• 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 open: Nikkei, Hang Seng fall on...

June 12, 2025

Aluminum and steel tariffs spark rise in secondary...

June 12, 2025

Airbus sees aviation boom ahead, global fleet to...

June 12, 2025

US-China trade talks and Washington’s decade-long effort to...

June 12, 2025

Europe markets open: Stoxx 600 dips as UK...

June 12, 2025

UK GDP falls by 0.3% in April as...

June 12, 2025

Gordon Brothers buys Poundland; pledges £80 mn for...

June 12, 2025

Air India plane crash: London-bound flight with 242...

June 12, 2025

Air India plane crash live update: Indian President...

June 12, 2025

Copper remains supported for now even as China...

June 12, 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

  • Trump accuses Senate Democrats of using nominee confirmations as leverage for funding deals

    August 4, 2025
  • Top Hegseth advisor Dan Caldwell placed on administrative leave by Defense Department

    April 15, 2025
  • People in Gaza are thanking Trump for aid, leader of US-backed group says

    June 12, 2025
  • Noem’s Homeland Security ‘unapologetic’ about using lie-detector test on suspected intel leakers

    April 7, 2025
  • Tesla CEO Elon Musk loses bid to get $56 billion pay package reinstated

    December 3, 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

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

    July 19, 2024
  • 3

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 4

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

    December 4, 2024
  • 5

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

    July 17, 2024

Categories

  • Economy (829)
  • Editor's Pick (6,285)
  • Investing (634)
  • Stock (936)

Latest Posts

  • DeSantis goads Congress to follow FL’s DOGE blueprint as Musk’s cuts still wait for vote

    May 28, 2025
  • Render (RNDR) hits crucial user milestone ahead of much-anticipated token swap

    July 18, 2024
  • Judge Merchan sued for financial disclosures amid concerns of daughter’s Democrat work

    September 5, 2024

Recent Posts

  • Getty Images, Shutterstock merge to form $3.7B visual content powerhouse

    January 9, 2025
  • Is Rolls-Royce share price a 52% bargain ahead of earnings?

    July 31, 2024
  • Tracking Kamala Harris’ policy reversals: A comprehensive list of key issue flip-flops

    August 15, 2024

Editor’s Pick

  • Trump reacts to Trudeau resignation: ‘Many people in Canada LOVE being the 51st State’

    January 6, 2025
  • Trump distances himself from Russia–Ukraine conflict: ‘Not our people, not our soldiers’

    May 21, 2025
  • Trump secures deals with 3 Middle Eastern nations in 1st major trip of 2nd term

    May 16, 2025
  • 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