Barrick GoldGOLD

Key highlights

• Massive revenue jump: Revenue grew 244% to $10.35 billion, though much of this came from a $4.37 billion increase in forward sales, which are agreements to sell metal at a set price in the future.
• Profitability gains momentum: Net income rose to $59.5 million from a loss of $8.5 million a year ago, as the company benefited from record metal prices and higher trading volatility.
• Customer order values spike: The average order value for direct customers jumped 82% to $5,618, and JM Bullion orders rose 53% to $3,056, showing that customers are making much larger purchases as metal prices rise.
• Strategic digital partnership: The company completed a $150.0 million stock sale to a subsidiary of Tether, the issuer of the world's largest stablecoin, which is a digital currency pegged to the dollar, to bridge physical gold with digital markets.
• Expanding production capacity: Management expects to significantly grow its manufacturing footprint following the acquisition of Sunshine Mint at the start of the fourth quarter, adding to a system that can already produce over three million ounces of product per week.

Our take: This was an exceptionally strong quarter that proved the company can thrive during periods of high gold prices and market chaos. The massive leap in average order values and the new partnership with Tether suggest the business is successfully moving beyond simple coin sales. It reinforces the long-term case for the stock.