• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Investing

Barrick Gold outperforms in Q2: Is it a buy with gold near record highs?

by August 12, 2024
written by August 12, 2024

Barrick Gold Corp (NYSE: GOLD) has outperformed market expectations with its Q2 2024 earnings, reflecting strong operational performance amidst a booming gold market. 

As gold prices hover near historic highs, Barrick’s strategic initiatives and robust financials position the company to capitalize on ongoing market opportunities.

Q2 earnings in detail

In Q2 2024, Barrick reported non-GAAP earnings per share (EPS) of $0.32, surpassing analyst estimates by $0.05. 

The company achieved revenues of $3.16 billion, marking an 11.7% year-over-year increase. 

This growth was driven by a combination of two factors – increased gold production, and favorable market conditions. 

Operating cash flow surged by 53% from the previous quarter to $1.16 billion, with free cash flow reaching $340 million.

Barrick’s strong performance can be attributed to its effective cost management and focus on high-value projects. 

The company produced 948,000 ounces of gold in Q2, with all-in-sustaining costs (AISC) of $1,498 per ounce. Despite these production costs, Barrick maintained its full-year guidance, projecting gold production between 3.9 and 4.3 million ounces. 

This aligns with the company’s strategy to optimize operations while expanding production capacity, notably through projects like the Goldrush mine in Nevada and the Reko Diq project in Pakistan.

Barrick is also making significant advancements in its copper business. 

The Lumwana super pit expansion in Zambia and the Reko Diq project are expected to contribute substantially to Barrick’s future copper and gold outputs. 

The Lumwana expansion aims to boost production from 130,000 to 240,000 tonnes annually, while Reko Diq targets 400,000 tonnes of copper and 500,000 ounces of gold per year. 

These projects position Barrick to benefit from rising copper demand, adding diversification and stability to its revenue streams.

Rising gold prices: A major tailwind

The current gold market environment presents a significant opportunity for Barrick. 

Gold prices have surged this year, reaching all-time highs above $2,500 per ounce. 

This trend is supported by expectations of a potential interest rate cut by the Federal Reserve, which could further drive gold prices upward. 

Citi analysts suggest that gold could climb to $3,000 per ounce, driven by ongoing economic uncertainties and sustained demand for safe-haven assets.

Barrick’s financial strength is evident in its Q2 results, with net earnings increasing by 25% to $370 million.

The company’s EBITDA margin also improved to 48%, underscoring its efficient cost structure.

Barrick continues to reward shareholders with a consistent quarterly dividend of $0.10 per share.

From a valuation perspective, Barrick’s forward P/E ratio of 14.28 suggests potential undervaluation compared to industry peers, which trade at a median forward P/E of 15.4.

Analysts at BofA project Barrick’s operating EPS to rise by 50% this year, reaching $1.26, with continued growth anticipated in the coming years.

Now let’s see what the charts say about the stock’s price trajectory. The technical analysis will provide further insights into Barrick Gold’s market potential price movements, helping investors make informed decisions based on current trends and patterns in the stock’s performance.

Rangebound between $14 and $20.3

Though gold prices have shot to all-time highs, Barrick’s stock trades at a considerable discount to its all-time highs made in mid-2011. Moreover, the stock has seen an extended downturn since October 2020, when it was trading above $30.

GOLD chart by TradingView
The silver lining for bulls presently is that Since the start of 2023, Barrick’s stock has found support near the $14 level multiple times and seems to have come out of its extended downtrend having not made lower lows.

However, the stock has also found it tough to trade above the $20.3 mark for more than a year. Considering this, one shouldn’t expect the strong to make a strong move in either direction unless it breaks above the lower or higher end of this range.

Investors who are bullish on Barrick after its Q2 performance can initiate a small long position at current levels below $18, but must add to it only if the stock gives a weekly closing above $20.3

Traders who have a bearish outlook on the stock must look to short it closer to $20 with a stop loss at $20.46 and a profit target near $15.

The post Barrick Gold outperforms in Q2: Is it a buy with gold near record highs? appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Long HOLX: Hologic Stock in Strong Uptrend, Rejection Pattern at EMA Trigger Zone Signals Bullish Continuation
next post
Silver gains 1.6% as geopolitical tensions intensify over Ukraine-Russia conflict

related articles

Asian markets close: Nikkei, Kospi down; Sensex closes...

May 19, 2025

Qualcomm unveils AI chips for data centres with...

May 19, 2025

Best crypto to buy now: Bitcoin Pepe leads...

May 19, 2025

JPMorgan cuts Netflix rating, citing balanced risk-reward post-rally;...

May 19, 2025

Bitcoin ETF open interest dips 5% to $29.47B...

May 19, 2025

US stocks slip in the red on Monday:...

May 19, 2025

Should Klarna IPO remain on watch list after...

May 19, 2025

Why this brokerage downgraded UnitedHealth’s rating to ‘hold’

May 19, 2025

Nvidia opens NVLink Fusion ecosystem, expands Taiwan footprint...

May 19, 2025

Cathie Wood says Trump’s tariffs could unlock tech...

May 19, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Is BP Share Price Undervalued? A Buyer’s Guide

    August 13, 2024
  • Where do Trump’s legal cases stand after massive election win?

    November 8, 2024
  • Elon Musk sports black eye at farewell presser in Oval Office: ‘Horsing around with little X’

    May 30, 2025
  • Ethereum is waiting for a breakthrough above the EMA 200

    September 11, 2024
  • People are earning more from side gigs and needing them less

    July 11, 2024

Popular Posts

  • 1

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 2

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 5

    Biden calls to ‘lower the temperature’ then bashes Trump in NAACP speech

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (4,734)
  • Investing (624)
  • Stock (775)

Latest Posts

  • Americans have clear opinions on Trump’s performance in his first 50 days

    March 10, 2025
  • Europe steps up to fund its own defense, provide security for Ukraine after Trump threats

    March 11, 2025
  • Russia remains ‘active threat’ in influencing 2024 election, likely to focus on swing states: US officials

    November 5, 2024

Recent Posts

  • Circuit court puts final nail in the coffin for Biden’s $500B student loan forgiveness plan

    February 19, 2025
  • Chinese tea chain Chagee files for U.S. initial public offering

    March 27, 2025
  • Rush orders, cut costs, crossed fingers: How small businesses are preparing for tariffs

    December 2, 2024

Editor’s Pick

  • Hegseth signs ‘No More Walking on Eggshells’ policy, demands review of equal opportunity complaint process

    April 25, 2025
  • IDF says ‘mission is not over’ until hostages are returned: ‘We will not rest’

    October 20, 2024
  • Trump has Christmas message to ‘Radical Left Lunatics,’ tells inmates Biden granted clemency to ‘GO TO HELL!’

    December 26, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock