On February 12, Barrick Gold of Canada unveiled a new $1 billion share buyback program, buoyed by soaring gold prices that propelled the company to surpass analysts' expectations for fourth-quarter profit.
Shares of the company surged by 6.6%, reaching their highest level since early November, as the gold miner more than doubled its free cash flow during the quarter.
In 2024, gold prices surged by over 27%, marking the largest annual increase since 2010, driven by safe-haven demand, interest rate cuts, and central bank purchases.
The robust gold prices boosted earnings for gold miners last year, allowing them to profit more from mining and selling the precious metal.
Barrick terminated its previous share buyback initiative, which had been active since February 14, 2024, having repurchased $498 million under it during the last year.
However, on Wednesday, Barrick revised down its gold output forecast for the year to a range of 3.2 million to 3.5 million ounces, compared to 3.9 million ounces in 2024, due to the temporary closure of its Loulo-Gounkoto mine in Mali.
The closure of the mine in January followed an ongoing disagreement with authorities in Mali over a new mining law aiming to significantly hike royalty taxes and the government's stake in mining projects.
This closure has also negatively impacted Barrick's stock performance, the company reported.
Since Reuters first reported in September about the Malian junta-government issue, Barrick's shares have dropped over 10% as of the previous day's close.
CEO Mark Bristow informed Reuters that the company plans to resume operations at the suspended mine once the country's authorities permit them to resume gold shipments.
The company's gold output for 2024 was lower than the 4 million ounces in 2023, primarily due to a slower-than-expected ramp-up at the Pueblo Viejo mine in the Dominican Republic.
For the quarter ending December 31, Barrick reported an adjusted profit of 46 cents per share, surpassing estimates of 41 cents compiled by LSEG data.
However, all-in sustaining costs (AISC), an industry metric encompassing total expenses, rose to $1,451 per ounce in the quarter, up from $1,364 per ounce in the previous year.