Barrick Gold shares drop after Q2 revenue misses estimates

Shares of Barrick Gold Corp. fell 2.5% in early trading on Thursday after the miner reported second-quarter revenue below analyst expectations, despite a 3% year-over-year increase in production.

The Toronto- and New York-listed company, one of the world’s largest gold producers, said production rose to 960,000 ounces in the quarter, up from 935,000 ounces in the same period last year. However, revenue of $1.85 billion missed the $1.92 billion consensus estimate compiled by Refinitiv, according to a company statement.

Higher gold prices during the quarter, averaging $2,350 per ounce compared with $1,980 in Q2 2023, provided some support to margins. Yet the revenue shortfall suggests operational costs or lower-than-expected sales volumes offset the price gains. Barrick did not provide a breakdown of cost pressures in its preliminary release.

Analysts at BMO Capital Markets noted that while production growth was encouraging, the revenue miss reflected weaker-than-anticipated realized prices or higher costs. The firm maintained a market-perform rating on the stock.

Barrick’s shares have underperformed the broader gold sector this year, declining 5% year-to-date, compared with a 2% gain in the NYSE Arca Gold Miners Index. The company is scheduled to hold a full earnings call on July 31 to discuss results in greater detail.

The revenue miss underscores challenges in balancing production growth with profitability amid volatile commodity markets and rising operational expenses.