Barrick Gold Maintains FY24 Outlook Despite Q1 Production Miss
Portfolio Pulse from Lekha Gupta
Barrick Gold Corp (NYSE:GOLD) reported a slight increase in FY24 Q1 revenue to $2.747 billion, in line with consensus, despite a production miss. Gold production decreased by 1% Y/Y, and sales by 5% Y/Y, but the average realized gold price rose by 9% Y/Y. Copper production was flat, while its price declined by 8% Y/Y. Adjusted EPS was $0.19, beating the consensus of $0.15. The company maintains its FY24 outlook, expecting gold production to increase with key projects and has declared a $0.10 dividend per share. Investors can also gain exposure through SGDM and GDX ETFs.
May 01, 2024 | 2:16 pm
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POSITIVE IMPACT
VanEck Gold Miners ETF, which includes Barrick Gold Corp as part of its holdings, could benefit from Barrick's positive Q1 FY24 earnings report and its reaffirmed outlook for FY24.
As GDX includes Barrick Gold Corp in its portfolio, the ETF stands to gain from the positive developments in Barrick's financial performance and strategic outlook. The ETF's performance is likely to be positively influenced by the strength of its key holdings, reflecting in potential price appreciation.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70
POSITIVE IMPACT
Barrick Gold Corp reported a solid Q1 FY24 with revenue of $2.747 billion and an adjusted EPS of $0.19, surpassing consensus estimates. Despite a slight decrease in gold production and sales, the company benefited from higher gold prices and maintains its FY24 outlook.
The positive earnings report and the maintenance of the FY24 outlook despite the production miss indicate a strong operational stance. The increase in gold prices and the strategic focus on exploration and key projects like Reko Diq and Pueblo Viejo suggest potential for future growth, likely leading to a positive short-term impact on the stock.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Sprott Gold Miners ETF, which includes Barrick Gold Corp as part of its holdings, may see a positive impact due to Barrick's solid Q1 FY24 performance and its optimistic outlook for FY24.
Given that SGDM holds Barrick Gold Corp within its portfolio, the positive earnings report and outlook from Barrick Gold are likely to contribute positively to the ETF's performance. The ETF's value may increase as investors recognize the strength and potential of its holdings.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70