Financial Resilience Amidst Operational Challenges

Despite a Minor Decrease in Gold Output, Barrick Gold’s First Quarter Profits Rose significantly.

Gold Prices Fuel Barrick’s Earnings: In the first quarter of 2024, Barrick Gold (NYSE: GOLD, TSX: ABX) experienced a slight decline in gold production, yet achieved substantial profits driven by higher gold prices. The company’s production totaled 940,000 ounces, a minor decrease from the previous year’s 952,000 ounces. Despite this, the increase in gold prices, from $1,902 to $2,075 per ounce, significantly bolstered earnings.

Operational Updates and Financial Highlights

Barrick remains confident in meeting its yearly production targets, supported by the Pueblo Viejo plant’s expansion and the Porgera mine’s operational resumption. The company’s first-quarter performance also showcased a strong financial standing with a 143% rise in net EPS and a 36% increase in adjusted net earnings, totaling $333 million or $0.19 per share. Attributable EBITDA rose by 7% to reach $907 million, with an operating cash flow of $760 million.

Copper Production Stays Steady

Barrick maintained its copper production at 40,000 pounds, similar to last year’s output, although production costs saw a slight increase. The realized copper price was $3.86 per pound, a decrease from the $4.20 recorded in Q1 2023.

Strategic Focus on Growth and Sustainability

President and CEO Mark Bristow highlighted Barrick’s strategic initiatives, including significant exploration efforts and developments at major projects like Reko Diq and Lumwana. These initiatives aim to extend the life of existing mines and enhance copper production capabilities, ensuring long-term sustainability and profitability.

Dividend Announcement

Reflecting its robust financial health, Barrick declared a dividend of $0.10 per share for Q1 2024, underscoring its commitment to delivering shareholder value while investing in growth.