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Barrick Gold 3Q Output Up From 2Q; Guidance Maintained

Barrick Gold 3Q Output Up From 2Q; Guidance Maintained

October 11, 2018


Barrick Gold Corp. (NYSE, TSX: ABX) late Wednesday reported that production of both gold and copper rose in the third quarter from the second and also reiterated its output guidance for 2018.


The world’s largest gold-mining company, which last month agreed to purchase Randgold Resources Ltd. in an all-stock deal, listed July-September output of 1.15 million ounces of gold and sales of 1.2 million. The company also reported copper output of 106 million pounds and sales of 114 million.Gold production was 8% higher in the third quarter than the second primarily due to improved throughput and grade at Barrick Nevada, Barrick said. The third-quarter gold cost of sales per ounce is expected to be around 3% to 5% lower than the second quarter, cash costs are seen 1% to 3% percent lower and all-in sustaining costs are projected to be 7% to 9% lower.


“We are maintaining our 2018 consolidated gold production guidance of 4.5-5.0 million ounces, at a cost of sales of $810-$850 per ounce, cash costs of $540-$575 per ounce and all-in sustaining costs of $765-$815 per ounce,” Barrick said. “We expect gold production to be approximately 1.25 million ounces in the fourth quarter.”


Meanwhile, the copper output in the July-September quarter was 28% higher than in the second quarter primarily due to production at Lumwana, which was driven by a steady improvement in grade and recovery, plus improved crusher reliability, Barrick said. The company expects a quarter-over-quarter decrease in consolidated copper cost of sales per pound of approximately 10% to 12%, cash costs to be approximately 7% to 9% lower, and all-in sustaining costs per pound to be down some 10% to 12%.“We are maintaining our 2018 copper production guidance of 345-410 million pounds, at a cost of sales of $2.00-$2.30 per pound, C1 cash costs of $1.80-$2.00 per pound and all-in sustaining costs of $2.55-$2.85 per pound,” Barrick said.


Average prices in the third quarter were $1,213 for an ounce of gold and $2.77 for a pound of copper, Barrick said.The company said it expects its full-year 2018 effective tax rate to be approximately 48% to 50%, assuming a gold price of $1,200 per ounce for the rest of the year. This is an increase from previous tax guidance of 44% to 46%.Barrick is scheduled to report full third-quarter financial results on Oct. 24.


Source: https://www.kitco.com/n