Postponement of 17th India International Gold Convention 2020 Due to Covid-19 (was supposed to be held on 3-5 September 2020) and will keep you updated on new dates shortly....
 You are here : Home > Mining & Refining

Barrick's Q2 gold production down 15% on year

10 August 2020


Canadian miner Barrick Gold's preliminary second-quarter gold production fell 15% year on year to 1.149 million oz, with total cash costs up 10% at $716/oz and all-in sustaining cost up 19% at $1,031/oz, the company said Aug. 10.Barrick -- the world's second-largest gold miner gold – said output the half of 2020 was 2.4 million oz, at the midpoint of the company's 4.6 million-5.0 million oz guidance range for the year.Full-year 2020 guidance for total cash costs is forecast at $650-$700/oz sold and all-in sustaining cost forecast $920-$970/oz sold, it said.


The company said the output was a result of strong operating performances, "particularly from Nevada Gold Mines (NGM) in the United States, Loulo-Gounkoto in Mali and Kibali in the Democratic Republic of Congo."At its Africa and Middle East operations, Loulo-Gounkoto and Kibali were at the upper end of their guidance, Barrick CEO Mark Bristow said."The Tanzanian assets are still being resuscitated, but exports of the stockpiled concentrate have resumed and the Bulyanhulu underground operation is being recommissioned," Bristow said, adding that between them, North Mara and Bulyanhulu are capable of producing more than 500,000 oz/year for at least 10 years.In term of North American operations, the company said NGM led by Cortez "trended towards the upper end of its guidance as the integrated structure allowed the management team to adjust ore routing through Carlin's processing facilities in real time, while at the restructured Hemlo in Canada, exploration was indicating support for extending the Life of Mine beyond 10 years at a production profile of around 220,000 oz/year."


In Latin America, the company said production at Pueblo Viejo in the Dominican Republic decreases as projected due to a planned plant shutdown for maintenance, while output and costs at Veladero in Argentina were affected by a nationwide quarantine and severe winter weather.The Porgera in Papua New Guinea remains on care and maintenance while the issue of its Special Mining Lease is before the court, the company said.


Operations largely unaffected by coronavirus

Canaccord Genuity mining analysts said in a note Aug. 10: "In mid-July, Barrick pre-released Q2/20 production of 1.15 million oz, slightly below Q1/20 production of 1.25 million oz.""We note that the company's operations were largely unaffected by COVID-19 related suspensions, with the exception of Veladero in Argentina," Canaccord said.Stifel Financial analyst Ingrid Rico said in a research note Aug. 10 that the company is managing the COVID-related challenges at its operations worldwide and "continues to operate safely at all its mine sites.""We expect the dividend hike and reassurance that operations remain on-track to meet FY targets (supported by good H1 results) will be viewed positively," Rico said.Bristow said during the quarter there had been significant exploration results from Mali and Tanzania, Nevada and the Dominican Republic, and the expectation was to add "significant mineral resources" at most operations in 2020.Gold sold in the second quarter fell 11 % year on year 1.224 million, at an average realized gold price of $1,725/oz, up 31% year on year from $1,317/oz.