Core Viewpoint - Barrick Mining Corporation experienced a 5% increase in gold production in Q2, reaching 797,000 ounces, following a significant decline in Q1 due to operational suspensions at the Loulo-Gounkoto mine [1][8]. Production Performance - The increase in Q2 production was primarily driven by Nevada Gold Mines, which saw an 11% rise, and Pueblo Viejo, which surged 28% due to higher throughput and ongoing expansion efforts [2][8]. - The company anticipates attributable gold production for 2025 to be between 3.15 million and 3.5 million ounces, excluding Loulo-Gounkoto, with expected increases from Pueblo Viejo, Turquoise Ridge, Porgera, and Kibali [3]. Future Production Outlook - Barrick expects to maintain production momentum in the second half of the year, with 54% of 2025 production weighted in this period, peaking in Q4 [4][8]. - Consensus estimates predict production of 828,000 ounces in Q3 and 940,000 ounces in Q4, indicating a sequential increase [4]. Industry Comparison - In comparison, Newmont Corporation reported a 4% decline in Q2 gold production to 1.48 million ounces, while Agnico Eagle Mines recorded a slight decrease of 0.9% to 866,029 ounces [5][6]. - Agnico Eagle is on track to meet its 2025 production target of approximately 3.3 to 3.5 million ounces [6]. Stock Performance and Valuation - Barrick's shares have increased by 64.7% year-to-date, compared to a 72.7% rise in the Zacks Mining – Gold industry, largely driven by a rally in gold prices [7]. - The Zacks Consensus Estimate for Barrick's earnings in 2025 and 2026 suggests year-over-year increases of 54.8% and 20.9%, respectively, with EPS estimates trending higher over the past 60 days [11]. - Currently, Barrick trades at a forward 12-month earnings multiple of 11.31, which is about 16.7% lower than the industry average of 13.57 [12].
Barrick Mining's Gold Output Rebounds: Can Momentum Build Ahead?