Barrick Gold’s Q4 2024 earnings surge as gold and copper production hits new highs

Barrick Gold Corporation delivered a stellar financial performance in the fourth quarter of 2024, reinforcing its position as a global leader in the mining industry. The company reported a 69% surge in net earnings, reaching $2.14 billion, compared to $1.27 billion in 2023. Adjusted net earnings rose by 51% to $2.21 billion, while attributable EBITDA climbed 30% to $5.19 billion—marking the highest annual EBITDA Barrick has recorded in over a decade​.

The company’s impressive results were underpinned by strong operational execution, with gold production increasing by 15% and copper output surging 33% compared to the previous quarter. This growth enabled Barrick to meet its annual production guidance, delivering 3.91 million ounces of gold and 195,000 tonnes of copper for the year. Furthermore, Barrick achieved cost efficiencies, reducing its gold cost of sales by 3% and total cash costs by 5% during the quarter.

What factors drove Barrick’s record-breaking gold and copper production?

Barrick Gold’s production growth was fuelled by operational improvements across key sites. The Pueblo Viejo mine in the Dominican Republic reported enhanced flotation and recovery processes, while the Veladero mine in Argentina achieved its best production output in five years following the successful commissioning of Phase 7B of its leach pad.

The company’s copper production benefited significantly from increased output at the Lumwana mine in Zambia. The mine’s performance was bolstered by the early implementation of its Super Pit Expansion project, which is expected to transform Lumwana into one of the top 25 copper producers globally. Additionally, Barrick advanced the Reko Diq project in Pakistan, with feasibility studies confirming its potential as a Tier One copper-gold asset. These strategic projects have been pivotal in supporting Barrick’s ambitious production targets.

How is Barrick Gold creating value for shareholders?

Barrick’s robust financial performance translated into substantial shareholder returns. The company maintained a quarterly dividend of $0.10 per share, contributing to a total annual dividend payout of $696 million. In addition to dividends, Barrick repurchased $498 million worth of shares under its 2024 buyback program, reflecting management’s confidence in the company’s long-term growth prospects.

Barrick’s president and CEO, Mark Bristow, emphasized the company’s focus on sustainable value creation: “Our strong results reflect not just our operational excellence but also our disciplined approach to capital allocation. We continue to invest in high-quality projects while returning significant value to our shareholders.”

The company’s ability to self-fund its growth projects without resorting to costly mergers or issuing additional equity sets it apart from industry peers. This financial flexibility is supported by a healthy balance sheet, with $4.07 billion in cash and equivalents and low net debt of $655 million as of year-end 2024.

What are Barrick Gold’s key growth projects and future outlook?

Barrick’s growth trajectory is underpinned by a pipeline of high-potential projects. The Lumwana Super Pit Expansion is expected to double processing capacity from 27 million tonnes per annum to 54 million tonnes, extending the mine’s operational life by 17 years. This expansion will significantly boost Barrick’s copper production, with output projected to reach an average of 240,000 tonnes annually over the mine’s life.

Similarly, the Reko Diq project is poised to become a transformative asset for Barrick. The updated feasibility study outlines a 37-year mine life, with initial production expected by the end of 2028. Barrick’s share of the project represents 50%, with the remaining ownership held by Pakistani state-owned enterprises and the government of Balochistan. Once fully operational, Reko Diq is projected to produce an average of 460,000 tonnes of copper and 520,000 ounces of gold annually during its peak years.

Another key development is the Fourmile project in Nevada, which has advanced to the pre-feasibility stage following a successful drilling program. The project’s high-grade resource base and favourable geological conditions position it as a potential Tier One gold asset, further strengthening Barrick’s North American portfolio.

How is Barrick Gold addressing sustainability and geopolitical challenges?

Barrick continues to demonstrate leadership in sustainability. In 2024, the company achieved a 48% reduction in lost-time injury frequency rate (LTIFR) and a 20% reduction in total recordable injury frequency rate (TRIFR) year-over-year. The company also completed 824 hectares of land rehabilitation, exceeding its environmental targets by 13%.

However, Barrick faces geopolitical challenges, particularly in Mali, where the company’s Loulo-Gounkoto mine operations have been temporarily suspended due to regulatory uncertainties. Despite these issues, Bristow remains optimistic: “We continue to engage constructively with the Malian government and believe a mutually beneficial solution will be reached.”

Looking ahead, Barrick expects gold production in 2025 to range between 3.15 million and 3.5 million ounces, excluding output from Loulo-Gounkoto during the suspension period. Copper production is forecast to rise to between 200,000 and 230,000 tonnes, driven by increased output from Lumwana.