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Barrick (GOLD) Q1 Earnings Beat Estimates, Revenues Miss

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Barrick Gold Corporation (GOLD - Free Report) recorded net earnings (on a reported basis) of $295 million or 17 cents per share in first-quarter 2024. The figure improved from $120 million or 7 cents per share in the year-ago quarter.

Barring one-time items, adjusted earnings per share were 19 cents. The figure beat the Zacks Consensus Estimate of 16 cents.

Barrick recorded total sales of $2,747 million, up 4% year over year. The figure missed the Zacks Consensus Estimate of $2,932 million.

Barrick Gold Corporation Price, Consensus and EPS Surprise

 

Barrick Gold Corporation Price, Consensus and EPS Surprise

Barrick Gold Corporation price-consensus-eps-surprise-chart | Barrick Gold Corporation Quote

 

Operational Highlights

Total gold production was 940,000 ounces in the reported quarter, down around 1.3% year over year. Our estimate for the same was 963,000 ounces. The average realized price of gold was $2,075 per ounce in the quarter, up around 9% year over year. This compares to our estimate of $1,979.

The cost of sales increased around 3.4% year over year to $1,425 per ounce. All-in-sustaining costs (AISC) moved up around 7.6% year over year to $1,474 per ounce in the quarter.

Copper production remained flat year over year to 40,000 tons. The average realized copper price was $3.86 per pound, down 8% year over year.

Financial Position

At the end of the quarter, Barrick had cash and cash equivalents of $3,942 million, down 10% year over year. The company’s total debt was $4,725 million at the end of the quarter, down 1% year over year.

The operating cash flow was $760 million in the quarter, while free cash flow was $32 million.

Guidance

For 2024, Barrick anticipates attributable gold production to be in the range of 3.9-4.3 million ounces.

AISC is projected to be $1,320-$1,420 per ounce. Cash costs per ounce are forecast to be $940-$1,020. The company also expects to see a cost of sales of $1,320-$1,420 per ounce.

GOLD expects a copper production of 180,000-210,000 tons at an AISC of $3.10-$3.40 per pound, cash costs per pound of $2-$2.30 and cost of sales of $2.65-$2.95 per pound.

Capital expenditures are projected in the range of $2,500-$2,900 million for 2024.

Price Performance

Barrick’s shares have lost 17.3% in the past year compared with a 6.8% fall of the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Key Picks

Barrick currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are Gold Fields Limited (GFI - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and L.B. Foster Company (FSTR - Free Report) and American Vanguard Corporation (AVD - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for GFI’s first-quarter earnings is pegged at 22 cents per share. The Zacks Consensus Estimate for GFI’s first-quarter earnings has been stable in the past 60 days.

L.B. Foster is slated to report first-quarter results on May 7. The consensus estimate for FSTR’s first-quarter earnings is pegged at a loss of 16 cents per share. The company’s shares have rallied 116.1% in the past year.

AVD is expected to report first-quarter results on May 14. The consensus estimate for AVD’s first-quarter earnings is pegged at 8 cents per share, indicating a year-over-year rise of 14.3%.

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