Barrick Gold (NYSE:GOLD) shares are ticking lower today after the gold and copper miner announced mixed first-quarter results. The company also outlined expectations of a ramp-up in gold production for the rest of the year.
Barrick’s first-quarter revenue increased by 4% year-over-year to $2.75 billion. However, this figure lagged estimates by $10 million. On the other hand, its EPS of $0.19 fared better than expectations by $0.04.
Lower Output, Higher Prices
The quarter was marked by lower output but higher realized prices for the company. Its gold (CM:XAUUSD) production dropped to 940 million ounces from 1,054 million ounces in Q4. Similarly, its copper (CM:HG) production contracted to 40 thousand tonnes from 51 thousand tonnes in Q4. This impact was offset by higher prices. Barrick’s realized gold price in Q1 stood at $2,075 per ounce versus $1,986 per ounce in Q4. In sync, its realized copper price stood at $3.86 per pound, compared to $3.78 per pound in Q4.
Delays Aren’t Going to Stop Barrick Gold
The combination of lower gold production and a higher cost base resulted in a delay in the gold production ramp-up at Barrick’s Pueblo Viejo location in Q1.
Despite this delay, the company is charging forward with the expansion of its global portfolio. It has completed a planned maintenance at its Nevada gold mines and an expansion at Pueblo Viejo. Its Nevada Goldrush project is on track to produce 130,000 ounces of gold this year.
Additionally, the company is banking on the development of the giant copper-gold mine at Reko Diq in Pakistan and aims to turn its Lumwana operation in Zambia into one of the largest copper mines globally. The first production from both these projects is anticipated in 2028.
Cost Improvements and its Dividend
Importantly, the company expects its cost metrics to improve as it ramps up production over the remainder of the year. Additionally, the company has announced a dividend of $0.10 per share. The GOLD dividend is payable on June 17 to investors of record as of May 31.
GOLD’s Forward Guidance
For Fiscal year 2024, total attributable gold production for Barrick is estimated to be in the range of 3.9 to 4.3 million ounces, while total copper production is anticipated to be between 180 to 210 thousand tonnes.
Importantly, gold and copper are expected to enter a new commodity super cycle in the coming years. The anticipated industry dynamics of robust demand and buoyant prices could enhance Barrick’s fortunes in the long term.
What Is the Stock Price Forecast for Barrick Gold?
Barrick’s share price has gained by nearly 4% over the past three months. Overall, the Street has a Strong Buy consensus rating on the stock, alongside an average GOLD price target of $21.90. However, analysts’ views on the company could see changes following today’s earnings report.
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