(Kitco News) - Higher gold prices continue to transform the mining sector and provide growing value for investors, as one of the world’s biggest gold producers announced record earnings during the third quarter.
On Monday, ahead of the North American open, Barrick announced record adjusted net earnings of $982 million, or $0.58 per share, compared to adjusted net earnings of $529 million, or $0.30 per share, reported last year. The company’s earnings rose in line with analyst expectations.
At the same time, the senior gold producer also reported record operating and free cash flow of $2.4 billion and $1.5 billion—up 82% and 274%, respectively, compared to the third quarter of 2024.
The company announced it would reward shareholders with its growing pile of cash. Barrick said it is increasing its base quarterly dividend by 25% to $0.125 per share and adding a performance dividend of $0.05 per share, for a total dividend of $0.175 per share for the current quarter.
Barrick also said it has repurchased $1 billion of shares so far this year and will expand the existing buyback program by $500 million, bringing the total to up to $1.5 billion for the year.
“Higher gold production combined with lower costs and strong commodity prices drove record cash flow for Barrick in Q3,” said Mark Hill, Group Chief Operating Officer and Interim President and Chief Executive Officer. “This allowed us to significantly increase share repurchases while also making progress on our key growth projects, maintaining our industry-leading balance sheet. Given the confidence in ongoing cash flow generation and shareholder focus, the Board has approved a 25% increase in the base quarterly dividend. Our portfolio of world-class assets continues to grow, as demonstrated by the generational gold discovery at Fourmile in Nevada.”
Barrick said its record earnings come as production improved this year. The company reported producing 829,000 ounces of gold between July and September, a 4% increase from the second quarter. However, third-quarter production was 12% lower compared to the same period last year.
Meanwhile, copper production in the third quarter was 55,000 tonnes, 7% lower than in the second quarter.
The company also appears to be keeping its costs in check. It reported All-In Sustaining Costs (AISC) of $1,538 per ounce, down 9% from the second quarter and up only 2% from 2024.
Looking at gold prices, Barrick reported average realized gold prices of $3,457 an ounce, up 39% from the third quarter of 2024.
Looking ahead, Barrick reaffirmed its production guidance.
“We continue to expect gold production of 3.15–3.50 million ounces, tracking in the lower half of the range, with quarterly production highest in Q4,” the company said.
