Under the strong push of gold prices, Barrick Gold's Q1 net profit increased by 81.08% year-on-year | Financial Report Insights
Barrick's adjusted earnings per share in the first quarter increased by 84% year-on-year to $0.35, exceeding expectations by $0.06. Gold production decreased by 19.36% year-on-year. The average realized gold price for the quarter was $2,898 per ounce, up 40% compared to the same period last year
One of the world's top gold producers, Barrick Gold (Barrick Mining), reported better-than-expected performance in the first quarter, mainly due to the strong rise in gold prices.
The company's adjusted net profit increased by 81.08% year-on-year, while gold production decreased by 19.36% year-on-year. The average realized gold price for the quarter was $2,898 per ounce, up 40% from the same period last year. The company maintained its full-year gold and copper production guidance and actively advanced key growth projects such as Reko Diq and Lumwana.
- Barrick's net profit for Q1 2025 was $474 million, compared to $295 million in the same period last year, a year-on-year increase of 60.68%.
- Adjusted net profit was $603 million, compared to $333 million in the same period last year, a year-on-year increase of 81.08%.
- Earnings per share increased by 59% year-on-year to $0.27.
- Adjusted earnings per share increased by 84% year-on-year to $0.35, exceeding Bloomberg's general expectations by $0.06.
- Operating cash flow reached $1.2 billion, a 59% increase from the same period last year.
- Free cash flow significantly improved to $375 million.
This strong financial performance led to a 5% reduction in the company's net debt for the quarter. The company's board again approved a quarterly dividend of $0.10 per share and repurchased $143 million worth of stock.
Gold Prices Support, Offset Rising Costs and Operational Disruptions
In the first quarter, Barrick Gold's production reached 758,000 ounces, at the upper limit of the guidance range, down from 940,000 ounces in the same period last year, a decrease of 19.36%. Copper production increased year-on-year to 44,000 tons.
The average realized gold price for the quarter was $2,898 per ounce, up 40% from the same period last year, which supported higher profit margins to some extent. Despite ongoing expansion work at Pueblo Viejo and planned maintenance at the Nevada Gold Mine, the full-year production guidance for gold and copper remained unchanged.
Reportedly, Barrick benefited from the increase in gold prices, which helped the company offset the impact of rising costs and alleviated the effects of ongoing business stagnation due to disputes with the military government in Mali. Notably, Barrick removed the word "gold" from its company name this week, indicating that the company is accelerating its transition to copper mining.
Accelerated Transformation, Copper Mining Layout and Asset Sales
Barrick actively advanced several key growth projects in the quarter. CEO Mark Bristow mentioned that the company has formed owner teams for the Reko Diq and Lumwana projects and appointed Fluor and Hatch as engineering partners, respectively. These projects will significantly enhance Barrick's copper and gold production and support its goal of increasing gold equivalent ounces by 30% by the end of this decade The company is also actively promoting the expansion of the Pueblo Viejo project and has begun the pre-feasibility study for the Fourmile project. Currently, there are 16 drilling rigs in operation.
Analysis indicates that the rise in gold prices is helping Barrick Gold raise cash and accelerate its transition to copper mining. Barrick is exiting a mining project in Alaska by selling its 50% stake for $1 billion. Additionally, the company is seeking buyers for mines in Africa and North America, suggesting that more transactions may occur in the future
