Barrick Gold Misses Earnings: Reports Lower Gold Sales And Copper Output

Barrick Gold Corp GOLD shares are trading lower after it reported third-quarter FY24 revenue of $3.368 billion (+18% year over year), missing the consensus of $3.416 billion. 

Gold production stood at 943 thousand ounces (-9%), and gold sales were 967 thousand ounces (-6%).

The average realized gold price rose 29% to $2,494 per ounce, and all-in-sustaining costs (AISC) rose 20% to $1,507 per ounce in the quarter.

Read: Barrick Sees Stable Gold Output In Q3, Prepares For Stronger Q4

Copper production declined 6% to 48 thousand tonnes, and the average realized copper price rose 13% to $4.27 per pound.

Adjusted EPS of 30 cents missed the consensus of 31 cents.

At the end of the quarter, cash and cash equivalents stood at $4.23 billion, and debt was $4.725 billion.

Capital expenditure fell 4% to $736 million, and operating cash flow stood at $1.18 billion. 

President and chief executive Mark Bristow said, "The company was again planning to replace mineral reserves net of depletion in 2024 by a significant margin, driven by the contributions from the Reko Diq copper-gold project and the Lumwana Super Pit expansion project.”

”The feasibility studies for both projects are on track for completion by the year-end. Long lead items are being ordered and key project team members are being recruited." 

“The Fourmile project in Nevada continues to show exciting value potential, and significant new satellite orebody opportunities have been highlighted at Loulo and Kibali. In addition, our exploration teams are working on very promising new prospects across our portfolio,” Bristow added.

Dividend: GOLD declared a second-quarter dividend per share of 10 cents, payable on December 16, to shareholders of record as of Nov. 29, 2024.

Repurhcase: The company repurchased 4.725 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 down 2.17% at $18.01 at last check Thursday.

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Photo courtesy: Michael Sutton via Flickr