Barrick profit jumps on higher gold prices
Barrick Gold Corp. posted a nearly 55-per-cent rise in quarterly profit on Wednesday as gold prices surged, bolstering its ability to snap up mines including in copper, its chief executive said.
Concerns about the health of the global economy due to the coronavirus pandemic have boosted “safe-haven” gold by 12 per cent so far this year, while copper, seen as a bellwether for economic health, is down about 15 per cent.
Barrick CEO Mark Bristow has previously said the world’s No. 2 gold miner could raise its exposure in copper because of its expected higher use in electrification.
He added on Wednesday the relative price performance between copper and gold made deals more attractive. “(A stronger balance sheet) improves our capacity to take up opportunities that might arise in the short to medium term given the dynamic nature of the global economy,” Bristow said.
He did not elaborate, but has expressed an interest in acquiring Freeport-mcmoran Inc.’s flagship Grasberg mine.
Barrick, which maintained its quarterly dividend of seven cents per share, trimmed its annual production forecast for gold after shutting its mine in Papua New Guinea.
The miner now expects attributable gold production of 4.6 million to five million ounces versus 4.8 million to 5.2 million previously.
The Toronto-based company, with operations in North and South America and Africa, has not closed any of its mines due to virus restrictions, which have hit competitors.