Will Barrick's Higher Costs Undercut Its Profit Momentum Ahead?

Core Insights - Barrick Mining Corporation's third-quarter profits increased due to higher gold prices, but higher unit costs negatively impacted results [1][7] - The company experienced a 12% year-over-year decline in consolidated gold production, attributed partly to the suspension of operations at the Loulo-Gounkoto mine [2][7] - Barrick's projected cash costs and all-in-sustaining costs (AISC) for 2025 indicate a year-over-year increase at the midpoint of the respective ranges [3][7] Financial Performance - Barrick's cash costs per ounce of gold rose approximately 3% year over year, while AISC increased around 2% year over year, with AISC reported at $1,538 [1][3] - The company's shares have surged 158.4% year to date, outperforming the Zacks Mining – Gold industry's increase of 134.1% [6] Peer Comparison - Agnico Eagle Mines Limited reported total cash costs per ounce of $994, an 8% increase year over year, with AISC at $1,373, reflecting a 7% year-over-year rise [4] - Newmont Corporation lowered its AISC to $1,566 per ounce, a 3% decrease from the prior year, while projecting an increase to $1,630 per ounce in 2025 [5] Earnings Estimates - The Zacks Consensus Estimate for Barrick's earnings in 2025 and 2026 suggests a year-over-year increase of 77.8% and 51.9%, respectively, with EPS estimates trending higher over the past 60 days [8] Valuation Metrics - Barrick is currently trading at a forward 12-month earnings multiple of 12.03, which is about a 7.5% discount compared to the industry average of 13.01X [9]