At the beginning of this year, market analysts predicted that the performance of the Canadian stock market in 2025 would outperform that of the S&P 500 Index. Although trade tensions have exacerbated volatility, this view has been verified.
As of the time of writing this article, the S&P/TSX Composite has risen by more than 3.3% so far this year, while the S&P 500 index has fallen by 0.6% over the same period.
However, the oil and gas sector, which was highly anticipated at the beginning of the year, performed poorly later on. Meanwhile, the materials sector unexpectedly became the focus of the market, having risen by 19.24% so far this year, while the energy sector has dropped by 3%.
As investors are seeking safe havens to hedge against the risk of economic recession triggered by tariffs, the investment sentiment in metal and mining stocks has shifted from pessimism to optimism.
In 2025, mining stocks accounted for more than half of the stocks with an investment return of over 40% on the TSX. The leading stocks included Orla Mining, Dundee Precious Metals, Kinross Gold and K92 Mining.
However, when it comes to the most valuable materials stocks to purchase at present, it might still be Barrick Mining Corporation (TSX:ABX). Moreover, the decline in gold prices over the past few days has provided investors with buying opportunities. Barrick’s current share price is C$24.63, having risen by 12% so far this year, with a dividend of 2% (a payout ratio of 30.3%).
Barrick replaced all the gold and copper mines that had been mined in 2024 and significantly increased reserves, laying the foundation for future growth. Chief Executive Officer Mark Bristow said that Barrick’s integrated resources and exploration strategy enables the company to establish a foundation to support the expected 30% increase in gold equivalent ounces by the end of this decade.
Meanwhile, a strong balance sheet and a sharp eye for operational excellence will enable Barrick to consolidate its leading position in the industry without undermining its financial strength or shareholder returns.
In fiscal year 2024, Barrick’s net profit and operating cash flow increased by 69% and 20% respectively year-on-year. Compared with the first quarter of 2024, the revenue and net profit in the first quarter of 2025 increased by 14% and 61% respectively, reaching $3.1 billion and $474 million. The free cash flow (FCF) increased by 1072% year-on-year to $375 million.
In February 2025, Barrick’s board of directors also approved a new share repurchase program as part of its commitment to shareholder returns. Barrick will purchase up to 1 billion Canadian dollars of issued common stock within the next 12 months.
Barrick’s competitive advantage lies in its strong asset portfolio, including six Tier One gold mines. Moreover, the management believes that there is no need to raise new equity or increase debt at this stage to fund growth. Bristow said, “We have established a global mining company with financial strength, technological capabilities and operational depth, which can achieve organic growth.”
