Canada's Barrick Gold (ABX.TO) announced a new $1 billion share buyback program as higher gold prices helped the company beat analysts' estimates for fourth-quarter earnings on Wednesday.
The company's US-listed shares rose 1.5% in pre-market trading, as the gold miner also doubled its free cash flow for the quarter.
Gold prices rose more than 27% in 2024, their biggest annual increase since 2010, driven by safe-haven demand, interest rate cuts, and central bank purchases. Higher gold prices boosted gold miners' profits last year, as they earned more from extracting and selling the yellow metal.
Barrick said its average realized gold prices rose to $2,657 per ounce in the fourth quarter from $1,986 per ounce last year.
It scrapped its previous share buyback program, which had been in place since February 14, 2024, after repurchasing $498 million under the program last year. However, Barrick on Wednesday lowered its gold production forecast for the year to between 3.2 million ounces and 3.5 million ounces, from 3.9 million ounces in 2024, following the temporary closure of its Loulo-Gounkoto mine in Mali.
Barrick closed the mine in January amid an ongoing dispute with West African authorities over a new mining law that seeks to dramatically increase taxes on royalties and state ownership in mining projects. The closure has also affected Barrick's stock price performance, the company said.
Since Reuters exclusively reported in September that Mali's government board arrested four Barrick employees, the company's shares had fallen more than 10% at Tuesday's close.
Chief Executive Mark Bristow said Barrick is still “open to constructive engagement” with the government and added that a mutually beneficial solution could still be found.
The company's gold production in 2024 was also below the 4 million ounces of 2023, largely due to a slower-than-expected ramp-up at the Pueblo Viejo mine in the Dominican Republic.
On an adjusted basis, Barrick posted earnings of 46 cents per share for the quarter ended December 31, compared with estimates of 41 cents, according to data compiled by LSEG.
However, total maintenance costs (AISC), an industry metric that reflects total expenses, rose to $1,451 per ounce in the quarter, from $1,364 per ounce last year.