Barrick Gold ((TSE:ABX)) has held its Q4 earnings call. Read on for the main highlights of the call.
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Barrick Gold’s recent earnings call painted a picture of substantial financial growth and project success, with a largely positive outlook for the future. The company reported significant increases in production and successful progress in key projects. Despite facing safety and operational challenges, particularly in Mali, Barrick’s overall performance remains strong.
Strong Financial Performance
Barrick Gold reported a remarkable 30% increase in EBITDA, with both quarterly and annual margin growth. Adjusted net earnings per share saw a 50% year-over-year rise to $1.26, marking the highest net earnings in a decade. Operating cash flow increased by 18% to $1.4 billion for the quarter, showcasing the company’s robust financial health.
Gold and Copper Production and Reserves
The company achieved a 15% quarter-on-quarter increase in gold production, along with a 3% reduction in cost of sales and a 5% decrease in total cash costs. Significant new reserves were added from La Moana and Riccardeck, replacing 12.7 million ounces of gold and 13 million tons of copper, underscoring Barrick’s strong resource base.
Positive Developments in Key Projects
Barrick’s Pueblo Viejo expansion is progressing well, with gold production improvements and recovery rates expected to reach 80% by year-end. The Riccardec project feasibility study is complete, with the board approving its progression, highlighting Barrick’s commitment to project development.
Shareholder Returns
Barrick maintained its quarterly dividend at $0.10 per share and executed $354 million in share buybacks during Q4, totaling almost $500 million for the year. This reflects the company’s dedication to returning value to shareholders.
Safety Incidents
Despite improvements in safety indicators, Barrick reported three fatalities in 2024, which it deemed unacceptable. This underscores the ongoing challenges and importance of safety in their operations.
Operational Challenges in Mali
Gold sales in Mali were significantly impacted by government-imposed export restrictions, leading to a temporary suspension of operations. This represents a notable challenge for Barrick in maintaining its operational momentum.
Cost Increases in Pueblo Viejo
The all-in sustaining costs in Pueblo Viejo rose by 14% despite a production decrease of only 5%, attributed to lower grades. This cost increase is a key area of focus for Barrick.
Forward-Looking Guidance
Barrick Gold’s forward-looking guidance remains optimistic, showing a 30% increase in EBITDA and a 50% growth in adjusted net earnings per share. With a robust operating cash flow of $1.4 billion for the quarter and $4.5 billion for the year, the company is well-positioned for future growth. Barrick continues to meet its production guidance for both gold and copper, with strong performances in Nevada and the Lemona project, despite facing safety and operational challenges.
In conclusion, Barrick Gold’s earnings call underscores a strong financial and operational performance, with successful project developments and increased production. While safety incidents and operational challenges in Mali pose concerns, the overall sentiment is positive, highlighting the company’s resilience and growth potential.
