Barrick Gold Earnings: Higher Gold Prices a Tailwind
No-moat Barrick Gold’s 2024 first-quarter attributable sales of about 910,000 ounces were down 5% from the same quarter of 2023 and 13% from the prior quarter, driven by seasonal maintenance and mine plan sequencing. However, they were broadly in line with our expectations and guidance, which the company reiterated. We expect sales to increase over the remainder of 2024, assisted by the 60%-owned Pueblo Viejo and 25%-owned Porgera mines ramping up, and continue to forecast 2024 sales of 4.0 million-4.1 million ounces, similar to 2023. While the lower sales drove a 7% increase in unit cash costs, 9% higher gold prices meant adjusted earnings per share rose 36% on last year, to USD 0.19. We forecast 2024 EPS of USD 0.94, about 12% higher than 2023, driven by higher gold prices.