Barrick Gold Reports Strong Q3 Progress Amid Ongoing Challenges
Barrick Gold made significant strides in the third quarter of the year, despite ongoing challenges, ensuring that its annual production and cost targets remain within reach due to an anticipated strong performance in the fourth quarter. Gold production remained steady compared to the previous quarter, while copper production saw a 12% increase quarter-on-quarter. The company expects a stronger fourth quarter, driven by the continued ramp-up of the Pueblo Viejo plant expansion, increased throughput at Nevada Gold Mines, and higher grades at Kibali.
Improved margins in Barrick's gold operations were supported by a higher gold price and disciplined cost management. Net earnings per share rose by 33% year-on-year, with operating cash flow totaling $1.18 billion. Free cash flow reached $444 million, reflecting a 31% increase from the previous quarter. Additionally, debt net of cash was reduced by 27% quarter-on-quarter. Barrick declared an unchanged quarterly dividend of 10 cents per share, while shareholder returns were further boosted by a $95 million share buyback in Q3.
President and CEO Mark Bristow emphasized that the company plans to replace mineral reserves net of depletion in 2024 by a considerable margin, thanks to contributions from the Reko Diq copper-gold project and the Lumwana Super Pit expansion project. Feasibility studies for both projects are on track for completion by year-end, with long lead items being ordered and key project team members being recruited.
Bristow also highlighted the value of Barrick's ongoing exploration initiatives, mentioning the promising potential of the Fourmile project in Nevada and new satellite orebody opportunities at Loulo and Kibali. Additionally, exploration teams are advancing work on promising new prospects across the company's portfolio.
