Barrick Gold - CEO, Mark Bristow
CEO, Mark Bristow
Source: Bloomberg
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  • Barrick Gold (TSX:ABX) has posted its results for 2019 today
  • In 2019, Barrick merged with Randgold to become the second biggest gold miner in the world, behind GoldCorp
  • Its adjusted net earnings rose by 46 per cent, as did net earnings per share
  • Net debt halved to $2.2 billion, and quarterly dividends increased quarter on quarter
  • Barrick Gold (TSX:ABX) is up 2.6 per cent, trading at C$28 per share with a market cap of $48 billion

Barrick Gold (TSX:ABX) has posted their 2019 financials, with a number of eye-catching numbers popping out of the annual report.

Remarkably, the C$48 billion company has managed to increase net earnings by 48 per cent over the past year.

Barrick has also halved its net debt, increased per share earnings, and increased dividends quarter on quarter.

Barrick has managed to achieve the holy trinity: production and prices have increased, while production costs have gone down.

This is due to Barrick securing several new tier one mining operations, allowing it to cut costs while posting record guidance figures.

In early 2019, Barrick merged with Randgold to form the world’s second biggest gold company, behind other gold heavy-hitter, GoldCorp.

That acquisition brought some of Randgold’s Tier one assets with it, as did a merger in Nevada last year. The merger consolidated Newmont and Barrick’s operations in the area.

Negotiations between the companies had been on and off for two decades, debating how to collectively cut production costs at their respective projects in the area. However, negotiations never progressed past preliminary stages.

That brought another Tier one mining asset into Barrick’s portfolio, as Newmont’s operations in Nevada were consolidated into a new entity. The new entity, Nevada Gold Mines, was operated by Barrick.

As a result, Barrick now owns and globally operates six Tier one gold mines, more than any other senior gold miner.

The fact that gold prices hit new record highs in 2019 didn’t hurt either.

Barrick Gold CEO, Mark Bristow, said that the company started the year with a challenging to-do list, but managed to tick every box.

“The work we did in 2019 has equipped us well to take Barrick to the next level.

“We stand on the strong foundation of enormous organic growth potential, which will support a positive production profile and a very robust business, capable of generating a substantial flow for at least the next decade.

“There are also opportunities for growth outside our current ambit which we continue to explore,” he said.

Barrick Gold (ABX) is currently up 2.6 per cent, trading at $28 per share at 9:49pm EST.

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