Gold Prices Likely to Stay Strong in 2025, Analysts Predict Barrick Gold Will Benefit

Analysts predict that gold prices will continue to show a positive trend next year for Barrick Gold (GOLD), the world’s second-largest gold mining company.

Barrick Gold produced 4.05 million ounces of gold and 420 million pounds of copper in 2023, making it the second-largest gold mining company after Newmont.

Most of the company’s revenue comes from gold, and it has lower net debt than Newmont. However, it has a higher proportion of copper.

Kim Yoon Sang, a researcher at IM Securities, believes that gold prices will continue to trend positive next year.

While gold prices have slightly fallen from their recent peak due to a strong dollar, Kim expects that factors such as declining real interest rates, an economic slowdown, and geopolitical uncertainties will create a favorable macroeconomic environment for gold, a typical safe-haven asset, by 2025.

The company’s production guidance for this year remains largely unchanged from last year, but production is expected to increase steadily.

As of 2023, the gold reserves in the company’s owned mines increased by about 1 million ounces from the previous year, totaling 77 million ounces.

The company owns six Tier 1 mines and plans to increase production by approximately 30% by 2030, focusing on high-quality mines.

Kim also noted the potential for further growth through the Rmine, which could contribute to Barrick’s expanding production capacity.