Barrick Mining Corporation (GOLD.US) today, before the market opened, published its 2Q25 results. The company reported revenue growth on the back of a positive trend in the gold market; however, a significant drop in sales volume due to an impairment charge related to the loss of control of a mine in Mali is a strongly negative signal.
In terms of revenue, Barrick reported $3.68 billion, a 16% increase year-on-year. However, the increase in revenue was not driven by a rise in volume, which fell by approximately -19% year-on-year. The sharp decline is due to the exclusion of the Loulo-Gounkonto mine in Mali from the consolidation of results, which was "temporarily" taken over by the military junta ruling Mali. Although the company still holds an 80% stake in the mine, the decision-making process for mine operations was completely taken away from the company, so according to accounting requirements, the company had to make an impairment charge. The value of the lost assets burdened the company with a charge of $1.04 billion. At the same time, the company excluded the mine's gold production from its results, which contributed to a drop in 2Q25 sales volume to 770,000 ounces.
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Create account Try a demo Download mobile app Download mobile appThe exclusion, although a one-time cost, may pose a significant challenge for the company in the coming quarters. In the face of an almost 20% drop in gold sales volume, the current driver of the company's results remains positive price trends in the gold market, which, although not showing signs of reversal yet, may not maintain the same high dynamics we have seen since the beginning of the year.
The impairment charge was negatively received by the market, which attached more importance to it than to the solid 16% year-on-year increase in cash flow.
FINANCIAL RESULTS FOR 2Q25
- Adjusted earnings per share: USD 0.47 (+46% y/y); forecast: USD 0.46
- Revenue: USD 3.68 billion (+16% y/y); forecast: USD 3.68 billion
- Adjusted EBITDA: USD 2.32 billion
- Real gold price per ounce: USD 3,295
- Gold sales: 770,000 ounces (-19% y/y); forecast: 791,971 ounces
- Gold production: 797,000 ounces; forecast: 800,082 ounces
- Copper production: 59,000 tons (+37% y/y)
- Free cash flow: USD 395 million (+16% y/y); forecast: USD 363 million
- Capital expenditures: USD 934 million (+14% y/y)
In the face of losing control of the mine in Mali, the company cannot fully capitalize on its opportunities related to the current gold bull market. Despite this, it is worth remembering that the metal is currently trading near its historical highs, also supported by historical demand from funds and central banks, which allows Barrick to improve sales despite the drop in volume.
Barrick Mining Corp (1D)
Barrick Mining's stock opened down over 5.5%, but since the start of the session, we have seen a takeover by the demand side, pushing the quotes towards a reduction of the price gap. Today's results were preceded by a bullish impulse last week, which brought the stock out of a slight month-long consolidation we saw in the $20.5-$22 area.
Source: xStation
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