1911 Gold Corporation (TSXV: AUMB; OTCQX: AUMBF)
1911 Gold is Manitoba’s Gold Standard - Ready, Permitted and High-Grade 1911 Gold is an Emerging Gold Producer, with Significant Cash Flow Generation and District-Scale Growth Potential
Gold futures tumbled nearly 10% last week, marking the worst weekly decline in 15 years. A spike in oil prices above $110 a barrel reignited inflation fears and fueled expectations that global central banks will delay interest rate cuts—a bearish backdrop for the non-yielding metal.
Mining stocks were caught in the sell-off. Kinross Gold (TSX:K) and Barrick Mining (TSX:ABX) now trade roughly 30% below their all-time highs. But both companies recently reported results that suggest the market may be overlooking their underlying strength.
Kinross Gold delivered a record US$2.5 billion in free cash flow in 2025, along with US$3.6 billion in operating cash flow. Margins expanded 66% even as the gold price rose 43%, underscoring the company’s cost discipline.
On the balance sheet, Kinross holds US$1.7 billion in cash and a net cash position of roughly US$1 billion. Its next major debt maturity—US$500 million—is not due until 2033. Moody’s upgraded the company’s credit rating to Baa2 in December 2025.
Management has committed to returning 40% of free cash flow to shareholders in 2026 through dividends and buybacks. The dividend was raised twice last year for a cumulative increase of 33%. With the stock down 30% from its peak, that shareholder return plan offers a clear margin of safety for long-term investors.
On the growth front, three high-return projects in Nevada—Phase X, Curlew, and Redbird 2—are on track for 2028 production, with an average internal rate of return (IRR) of 59%. The Great Bear project in Ontario is advancing toward first gold in late 2029.
Barrick Mining reported US$3.9 billion in free cash flow for 2025, a 194% increase year-over-year. In the fourth quarter, the company raised its base dividend by 40% and paid a special dividend of US$0.42 per share—up 140% sequentially. Barrick also repurchased US$1.5 billion worth of shares during the year, reducing its share count by 3%.
The company ended 2025 with a net cash position of US$2 billion. For 2026, Barrick expects gold production between 2.9 million and 3.25 million ounces, with the Loulo-Gounkoto mine in Mali back online after a dispute with the government was resolved.
What could trigger a revaluation is a strategic move underway: a partial IPO of Barrick’s North American gold assets, including Nevada Gold Mines and the Fourmile project. The offering is expected to close by late 2026, with Barrick retaining majority control. CEO Mark Hill said the goal is to unlock value that he believes is significantly undervalued in Barrick’s current share price. A successful listing would give those high-margin, low-risk assets their own market valuation—a potential catalyst for the stock.
Gold’s sharp pullback has grabbed headlines. But historically, sharp sell-offs in quality assets have often rewarded long-term investors.
Both Kinross Gold and Barrick Mining have demonstrated strong cash flow generation, disciplined balance sheets, and visible growth pipelines. With both stocks sitting roughly 30% below their highs and fundamentals stronger than ever, the disconnect between market sentiment and company performance may deserve a closer look.
