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Will Barrick Mining's Higher Costs Dent Its Profit Momentum Ahead?
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Key Takeaways
Barrick's Q4 profits rose on higher gold prices, but cash costs and AISC increased year over year.
Lower production, partly from the Loulo-Gounkoto suspension, contributed to higher unit costs.
Barrick's projected 2026 cash costs and AISC signal a year-over-year increase at the midpoint.
Barrick Mining Corporation’s (B - Free Report) fourth-quarter profits more than doubled year over year on higher gold prices, but steeper unit costs remained a drag. Its total cash costs per ounce of gold and all-in-sustaining costs (AISC) — a critical cost metric for miners — increased around 15% and 9% year over year, respectively, in the quarter, and rose from the previous quarter as well. AISC of $1,581 increased from the year-ago quarter due to higher total cash costs per ounce. AISC also rose 10% year over year to $1,637 in 2025.
Lower year-over-year production, partly due to the suspension of operations at the Loulo-Gounkoto mine, also contributed to the rise in its unit costs. Barrick’s consolidated gold production fell roughly 19% year over year to 871,000 ounces in the fourth quarter, and declined 17% in 2025.
While Barrick is committed to cost discipline, its fourth-quarter results point to the need for tighter cost controls. For 2026, Barrick projects AISC in the range of $1,760-$1,950 per ounce, indicating a significant year-over-year increase at the midpoint. Cash costs per ounce are forecast to be $1,330-$1,470, also up from $1,199 in 2025. Lower grades mined, higher prices of key consumables and higher gold price assumptions are the factors expected to contribute to increased costs in 2026. The increase also reflects a higher cost base at Loulo-Gounkoto as the company ramps up mining following the return of control in December 2025. Investors should watch the next quarter closely as sustained high unit costs could weigh on margins and constrain future capital returns.
Among its major peers, Agnico Eagle Mines Limited (AEM - Free Report) is also exposed to higher production costs. In the fourth quarter, Agnico Eagle’s AISC was $1,517 per ounce, marking a roughly 10% increase from the prior quarter and a 15% year-over-year rise. Agnico Eagle’s total cash costs per ounce for gold were $1,089, 18% higher than $923 a year ago and up from $994 in the prior quarter. Agnico Eagle forecasts total cash costs per ounce in the range of $1,020 to $1,120 and AISC per ounce between $1,400 and $1,550 for 2026, suggesting a year-over-year increase at the midpoint of the respective ranges.
Kinross Gold Corporation (KGC - Free Report) saw fourth-quarter attributable AISC of $1,825 per ounce, marking a 21% increase from the prior-year quarter and a rise from $1,622 in the prior quarter. For full-year 2025, Kinross’ AISC was $1,571, up from $1,388 in 2024. Kinross expects AISC to be $1,730 per ounce (+/-5%) in 2026, indicating a year-over-year increase partly due to inflationary impacts.
B’s Price Performance, Valuation & Estimates
Shares of Barrick have popped 101.1% over the past six months against the Zacks Mining – Gold industry’s rise of 73.2%, courtesy of the gold price rally.
Image Source: Zacks Investment Research
From a valuation standpoint, B is currently trading at a forward 12-month earnings multiple of 13.13, a roughly 3.9% discount when stacked up with the industry average of 13.67X. It carries a Value Score of B.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for B’s 2026 and 2027 earnings implies a year-over-year uptick of 48.8% and 15.3%, respectively. The EPS estimates for 2026 and 2027 have been trending higher over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Will Barrick Mining's Higher Costs Dent Its Profit Momentum Ahead?
Key Takeaways
Barrick Mining Corporation’s (B - Free Report) fourth-quarter profits more than doubled year over year on higher gold prices, but steeper unit costs remained a drag. Its total cash costs per ounce of gold and all-in-sustaining costs (AISC) — a critical cost metric for miners — increased around 15% and 9% year over year, respectively, in the quarter, and rose from the previous quarter as well. AISC of $1,581 increased from the year-ago quarter due to higher total cash costs per ounce. AISC also rose 10% year over year to $1,637 in 2025.
Lower year-over-year production, partly due to the suspension of operations at the Loulo-Gounkoto mine, also contributed to the rise in its unit costs. Barrick’s consolidated gold production fell roughly 19% year over year to 871,000 ounces in the fourth quarter, and declined 17% in 2025.
While Barrick is committed to cost discipline, its fourth-quarter results point to the need for tighter cost controls. For 2026, Barrick projects AISC in the range of $1,760-$1,950 per ounce, indicating a significant year-over-year increase at the midpoint. Cash costs per ounce are forecast to be $1,330-$1,470, also up from $1,199 in 2025. Lower grades mined, higher prices of key consumables and higher gold price assumptions are the factors expected to contribute to increased costs in 2026. The increase also reflects a higher cost base at Loulo-Gounkoto as the company ramps up mining following the return of control in December 2025. Investors should watch the next quarter closely as sustained high unit costs could weigh on margins and constrain future capital returns.
Among its major peers, Agnico Eagle Mines Limited (AEM - Free Report) is also exposed to higher production costs. In the fourth quarter, Agnico Eagle’s AISC was $1,517 per ounce, marking a roughly 10% increase from the prior quarter and a 15% year-over-year rise. Agnico Eagle’s total cash costs per ounce for gold were $1,089, 18% higher than $923 a year ago and up from $994 in the prior quarter. Agnico Eagle forecasts total cash costs per ounce in the range of $1,020 to $1,120 and AISC per ounce between $1,400 and $1,550 for 2026, suggesting a year-over-year increase at the midpoint of the respective ranges.
Kinross Gold Corporation (KGC - Free Report) saw fourth-quarter attributable AISC of $1,825 per ounce, marking a 21% increase from the prior-year quarter and a rise from $1,622 in the prior quarter. For full-year 2025, Kinross’ AISC was $1,571, up from $1,388 in 2024. Kinross expects AISC to be $1,730 per ounce (+/-5%) in 2026, indicating a year-over-year increase partly due to inflationary impacts.
B’s Price Performance, Valuation & Estimates
Shares of Barrick have popped 101.1% over the past six months against the Zacks Mining – Gold industry’s rise of 73.2%, courtesy of the gold price rally.
From a valuation standpoint, B is currently trading at a forward 12-month earnings multiple of 13.13, a roughly 3.9% discount when stacked up with the industry average of 13.67X. It carries a Value Score of B.
The Zacks Consensus Estimate for B’s 2026 and 2027 earnings implies a year-over-year uptick of 48.8% and 15.3%, respectively. The EPS estimates for 2026 and 2027 have been trending higher over the past 60 days.
B stock currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.