Barrick Mining's Q2 Gold Sales Volumes Rise 3%, Q3 Outlook Positive

Barrick Mining's Q2 gold sales volumes rebounded 3% seq. to 770,000 oz, a turnaround from a 22% seq. decline in the prior quarter. Higher volumes contributed to an 18% seq. increase in the top line and a 71% rise in net earnings. Gold sales volume growth underpins Barrick's ability to leverage higher gold prices, maintain margin expansion, and deliver on growth targets for 2025 and beyond.

Barrick Mining Corporation (NYSE:B) has reported a significant turnaround in its Q2 gold sales volumes, rebounding 3% sequentially to 770,000 ounces. This marked a notable recovery from a 22% sequential decline in the prior quarter. The improved sales volumes contributed to an 18% sequential increase in the top line and a 71% rise in net earnings. This performance underscores Barrick's ability to leverage higher gold prices, maintain margin expansion, and deliver on its growth targets for 2025 and beyond.

The company's Q2 gold production was ~797,000 ounces, a 16% decline year-over-year, primarily due to the offline status of the Loulo-Gounkoto Mine in Mali. However, adjusting for Loulo-Gounkoto, production was only slightly down from ~811,000 ounces to ~797,000 ounces. Barrick's Nevada Gold Mines, a joint venture with Newmont, saw lower production year-over-year, with Carlin Complex experiencing a decline in output due to lower throughput at its autoclave/roasters. Despite these challenges, Barrick expects a much stronger H2'25 from its Carlin Complex, with production guidance of ~715,000 ounces.

The company's Cortez Complex also benefited from higher production, driven by 31% higher grades processed and increased tonnes through the roasters/autoclave. However, AISC was impacted by higher royalties and sustaining capital, more than offsetting the increased ounces sold. Barrick expects a better H2'25 for Cortez, with just 200,000 ounces of a planned 445,000 ounces produced, with better costs expected in H2'25.

Barrick's Pueblo Viejo mine in the Dominican Republic saw production of ~95,000 ounces, up from ~80,000 ounces in the year-ago period. All-in sustaining costs were up year-over-year, trending well above full-year guidance at $1,605/oz YTD vs. guidance of $1,330/oz. The company expects Pueblo Viejo to produce closer to 500,000 ounces (60% basis) for Barrick with its 14 MTPA Expansion at more competitive costs.

Barrick's Kibali Mine in the DRC saw production of ~75,000 ounces, down from ~82,000 ounces in Q2'24. The company expects H2'25 to be better, with just ~138,000 ounces produced in H1'25 of a planned 315,000 ounces at $1,180/oz.

Overall, Barrick's Q2 financial results were solid, with revenue of ~$3.68 billion (+16% year-over-year), operating cash flow of ~$1.33 billion (+15% year-over-year), and free cash flow of ~$395 million (+16% year-over-year). The company also bought back ~21.2 million shares YTD at ~$19.40/share and offloaded a $1.0 billion project in Donlin, improving its balance sheet.

References:
[1] https://seekingalpha.com/article/4816501-barrick-mining-turnaround-thesis-remains-intact