Barrick Gold Corp. (ABX.TO) said it’s on track to meet its production guidance this year as strong performances at mines in Mali and Argentina offset lower production elsewhere.
Key Insights
-Second-quarter gold costs are expected to be “marginally higher” than the first quarter while quarter-over-quarter copper costs will be slightly lower.
-In February, Barrick said its costs to produce gold would be higher this year, following its merger with Randgold Resources Ltd., primarily because operations at its high-grade, low-cost open pit mine at Cortez Hills in Nevada were winding down.
-As of May, the Toronto-based company expected 2019 gold production of 5.1 million to 5.6 million ounces and copper output of 375 million to 430 million pounds.
-Spot gold prices averaged US$1,309 an ounce in the second quarter, little changed from a year earlier. Prices have rallied since late May as the Federal Reserve signaled a more dovish policy on interest rates.
-Both Barrick and rival Newmont Goldcorp Corp. have looked to multibillion-dollar mergers as a means of improving their portfolios and replenishing finite gold reserves.
Market Reaction
- Barrick released the statement before the start of regular trading in New York, where the shares slipped 1.2 per cent as of 7:19 a.m.
Advertisement