Barrick Gold Corp. saw its shares climb sharply on Wednesday, buoyed by a rally in gold prices that lifted the precious metal to its highest level in over a week. The advance comes just days before the miner is set to release its first-quarter financial results on May 11, a report that will test whether higher bullion prices are translating into stronger cash flow.
Shares of Barrick closed at $41.58 in New York, up 7.39% from Tuesday's close of $38.72. The stock opened at $40.30 and reached an intraday high of $41.60. The rally was fueled by a 2.8% jump in spot gold, which settled at $4,685.23 an ounce, while U.S. gold futures ended 2.8% higher at $4,694.30.
The broader market also reflected the strength in gold. The S&P/TSX materials group surged 6.5%, with peers Newmont Corp. and Alamos Gold Inc. posting gains of 5.59% and 8.02%, respectively. The overall S&P/TSX composite index rose 1.2%, as gains in mining and financial stocks offset declines in the energy sector.
Analysts have high expectations for Barrick's upcoming earnings. According to a survey of six analysts by Barchart, the average estimate for first-quarter earnings per share is 74 cents, with a range of 67 cents to 81 cents. That would mark a significant increase from the 35 cents per share reported in the same period last year. The company's all-in sustaining cost guidance for 2026 is between $1,760 and $1,950 per ounce, based on a gold price assumption of $4,500.
Beyond the quarterly results, investors are focused on Barrick's strategic plans. On April 28, the company announced its intention to pursue an initial public offering for its North American assets, with a primary listing on the New York Stock Exchange and a secondary listing in Toronto. The IPO is expected to be completed before the end of 2026, pending regulatory approvals. Barrick also continues its collaboration with Newmont on the Nevada Gold Mines and Fourmile projects.
However, the rally is not without risks. In the Dominican Republic, President Luis Abinader has terminated GoldQuest Mining's Romero gold and copper project following environmental protests. The country is home to the Pueblo Viejo mine, Latin America's largest gold mine, where Barrick is the majority owner. Protests over the mine's tailings-dam expansion have flared in recent years, adding a layer of geopolitical uncertainty.
Market analysts caution that while a single headline about Middle East peace can lift gold prices, it can also quickly sap haven demand. Miners continue to grapple with challenges around ore grade, fuel costs, labor availability, permitting delays, and capital expenditures. Barrick's upcoming earnings report will be a key test of whether the company can navigate these headwinds and capitalize on the current gold rally.
