Barrick Gold reported a realized gold price of $4,417 per ounce in the second quarter, pushing adjusted gold sales to $3.54 billion. But the company's all-in sustaining cost (AISC) climbed to roughly $1,866 per ounce, a figure that sits far above rival Newmont's $1,621 for the same period.
Gold Price and Production
The quarter's realized price reflects a market that set records earlier in the year. The World Gold Council noted that the LBMA PM quarterly average price hit a record $4,873 per ounce in Q1 2026. Barrick's own realized price came in below that, but still drove strong revenue on 801,000 ounces sold.
Production was essentially flat year over year at 796,000 ounces. The company said output is expected to increase sequentially, though it didn't specify a target.
Costs and Capital Spending
Consolidated AISC of about $1,866 per ounce is a key metric for investors, and it's notably higher than Newmont's. Total capex rose 27% year over year to $1.19 billion, which likely contributed to the cost pressure. Operating cash flow totaled $1.70 billion in the quarter.
Higher costs ate into cash generation. Attributable free cash flow came in at $141 million, down 33% from a year earlier.
Share Buybacks
Barrick executed $1.2 billion in share repurchases during Q2 under a new $3.0 billion buyback program. That's a significant return of capital, even as free cash flow declined.
Cost Gap With Newmont
The AISC gap between Barrick and Newmont is hard to ignore. Newmont disclosed a Q2 AISC of $1,621 per ounce, which is $245 below Barrick's. That difference could weigh on Barrick's margins if gold prices soften.
Barrick reiterated that its 2026 production and cost guidance remain on track. The company expects output to increase in the second half, which could help spread fixed costs over more ounces.
Investors will be watching whether the sequential production pickup actually materializes, and whether AISC starts to trend down toward Newmont's level.
