Barrick Mining B shares surged 3.72% to $42.07 by 10:44 a.m. ET on Monday, November 9, following a strong third-quarter earnings report. The gold and copper miner posted adjusted earnings per share of $0.82, a 41% year-over-year increase, while revenue climbed 22% to $5.07 billion. The rise in revenue was driven by a significant jump in the realized gold price, which reached $4,243 an ounce, up from $3,457.
Attributable gold production for the quarter was 816,000 ounces, a 3% increase from the previous quarter. However, all-in sustaining costs also rose, reaching $1,911 an ounce compared to $1,538. Despite the higher costs, Barrick generated $1.17 billion in free cash flow, repurchased $761 million in shares, and returned $1.04 billion in total. Net profit for the quarter hit $1.32 billion.
Barrick's performance earned it a 91/100 GF Score on GuruFocus, with strong ratings in Momentum (10/10), Growth (9/10), and Financial Strength and Profitability (8/10). However, its GF Value Rank was lower at 5/10, indicating that the stock price runs about 24% above the GF Value of $34.05. Analysts noted that high gold prices are already factored into the stock price.
The company's margin stood at approximately $2,332 an ounce, or 55% of the realized price. While costs rose about 24% year over year, slightly outpacing the 23% gain in realized price, the next challenge will be maintaining fourth-quarter all-in sustaining costs within the $1,760 to $1,950 range while meeting the 2.90 to 3.25 million-ounce production target.