Key Takeaways
- Q2 adjusted earnings per share reached $0.82, falling below the LSEG consensus of $0.88 while surpassing Zacks’ projection of $0.81
- Quarterly revenue hit $5.29 billion, exceeding Zacks expectations by approximately 18%
- All-in sustaining costs for gold production surged 11% to $1,866 per ounce due to elevated fuel expenses and declining ore quality
- A landmark $1.95 billion settlement was reached between Barrick and Newmont concerning Nevada Gold Mines ownership disputes
- Shares traded in the U.S. plummeted nearly 6% during premarket hours
Barrick Mining delivered second-quarter adjusted profits of $0.82 per share, coming in below the $0.88 per share projection from LSEG analysts. The company’s U.S.-traded shares plunged nearly 6% in early trading following the announcement.
Quarterly sales reached $5.29 billion, significantly surpassing Zacks’ forecast and representing a substantial increase from the prior year’s $3.68 billion.
The average realized price for gold surged 34% compared to the same period last year, reaching $4,417 per ounce. Production volumes remained steady at 796,000 ounces.
Operating expenses emerged as the primary headwind during the quarter. The cost of sales for gold increased 20% to $1,993 per ounce, while all-in sustaining costs jumped 11% to $1,866 per ounce.
Company executives attributed the cost increases to deteriorating ore quality at Carlin, Cortez and North Mara facilities, combined with inflated fuel expenses and increased royalty payments linked to elevated gold valuations.
Energy costs represent an escalating challenge throughout the mining industry. Continued tensions between the U.S. and Israel with Iran are constraining oil supply and maintaining elevated energy prices, creating additional financial strain for gold producers across the board.
Major Settlement with Newmont Reached
In a development that captured nearly equal attention to the earnings release, Barrick and Newmont unveiled a $1.95 billion agreement to resolve ongoing disputes regarding Nevada Gold Mines operations.
Under the terms, Newmont will provide Barrick with $1.95 billion in cash payment within a 30-day window. Barrick will contribute its Fourmile project to the Nevada Gold Mines partnership, while Newmont adds its Mike and Fiberline assets to the joint venture.
The consolidated Nevada operation is projected to contain approximately 100 million ounces of gold reserves. The settlement also includes Newmont’s approval for Barrick’s proposed North American public offering.
Public Offering Plans Advance
The planned North American public offering will encompass Barrick’s stake in Nevada Gold Mines, Pueblo Viejo operations, the Fourmile development and additional exploration holdings, alongside assets from Newmont.
Management anticipates completing the public offering before the conclusion of 2026.
Since the beginning of the year, Barrick shares have climbed roughly 0.3%, significantly trailing the S&P 500’s 13.3% advance. Zacks has assigned the stock a Rank 4 (Sell) rating, pointing to negative earnings estimate revisions prior to the quarterly report.
For the upcoming quarter, Wall Street analysts tracked by Zacks project earnings of $0.85 per share on revenue of $4.78 billion. The full-year 2026 outlook calls for $3.57 in earnings per share on sales of $19.43 billion.
During the previous four reporting periods, Barrick has exceeded consensus earnings projections in all four instances.
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