How GOLD (Barrick Gold) Makes Money in 2026: A Deep-Dive With Income Statement

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Understanding how a gold mining company like Barrick Gold (GOLD) makes money is essential for investors and anyone interested in the business of precious metals. In this post, we break down Barrick Gold's quarterly income statement (Q4 2025) using a Sankey chart to visualize the financial flows — what comes in, where it goes, and what's left as profit.

Quick Barrick Gold Overview

Barrick Gold operates as a leading global gold and copper producer with mining operations across multiple continents. Revenue comes primarily from gold sales, supplemented by copper production amid volatile commodity prices. The company focuses on Tier 1 assets with long mine lives, emphasizing cost control and production growth in key regions like North America, Africa, and Latin America.

Revenue Breakdown

• Total Revenue (Q4 2025): $6.48B (+136.2% YoY)
  • Gold sales dominate as the core revenue driver in this capital-intensive mining sector.
  • Growth is powered by higher gold prices, increased production volumes, and favorable currency effects.

Gross Profit and Margins

• Gross Profit: $93.4M (1.4% gross margin)
  • Cost of Revenue: $6.38B (+136.6% YoY)
  • Barrick Gold maintains moderate margins due to high fixed costs in mining operations, offset by economies of scale at major sites.
• Most costs come from direct mining expenses like labor, energy, maintenance, and royalties tied to production volumes.

Operating Income and Expenses

• Operating Income: $41.2M (+186.4% YoY, 0.6% margin)
• Operating Expenses: $59.8M (+96.7% YoY)
  • R&D: N/A
  • SG&A: $59.8M (+132.1% YoY, 0.9% of revenue) — primarily administrative overhead, corporate costs, and exploration expenses supporting mine development
  • Barrick Gold continues to prioritize innovation while maintaining efficiency through shared services and cost discipline across global operations.

Net Income

• Pre-Tax Income: $15.8M (+96.8% YoY, 0.2% margin)
• Income Tax: $3.57B (22.6% effective tax rate)
• Net Income: $11.6M (+77.4% YoY, 0.2% net margin)
• Barrick Gold converts a moderate portion of sales into profit due to operational leverage in high-margin gold production despite substantial tax obligations.

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What Drives Barrick Gold's Money Machine?

• Gold production and sales: Nearly 100% of revenue from gold, with copper as a growing byproduct credit.
• All-in sustaining costs (AISC): Key metric for miners; lower AISC relative to gold prices boosts profitability amid $6.48B quarterly revenue.
• Exploration and development: Ongoing investments in Tier 1 assets like Nevada Gold Mines to extend reserves.
• Copper operations: Expanding output for diversification, though not yet profitable on a standalone basis due to processing costs.

Visualizing Barrick Gold's Financial Flows

The Sankey chart below visualizes how each dollar flows from gross revenue, through costs and expenses, down to net income. This helps investors spot where value is created, what areas weigh on profits, and how efficiently the company operates.

• Most revenue flows into gross profit, with operating expenses (especially SG&A) taking the largest chunk.
• Even after significant taxes and other expenses, 0.2% of revenue drops to the bottom line.

Key Takeaways

• Barrick Gold's money comes overwhelmingly from gold sales
• High gross and net margins illustrate the power of Barrick Gold's asset quality and cost discipline
• Heavy investment in exploration, balanced by efficiency in operating costs
• Ongoing growth is driven by rising gold prices and production expansions

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FAQ About Barrick Gold's Income Statement

1. What is the main source of Barrick Gold's revenue in 2025?

Barrick Gold generates over 99% of its revenue from gold sales. Copper provides minor byproduct credits, supporting overall margins.

2. How profitable is Barrick Gold in Q4 2025?

Barrick Gold reported net income of $11.6M in Q4 2025, with a net margin of approximately 0.2%, reflecting moderate profitability driven by volume growth and gold price strength despite high costs.

3. What are the largest expense categories for Barrick Gold?

The biggest expenses on Barrick Gold's income statement are operating expenses, particularly Research & Development (R&D) and Sales, General & Administrative (SG&A) costs. R&D investment reached N/A in Q4 2025, as Barrick Gold prioritizes mine exploration and development.

4. Why does copper division operate at a loss?

Copper, despite generating byproduct revenue credits, posted operating impacts within the broader loss profile in Q4 2025. This is because Barrick Gold aggressively invests in expansion projects, believing these will drive long-term growth—even if the division is unprofitable today.

5. How does Barrick Gold's effective tax rate compare to previous years?

Barrick Gold's effective tax rate in Q4 2025 was 22.6%, consistent with previous years. This moderate rate is primarily due to international tax structuring and mining-specific deductions.