Barrick Q1 2025 slides: earnings surge 59%, advancing major growth projects

Published 05/07/2025, 11:39 AM
Barrick Q1 2025 slides: earnings surge 59%, advancing major growth projects

Introduction & Market Context

Barrick Gold Corporation (NYSE:GOLD) reported strong financial results for the first quarter of 2025, with significant year-over-year growth in earnings and cash flow. The company is advancing several major growth projects while maintaining its focus on both gold and copper production. Notably, Barrick announced plans to reposition itself as "Barrick Mining Corporation" with a new ticker symbol ’B’ on the NYSE, reflecting its evolving identity as a diversified mining company.

The gold miner’s shares closed at $19.23 on May 7, 2025, up 0.96% for the day, and have traded between $15.11 and $21.35 over the past 52 weeks.

Quarterly Performance Highlights

Barrick reported substantial year-over-year financial improvements in Q1 2025. Net earnings per share reached $0.27, up 59% compared to the same period last year, while adjusted net earnings per share rose even more dramatically to $0.35, representing an 84% increase year-over-year. Attributable EBITDA grew 50% to $1.36 billion.

As shown in the following financial highlights from the presentation:

The company’s operational results were mixed, with gold production of 758,000 ounces at the top end of the guidance range, though with higher costs per ounce. Copper production increased year-over-year to 44,000 tonnes with lower costs. Operating cash flows were robust at $1.21 billion, representing a 59% increase compared to Q1 2024, while free cash flow improved materially to $375 million.

The detailed operating and financial results demonstrate the company’s performance across both metals:

Barrick continued its shareholder returns program with a quarterly dividend of $0.10 per share and share buybacks totaling $143 million. The company’s balance sheet strengthened further with debt, net of cash, reduced by 5% to $623 million.

Strategic Initiatives and Growth Projects

A key strategic development announced in the presentation is Barrick’s plan to reposition itself as "Barrick Mining Corporation" with a new ticker symbol ’B’ on the NYSE. This change reflects the company’s evolution into a more diversified mining company with significant copper assets alongside its traditional gold operations.

Barrick is advancing several major growth projects that will shape its future production profile. The Reko Diq copper-gold project in Pakistan has moved into the construction phase, with Fluor (NYSE:FLR) appointed as the lead EPCM partner. The joint venture shareholders have approved the project’s updated feasibility study and conditionally approved the associated Phase 1 development capital. Barrick’s share of the total Phase 1 partner equity contribution is expected to be $1.4-1.7 billion, with first production targeted for the end of 2028.

The company also announced a new copper-gold discovery called Bukit Pasir within the Reko Diq mining license, with the first drill hole returning impressive results of 902m @ 0.50% Cu and 0.19g/t Au.

At Lumwana in Zambia, the Super Pit expansion has transitioned to project execution, with first copper production targeted for Q1 2028. The company has placed orders for a 60MVA Battery Energy Storage System to improve power stability, with commissioning planned for Q1 2026.

The Fourmile gold project in Nevada is advancing to the prefeasibility study stage, with outstanding drill results reported. The 2025 program involves 16 rigs drilling 73 holes totaling 55km, targeting material growth to mineral resources.

As illustrated in the company’s long-term production outlook:

Operational Performance

Barrick’s Nevada Gold Mines, which represents a significant portion of its gold production, experienced lower production in Q1 due to planned maintenance and lower grades. The Carlin operation saw roaster maintenance and lower grades, while Cortez had strong performance versus plan but lower production quarter-over-quarter due to less high-grade underground ore processed.

The detailed Nevada Gold Mines results show:

In the Dominican Republic, the Pueblo Viejo operation underwent a 35-day shutdown for throughput upgrades to thickener, which was successfully completed. Production declined 20% quarter-over-quarter due to the shutdown, but the recovery rate continues to improve. The El Naranjo Tailings Storage Facility is advancing as planned, with access roads underway and major contractor and procurement packages in place.

In Africa, Kibali production was lower quarter-over-quarter, but higher grades are planned to be fed later in the year. The company temporarily suspended operations at Loulo-Gounkoto following an ongoing dispute over existing mining conventions. The Tanzanian mines continued to perform well, with North Mara building on a strong Q4 2024.

Barrick’s copper operations showed mixed results. Lumwana production was down in Q1 due to lower grades and throughput as per plan and downtime due to mill relining, following a record-breaking Q4 2024. Production is expected to increase from Q2 with higher grades planned to be fed.

Sustainability and Forward-Looking Statements

Barrick emphasized its commitment to sustainability, reporting significant improvements in safety performance with a 57% improvement in Lost Time Injury Frequency Rate and a 44% improvement in Total Recordable Injury Frequency Rate. The company completed 347 Critical Control Verifications on a daily basis for Q1 2025.

Looking ahead, Barrick highlighted its consistent track record of adding to reserves per share, with gold reserves per share increasing by 33% between 2023 and 2024, and gold equivalent reserves per share growing by an impressive 82% in the same period.

The company presented itself as "a world class global mining, exploration and development company" focused on five key strategic pillars: Premier Portfolio, Resource Sustainability, Disciplined Investments, Balance Sheet Strength, and Global Excellence.

With its strong financial performance, advancing growth projects, and strategic repositioning, Barrick appears well-positioned to deliver on its long-term production goals while maintaining its commitment to shareholder returns and sustainability.

Full presentation:

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