Barrick Gold Announces Robust Preliminary Q3 Sales and Production

Barrick Gold Stock

Barrick Gold Corporation (NYSE:GOLD) has unveiled its preliminary results for the third quarter, revealing notable achievements in sales and production. The company reported sales of 1.03 million ounces of gold and 101 million pounds of copper, with production figures standing at 1.04 million ounces of gold and 112 million pounds of copper. While this third-quarter production exceeded that of the second quarter, it fell short of the initial quarterly targets, particularly at Pueblo Viejo, where equipment design issues led to delays in the expansion project. However, Barrick Gold foresees a significant production upturn in the fourth quarter.

During the third quarter, the average market price for gold held steady at $1,928 per ounce, while copper averaged $3.79 per pound.

The increase in preliminary third-quarter gold production compared to the second quarter is attributed to heightened output at Cortez. This growth is driven by increased oxide production from the Crossroads open pit and Cortez Hills underground. Planned autoclave maintenance at Turquoise Ridge in the previous quarter and improved grades at Kibali also contributed to the heightened production. However, Carlin experienced a dip in production due to reduced ore grades from processed stockpiled ore.

In comparison to the second quarter, the third-quarter gold cost of sales per ounce is expected to be 2-4% lower, total cash costs per ounce are anticipated to be 4-6% lower, and all-in sustaining costs per ounce are expected to be up to 6-8% lower.

Preliminary third-quarter copper production exceeded that of the second quarter, primarily due to increased output at Lumwana. When compared to the second quarter, the third-quarter copper cost of sales per pound is projected to be 5-7% lower, while C1 cash costs per pound are expected to decrease by 9-11%. However, all-in-sustaining costs per pound are anticipated to rise by 2-4%, mainly attributed to increased capitalized stripping at Lumwana.

It’s noteworthy that Barrick Gold stock has witnessed a 6.9% gain over the past year, although it lags behind the industry’s impressive rise of 26.6% during the same period.

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