Johannesburg - Barrick Mining Corporation is facing headwinds as gold production figures for the first quarter of 2025 reveal a significant downturn. The company reported 758,000 ounces, a staggering 19% drop compared to the same period last year and a 30% decrease from the previous quarter. This represents the lowest quarterly output Barrick has seen in recent years.
Several factors contributed to this decline. A primary cause was the suspension of operations at the Loulo-Gounkoto mine, stemming from an ongoing dispute between Barrick and the Malian government regarding the equitable distribution of economic benefits. Reduced output from Carlin and Cortez also played a role.
The production slump has directly impacted Barrick's unit costs. All-in-sustaining costs (AISC), a crucial metric for miners, jumped by 20% year-over-year, raising concerns about the company's overall profitability. The situation in Mali has led Barrick Mining to remove the Mali gold complex from its 2025 output forecast, according to sources.
Dim Outlook for the Rest of 2025?
Barrick's forecast for 2025 is cautiously optimistic, projecting attributable gold production between 3.15 and 3.5 million ounces, excluding output from Loulo-Gounkoto. While a potential restart of the mine could offer some upside, the projection still points to a year-over-year decline from the 3.91 million ounces produced in 2024.
What About Competitors?
The challenges faced by Barrick aren't unique within the industry. Newmont Corporation reported an approximately 8% year-over-year decrease in gold production for the first quarter, reaching 1.54 million ounces. Non-core operations played a role in Newmont's results. However, Newmont anticipates maintaining its 2025 gold production target at around 5.9 million ounces, focusing on Tier 1 assets through strategic divestitures.
Agnico Eagle Mines Limited experienced a more modest decline of around 0.5% in gold production to 873,794 ounces, primarily due to lower output at Canadian Malartic. Agnico Eagle recently acquired O3 Mining, adding the Marban project to its portfolio, which is expected to contribute to future production.
This overall trend suggests a complex landscape for gold mining in 2025. With rising costs and operational hurdles, companies are adapting their strategies to maintain production and profitability.