Barrick Gold Corporation (GOLD) shares are on the rise, buoyed by a strong performance in the second quarter. The company reported better-than-expected financial results, surpassing Wall Street’s estimates for both revenue and earnings per share.
Barrick Gold’s second-quarter revenue hit $3.162 billion, marking a 12% year-over-year increase. This surpassed analysts’ consensus estimate of $3.114 billion. Adjusted earnings per share (EPS) came in at $0.32, exceeding the expected $0.27. The company also reported a healthy cash position, holding $4.04 billion in cash and cash equivalents against a debt of $4.72 billion.
President and CEO Mark Bristow highlighted key projects that are expected to significantly boost production and expand the company’s asset base. These include:
*
Goldrush mine in Nevada:
This project is anticipated to ramp up to an annual production exceeding 400,000 ounces of gold by 2028.*
Fourmile project:
This project has the potential to yield more than 500,000 ounces of gold per annum over two decades.*
Pueblo Viejo expansion in the Dominican Republic:
This expansion aims to boost gold production beyond 800,000 ounces by 2040.On the copper front, Barrick Gold is advancing two major projects:
*
Lumwana super pit expansion in Zambia:
This expansion will increase copper production from 130,000 tonnes to 240,000 tonnes per annum.*
Reko Diq project in Pakistan:
This project targets an annual production of 400,000 tonnes of copper and 500,000 ounces of gold.Barrick Gold reaffirmed its outlook for fiscal year 2024, forecasting attributable gold production between 3.9-4.3 million ounces, with an all-in sustaining cost (AISC) expected to range from $1,320 to $1,420 per ounce. The company expects its capital expenditure for the year to be within the $2.50 billion-$2.90 billion range.
Following the positive news, Barrick Gold shares have surged by 8.78%, trading at $18.94 per share. The company’s strong financial performance and ambitious expansion plans appear to have fueled investor confidence.
