Canada’s Barrick Gold Corp. ABX-T edged past Wall Street estimates for second-quarter profit on Monday, as the company benefited from higher prices and robust production.
Barrick’s U.S.-listed shares were up 2.1 per cent before the bell.
Hopes of a U.S. interest-rate cut this year and uncertainty around elections, along with global geopolitical risks have lifted the bullion’s safe-haven appeal, pushing it to a record-high level.
The company’s average realized gold prices jumped 19 per cent to US$2,344 an ounce and copper prices rose 22 per cent to US$4.53 a pound.
The company also benefited from higher production at its mines in Nevada and Papua New Guinea, with gold output of 948,000 ounces in the quarter ended June 30, compared with estimates of 905,800 ounces, according to LSEG data.
Last month, rival Newmont also beat second-quarter profit estimates, benefiting from the rally in bullion prices and robust production at its mines.
Barrick said its free cash flow surged more than 400 per cent to $340-million from a year earlier, adding that the “strong cash flow from operations” sets it up to execute various mine expansion projects across the globe.
The Toronto-based company reaffirmed its annual gold production outlook of 3.9 million ounces to 4.3 million ounces. This compares to analysts expectations of four million ounces of gold in 2024.
Barrick added that it has not received any response from the United Nations Human Rights Council, after the company addressed allegations of human-rights violations at its North Mara Gold Mine in June.
On an adjusted basis, the world’s second-largest gold miner posted a profit of 32 cents a share in the April-June quarter, compared with estimates of 28 cents a share.