Barrick(US:GOLD)2025-03-14 13:19Financial Performance - Barrick Gold Corporation's financial performance for the year ended December 31, 2024, should be analyzed in conjunction with the audited consolidated financial statements [417]. - The financial outlook for 2025 includes expectations regarding future price assumptions and overall financial performance [432]. - Barrick's revenues for Q4 2024 reached $3,645 million, an 8% increase from Q3 2024, and a 13% increase year-over-year from $3,368 million in Q4 2023 [443]. - Net earnings for Q4 2024 were $996 million, representing a 106% increase compared to Q3 2024 and a 69% increase from $1,272 million in 2023 [443]. - For the year ended December 31, 2024, net earnings were $2,144 million, compared to $1,272 million in 2023, reflecting a significant increase in adjusted net earnings to $2,213 million, the highest since 2013 [467]. - Free cash flow for 2024 was $1,317 million, a 104% increase from $646 million in 2023 [443]. - Operating cash flow for Q4 2024 was $1,392 million, an increase of $212 million from Q3 2024, primarily due to a higher realized gold price and lower cash costs [470]. - Free cash flow for Q4 2024 was $501 million, compared to $444 million in Q3 2024, reflecting higher operating cash flows despite increased capital expenditures [471]. Production and Sales - Gold production in Q4 2024 was 1,080 thousand ounces, a 15% increase from Q3 2024, while gold sold remained stable at 965 thousand ounces [443]. - The realized gold price in Q4 2024 was $2,657 per ounce, a 7% increase from Q3 2024 and a 23% increase year-over-year [443]. - Total gold production in 2024 was 775,000 oz, which is 11% lower compared to 2023 due to lower grades processed and a reduction in open pit ore mined [607]. - Gold sold in Q4 2024 was 185,000 oz, a 1% increase from Q3 2024, while gold sold for the year decreased by 10% to 777,000 oz [601]. - The average realized gold price in 2024 was $2,349/oz, which is $449/oz higher than in 2023 [608]. Costs and Expenditures - Total attributable capital expenditures for 2024 were $2,607 million, a 10% increase from $2,363 million in 2023 [443]. - Cost of sales for gold in 2025 is projected to be between $1,460 and $1,560 per ounce, compared to $1,442 per ounce in 2024 [491]. - All-in sustaining costs per ounce for 2024 were $1,730, which is 16% higher than in 2023, primarily due to higher total cash costs and increased capital expenditures [608]. - Cost of sales per ounce for 2024 was $1,429, which is 14% higher than in 2023, primarily due to lower grades processed and lower recoveries [608]. - Total cash costs per ounce in Q4 2024 decreased by 10% compared to Q3 2024, influenced by increased production [615]. Strategic Initiatives - The company is focused on achieving sustainability goals, including GHG reduction targets and community engagement initiatives [421]. - Barrick's strategy includes potential asset sales, joint ventures, and partnerships to optimize resource management [421]. - The company aims for a 15% required return on Tier One capital investments and a 20% return on Tier Two Gold Assets [442]. - A new share buyback program was authorized for up to $1 billion over the next 12 months, following the repurchase of $498 million in shares in 2024 [477]. Exploration and Reserves - As of December 31, 2024, Barrick's proven and probable gold mineral reserves increased to 89 million ounces at an average grade of 0.99 g/t, up from 77 million ounces at 1.65 g/t in 2023, reflecting a year-over-year increase of 17.4 million ounces before depletion [570]. - Barrick replaced over 180% of its gold mineral reserve depletion since year-end 2019, adding almost 46 million ounces of attributable proven and probable mineral reserves [571]. - Attributable proven and probable copper mineral reserves grew by 224% year-on-year to 18 million tonnes at 0.45%, up from 5.6 million tonnes at 0.39% in 2023, driven by feasibility studies for Lumwana and Reko Diq [580]. Environmental and Community Engagement - The company maintained a community development spend of over $48 million for 2024 [527]. - The interim GHG emissions reduction target is a minimum of 30% by 2030 against a 2018 baseline of 7,541 kt CO2-e [539]. - The company set an annual water recycling and reuse target of 80%, achieving approximately 85% for Q4 2024 [545]. - The company's total Scope 1 and 2 GHG emissions for Q4 2024 were 1,866 kt CO2-e, with preliminary annual emissions of 7,305 kt CO2-e, representing a 5% increase from 2023 [541]. Market Conditions - The market gold price averaged $2,663 per ounce in Q4 2024, reflecting an 8% increase from Q3 2024 [443]. - Copper prices averaged $4.15 per pound in 2024, with a range from $3.69 to an all-time high of $5.04 per pound [555]. - The price of WTI crude oil averaged $76 per barrel in 2024, with a range between $65 and $88 per barrel [562].