Key Highlights
- Q2 adjusted earnings per share reached $0.82, falling below LSEG’s projection of $0.88 while exceeding Zacks’ forecast of $0.81
- Quarterly revenues totaled $5.29 billion, surpassing Zacks projections by approximately 18%
- All-in sustaining costs for gold production jumped 11% to reach $1,866 per ounce, impacted by elevated fuel expenses and declining ore quality
- The company finalized a $1.95 billion settlement with Newmont to resolve ongoing Nevada Gold Mines disagreements
- Shares traded in the United States declined nearly 6% during premarket sessions
Barrick Mining delivered second-quarter adjusted profits of $0.82 per share, coming up short against the LSEG analyst projection of $0.88 per share. Shares listed on U.S. exchanges plummeted nearly 6% in early premarket activity following the announcement.
Quarterly revenues reached $5.29 billion, significantly exceeding Zacks consensus projections, and representing a substantial increase from the prior year’s $3.68 billion.
The achieved gold selling price surged 34% compared to the same period last year, reaching $4,417 per ounce. Production volumes remained steady at 796,000 ounces.
Escalating expenses represented the primary headwind during the quarter. Gold production costs increased 20% to $1,993 per ounce, while comprehensive sustaining costs rose 11% to $1,866 per ounce.
The mining company attributed these increases to deteriorating ore quality at its Carlin, Cortez and North Mara operations, combined with heightened fuel expenses and increased royalty payments linked to stronger gold valuations.
Energy costs continue to emerge as a significant challenge throughout the mining industry. Persistent tensions involving the U.S. and Israel with Iran are creating disruptions in petroleum markets and maintaining elevated energy prices, creating additional burdens for gold producers industry-wide.
Major Settlement with Newmont Finalized
Capturing considerable attention alongside the quarterly results, Barrick and Newmont revealed a $1.95 billion agreement to resolve persistent disagreements concerning Nevada Gold Mines operations.
Under the terms, Newmont will deliver $1.95 billion in cash to Barrick within a 30-day period. As consideration, Barrick will contribute its Fourmile project into the Nevada Gold Mines partnership, while Newmont adds its Mike and Fiberline assets.
The consolidated Nevada operation is projected to contain approximately 100 million ounces of gold reserves. Additionally, Newmont provided approval for Barrick’s proposed North American public offering.
Public Offering Plans Advance
The planned North American public offering will encompass Barrick’s stake in Nevada Gold Mines, Pueblo Viejo, the Fourmile development and additional exploration holdings, alongside contributions from Newmont.
Management anticipates finalizing the public offering before the conclusion of 2026.
Since the start of the year, Barrick shares have advanced roughly 0.3%, trailing the S&P 500’s 13.3% appreciation. Zacks presently assigns the stock a Rank 4 (Sell) rating, pointing to negative estimate revisions preceding the earnings release.
For the upcoming quarter, current Zacks consensus projections call for $0.85 in earnings per share with revenues of $4.78 billion. Full-year 2026 estimates stand at $3.57 EPS on $19.43 billion in total revenues.
During the previous four reporting periods, Barrick has surpassed consensus earnings projections in every instance.
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