(Bloomberg) -- Barrick Gold Corp., which had fared better than other bullion producers in navigating a rising cost environment, is finally encountering some inflationary headwinds.
In a preliminary report Thursday, Toronto-based Barrick said gold production in the first quarter was lower than the prior quarter, in line with previous guidance. At the same time, all-in sustaining costs per ounce are expected to be 19-21% higher than the fourth quarter. Apart from a 20% drop in gold ounces sold, no other reasons were given for the cost increase.
Until now, Chief Executive Officer Mark Bristow had coped better than his peers with tight labor markets and pricier freight, energy and other inputs amid ongoing supply-chain snarls. The company managed to unlock savings following its takeover of Randgold Resources Ltd. and mitigate pricing and cost pressures with measures such as migrating to a younger workforce.
Barrick shares were down slightly before the start of regular trading in New York. The company is scheduled to release its full financial results on May 4.
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