Zinger Key Points
- Barrick Gold reports Q2 revenue of $3.16B, exceeding estimates with a 12% year-over-year increase.
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Barrick Gold Corp GOLD shares are trading higher after it reported second-quarter FY24 revenue of $3.162 billion (+12% Y/Y), beating the consensus of $3.114 billion.
Gold production stood at 948 thousand ounces (-6% Y/Y), and gold sales were 956 thousand ounces (-4% Y/Y).
The average realized gold price rose 19% Y/Y to $2,344 per ounce, and All-in sustaining costs (AISC) rose 11% Y/Y to $1,498 per ounce in the quarter.
Related: Global Gold Demand Hits Record in Q2 As Investors Push Price Higher
Copper production declined 10% Y/Y to 43 thousand tonnes, and the average realized copper price rose 22% Y/Y to $4.53 per pound.
Adjusted EPS of $0.32 exceeded the consensus of $0.27.
At the end of the quarter, cash and cash equivalents stood at $4.04 billion, and debt was $4.72 billion.
Capital expenditure rose 7% Y/Y to $819 million, and operating cash flow stood at $1.16 billion.
President and chief executive Mark Bristow said, “Key projects designed to boost production and expand the asset base include the recently permitted Goldrush mine in Nevada which is ramping up to annual production in excess of 400,000 ounces by 2028 while the adjacent Fourmile project, 100% owned by Barrick, is shaping up as a new Tier One mine with a potential gold production in excess of 500,000 ounces per annum over more than two decades.”
“In the Dominican Republic, Pueblo Viejo is completing an expansion project designed to increase gold production to more than 800,000 ounces beyond 2040.”
“On the copper side of the business, two world-class projects are set to deliver into a rising price and demand market. In Zambia, the Lumwana super pit expansion will increase the mine’s production from 130,000 tonnes to 240,000 tonnes per annum while the Reko Diq project in Pakistan is targeting 400,000 tonnes of copper and 500,000 ounces of gold per annum.”
Dividend: GOLD declared a second-quarter dividend per share of $0.10, payable on September 16, to shareholders of record as of August 30, 2024.
The company repurchased 2.95 million shares in the quarter under the $1 billion buyback program announced in February 2024.
FY24 Outlook Reiterated: The company continues to project 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.
For 2024, capital expenditure is expected to be within $2.50 billion-$2.90 billion.
Investors can gain exposure to the stock via Sprott Gold Miners ETF SGDM and VanEck Gold Miners ETF GDX.
Price Action: GOLD shares are up 4.44% at $17.41 premarket at the last check Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock
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