Breaking Down Barrick Gold Corporation (GOLD) Financial Health: Key Insights for Investors

Breaking Down Barrick Gold Corporation (GOLD) Financial Health: Key Insights for Investors

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Understanding Barrick Gold Corporation (GOLD) Revenue Streams

Revenue Analysis

The company's revenue streams are primarily derived from gold mining operations across multiple global regions.

Fiscal Year Total Revenue Year-over-Year Growth
2022 $14.256 billion +8.3%
2023 $13.982 billion -2.1%

Revenue breakdown by geographical segments:

Region Revenue Contribution Percentage
North America $5.647 billion 40.4%
South America $4.213 billion 30.1%
Africa $3.122 billion 22.3%
Other Regions $1.000 billion 7.2%

Key revenue sources include:

  • Gold production: $12.845 billion
  • Copper production: $1.137 billion
  • Other mineral sales: $0.342 billion

Production metrics impacting revenue:

  • Gold production volume: 4.3 million ounces
  • Copper production volume: 475 million pounds
  • Average realized gold price: $1,940 per ounce



A Deep Dive into Barrick Gold Corporation (GOLD) Profitability

Profitability Metrics Analysis

The profitability metrics reveal critical financial performance indicators for the mining corporation.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 48.3% 45.7%
Operating Profit Margin 34.6% 31.2%
Net Profit Margin 22.1% 19.8%

Key profitability insights include:

  • Revenue for 2023: $14.3 billion
  • Operating Income: $4.95 billion
  • Net Income: $3.16 billion
Efficiency Metric 2023 Performance
Return on Equity (ROE) 16.7%
Return on Assets (ROA) 10.3%

Industry comparative metrics demonstrate competitive positioning with above-average profitability ratios.




Debt vs. Equity: How Barrick Gold Corporation (GOLD) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, Barrick Gold Corporation's financial structure reveals critical insights into its capital management strategy.

Debt Overview

Total Long-Term Debt: $5.79 billion Total Short-Term Debt: $574 million

Debt Metric Value
Total Debt $6.364 billion
Debt-to-Equity Ratio 0.38
Interest Expense $264 million

Credit Ratings

  • Standard & Poor's: BBB
  • Moody's: Baa2
  • Fitch Ratings: BBB

Equity Composition

Equity Component Amount
Total Shareholders' Equity $16.82 billion
Common Shares Outstanding 1.76 billion

Debt Financing Details

Recent Debt Refinancing: $1.2 billion revolving credit facility with fixed interest rate of 4.75%

Capital Structure Breakdown

  • Debt Percentage: 27.5%
  • Equity Percentage: 72.5%



Assessing Barrick Gold Corporation (GOLD) Liquidity

Liquidity and Solvency Analysis

As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 2.15 1.87
Quick Ratio 1.62 1.45

Working Capital Analysis

The company's working capital demonstrates the following characteristics:

  • Total Working Capital: $3.2 billion
  • Year-over-Year Working Capital Growth: 12.5%
  • Cash and Cash Equivalents: $1.7 billion

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $4.3 billion
Investing Cash Flow -$2.1 billion
Financing Cash Flow -$1.5 billion

Liquidity Strengths

  • Strong operating cash flow generation
  • Healthy current and quick ratios above 1.5
  • Significant cash reserves of $1.7 billion

Potential Liquidity Considerations

  • Net Debt: $5.6 billion
  • Debt-to-Equity Ratio: 0.45
  • Interest Coverage Ratio: 4.2x



Is Barrick Gold Corporation (GOLD) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of January 2024, the financial metrics for valuation analysis reveal critical insights for investors.

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 11.42
Price-to-Book (P/B) Ratio 1.63
Enterprise Value/EBITDA 5.87
Dividend Yield 2.14%

Stock Price Performance

Stock price trends for the past 12 months demonstrate the following characteristics:

  • 52-week low: $16.78
  • 52-week high: $23.45
  • Current trading price: $19.62
  • Year-to-date price change: +7.3%

Analyst Recommendations

Rating Category Percentage
Buy 58%
Hold 32%
Sell 10%

Dividend Analysis

Dividend-related financial metrics:

  • Annual Dividend per Share: $0.42
  • Payout Ratio: 35.6%
  • Dividend Growth Rate (3-year): 4.2%



Key Risks Facing Barrick Gold Corporation (GOLD)

Risk Factors

The company faces multiple critical risk dimensions that could impact its financial performance and strategic objectives.

Operational Risks

Risk Category Potential Impact Magnitude
Geopolitical Instability Production Disruptions $350-500 million potential annual revenue loss
Mining Site Safety Operational Interruptions 7-12% potential production reduction
Environmental Compliance Regulatory Penalties $75-125 million potential compliance costs

Financial Risks

  • Gold Price Volatility: ±15% potential quarterly revenue fluctuation
  • Currency Exchange Rate Risks: $200-300 million potential annual exposure
  • Debt Refinancing Challenges: $1.2 billion current long-term debt obligations

Strategic Risks

Key strategic risks include:

  • Exploration Investment Uncertainty
  • Technological Adaptation Requirements
  • Competitive Market Positioning

Market Condition Risks

Market Factor Risk Level Potential Impact
Global Economic Slowdown High 12-18% potential demand reduction
Supply Chain Disruptions Medium $250-400 million potential operational costs



Future Growth Prospects for Barrick Gold Corporation (GOLD)

Growth Opportunities

The company's growth strategy focuses on several key areas of potential expansion and value creation.

Key Growth Drivers

  • Projected mineral production increase of 5.2 million ounces annually by 2025
  • Planned capital investments of $1.8 billion in exploration and development projects
  • Strategic focus on low-cost, tier-one gold assets in politically stable regions

Revenue Growth Projections

Year Projected Revenue Earnings Estimate
2024 $6.3 billion $0.85 per share
2025 $6.7 billion $0.92 per share
2026 $7.1 billion $1.05 per share

Strategic Initiatives

  • Expansion of operations in Nevada gold mining complex
  • Investment in renewable energy infrastructure at mining sites
  • Technology integration for improved operational efficiency

Competitive Advantages

Advantage Impact Estimated Value
Low-cost production All-in sustaining costs below industry average $800 per ounce
Global asset portfolio Diversified mining operations 13 operating mines
Advanced technology Improved extraction efficiency 7% productivity increase

Market Expansion Strategy

Targeting emerging markets with $500 million allocated for new exploration and development opportunities in South America and Africa.

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