Barrick Gold reports Q2 loss of US$94 million

By Michael Allan McCrae / July 25, 2018 / www.mining.com / Article Link

Barrick reported a net loss of US$94 million or 8 cents per share, and adjusted net earnings of $81 million or seven cents per share for the second quarter of 2018.

Barrick (NYSE:ABX) traded down -1.18% to US$11.68 as of 5:42 p.m. EDT.

Barrick said earnings and cash flow impacted by planned maintenance activities at Barrick Nevada and Pueblo Viejo. The company says it remains on track to meet full-year gold production guidance, with higher production and lower costs expected in the second half of 2018.

Gold production in the second quarter was 1.07 million ounces, at a cost of sales applicable to gold of $882 per ounce, all-in sustaining costs of $856 per ounce, and cash costs of $605 per ounce.

With Barrick forecasting 4.5 million to 5 million ounces of gold to be produced this year, Reuters noted that the Toronto-based gold miner may no longer be the world's biggest producer. Newmont Mining has a target of 4.9 million to 5.4 million ounces of gold.

Copper production was 83 million pounds, at a cost of sales applicable to copper of $2.45 per pound, all-in sustaining costs of $3.04 per pound, and cash costs of $2.10 per pound.

Barrick Gold is reducing personnel and branch offices to implement a more "decentralized operating model". Personnel is being reallocated and a number of small offices are being closed.

"We are maintaining our full-year general and administrative expense guidance, as the expected savings from these changes are offset by approximately $30 million of severance expense," writes the company.

Written with material from Barrick news release.

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