Barrick Gold Corporation ((GOLD – Free report) is planned to think of the results of the fourth quarter of 2024 before the opening bell on 12 February. The performance of the company is expected to reflect higher gold prices and strong production.
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The estimate of the Zacks consensus for the profit of the fourth quarter has been revised 8.9% in the last 30 days. The consensus estimate for income is linked to 41 cents per share, which suggests an increase of 51.9% on an annual basis.
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Gold defeated the estimate of the Zacks -Consensus for income in three of the last four quarters. In this time frame, on average it yielded a profit surprise of around 16.1%.
Q4 income whisper for gold supply
This time our proven model predicts a income beat for Barrick. The combination of a positive income ESP and a zacks rank #1 (strong buy), 2 (buy) or 3 (hold) increases the chances of a deserved beat. You can discover the best shares to buy or sell before they are reported with our ESP filter.
Barrick has an ESP income of +1.63% and a zacks rank #3. You can see it The complete list of the rank shares of today Zacks #1.
Factors that design Gold’s Q4 results
Higher gold prices have probably supported the performance of the company in the quarter of December. Gold is one of the best performing assets in 2024. Last year Golden Prices collected around 27%, driven by a strong demand from central banks, monetary relaxation in the United States, global uncertainties and an increase in demand for safe haven thanks to elevated tensions In the middle East and Russia.
It is expected that strong production will have helped gold in the fourth quarter. The gold production is expected to be powered by the disaster of the expansion of the Pueblo Viejo factory, improved production of Nevada Gold Mines and strong performance of the Kibali mine at higher degrees. Barrick said last month that Kibali delivered a strong performance in the fourth quarter, which resulted in the highest annual transit since the commissioning. This was achieved by the constant focus of the mine on operational excellence and its ability to deliver strong results. The copper production of the company will probably also be helped by higher figures at Lumwana. A higher production is expected to have driven the performance of the fourth quarter of Gold.
Higher production costs on an annual basis will probably have weighed the performance of the company. In the third quarter of 2024, the cash costs per ounce of gold year after year increased by around 21%, while the all-in-this sustainable costs (“AISC”) rose around 20%. Gold projects Total money costs per $ 940-$ 1,020 and AISC from $ 1,320- $ 1,420 per ounce for 2024 for the entire year, which indicates an increase of the year at the center of the respective reach.
The price performance and appreciation of Barrick Stock
Gold’s shares were won 15.7% in the past year, which means that the Zacks – mining – the increase of 48.4% of the Gold Industry and the increase in the S&P 500 of 20.9% behind the Gold Industry and S & P 500 industry has risen. Among his peers, Newmont Corporation ((Senior – Free report), Kinross Gold Corporation ((KGC – Free report) and Agnico Eagle Mines Limited ((Aem – Free report) have achieved the profit of 33.6%, 127.8%and 109.7%in the same period respectively.
Gold’s annual stocks performance
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From a valuation position, it is currently being traded against a forward profit of 12 months of 11.14x, lower than his five -year -old median. This represents a discount of approximately 21.5% when it is stacked with the sector average of 14.20x.
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Investment thesis for gold supply
Barrick is well positioned to take advantage of the progress in important growth projects that should make a significant contribution to its production. The most important growth projects for gold and copper are based on schedule and within the budget, which are based on the next generation of profitable production. Barrick has a robust liquidity position and generates healthy cash flows, which position it well to take advantage of attractive development, exploration and acquisition possibilities, and to stimulate the shareholder value and to reduce the debts. The rising gold prices must translate into strong profit margins and generating free cash flow.
Gold is challenged by higher costs that can eat in its margins. Increased mine location for maintaining capital expenditure, higher labor costs and possibly steeper energy costs can lead to higher costs.
Last thoughts: Hold gold shares
Gold is well placed with a strong pipeline of growth projects, solid financial health, healthy growth process and favorable gold market conditions. The power of gold prices must also increase profitability and stimulate the generation of cash flow. Despite these positives, the high production costs justify caution. Keeping the golden shares will be wise for investors who already have it, awaiting more clarity on the company’s prospects after the coming profit release.