Barrick Gold 3Q Output Up From 2Q; Guidance Maintained
(Kitco News) - Barrick Gold Corp. (NYSE, TSX: ABX) late Wednesday reported thatproduction of both gold and copper rose in the third quarter from the secondand also reiterated its output guidance for 2018.
The world’s largest gold-mining company, which last month agreedto purchase Randgold Resources Ltd. in an all-stock deal, listedJuly-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 114million.
Gold production was 8% higher in the third quarter than thesecond primarily due to improved throughput and grade at Barrick Nevada,Barrick said. The third-quarter gold cost of sales per ounce is expected to bearound 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 productionguidance 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 perounce,” Barrick said. “We expect gold production to be approximately 1.25million ounces in the fourth quarter.”
Meanwhile, the copper output in the July-September quarterwas 28% higher than in the second quarter primarily due to production atLumwana, which was driven by a steady improvement in grade and recovery, plusimproved crusher reliability, Barrick said. The company expects aquarter-over-quarter decrease in consolidated copper cost of sales per pound ofapproximately 10% to 12%, cash costs to be approximately 7% to 9% lower, andall-in sustaining costs per pound to be down some 10% to 12%.
“We are maintaining our 2018 copper production guidance of345-410 million pounds, at a cost of sales of $2.00-$2.30 per pound, C1 cashcosts of $1.80-$2.00 per pound and all-in sustaining costs of $2.55-$2.85 perpound,” Barrick said.
Average prices in the third quarter were $1,213 for an ounceof gold and $2.77 for a pound of copper, Barrick said.
The company said it expects its full-year 2018 effective taxrate to be approximately 48% to 50%, assuming a gold price of $1,200 per ouncefor 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 financialresults on Oct. 24.
By Allen SykoraFor Kitco News
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