Barrick posts profit jump on higher production
TORONTO Barrick Gold Corp reported quarterly adjusted profit that nearly doubled on higher production on Monday, and said it has a “great deal of work” ahead resolving problems around its African unit, whose buyout the company expects to complete next month.
Barrick also said it plans to begin the sale process for its 50 per cent stake in the Kalgoorlie operation in Western Australia in the third quarter. Newmont Goldcorp owns the remainder.
The world’s second-largest gold producer reported adjusted profit of US$154 million, or nine cents per share, in the second quarter ended June 30, up from US$81 million, or seven cents per share, a year earlier.
Barrick expects 2019 gold production to be at the higher end of its 5.1 million to 5.6 million range, and all-in sustaining costs to be at the lower end of its US$870 to US$920 per ounce range.
Barrick’s shares rose 2.1 per cent in early trading in Toronto. They closed at $23.80, down 0.67 per cent.
The Toronto-based company is in the process of integrating operations following a flurry of activity over the past few quarters, from the acquisition of Randgold Resources late last year to a joint venture in Nevada with the world’s biggest gold producer, Newmont Goldcorp, to the buyout of Tanzania-focused unit Acacia Mining Plc.
Chief executive Mark Bristow, who led Randgold before taking over leadership of the combined company, said in Barrick’s earnings statement that Acacia’s operations had not been managed by previous Barrick management.
He said Barrick must work to “get to grips” with Acacia’s operations, and sort out disputes the London-listed miner has faced in Tanzania.
In a separate statement on Monday, Acacia said the Tanzanian government had lifted a July suspension of gold shipments from its North Mara mine. Barrick swung to a net profit of US$194 million in the second quarter, or 11 cents a share, from a loss of US$94 million, or eight cents, a year earlier, driven by favourable tax adjustments and currency movements, the company said.
Analysts had expected a profit of US$199.6 million.
Gold output in the quarter jumped nearly 27 per cent to 1.35 million ounces from a year ago, while copper rose about 17 per cent to 97 million pounds.
Bloomberg reported last week that Barrick is seeking to sell its Tongon mine in Ivory Coast.
The company is prepping the sale of its Lumwana mine in Zambia in the second half, Reuters reported in May. Kalgoorlie, Tongon and Lumwana are not among the Tier 1 assets that Barrick has said it will focus on.