Barrick Golds Beat Earnings Estimates on Higher Copper Production

Barrick Gold

Barrick Gold (TSX:ABX)(NYSE:GOLD) posted adjusted earnings for the second quarter that were higher than expected. The gold miner gained 3% after the opening bell on Monday, making it one of the few large mining companies to offer a positive surprise during this earnings season.

Profit and Gold Price Increased During the Quarter

Barrick Gold’s net income for the second quarter increased to $488 million, or $0.27 per share, from $411 million, or $0.23 per share, in the same quarter of the previous fiscal year, but revenue remained the same at $2.86 billion.

Although Barrick has already published preliminary results for its gold production in the second quarter that fell short of expectations, the miner has stated that it is on track to exceed full-year forecasts for gold and copper.

All-in sustaining costs increased by 4%, reaching C$1,212/oz from C$1,087/oz a year ago. The company’s average realized gold price increased during the quarter, reaching $1,861/oz from $1,820/oz in the previous year. Gold production during the second quarter was relatively stable at 1.04 million ounces.

Copper production in the second quarter increased by 25% year-over-year, coming in at 120 million pounds, but all-in sustaining costs increased to $C2.87 per pound from C$2.74 per pound a year earlier.

Barrick Gold’s Expenses Expected to Be Higher

Barrick stated that it now expects expenses to trend toward the high end of the forecast range it provided for the year, or maybe even exceeding it.

The company’s free cash flow in the second quarter was $169 million, which was significantly lower than the $393 million it was in the second quarter of the preceding year.

According to president and chief executive Mark Bristow, Barrick Gold has reportedly continued to take initiatives to improve its sustainability.

“There are challenging times ahead, but Barrick faces them with strong and agile leadership, a robust balance sheet, solid Life of Mine plans, a reliable cash flow, and a strategy focused on sustainability and value creation,” Bristow said in a statement.

Barrick Gold stock has decreased by 12% this year and has dropped by 19% over the past year.

Featured Image: Megapixl @Piter2121

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About the author: Stephanie Bedard-Chateauneuf has over six years of experience writing financial content for various websites. Over the years, Stephanie has covered various industries, with a primary focus on tech stocks, consumer stocks, health stocks, and personal finance. This stock lover likes to invest for the long-term. Stephanie has an MBA in finance.