Barrick Gold Reports Record Earnings and Production in 2024

TORONTO - Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) today announced a significant increase in net earnings for the full year of 2024, achieving $2.14 billion, a 69% rise from the previous year. Adjusted net earnings saw a 51% increase to $2.21 billion, and attributable EBITDA grew by 30% to $5.19 billion, marking the highest in over a decade. The company also reported a 20% year-on-year increase in operating cash flow to $4.49 billion and more than doubled its free cash flow to $1.32 billion due to strong earnings. According to InvestingPro analysis, Barrick maintains a strong financial health score of GREAT, with liquid assets exceeding short-term obligations and a solid current ratio of 2.65. The stock is currently trading below its Fair Value, suggesting potential upside opportunity.

Gold production for the fourth quarter (Q4) rose by 15%, and copper production by 33% compared to the third quarter (Q3), enabling Barrick to meet its annual guidance. The company reduced gold cost of sales by 3% and total cash costs by 5% for the quarter. Barrick’s North America and Africa and Middle East operations met their production guidance for the year, while Latin America and Asia Pacific regions slightly underdelivered due to a slower ramp-up at Pueblo Viejo.

In Q4, Barrick made progress at Pueblo Viejo, improving recovery despite a decrease in production grade. At Veladero and Nevada Gold Mines, production increased, and the company strengthened the management team at Kibali. Two major feasibility studies were completed for the Lumwana and Reko Diq projects, and reserves and resources were significantly increased.

Barrick’s proven and probable gold mineral reserves grew by 23% to 89 million ounces at 0.99g/t, up from 77 million ounces at 1.65g/t in 2023. Copper mineral reserves expanded by 224% year-on-year, with a 13% higher grade, now standing at 18 million tonnes at 0.45%. InvestingPro data reveals the company has maintained consistent revenue growth with a 5-year CAGR of 9% and operates with a moderate debt level, as indicated by a debt-to-equity ratio of 0.2. For detailed analysis of Barrick’s growth prospects and comprehensive valuation metrics, investors can access the exclusive Pro Research Report, available to InvestingPro subscribers.

For 2025, Barrick expects gold production to range between 3.15-3.5 million ounces, excluding production from the temporarily suspended Loulo-Gounkoto. Copper production is projected to increase from 195,000 tonnes in 2024 to 200,000-230,000 tonnes, driven by Lumwana’s increased production.

Mark Bristow, Barrick’s president and CEO, emphasized the company’s focus on sustainable value creation and its strong asset quality, balance sheet, and organic growth projects. He highlighted Barrick’s ability to self-fund its growth pipeline without costly mergers, acquisitions, or additional equity issuance.

Barrick maintained a quarterly dividend of $0.10 per share, with total annual dividends paid to shareholders amounting to $696 million. Additionally, $498 million was returned to shareholders through share buybacks. The company has renewed its $1 billion share buyback program for the upcoming year. InvestingPro highlights Barrick’s impressive 38-year track record of consecutive dividend payments, with a current yield of 2.34%. The stock’s low volatility profile, with a beta of 0.48, makes it an attractive option for income-focused investors. Subscribers can access additional ProTips and detailed financial metrics through InvestingPro’s comprehensive analysis platform.

This information is based on a press release statement.

In other recent news, Barrick Gold Corporation has been making significant moves in the industry. The company launched a $1 billion share buyback initiative, demonstrating confidence in its financial health and stock value. This comes after the termination of its previous share repurchase program, under which it bought back $498 million worth of its common shares.

Simultaneously, Barrick’s operations in Mali have been halted due to a dispute over payments from the nation’s largest gold mine. The government of Mali has demanded a settlement payment of 125 billion CFA francs ($197 million), and the negotiations are currently suspended.

Barrick has also announced a substantial increase in its gold and copper mineral reserves. The company’s proven and probable gold mineral reserves have grown by 23% to 89 million ounces, and copper mineral reserves have seen a substantial increase of 224% year-on-year.

These developments underscore the dynamic landscape of Barrick Gold’s operations and strategic decisions. As always, these actions reflect the company’s current strategies and are subject to change based on a variety of factors.

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