Barrick Gold's Q4 2024: Contradictions in Loulo-Gounkoto Production, CapEx, and Share Buybacks

These are the key contradictions discussed in Barrick Gold Corporation's latest 2024Q4 earnings call, specifically including: Loulo-Gounkoto production and financial impact, sustaining CapEx directionality, Loulo-Gounkoto operations, capital expenditure (CapEx) reduction, and share buybacks:



Operational Performance and Reserve Replacement:
- Barrick achieved a 15% increase in quarter-on-quarter gold production and reduced total cash costs by 5%.
- The company added 12.7 million ounces of gold and 13 million tonnes of copper to its reserves from Lumwana and Reko Diq, equivalents to 73 million ounces of gold.
- This growth was driven by strong performance in North America and Africa, particularly at the Nevada operations and the successful integration of Lumwana and Reko Diq reserves.

Financial Results and Shareholder Returns:
- Barrick reported the highest net earnings in a decade, with operating cash flow up 18% to $1.4 billion for the quarter.
- The company repurchased $354 million of its own shares in Q4, taking the total for the year to almost $500 million.
- The strong financial performance was supported by high commodity prices, operational efficiency, and disciplined capital management.

Sustainability and Safety Initiatives:
- Safety and the Journey to Zero remain priorities, with significant improvement in lagging indicators despite three fatalities reported in 2024.
- The company achieved no Class 1 environmental incidents and maintained an industry-leading water use efficiency rate of 85%.
- This was driven by a focus on leading indicators and critical control verifications, emphasizing a commitment to sustainable practices.

Expansion Projects and Capital Expenditure:
- Barrick allocated $78 million for the 2025 year to begin pre-feasibility studies for Fourmile, with a focus on copper projects like Lumwana and Reko Diq.
- The company is advancing greenfields work in Africa and the Middle East, with $1.7 to $1.9 billion in project capital expenditure guided for 2025.
- These investments are strategic, aimed at supporting long-term growth and positioning Barrick as a major copper producer alongside its gold portfolio.