How GOLD (Barrick Gold) Makes Money in 2025: A Deep-Dive With Income Statement

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Understanding how a leading gold mining company like Barrick Gold Corporation makes money is essential for investors and anyone interested in the business of precious metals and mining. In this post, we break down Barrick Gold's quarterly income statement (Q2 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 Corporation Overview

Barrick Gold Corporation operates as one of the world’s largest gold and copper mining companies, with operations spanning North America, South America, Africa, and the Middle East. Revenue comes primarily from the sale of gold and copper produced at its owned and joint venture mines. The company’s business segments are organized by geography and commodity, with the majority of revenue generated from gold mining, and a significant but smaller contribution from copper operations.

Revenue Breakdown

• Total Revenue (Q2 2025): $3.12B (+5% YoY)
  • Gold Sales: $2.55B (82% of total)
  • Copper Sales: $0.57B (18% of total)
  • Growth is powered by higher realized gold prices and increased copper production volumes.

Gross Profit and Margins

• Gross Profit: $1.22B (39% gross margin)
  • Cost of Revenue: $1.90B (+3% YoY)
  • Barrick Gold maintains robust margins due to a focus on high-quality, low-cost mining assets and operational efficiencies across its portfolio.
• Most costs come from direct mining expenses, processing costs, and site administration.

Operating Income and Expenses

• Operating Income: $0.74B (+7% YoY, 24% margin)
• Operating Expenses: $0.48B (+2% YoY)
  • R&D: $0.06B (+9% YoY, 2% of revenue) — Investments focus on exploration, resource development, and technology to improve recovery rates.
  • SG&A: $0.42B (+1% YoY, 13% of revenue) — Includes corporate overhead, marketing, and administrative functions.
  • Barrick Gold continues to invest in exploration and innovation while maintaining strict cost controls to enhance operational efficiency.

Net Income

• Pre-Tax Income: $0.71B (+8% YoY, 23% margin)
• Income Tax: $0.18B (25% effective tax rate)
• Net Income: $0.53B (+10% YoY, 17% net margin)
• Barrick Gold converts a significant portion of sales into profit due to its scale, efficient operations, and favorable commodity pricing.

What Drives Barrick Gold Corporation's Money Machine?

• Gold Production and Sales: 82%+ of revenue is derived from gold sales, making gold price and production volumes the primary revenue driver.
• All-in Sustaining Cost (AISC): Maintained at $1,050/oz in Q2 2025, reflecting disciplined cost management and efficient mine operations.
• Exploration & Resource Expansion: Strategic investments in exploration and new project development to sustain long-term production.
• Copper Growth: Expansion in copper production, though still a smaller segment, is a key future growth area as global demand for copper rises.

Visualizing Barrick Gold Corporation'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 after direct mining costs.
• Even after significant investments in exploration and development, 17% of revenue drops to the bottom line.

Key Takeaways

• Barrick Gold Corporation's money comes overwhelmingly from gold mining and sales.
• High gross and net margins illustrate the power of Barrick’s scale, operational efficiency, and focus on high-quality assets.
• Heavy investment in exploration and resource development, balanced by efficiency in operating costs.
• Ongoing growth is driven by higher commodity prices, increased copper output, and disciplined cost management.

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FAQ About Barrick Gold Corporation's Income Statement

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

Barrick Gold Corporation generates over 82% of its revenue from gold sales. Copper sales contribute the remaining 18%, reflecting the company’s diversified but gold-centric portfolio.

2. How profitable is Barrick Gold Corporation in Q2 2025?

Barrick Gold reported net income of $0.53B in Q2 2025, with a net margin of approximately 17%, reflecting strong profitability driven by high gold prices, efficient operations, and disciplined cost management.

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

The biggest expenses on Barrick Gold’s income statement are direct mining costs (cost of revenue), followed by operating expenses, particularly Sales, General & Administrative (SG&A) and Research & Development (R&D). R&D investment reached $0.06B in Q2 2025, as Barrick prioritizes exploration and technology to sustain future growth.

4. Why does the copper segment operate at a lower margin?

The copper segment, despite generating $0.57B in revenue, posted a lower operating margin in Q2 2025. This is because Barrick Gold is aggressively investing in expanding copper production and developing new projects, believing these will drive long-term growth—even if the division is less profitable today.

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

Barrick Gold’s effective tax rate in Q2 2025 was 25%, consistent with previous years. This moderate rate is primarily due to the geographic distribution of earnings and the impact of international tax structuring.