Barrick Gold Corporation (GOLD - Free Report) recorded net earnings (on a reported basis) of $538 million or 30 cents per share in first-quarter 2021, up from $400 million or 22 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share surged 81% year over year to 29 cents. The figure also beat the Zacks Consensus Estimate of 26 cents.
Barrick recorded total sales of $2,956 million, up 8.6% year over year. However, the figure missed the Zacks Consensus Estimate of $3,055.1 million.
Operational Highlights
Total gold production amounted to around 1.1 million ounces in the first quarter, down 12% year over year from 1.25 million ounces. Average realized price of gold was $1,777 per ounce in the quarter, up 12% year over year.
Cost of sales increased 5.2% year over year to $1,073 per ounce. All-in sustaining costs (AISC) moved up around 6.7% year over year to $1,018 per ounce in the quarter.
Copper production declined 19% year over year to 93 million pounds. Average realized copper price was $4.12 per pound, up 85% year over year.
Financial Position
At the end of the quarter, Barrick had cash and cash equivalents of $5,672 million, up 70% year over year. The company’s long-term debt was $5,140 million at the end of the quarter, down from $5,150 million in the previous-year quarter.
Net cash provided by operating activities surged 46.5% year over year to $1,302 million.
Guidance
For 2021, Barrick anticipates attributable gold production in the range of 4.4-4.7 million ounces. AISC is expected in the range of $970-$1,020 per ounce and cost of sales is expected in the range of $1,020-$1,070 per ounce.
The company also expects copper production in the range of 410-460 million pounds at AISC of $2.00-$2.20 per pound and cost of sales of $1.90-$2.10 per pound.
Capital expenditures are projected between $1,800 million and $2,100 million.
Price Performance
Barrick’s shares have declined 18.4% in the past year against 8.3% decline of the industry.
Zacks Rank & Other Key Picks
Barrick currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Dow Inc. (DOW - Free Report) , Nucor Corporation (NUE - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Dow has a projected earnings growth rate of roughly 261.5% for the current year. The company’s shares have surged 107.2% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Nucor has an expected earnings growth rate of around 228.4% for the current year. The company’s shares have gained 127% in the past year. It currently sports a Zacks Rank #1.
Impala has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have skyrocketed 223.3% in the past year. It currently flaunts a Zacks Rank #1.
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Barrick Gold Corporation (GOLD - Free Report) recorded net earnings (on a reported basis) of $538 million or 30 cents per share in first-quarter 2021, up from $400 million or 22 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share surged 81% year over year to 29 cents. The figure also beat the Zacks Consensus Estimate of 26 cents.
Barrick recorded total sales of $2,956 million, up 8.6% year over year. However, the figure missed the Zacks Consensus Estimate of $3,055.1 million.
Operational Highlights
Total gold production amounted to around 1.1 million ounces in the first quarter, down 12% year over year from 1.25 million ounces. Average realized price of gold was $1,777 per ounce in the quarter, up 12% year over year.
Cost of sales increased 5.2% year over year to $1,073 per ounce. All-in sustaining costs (AISC) moved up around 6.7% year over year to $1,018 per ounce in the quarter.
Copper production declined 19% year over year to 93 million pounds. Average realized copper price was $4.12 per pound, up 85% year over year.
Financial Position
At the end of the quarter, Barrick had cash and cash equivalents of $5,672 million, up 70% year over year. The company’s long-term debt was $5,140 million at the end of the quarter, down from $5,150 million in the previous-year quarter.
Net cash provided by operating activities surged 46.5% year over year to $1,302 million.
Guidance
For 2021, Barrick anticipates attributable gold production in the range of 4.4-4.7 million ounces. AISC is expected in the range of $970-$1,020 per ounce and cost of sales is expected in the range of $1,020-$1,070 per ounce.
The company also expects copper production in the range of 410-460 million pounds at AISC of $2.00-$2.20 per pound and cost of sales of $1.90-$2.10 per pound.
Capital expenditures are projected between $1,800 million and $2,100 million.
Price Performance
Barrick’s shares have declined 18.4% in the past year against 8.3% decline of the industry.
Zacks Rank & Other Key Picks
Barrick currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Dow Inc. (DOW - Free Report) , Nucor Corporation (NUE - Free Report) and Impala Platinum Holdings Limited (IMPUY - Free Report) .
Dow has a projected earnings growth rate of roughly 261.5% for the current year. The company’s shares have surged 107.2% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Nucor has an expected earnings growth rate of around 228.4% for the current year. The company’s shares have gained 127% in the past year. It currently sports a Zacks Rank #1.
Impala has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have skyrocketed 223.3% in the past year. It currently flaunts a Zacks Rank #1.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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