(Kitco News) - The gold market’s unprecedented run at all-time highs continues to dominate and transform the mining sector, as the world’s second-largest gold producer reported a solid start to the year.
On Wednesday, ahead of the North American open, Barrick Mining Corporation (NYSE: GOLD)(TSX: ABX) reported first-quarter net earnings of $474 million, or $0.27 per share, and adjusted net earnings of $603 million, or $0.35 per share, beating expectations. According to consensus forecasts, analysts had expected EPS of around $0.28.
The company said its net earnings per share increased 59% year-on-year, with adjusted net earnings per share growing by 84% compared to the first quarter of 2024.
“Operating cash flow of $1.2 billion was also up 59%, while free cash flow of $375 million improved materially compared to Q1 2024, driving a net debt reduction of 5% over the quarter,” the company said.
With its solid cash flow growth, the company approved a quarterly dividend of $0.10 per share. Barrick also said it would repurchase $143 million of its shares, consistent with its commitment to shareholder returns.
Barrick’s solid balance sheet was driven primarily by higher gold prices. The company reported a realized average gold price of $2,898 during the first three months of the year, up 40% from prices seen last year.
Barrick said gold production came in at the top end of guidance. The company produced 758,000 ounces of gold in the first quarter, down 19% from last year. However, copper production continues to increase; Barrick produced 44 tonnes of copper between January and March, up 10% compared to the first quarter of 2024.
“At Reko Diq and Lumwana, owner teams have been mobilized, long-lead items secured, and Fluor and Hatch appointed as engineering partners, respectively. These projects will materially grow Barrick’s copper and gold production and support our goal to organically grow our gold-equivalent ounces by 30% by the end of the decade. We also progressed with the Pueblo Viejo ramp-up and tailings expansion—critical to unlocking its full value—and transitioned Fourmile to prefeasibility with 16 rigs now active, targeting high-confidence, substantial resource additions,” said President and CEO Mark Bristow in the earnings report.
While the company continues to see robust production, it is coming with increased costs. Barrick said its gold cost of sales rose to $1,629, up 14% from last year. Meanwhile, all-in sustaining costs (AISC) rose to $1,775 an ounce, up 20% from last year.
However, the company expects costs to fall throughout the year as it ramps up production.
In the report, Bristow said the first quarter highlighted Barrick’s distinct approach to growth.
“We’ve built a global mining company with the financial strength, technical capacity, and operational depth to grow organically. Our performance this quarter reflects delivery across all our strategic pillars—from reserve replacement and portfolio optimization to the ramp-up of world-class projects and reinvestment in exploration.”
Bristow also said the company continues to invest in exploration and the organic growth of its deposits.
“While others pursue shortcuts through M&A, we continue to invest in our own future—by building and not just buying—thereby creating real value for our shareholders. With no need to raise new equity or increase debt to fund our growth, Barrick remains uniquely well-positioned to maintain a strong balance sheet while delivering sustainable returns and long-term value for shareholders,” he said.
Barrick also highlighted its $1 billion sale of its 50% stake in the Donlin project in Alaska.
