Barrick's quarterly profit beats as gold price surge offsets lower production

Barrick Mining reported a first-quarter profit on Wednesday that beat analysts' estimates, driven by a surge in gold prices that helped offset lower production.

Gold prices surged above $3,100 (R56,696) per ounce in the first quarter of 2025, driven by rising safe-haven demand amid growing uncertainty over tariffs that could fuel inflation and impact global economic growth.

Bullion has gained around 29% so far this year, after rising more than 27% in 2024.

Operations at Barrick's Loulo-Gounkoto complex, its largest mine in Mali and a key contributor to its gold output, have been suspended since January after the government seized about three metric tons of gold following accusations related to the company's tax non-compliance.

For 2025, the company continues to expect total gold production between 3.15-million ounces and 3.50-million ounces, with Loulo-Gounkoto output excluded from its outlook.

"We expect to update our guidance to include Loulo-Gounkoto when we have greater certainty regarding the timing for the restart of operations," Barrick said.

The miner, which has been streamlining its operations since it merged with Africa-focused Randgold Resources, said it is moving forward with plans to divest its Tongon mine in Ivory Coast and Hemlo operations in Canada.

The company's average realised gold price for the first quarter rose to $2,898 per ounce from $2,075 per ounce. Total gold production fell to 758,000 ounces from 940,000 ounces.

Barrick's all-in sustaining costs for gold, an industry metric reflecting total expenses, rose 20.4% to $1,775 per ounce in the first quarter.

The per-ounce cost is expected to trend lower over the rest of the year on higher production, the company added.

On an adjusted basis, the company, previously known as Barrick Gold, earned 35 cents per share in the quarter, compared with analysts' average expectation of 28 cents per share, according to data compiled by LSEG.

Reuters