Barrick Mining (ABX) Q2 2024 earnings summary

Executive summary

• Q2 2024 production, margins, and free cash flow rose sharply, with attributable EBITDA margin at 48% and adjusted net EPS up 68% quarter-on-quarter; net earnings per share increased 24% to $0.21.

• Major growth projects advancing: Goldrush, Fourmile, Pueblo Viejo expansion, Lumwana copper expansion, and Reko Diq, all supporting future production growth.

• Sustainability initiatives include a new Biodiversity Assessment Tool and a 200 MW solar addition in Nevada.

• Share buyback program resumed, with 2.95 million shares repurchased in Q2; quarterly dividend maintained at $0.10 per share.

• Management reaffirmed 2024 production guidance and expects a strong second half with higher production and lower costs.

Financial highlights

• Q2 2024 revenue was $3.16 billion, up 15% quarter-on-quarter; net earnings reached $370 million, adjusted net earnings $557 million, and attributable EBITDA $1.29 billion.

• Free cash flow increased to $340 million; operating cash flow was $1.16 billion, up from $760 million in Q1.

• Gold margins up 39% and copper margins up 124% quarter-on-quarter, with gold cost of sales at $1,441/oz and copper at $3.05/lb.

• Net debt reduced by 12% sequentially to $688 million; net leverage improved to 0.1x EBITDA.

• TRIFR improved 35% quarter-on-quarter to 0.82; LTIFR improved 30% to 0.16.

Outlook and guidance

• On track to meet 2024 gold production guidance of 3.9–4.3 million ounces at AISC of $1,320–$1,420/oz and copper production of 180–210 thousand tonnes at AISC of $3.10–$3.40/lb.

• Expect materially higher production from Pueblo Viejo, Turquoise Ridge, Porgera, and Lumwana in H2 2024, with costs expected to decline.

• Five- and ten-year outlooks anticipate production growth from organic project pipeline and reserve replacement, especially with Reko Diq and Lumwana.

• Goldrush ramping up to >400,000 oz/year by 2028; Fourmile targeting >500,000 oz/year; Lumwana and Reko Diq copper expansions progressing.

• Pueblo Viejo targeting sustainable annual production above 800,000 oz for 20+ years.