Barrick Gold (NYSE: GOLD; TSX: ABX) has reported its preliminary second quarter operating results, showing total gold production of 1 million oz. and copper production of 120 million lb. During the quarter, it managed to sell all of the gold produced and 113 million lb. of copper.
The gold output represents a 5.4% increase over the first quarter of 2022, which Barrick has said would be its lowest producing quarter this year (990,000 oz.). The improvement in copper output was more significant at 18.8% (101 million lb. in the previous quarter).
Barrick attributes the increase in quarterly gold production to stronger performances across its portfolio, particularly at Carlin, Turquoise Ridge, Veladero, Bulyanhulu and North Mara. This was partially offset by lower production at Cortez in Nevada due to mine sequencing, as it transitions from the end of open pit mining at Pipeline to a new phase at Crossroads, which is expected to underpin stronger performance for the asset in the year's final quarter.
Higher preliminary second quarter copper production was driven by improvements at Lumwana as planned. However, quarterly copper sales were in line with the prior quarter due to the timing of shipments, Barrick added.
As previously announced, Barrick's gold production in 2022 is expected to increase through the year, and with the stronger quarterly performance, the company said it remains on track to achieve 2022 guidance for both metals.
The average market price for gold in the second quarter was US$1,871/oz., while the average price for copper was US$4.32/lb. However, due to declining copper prices near the end of the quarter, Barrick expects its realized copper price to be 13-15% below the average market price. At the end of the second quarter, the copper price stood at US$3.83/lb.
Quarterly costs per ounce of gold (total cash costs and all-in sustaining costs) are expected to be higher. For copper, cash costs per pound are expected to be 5-7% lower, while all-in sustaining costs are expected to be about 2% higher than in the previous quarter. Barrick's will report its quarterly results on Aug. 8.