Key Highlights
- Q2 adjusted earnings reached $0.82 per share, falling below the LSEG forecast of $0.88 while surpassing Zacks’ projection of $0.81
- Quarterly revenue hit $5.29 billion, exceeding Zacks expectations by approximately 18%
- All-in sustaining costs for gold production jumped 11% to $1,866 per ounce due to elevated fuel expenses and declining ore quality
- The company finalized a $1.95 billion settlement with Newmont to resolve Nevada Gold Mines disagreements
- Shares in U.S. trading plummeted nearly 6% during premarket hours
Barrick Mining delivered second-quarter adjusted profit of $0.82 per share, underperforming against Wall Street’s LSEG consensus expectation of $0.88 per share. The disappointing results sent U.S.-traded shares down nearly 6% before the opening bell.
The company’s quarterly revenue reached $5.29 billion, significantly surpassing Zacks’ consensus projection and representing a substantial increase from the prior year’s $3.68 billion.
The average realized price for gold surged 34% compared to the same period last year, reaching $4,417 per ounce. Production volumes remained steady at 796,000 ounces.
Rising expenses emerged as the primary headwind for quarterly performance. The cost of sales for gold production increased 20% to $1,993 per ounce, while comprehensive sustaining costs advanced 11% to $1,866 per ounce.
Management attributed the cost increases to deteriorating ore quality at key operations including Carlin, Cortez and North Mara facilities, alongside heightened fuel expenses and increased royalty payments linked to stronger gold valuations.
Energy costs represent a mounting challenge throughout the mining industry. Continued Middle East tensions involving the U.S. and Israel against Iran are constraining oil supply and maintaining elevated energy prices, creating headwinds for gold producers industry-wide.
Major Nevada Settlement Reached
Garnering significant attention alongside the earnings release, Barrick and Newmont unveiled a $1.95 billion agreement to resolve protracted disagreements concerning Nevada Gold Mines operations.
Under the terms, Newmont will remit $1.95 billion in cash to Barrick within a 30-day window. Barrick will transfer ownership of its Fourmile development into the Nevada Gold Mines partnership, while Newmont will contribute its Mike and Fiberline assets.
The consolidated Nevada operation is projected to contain roughly 100 million ounces of gold reserves. The settlement also includes Newmont’s approval for Barrick’s forthcoming North American public offering.
Public Listing Plans Move Forward
The planned North American public offering will encompass Barrick’s ownership stakes in Nevada Gold Mines, Pueblo Viejo, the Fourmile development and additional exploration holdings, supplemented by Newmont-contributed properties.
Management anticipates finalizing the initial public offering before the conclusion of 2026.
Through the current year, Barrick shares have appreciated approximately 0.3%, significantly trailing the S&P 500’s 13.3% advance. Zacks Investment Research currently assigns the stock a Rank 4 (Sell) rating, pointing to negative earnings estimate revisions preceding the quarterly report.
For the upcoming quarter, Wall Street consensus via Zacks projects $0.85 earnings per share on revenue of $4.78 billion. Full-year 2026 forecasts call for $3.57 in earnings per share with revenue totaling $19.43 billion.
Across the previous four reporting periods, Barrick has exceeded consensus profit expectations in every instance.
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