Barrick Gold Corporation (NYSE:GOLD) Q4 2024 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
Barrick has shown strong financial performance with increased free cash flow, EBITDA, and operating cash flow. The company is maintaining its dividend and has a robust share buyback program. Despite operational risks and fatalities, the management's strategic focus on safety and project financing is reassuring. The Q&A section highlighted confidence in managing costs and maintaining growth, with no significant risks identified. Overall, the combination of positive financial metrics, strategic investments, and proactive management responses suggests a positive stock price movement.
Key Financial Performance
EPS Reported EPS is $0.46, unchanged year-over-year.
Adjusted Net Earnings per Share Grew 50% year-on-year to $1.26.
EBITDA Increased 30% year-on-year.
Operating Cash Flow Up 18% to $1.4 billion for the quarter, total for the year is $4.5 billion, the highest since 2020.
Free Cash Flow Increased 104% year-on-year to $1.3 billion for 2024.
Quarterly Dividend Maintained at $0.10 per share.
Share Repurchases Repurchased an additional $354 million of shares in Q4, totaling almost $500 million for the year.
Gold Production Increased 15% quarter-on-quarter.
Cost of Sales Reduced by 3%.
Total Cash Costs Decreased by 5%.
Net Debt Remained in line at just over $650 million.
Gold Reserves Replacement Added 12.7 million ounces of gold reserves.
Copper Reserves Replacement Added 13 million tons of copper reserves.
Cash Contributions to Malian Treasury $460 million in 2024, $400 million in 2023.
Production Increase at Kabali Production increased quarter-on-quarter.
Production at North Mara Up 20% quarter-on-quarter.
Production at Lemona Posted a quarterly production record.
Production at Valadero Delivered its best production results in the last five years.
Cost of Puerto Rico Reported cost was 14% higher despite only a 5% increase in production.
Operating Highlights
New Product Development: The Four Mile project is moving towards a prefeasibility study with an allocated budget of $78 million for 2025, expected to take three years to complete. This project is an extension of Gold Rush with larger ore bodies and higher grades.
Market Expansion: Barrick Gold is expanding its footprint in priority belts across the western United States for both gold and copper assets, including ongoing consolidation in Western Nevada.
International Expansion: In Latin America, the Pueblo Viejo expansion is progressing, and the bankable feasibility study at Riccardic has been completed with conditional board approval to proceed.
Operational Efficiency: Quarterly gold production increased by 15% with a 3% reduction in cost of sales and a 5% decrease in total cash costs, driven by cost efficiencies.
Safety Improvements: Despite three fatalities in 2024, there was significant improvement in safety metrics, achieving goals for the group.
Strategic Shifts: Barrick Gold is focusing on organic growth, targeting a 30% increase in gold equivalent ounces by the end of the decade, supported by strong cash flow and share buybacks.
Partnerships: A memorandum of understanding was signed with the Zambian government to drive mining and exploration in Zambia, aligning with the country's vision to increase copper production.
Risk or Challenges
Regulatory Issues: Barrick Gold Corporation is facing challenges in Mali due to export restrictions imposed by the Malian government, which have significantly impacted gold sales. Additionally, the company is dealing with the unjust incarceration of some team members, leading to a complex situation that requires ongoing negotiations with the administration.
Supply Chain Challenges: The company is experiencing difficulties in Mali, where production has been affected by government restrictions, impacting the supply chain and operational continuity.
Economic Factors: The financial contributions to the Malian Treasury have been substantial, with $460 million in 2024 alone. However, the ongoing negotiations and potential changes in the regulatory environment could affect future contributions and operational viability.
Operational Risks: Barrick Gold Corporation has reported three fatalities in 2024, which raises concerns about safety and operational risks. The company is focused on improving safety measures but acknowledges the unacceptable nature of these incidents.
Project Financing Risks: The Rickardek project has a total estimated budget of approximately $5.6 to $6 billion, and the company is in discussions for limited recourse project financing. The success of this financing is crucial for the project's advancement.
Market Risks: The company is navigating competitive pressures in the gold and copper markets, with a focus on maintaining a strong balance sheet and avoiding excessive debt or share issuance.
Guidance & Outlook
Sustainability Commitment: Barrick Gold Corporation emphasizes its commitment to sustainability, aiming to be the best gold and copper producer while ensuring long-term value creation.
Reserve Replacement: The company reported a successful reserve replacement for both gold and copper, adding 12.7 million ounces of gold and 13 million tons of copper reserves.
Four Mile Project: Barrick is allocating $78 million for the prefeasibility study of the Four Mile project, which is expected to take three years to complete.
Expansion in Nevada: The company is expanding its brownfields portfolio in Nevada, focusing on growth opportunities in the Carlin and Cortez areas.
Pueblo Viejo Expansion: The Pueblo Viejo expansion is progressing well, with a target of exceeding 800,000 ounces of gold production next year.
Rick O'Deck Project: The Rick O'Deck project is expected to have a total estimated budget of approximately $5.6 to $6 billion, with first production targeted by the end of 2028.
2025 CapEx: Barrick Gold Corporation expects capital expenditures to increase over the next three years before returning to normal levels.
Gold Production Guidance: The company anticipates gold production in the mid-600,000 ounces for 2025, with a target of exceeding 800,000 ounces in 2026.
Free Cash Flow: Free cash flow is estimated at around $74 billion over 36 years for the Rick O'Deck project.
Debt Management: Barrick aims to fund its growth and capital commitments without issuing new shares or taking on additional debt.
Long-term Growth: The company forecasts a 30% growth in gold equivalent ounces by the end of the decade.
Shareholder Return Plan
Quarterly Dividend: The quarterly dividend was maintained at $0.10 per share.
Total Dividends for 2024: Total dividends for the year amounted to $700 million.
Share Buyback Program: Repurchased an additional $354 million of shares in Q4 2024, totaling almost $500 million for the year.
Key Q&A
Earnings Word Cloud
GOLD Transcript
The earnings report presents a mixed picture. Positive factors include EPS growth, strong cash flow, and a maintained dividend, suggesting operational strength. However, regulatory issues in Mali, supply chain challenges, and lower production at key sites pose risks. The Q&A reveals management's evasiveness on critical issues, hinting at uncertainties. Despite these challenges, the company's strategic expansions and cost-saving measures provide a balanced outlook. Given these factors, the stock price is likely to remain stable, resulting in a neutral sentiment.
The earnings call presents a mixed picture: strong financial performance with significant growth in operating cash flow and free cash flow, stable dividends, and reduced debt, which are positive indicators. However, regulatory issues in Mali, supply chain challenges, and operational risks in Nevada pose significant concerns. The Q&A section highlights management's avoidance of direct answers on critical issues, adding uncertainty. The stable dividend and share buyback program provide some support. Overall, the positive financials are offset by operational and regulatory risks, leading to a neutral stock price prediction.
Barrick has shown strong financial performance with increased free cash flow, EBITDA, and operating cash flow. The company is maintaining its dividend and has a robust share buyback program. Despite operational risks and fatalities, the management's strategic focus on safety and project financing is reassuring. The Q&A section highlighted confidence in managing costs and maintaining growth, with no significant risks identified. Overall, the combination of positive financial metrics, strategic investments, and proactive management responses suggests a positive stock price movement.
The earnings call summary presents a mixed picture: positive developments in production increases, renewable energy adoption, and debt reduction are offset by concerns about production guidance and potential cost increases. The Q&A section revealed uncertainties about production targets and costs, but management's proactive approach and clear plans for improvement offer reassurance. Overall, the sentiment is neutral, with balanced positive and negative factors.
GOLD Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
