Barrick Gold Maintains FY24 Outlook Despite Q1 Production Miss

Barrick Gold Corp GOLD reported first-quarter FY24 revenue of $2.747 billion (+4% Y/Y), which is in line with the consensus. 

Gold production stood at 940 thousand ounces (-1% Y/Y), and gold sales were 910 thousand ounces (-5% Y/Y).

Related: Barrick Misses Preliminary Gold Production Estimate, Management Unfazed By Risks In Key African Country

The average realized gold price rose 9% Y/Y to $2,075 per ounce, and All-in sustaining costs (AISC) rose 8% Y/Y to $1,474 per ounce in the quarter.

Copper production remained flat Y/Y to 40 thousand tonnes, and the average realized copper price declined 8% Y/Y to $3.86 per pound.

Adjusted EPS of $0.19 exceeded the consensus of $0.15.

President and chief executive Mark Bristow said, “Our focus on exploration has placed Barrick in the unique position of more than replacing the reserves we mine year after year. Our key organic projects, such as the development of Reko Diq, the extension of Pueblo Viejo’s Tier One life by more than 20 years, and the transformation of Lumwana into one of the world’s major copper mines will secure Barrick’s production profile well into the future.” 

At the end of the quarter, cash and cash equivalents stood at $3.94 billion, and debt was $4.73 billion.

Capital expenditure rose 6% Y/Y to $728 million, and operating cash flow stood at $760 million. 

Dividend: GOLD declared a first-quarter dividend per share of $0.10, payable on June 17 to shareholders of record as of May 31.

FY24 Outlook Reiterated: The company expects attributable gold production in the range of 3.9-4.3 million ounces and AISC in the range of $1,320 – $1,420 per ounce.

The company expects gold production to ramp up steadily during the year, led by the completion of the Pueblo Viejo plant expansion and the resumption of operations at the Porgera mine.

Also Read: Barrick Targets Peruvian Expansion Amidst Record Gold Prices

For 2024, capital expenditure is expected to be within $2.50 billion-$2.90 billion.

Also, the company inked an exploration earn-in agreement with Geophysx Jamaica Ltd. with respect to certain properties located in Jamaica.

Investors can gain exposure to the stock via Sprott Gold Miners ETF SGDM and VanEck Gold Miners ETF GDX.

Price Action: GOLD shares are down 0.20% at $16.61 at the last check Wednesday.

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