Barrick Mining Corp (NYSE: B) $US47.00

Barrick delivered a strong March quarter result, with earnings ahead of expectations, gold sales better than forecast, costs materially lower while the Board authorised a US$3bn share buyback. Shares rallied 9.2%.

 1Q Highlights

• Adjusted EPS of US98c, well ahead of consensus at US80c, and up strongly from US35c a year ago.
• Revenue of US$5.22bn, up 67% YoY, ahead of expectations for US$4.9bn.
• Adjusted EBITDA of US$3.93bn, ahead of consensus at US$3.45bn.
• Gold production of 719koz, ahead of consensus at 683koz, although down 5.1% YoY.
• Gold AISC of US$1,708/oz, materially better than expectations for US$1,993/oz, and down 3.8% YoY.
• Quarterly dividend declared at US17.5cps.

This was a great result. Production was better, sales were stronger, costs were lower and free cash flow was materially ahead of expectations. Often, Gold miners struggle to translate a rising gold price into shareholder returns because cost inflation, operational issues or capex can absorb the benefit. This quarter was a cleaner example of the gold price flowing through to earnings and cash generation.

Barrick’s gold all-in sustaining cost came in at US$1,708/oz, well below consensus expectations and below the company’s full-year guidance range of US$1,760-$1,950/oz. One quarter does not make a trend, but it gives management a better platform for the rest of the year and reduces some of the concerns around cost creep across the sector.

Guidance was unchanged, with Barrick still expecting 2026 gold production of 2.90-3.25moz, while June quarter gold production is expected to lift to 730-770koz.

• We own Barrick in the International equities portfolio and remain positive. This was a strong result, helped by gold price strength, but importantly supported by better operating delivery, lower costs and strong free cash flow.