Barrick Gold’s Q2 Earnings Rise on Higher Gold and Copper Prices

Barrick Gold, a leading Canadian gold producer, reported increased earnings in the second quarter of 2024, driven by higher gold and copper prices. The company posted net earnings of $370 million, or 21 cents per share, compared to $305 million, or 17 cents per share, in the same quarter last year.

When adjusted for certain one-time costs and foreign exchange impacts, Barrick's earnings rose to 32 cents per share, surpassing the 27 cents forecasted by analysts polled by FactSet. Revenue for the quarter climbed 12% to $3.16 billion, slightly exceeding analyst expectations of $3.13 billion.

In terms of production, Barrick's gold output for the quarter reached 948,000 ounces, an increase from 940,000 ounces in the previous quarter but a slight decrease from over 1 million ounces in the same period last year. This growth was supported by increased production at the Turquoise Ridge mine in Nevada, continued ramp-up at the Porgera mine in Papua New Guinea, and significant output increases at the Tongon mine in Ivory Coast, North Mara in Tanzania, and Kibali in Congo.

Copper production in the second quarter rose to 43,000 metric tons, up from 40,000 tons in the previous quarter, although it fell from 48,000 tons a year earlier. The average realized price for gold increased to $2,344 per ounce, compared to $1,972 a year earlier, while the realized copper price rose to $4.53 per pound from $3.70.

Barrick has set a production target of 3.9 million to 4.3 million ounces of gold and 180,000 to 210,000 tons of copper for the year. President and CEO Mark Bristow stated that the company is on track to meet its 2024 guidance and plans to enhance production and expand its asset base through key projects, including the newly permitted Goldrush mine in Nevada, which is expected to produce over 400,000 ounces annually by 2028.

Looking ahead, Barrick aims to double its copper output by 2031, reaching approximately 450,000 tons annually. This growth will be driven by developments at the Reko Diq mine in Pakistan and the expansion of the Lumwana mine in Zambia, forming a "super pit." These initiatives are projected to increase overall attributable production by around 30% to 6.8 million gold-equivalent ounces by 2031.

Meanwhile, Newmont, Barrick's rival and the largest gold producer globally, reported a 64% increase in sales to $4.4 billion for the second quarter, with attributable gold output rising by 30% year-on-year to 1.61 million ounces. Newmont has forecasted total gold production of 6.93 million ounces and 152,000 tons of copper for the year.