While gold prices have surged by 30% this year, Barrick Gold Corp., the world’s second-largest gold miner, has struggled to capitalize on the rally. A series of missed production targets, rising costs, and political turbulence in its African and Asian mines have put the company in a difficult position, leading to stagnant share prices even as competitors thrive.
CEO Mark Bristow, who has led Barrick since 2019, remains focused on “rebuilding the business.” Under his leadership, Barrick has worked to reduce debt, limit acquisitions, and diversify into copper. Yet, the miner has failed to meet output expectations for 11 consecutive quarters, and major shareholders like Blackrock Inc. have reduced their stakes while buying into competitors Newmont and Agnico Eagle.
Barrick’s challenges include costly infrastructure repairs at its Nevada mines, where it shares ownership with Newmont, and growing labor costs. In Africa, political tensions in Mali could jeopardize its mining rights, and delays in the Dominican Republic’s Pueblo Viejo mine project are impacting production.
Rival Newmont’s acquisition of Newcrest Mining has further strengthened its position as the world’s top gold producer, while Agnico Eagle surpassed Barrick’s market capitalization for the first time this year. Investors, including prominent shareholder Rick Rule, believe Barrick must improve its quarterly results to restore confidence. However, analysts expect operational challenges in Nevada and Pueblo Viejo to persist into 2025, leaving Barrick with significant hurdles to overcome.