(Kitco News) - After returning a record amount of capital to investors, one of the world's largest gold miners will continue to reward its shareholders in 2023.
In its earnings report published Wednesday before the North America Open, Barrick Gold said it is looking to repurchase up to $1 billion in its outstanding shares this year. This comes after the company repurchased $424 million shares last year.
Barrick said it returned a record $1.6 billion to shareholders in 2022 through its stock buyback program and dividends.
"After the success of last year's buyback program, this new program gives us a further opportunity to repurchase our shares when we believe that they are trading in a price range that does not reflect the value of the Company's mining and financial assets and future business prospects," said Mark Bristow, President and Chief Executive.
As part of its fourth-quarter earnings reports, the senior gold producer also declared a 10-cent per share dividend.
"On the back of the company's continuing strong operating performance, through the combination of the performance dividend policy and share buyback program, we have once again provided shareholders with record annual returns," said senior executive vice-president and chief financial officer Graham Shuttleworth.
Barrick's 2023 repurchase program comes as the company reported adjusted net earnings of $220 million or 13 cents per share for the fourth quarter, beating analyst estimates. For the full year, the company reported adjusted net earnings of $1.326 billion or 75 cents per share.
While the company's earnings beat expectations, its annual production numbers were down. Barrick said it produced 4.141 million ounces of gold last year, down from 4.437 million ounces produced in 2021.
However, the gold miner's copper output jumped sharply, with 440 million pounds produced last year, up from 415 million pounds produced in 2021.
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At the same time, Bristow noted that the company's aggressive exploration program is paying off, as it was able to grow its reserves last year. The gold producer said that at $1,300 an ounce, its attributable proven and probable mineral reserves now stand at 76 million ounces, up from 69 million ounces reported in 2021.
"Led by Pueblo Viejo and the Africa & Middle East region, Barrick has now delivered a second consecutive year of gold reserve growth over and above annual depletion, with nearly 12 million ounces of attributable proven and probable reserve gains in 2022 before depletion," the company said.
"While we continue to evaluate all new opportunities against our strategic filters, we have always believed that finding our ounces is better than buying them, and this year's resource and reserve statement showcases the unmatched potential of our organic growth pipeline," Bristow added in a statement.
