Unpacking Barrick Gold's H1 2023 Financial Performance

Unpacking Barrick Gold's H1 2023 Financial Performance
Analysis
Mary Wild
Author:
Mary Wild
Published on: 12.09.2023 16:27 (UTC)
Post reading time: 2.64 min
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Alright, folks, today we`re going to dig into Barrick Gold Corporation`s financial report for the first half of 2023. We`ll break it down and see what`s going on under the hood without the corporate jargon.


Revenue and Expenses


First off, let`s talk about the money.

Barrick Gold raked in $2.83 billion in revenue in the three months ending June 30, 2023. That`s slightly less than what they made during the same period in 2022. Now, the important thing here is why. Well, costs went up. They spent $1.94 billion on getting the gold out of the ground, which is more than last year.


Surprisingly, their general and administrative expenses dropped a bit to $28 million, showing some good cost control. But, here`s the kicker – they had to write off $22 million due to impairments. That`s like saying, "Oops, some of our assets aren`t worth as much as we thought."


So, when you put all of that together, their income before all the finance stuff and taxes was $810 million in 2023, compared to $1.08 billion in 2022.


Income and Taxes


Now, what we`re really interested in is the bottom line – how much money they`re making. Well, their net income for the three months ending June 30, 2023, was $502 million. In the same period last year, it was $717 million. So, that`s not great news. Taxes were a bit less, but it didn`t really make up for the drop in income.


Financial Position


Let`s shift gears and talk about their financial health. Good news, folks! They`ve managed to trim down their debt a bit. As of June 30, 2023, they owed $4.77 billion, which is less than last year. It`s like paying off part of your mortgage.


But here`s the not-so-good part: their cash on hand went down from $4.37 billion to $4.16 billion. That`s because they`re spending money on things like equipment and paying down debt. So, less cash in the bank, but it`s not necessarily a bad thing if they`re investing wisely.


Six Months Comparison


If we look at the six-month picture, it`s pretty much the same story. Revenue for the first half of 2023 was $5.48 billion, down from $5.71 billion last year. Again, costs went up, and income before taxes took a hit.


Earnings per Share (EPS)


And what about you, the shareholder? Well, your earnings per share for both the three-month and six-month periods ending June 30, 2023, decreased compared to last year. That means each share you own isn`t making as much money as it used to.


Cash Flow


Finally, let`s talk about cash flow. Barrick Gold`s cash from day-to-day operations dropped a bit. They`re also spending more on investments and financing activities, which includes paying dividends to you, the shareholders.


Conclusion


So, there you have it. Barrick Gold`s financial checkup for the first half of 2023. Revenue`s down, expenses are up, and their bottom line has taken a hit. But hey, they`re making some smart moves by reducing their debt and investing in their future.


As an investor, it`s worth keeping an eye on how they manage their costs and seize opportunities in the ever-changing world of mining. It`s like watching a gold miner sift through dirt – sometimes you find a nugget, sometimes it`s just rocks.


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