Barrick Gold’s Profit Surges 16.6% in 2024 – A Deep Dive into Its Fundamentals

Fundamental Weekend ( Feb, 2025) - Barrick Gold

Barrick Gold (NYSE: GOLD), one of the leading gold mining companies, has demonstrated solid financial performance over the past three years. A review of its key financial metrics indicates improving profitability, stable debt levels, and strong free cash flow generation. Here’s a closer look at the company’s fundamentals based on the latest available data.

Revenue and Profitability Trends

Barrick Gold’s revenue has steadily increased from $11.013 billion in 2022 to $12.922 billion in 2024, representing a 17.3% growth over the period. The company’s profitability has significantly improved, as reflected in its increasing EBITDA margin, which grew from 36.5% in 2022 to 54.2% in 2024.

• COGS (Cost of Goods Sold): The cost of production increased slightly in absolute terms, from $7.497 billion in 2022 to $7.961 billion in 2024. However, as a percentage of revenue, COGS declined from 68.1% to 61.6%, indicating improved cost efficiency.

• EBITDA & EBIT: The company’s EBITDA rose from $4.019 billion in 2022 to $7.008 billion in 2024, while EBIT surged from $2.022 billion to $5.093 billion, reflecting a strong operational performance.

• Net Profit (EAT): Earnings After Tax (EAT) increased significantly from $432 million in 2022 to $2.144 billion in 2024, translating to an improved net profit margin from 3.9% to 16.6%.

Financial Position and Leverage

Barrick Gold has maintained a relatively stable debt position while growing its equity base:

• Debt: Remained consistent around $5.250 billion, showing disciplined financial management.

• Equity: Increased from $31.289 billion in 2022 to $33.256 billion in 2024, reinforcing the company’s solid financial foundation.

• Debt-to-Equity Ratio (DER): Improved slightly from 16.8% in 2022 to 15.8% in 2024, indicating reduced financial leverage and stronger shareholder equity.

• Debt-to-Asset Ratio (DAR): Remained stable around 11.4% in 2022 and 2023, slightly decreasing to 11.0% in 2024, further highlighting its prudent financial structure.

Cash Flow Analysis

Barrick Gold’s ability to generate strong cash flows has strengthened significantly:

• Operating Cash Flow: Increased from $3.481 billion in 2022 to $4.491 billion in 2024, ensuring liquidity for operations and investments.

• Capital Expenditures (Capex): Despite rising from $3.049 billion to $3.174 billion, capex as a percentage of cash flow has decreased from 88% to 71%, reflecting improved capital efficiency.

• Free Cash Flow (FCF): Improved from $432 million in 2022 to $1.317 billion in 2024, showcasing a more robust cash-generating capacity.

Key Takeaways and Outlook

Barrick Gold’s financial performance has been strengthening with increasing revenue, improving profit margins, and solid free cash flow. The company has also managed its debt levels efficiently, ensuring a strong balance sheet. If this trend continues, Barrick Gold is well-positioned to benefit from higher gold prices and potential industry tailwinds.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making any investment decisions.

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