Barrick Gold (NYSE:GOLD) experienced a significant 7.2% decline in Tuesday’s trading session following the release of its Q1 preliminary production figures, which fell short of market expectations. The company attributed the lower-than-expected gold output to maintenance activities at its Nevada Gold Mines. Despite this setback, Barrick remains confident in achieving its full-year gold and copper production targets.
During the first quarter, Barrick reported preliminary gold production of 940,000 ounces, a notable decrease from the previous quarter and below analysts’ consensus of 984,000 ounces. Additionally, the company noted a 7%-9% increase in all-in sustaining costs compared to the previous quarter. However, Barrick anticipates a reduction in costs throughout the remainder of the year as production levels improve.
In terms of copper production, Barrick’s output dipped to approximately 40,000 tons in Q1, primarily due to lower mined grades at its Lumwana mine. This decline was in line with the company’s mine plan. Copper all-in sustaining costs rose by 14%-16% compared to Q4 2023.
Barrick disclosed that the average market price for gold during the quarter was $2,070 per ounce, while copper fetched $3.83 per pound. Despite the challenges faced in Q1, Barrick reaffirmed its expectation for increasing gold and copper production throughout each subsequent quarter of the year. The company highlighted the ramp-up of the Pueblo Viejo plant expansion starting in Q2 and the continued restart of the Porgera mine in line with its plans.
Featured Image: Megapixl
Author Faith Yakubu 
