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Barrick (GOLD) Q4 Earnings Surpass Estimates, Sales Miss
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Barrick Gold Corporation (GOLD - Free Report) recorded net earnings (on a reported basis) of $479 million or 27 cents per share in fourth-quarter 2023. The figure improved from a loss of $735 million or 42 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 27 cents. The figure beat the Zacks Consensus Estimate of 21 cents.
Barrick recorded total sales of $3,059 million, up 10% year over year. The figure missed the Zacks Consensus Estimate of $3,131.7 million.
Barrick Gold Corporation Price, Consensus and EPS Surprise
Total gold production was 1,054,000 ounces in the reported quarter, down around 6% year over year. Our estimate for the same was 1,195,000 ounces. The average realized price of gold was $1,986 per ounce in the quarter, up around 15% year over year. This compares to our estimate of $1,969.
The cost of sales increased around 2.6% year over year to $1,359 per ounce. All-in-sustaining costs (AISC) moved up around 10% year over year to $1,364 per ounce in the quarter.
Copper production increased nearly 18% year over year to 113 million pounds. Our estimate for the quarter was pegged at 134 million pounds. The average realized copper price was $3.78 per pound, down 1% year over year.
Financial Position
At the end of the quarter, Barrick had cash and cash equivalents of $4,148 million, down 6.6% year over year. The company’s total debt was $4,726 million at the end of the quarter, down 1% year over year.
The operating cash flow was $997 million in the quarter, whereas free cash flow was $136 million.
FY23 Results
In 2023, Barrick reported total sales of $11,397 million, up 3% from the previous year’s levels. Earnings surged 200% to $0.72 per share, while adjusted net earnings were up 12%, reaching 84 cents per share. Operating cash flows rose 7% year over year to nearly $3.7 billion. Free cash flow surged 50% and totaled $646 million.
Guidance
For 2024, Barrick anticipates attributable gold production to be in the range of 3.9-4.3 million ounces.
AISC is projected to be $1,320-$1,420 per ounce. Cash costs per ounce are forecast to be $940-$1020. The company also expects to see a cost of sales of $1,320-$1,420 per ounce.
GOLD expects a copper production of 180-210 million pounds at AISC of $3.10-$3.40 per pound, cash costs per ounce of $2-$2.30 and cost of sales of $2.65-$2.95 per pound.
Capital expenditures are projected in the range of $2,500-$2,900 million for 2024.
Price Performance
Barrick’s shares have lost 17.1% in the past year compared with a 7.5% fall of the industry.
The consensus estimate for CRS’ current fiscal year earnings is pegged at $3.97 per share, indicating a year-over-year surge of 248.3%. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have rallied 26.5% in the past year.
Eldoradohas a projected earnings growth rate of 1,040% for the current year. The Zacks Consensus Estimate for EGO’s current-year earnings has been revised upward by 10% in the past 60 days. EGO topped the consensus estimate in each of the last four quarters, with the average earnings surprise being 496%. The company’s shares have rallied 21% in the past year.
The consensus estimate for HWKN’s current fiscal year earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised 4.3% upward in the past 30 days. HWKN beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have rallied 63.6% in the past year.
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Barrick (GOLD) Q4 Earnings Surpass Estimates, Sales Miss
Barrick Gold Corporation (GOLD - Free Report) recorded net earnings (on a reported basis) of $479 million or 27 cents per share in fourth-quarter 2023. The figure improved from a loss of $735 million or 42 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 27 cents. The figure beat the Zacks Consensus Estimate of 21 cents.
Barrick recorded total sales of $3,059 million, up 10% year over year. The figure missed the Zacks Consensus Estimate of $3,131.7 million.
Barrick Gold Corporation Price, Consensus and EPS Surprise
Barrick Gold Corporation price-consensus-eps-surprise-chart | Barrick Gold Corporation Quote
Operational Highlights
Total gold production was 1,054,000 ounces in the reported quarter, down around 6% year over year. Our estimate for the same was 1,195,000 ounces. The average realized price of gold was $1,986 per ounce in the quarter, up around 15% year over year. This compares to our estimate of $1,969.
The cost of sales increased around 2.6% year over year to $1,359 per ounce. All-in-sustaining costs (AISC) moved up around 10% year over year to $1,364 per ounce in the quarter.
Copper production increased nearly 18% year over year to 113 million pounds. Our estimate for the quarter was pegged at 134 million pounds. The average realized copper price was $3.78 per pound, down 1% year over year.
Financial Position
At the end of the quarter, Barrick had cash and cash equivalents of $4,148 million, down 6.6% year over year. The company’s total debt was $4,726 million at the end of the quarter, down 1% year over year.
The operating cash flow was $997 million in the quarter, whereas free cash flow was $136 million.
FY23 Results
In 2023, Barrick reported total sales of $11,397 million, up 3% from the previous year’s levels. Earnings surged 200% to $0.72 per share, while adjusted net earnings were up 12%, reaching 84 cents per share. Operating cash flows rose 7% year over year to nearly $3.7 billion. Free cash flow surged 50% and totaled $646 million.
Guidance
For 2024, Barrick anticipates attributable gold production to be in the range of 3.9-4.3 million ounces.
AISC is projected to be $1,320-$1,420 per ounce. Cash costs per ounce are forecast to be $940-$1020. The company also expects to see a cost of sales of $1,320-$1,420 per ounce.
GOLD expects a copper production of 180-210 million pounds at AISC of $3.10-$3.40 per pound, cash costs per ounce of $2-$2.30 and cost of sales of $2.65-$2.95 per pound.
Capital expenditures are projected in the range of $2,500-$2,900 million for 2024.
Price Performance
Barrick’s shares have lost 17.1% in the past year compared with a 7.5% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Barrick currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation (CRS - Free Report) , sporting a Zacks Rank #1 (Strong Buy), Eldorado Gold Corporation (EGO - Free Report) and Hawkins, Inc. (HWKN - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for CRS’ current fiscal year earnings is pegged at $3.97 per share, indicating a year-over-year surge of 248.3%. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have rallied 26.5% in the past year.
Eldoradohas a projected earnings growth rate of 1,040% for the current year. The Zacks Consensus Estimate for EGO’s current-year earnings has been revised upward by 10% in the past 60 days. EGO topped the consensus estimate in each of the last four quarters, with the average earnings surprise being 496%. The company’s shares have rallied 21% in the past year.
The consensus estimate for HWKN’s current fiscal year earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26%. The Zacks Consensus Estimate for HWKN’s current-year earnings has been revised 4.3% upward in the past 30 days. HWKN beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 30.6%. The company’s shares have rallied 63.6% in the past year.