(Kitco News) - The mining sector continues to benefit from an unprecedented rally in gold prices, with the world’s second-largest gold producer announcing solid earnings for 2024.
On Wednesday, ahead of the North American equity market open, Barrick Gold (NYSE: GOLD, TSX: ABX) reported a 69% increase in net earnings to $2.14 billion and a 51% rise in adjusted net earnings to $2.21 billion, significantly beating analyst expectations. The company also noted that its annual operating cash flow in 2024 increased by 20% to $4.49 billion, while free cash flow more than doubled to $1.32 billion.
The company’s earnings were not only driven by higher gold prices, which rose 27% last year, but also by a 15% quarter-over-quarter increase in its precious metals production and a 33% rise in copper production, meeting its annual guidance for the year.
With its cash position growing, Barrick continues to reward shareholders by maintaining its $0.10 per share quarterly dividend. At the same time, the senior gold producer announced a new $1.0 billion repurchase program to buy back outstanding common shares over the next 12 months at prevailing market prices, in accordance with applicable law.
“Barrick remains focused on sustainable value creation for all our stakeholders, and as our results today clearly demonstrate, we have the asset quality, balance sheet strength, and organic growth projects to deliver on our vision well into the future,” said Barrick’s President and Chief Executive Officer Mark Bristow.
Looking ahead, the company said 2025 attributable gold production is expected to be in the range of 3.15–3.5 million ounces, excluding production from Loulo-Gounkoto, which is temporarily suspended. Meanwhile, attributable copper production for 2025 is projected to increase from 195,000 tonnes in 2024 to between 200,000 and 230,000 tonnes, driven by higher output at Lumwana.
Barrick’s slightly lower production guidance reflects the company’s ongoing dispute with the government of Mali. The company shuttered its Loulo-Gounkoto mine in January due to a conflict with authorities in the West African country over a new mining law that seeks to sharply increase royalty taxes and the state's ownership in mining projects.
“While ongoing issues in Mali remain an investor concern and have weighed on the share price, Barrick’s fundamental value proposition has never been stronger. As such, we have capitalized on the undervaluation of our shares by increasing our repurchases and have renewed our $1 billion share buyback program for the upcoming year,” said Bristow.
