As we approach 2025, Canadian investors are keenly evaluating their options in the commodities market, especially in the gold mining stocks. One of the key players in this segment is Barrick Gold Corporation (TSX: ABX), one of the largest gold mining companies globally, with operations spanning North America, South America, Africa, and Australia. Let us dive deep to understand whether Barrick Gold is a buy, hold or sell in 2025.

About Barrick Gold Corporation

Barrick Gold Corporation has a strong portfolio of assets, including a significant stake in Nevada Gold Mines, recognized as the world's largest gold-producing complex. With a market capitalization of approximately $42 billion, Barrick has established itself as a leader in the mining industry.

Financial performance: On track to deliver strong finish

Barrick Gold Corporation reported 12% growth in copper production on a year-over-year basis. The improved margin throughout the gold operations reflected higher cost discipline and a higher gold price. Moreover, the company's net earnings grew by 33% on a year-over-year basis, and the operating cash flow totalled $1.2 billion. The company also reported free cash flow of $444 million, which increased by 33% quarter on quarter.

Barrick Gold Corporation reduced the debt net of cash by 27% in the quarter. It also declared an unchanged quarterly dividend of 10 cents per share. Moreover, the company enhanced shareholder returns by a share buyback of $95 million in the third quarter of 2024.

Market outlook and analyst sentiment

The outlook for gold remains positive amid ongoing global economic uncertainties, including inflationary pressures and geopolitical tensions. Analysts are bullish on Barrick Gold's stock, with many recommending it as a "Strong Buy." The consensus price target for Barrick is around $32.76, indicating a potential upside from current levels.

Moreover, analysts note that gold will remain in demand as a safe-haven asset during uncertain times. The company is well-positioned for sustainable growth with Barrick's strategic focus on replenishing its gold reserves rather than acquiring them at inflated prices.

Barrick Gold Corporation: Buy, sell or hold?

Given Barrick Gold Corporation's position in the market and strong fundamentals, many investors may consider it a buy in 2025. The combination of rising earnings projections, consistent dividend payouts, and strategic share buybacks creates an attractive investment case.

However, potential investors should also consider market volatility and fluctuations in gold prices that can impact Barrick's performance. If gold prices decline significantly or operational challenges arise, it can affect short-term stock performance. Hence, it makes the stock ideal for long-term investment and appreciating gains.

In addition, maintaining a hold position may be prudent while monitoring market conditions closely for those already holding shares of Barrick Gold. Investors must remain vigilant about macroeconomic factors influencing gold prices and adjust their strategies accordingly.

Bottom line

Overall, Barrick Gold Corporation presents a compelling investment opportunity for 2025 due to its robust financial health, commitment to shareholder returns, and the favourable market outlook for gold. While there are inherent risks associated with commodity investments, the company's strong fundamentals and strategic initiatives suggest that it is well-positioned for long-term growth. Therefore, for investors seeking exposure to the gold sector on the TSX, Barrick Gold appears to be a solid choice for both new investments and to add to existing positions in your portfolio.