Barrick Mining increases shareholder payout after gold rises 55%

The world's largest gold miner, Canada's Barrick Mining, has approved higher payouts to shareholders amid positive results on gold production volumes and a rise in the precious metal's value. The company's shares rose 4% on the pre-market on November 10. Gold has gained more than 55% since the beginning of the year.

Barrick Mining Corp. raised its quarterly dividend 25 percent to 12.5 cents a share and also approved an additional "bonus" of 5 cents a share based on last quarter's results.

"Given the exceptionally strong cash flow," the company said in a statement, the board approved a new $500 million buyback program in addition to the $1 billion in shares already purchased since the beginning of the year. In the third quarter, Barrick recorded record free cash flow of $1.5 billion on production of 829,000 ounces of gold.

Acting CEO Mark Hill said Barrick is focused on improving efficiency, Bloomberg reported.

"We are fully focused on improving operational performance and increasing shareholder value, especially at our key gold assets in Nevada and the Dominican Republic," said Hill. - "We have begun due diligence on all processes to ensure that we are working to deliver results in a sustainable and safe manner.

On the back of this news, the company's shares rose 4.2% on the premarket on Nov. 10.

Since the beginning of the year, the cost of gold has risen by more than 55%. On Monday, November 10, gold futures for delivery in December rose by 2.5% to $4111 per ounce - the highest level in the last two weeks. Weak macroeconomic statistics from the U.S. strengthened expectations of the Fed rate in December, and the weakening dollar provided additional support for the precious metal, according to Reuters.

According to Challenger, Gray & Christmas data released last week, October saw the highest number of private sector job cuts for the month in 22 years. In addition, the Consumer Sentiment Index fell to a three-and-a-half year low in early November, reflecting fears of the impact of the longest government shutdown in history.

Since gold doesn't earn interest income, it has traditionally benefited from lower rates and economic uncertainty, Reuters specifies.

"We still believe gold can reach $5,000 an ounce over the next 12 months and silver $65, but are now cautious in forecasting a quick return to the highs," said analysts at Saxo Bank, quoted by Reuters.

This article was AI-translated and verified by a human editor