share of copper production in Barrick’s profile. Barrick is investing $6 billion in the project.

The company has not acquired or built anything new in gold for some time — though there are some development projects in Nevada — and its gold production is now at its lowest in 25 years. Many of its major mines are aging or in troublesome jurisdictions, including Mali, where its mines are shut pending a new agreement with the military junta. In line with this, Barrick is proposing changing its name from Barrick Gold to Barrick Mining; the name change will be voted on at next month’s annual meeting. It has not indicated that it will change its New York stock symbol of GOLD.

We are holding.

Fortuna Sells Mine, While Others Perform Well

Fortuna Mining Corp. (FSM:NYSE; FVI:TSX; FVI:BVL; F4S:FSE) reported first-quarter production in line with guidance, as both Séguéla and Yaramoko somewhat exceeded expectations while Lindero came in under, due to lower grades. The new leach pad is now completed at the Argentinian mine — on time and on budget — so operations may be smoother in the coming quarters.

The company repurchased $4.2 million of shares in the quarter. After releasing its first-quarter production, the company said it had sold Yaramoko to a private company operating in Burkina Faso. Fortuna will receive $70 million in cash for the mine, as well as $57.5 million of money held in the county (a condition of the closing), as well as overdue tax rebates, which, if made by the government, will flow to Fortuna.

The closing liabilities were also transferred. Although this is not a great price for the asset, Fortuna has made no secret of wanting out of Burkina and preferring to focus on better jurisdictions. There is only one year of reserves currently at the mine, and Fortuna has not been undertaking additional exploration work in the country.

The sale reinforces the need for cashed-up Fortuna to look at other assets. We like Fortuna for its conservative management, solid balance sheet, and multiple assets. If I were new to the sector, looking to buy 10 great companies, Fortuna would be on that list.

However, after a better-than-50 % return since early March, from close to a 52-week low to a 52-week high, we are holding for now.

Osisko a Little Light in First Quarter but on Track for Year

Osisko Gold Royalties Ltd. (OR:TSX; OR:NYSE) reported first-quarter production a little lighter than expectations, with revenue up less than 2% on the prior quarter, though it is on track to meet its full-year guidance.

The company paid down almost $20 million on its revolver, leaving it with $63 million in cash at quarter end, and $74 million drawn on its revolver. Earlier this month, it repaid another $25 million. GEOs are expected to grow around 6% this year, and there will be continued growth for the next three years from assets already in the pipeline, including the ramp-up of major mines, which commenced last year, and some new mines.

Given the stock price jump in the last three days, we are holding.

Royal on Track With Stream Sales

Royal Gold Inc. (RGLD:NASDAQ) reported its stream sales, largely in line with expectations, a little light on gold and copper, but higher on silver. Stream sales represent about 70% of the company’s total sales. Separately, Royal made an additional $50 million into Ero Copper, extending the time period over which it receives a higher level of production.

Royal arguably has more leverage to rising gold prices than other major royalty companies. Already rising strongly all year, the share price jumped 16% the last three days, as have other share prices.

Although not more expensive than peers, we are holding after the share rally.

Resource Increases at Orogen’s Cash-Flowing Royalty

Orogen Royalties Inc. (OGN:TSX.V) said that First Majestic had reported an initial inferred resource on the Navidad vein system, part of the Ermitaño mine, of 249,000 ounces of gold and 5.9 million of silver.

The resource estimate includes only part of the delineated system, while new areas of mineralization remain open. Orogen has a cash flowing royalty on Ermitaño and surrounding ground.

The company noted that this resource increased the overall reported gold resource at the mine by 260%.

With a strong cash balance, increasing revenue, and an active generation program, as well as a royalty on Anglo’s exciting Silicon project, Orogen remains a Buy.

Altius’s PG Portfolio Grow

Altius Minerals Corp. (ALS:TSX) reported the valuation on its junior equities portfolio had jumped over 18% in the quarter to $71.4 million, largely driven by its 19% interest in Orogen. The portfolio also generated over half a million in sales. Altius also indicated it is moving forward with a proposal on the large Julienne Lake iron ore deposit in a process by the Newfoundland provincial government. Altius holds a 100% interest in 65 claims contiguous to Julienne Lake and has confirmed via drilling that the iron ore deposit continues onto its ground.

This is another potentially very significant asset inside Altius, finally coming to the fore. Even if Altius does not win the process for Julienne Lake, its adjacent land will become more valuable as the main project advances. Altius also said it is evaluating potential exploration alliances or investment opportunities that could lead to royalty creation in various jurisdictions.

Altius, a core resource holding, is a Buy.

TOP BUYS this week, in addition to above, include Ares Capital Corp. (ARCC:NASDAQ), Kingsmen Creatives Ltd. (KMEN:SI), Hutchison Port Holdings Trust (HPHT:Singapore), Metalla Royalty & Streaming Ltd. (MTA:TSX.V; MTA:NYSE American), Metalla Royalty & Streaming Ltd. (MTA:TSX.V; MTA:NYSE American), and Fox River Resources Corp. (FOX:CSE).

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Important Disclosures:

1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Barrick Gold Corp., Fortuna Mining Corp., Osisko Gold Royalties Ltd., Orogen Royalties Inc., Altius Minerals Corp., Metalla Royalty & Streaming, Fox Riv Res Corp.
2. Adrian Day: I, or members of my immediate household or family, own securities of: All. My company has a financial relationship with: All. I determined which companies would be included in this article based on my research and understanding of the sector.
3. Statements and opinions expressed are the opinions of the author and not of Streetwise Reports, Street Smart, or their officers. The author is wholly responsible for the accuracy of the statements. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Any disclosures from the author can be found below. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
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( Companies Mentioned: ALS:TSX, ABX:TSX; GOLD:NYSE, FSM:NYSE; FVI:TSX; FVI:BVL; F4S:FSE, OGN:TSX.V, OR:TSX; OR:NYSE, RGLD:NASDAQ, )

Source: https://www.streetwisereports.com/article/2025/04/21/barrick-continues-shift-to-copper-as-mine-advances.html