Gold prices continue to make new all time highs. And now, it’s ramping up the profitability of one of the world’s largest gold producers.
What’s happening:
- Barrick Gold (NYSE: GOLD) announced their total revenue has grown significantly in their most recent quarter
Why it matters:
- The price of gold has recently hit new all time highs, which has led to a renewed interest in the precious metals space as a whole as well as a surge in new capital inflows for publicly traded gold producers
By the numbers:
- Barrick Gold’s total revenue was $3.16B USD in their most recent quarter
- Barrick Gold saw $370M in quarterly gross profits, which is up from significantly from $305M USD in gross profits a year ago
- The large jump in profits in their most recent quarter was largely due to Barrick’s realized gold price of $2,344 per ounce compared to a realized gold price of $1,972 an ounce a year ago
- Barrick Gold also bought back 2.95M shares of their own stock during their most recent quarter
Going deeper:
- Despite actually producing less gold and less copper than the previous quarter, Barrick Gold saw profits rise due to a spike in the price of both gold and copper globally
- Large gold producers ramping up profitability could also be a significant catalyst for publicly listed gold exploration companies who have largely struggled to raise meaningful growth capital and make new discoveries of late, as many of the largest gold companies in the world may soon be looking to place new bets on promising projects that could increase their total production capabilities
The intrigue:
- Precious metals as a whole have been seeing a surge in prices recently, with copper prices beginning to soar amidst an acceleration in demand from the energy transition and even new data centre construction
