Barrick Gold (GOLD 1.64%) is absolutely crushing it thanks to surging gold prices. The gold mining giant today announced that it is increasing its dividend for the third time this year, boosted by a strong inflow of cash. Alongside its third-quarter numbers, Barrick Gold increased its quarterly dividend by 12.5% from the previous quarter.
CFO Graham Shuttleworth said, "The Board believes that the current dividend increase is sustainable and is reflective of the ongoing robust performance of our operations and continued improvement in the strength of our balance sheet, with total liquidity of $7.7 billion, including a cash balance of $4.7 billion, and a debt net of cash position of just $0.4 billion as of the end of the third quarter, as well as no material debt repayments due before 2033."
Those numbers are a testament to Barrick's ongoing aggressive efforts to strengthen its balance sheet. It's quarterly dividend has, in fact, tripled since it announced a merger with Randgold in September 2018. The two companies combined early in 2019.
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Barrick's latest dividend raise comes on the back of record quarterly free cash flows of $1.3 billion in Q3. That's nearly a 150% jump year over year. Here are some other notable year-over-year numbers from Barrick's third quarter:
- Revenue: Up 32% to $3.5 billion.
- Gold production: Down 12% as some mines remained shut.
- Realized gold price: Up 30% to $1,926 per ounce.
- Gold all-in sustaining cost: Down 2% to $966 an ounce.
- Adjusted net earnings per share: Up 78% to $0.41.
- Net debt: Down 71% to $471 million with no significant debt maturities until 2033.
Barrick also reiterated its full-year production guidance of 4.6 million to 5 million gold ounces.
Summarizing Barrick's strong quarter, CEO Mark Bristow said, "As today's results show, in the face of unprecedented challenges we have succeeded in beating our earnings consensus, reinforcing our 10-year plan and capitalizing on the gold price to maintain an industry-leading balance sheet."
Barrick's 10-year plan includes standardizing annual production to 5 million ounces through 2029 while focusing on cost reduction and boosting cash flows.
