GOLD - Barrick Gold Q2 profit drops but tops estimates on higher gold prices

2023-08-08 11:33:51 ET

Barrick Gold ( NYSE: GOLD ) -1.3% in Tuesday's trading after reporting a narrow beat on Q2 adjusted earnings and maintaining full-year gold production guidance.

Q2 net income fell to $305M, or $0.17/share, from $488M, or $0.27/share, from the year-earlier quarter, and revenues edged lower to $2.83B from $2.86B a year ago.

Q2 gold production ticked 3% lower to 1.01M oz from 1.04M oz a year earlier while all-in sustaining costs jumped 12% Y/Y to $1,355/oz from $1,212/oz, but average realized gold prices increased 6% to $1,972/oz from $1,861/oz a year earlier.

Q2 copper production fell 11% Y/Y to 107M lbs, and all-in sustaining costs rose to $3.13/lb from $2.87/lb a year ago.

Barrick ( GOLD ) said improved performances from the Carlin complex in Nevada, the Kibali gold mine in the Democratic Republic of Congo, and the Lumwana copper mine in Zambia "have laid a sound foundation for production in the second half of the year which, as guided, is expected to surpass the first."

For the full year, Barrick ( GOLD ) reiterated guidance for gold production of 4.2M-4.6M oz, gold all-in sustaining cost of $1,170-$1,250/oz, and capital expenditure $2.2B-$2.6B.

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