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Barrick (GOLD) to Post Q4 Earnings: What's in the Offing?
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Barrick Gold Corporation (GOLD - Free Report) is scheduled to report fourth-quarter 2020 results before the opening bell on Feb 18. The company’s results are expected to reflect the benefits of higher gold prices and strong production.
The gold mining giant surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average being 17.7%. It posted an earnings surprise of 28.1% in the last reported quarter.
The stock has gained 12.4% in the past year compared with the industry’s 19.6% rise.
Let’s see how things are shaping up for this announcement.
What Do the Estimates Say?
In January 2021, Barrick announced preliminary results for fourth-quarter 2020. The preliminary results for the fourth quarter reflect sales of 1.19 million ounces of gold and 108 million pounds of copper for the quarter. The company also reported preliminary fourth-quarter production for gold and copper of 1.21 million ounces and 119 million pounds, respectively. Moreover, the average market price for gold in the fourth quarter was $1,874 per ounce, while for copper it was $3.25 per pound.
Barrick also expects gold cost of sales per ounce for the fourth quarter to be in line with third-quarter 2020 figures. All-in sustaining costs (“AISC”) per ounce for gold are expected to be 3-5% lower than the third quarter. The company also expects fourth-quarter cost of sales per pound for copper to be 4-6% higher than the third quarter and AISC per pound for copper to be 4-6% higher than the prior quarter.
The Zacks Consensus Estimate for fourth-quarter consolidated revenues for Barrick is currently pegged at $3,221 million, which calls for a rise of 11.7% year over year.
Some Factors to Watch For
Strong gold and copper production coupled with higher gold prices are likely have aided the company’s performance in the quarter to be reported. Barrick, last month, noted that the preliminary fourth-quarter gold production was sequentially higher than the previous quarter owing to strong performance from Pueblo Viejo, the ramp-up of mining operations at Bulyanhulu and ongoing improvement at Turquoise Ridge. As the plant maintenance of Lumwana was completed, preliminary fourth-quarter copper production was also higher than third-quarter levels.
Moreover, gold had a stellar run in 2020 as fears over the coronavirus pandemic made it the most attractive safe-haven asset. Apprehensions regarding the global economic growth fueled safe haven demand for the metal through the year. A slump in crude oil prices, the ultra-low interest rate environment and geopolitical tensions also spurred up demand for gold. Moreover, concerns over supply crunch stemming from suspensions of operations by miners per government mandates to curb the virus spread also contributed to the rally in gold prices. Meanwhile, Barrick’s averaged realize price of gold also climbed roughly 30% year over year in the third quarter. The trend is likely to have continued in the fourth quarter and supported its margins.
Our proven model does not conclusively predict an earnings beat for Barrick this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Barrick is 0.00%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at 31 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Barrick currently carries a Zacks Rank #3.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
SSR Mining Inc. (SSRM - Free Report) , scheduled to release earnings on Feb 17, has an Earnings ESP of +2.07% and carries a Zacks Rank #3.
Koppers Holdings Inc. (KOP - Free Report) , scheduled to release earnings on Feb 24, has an Earnings ESP of +23.20% and carries a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Barrick (GOLD) to Post Q4 Earnings: What's in the Offing?
Barrick Gold Corporation (GOLD - Free Report) is scheduled to report fourth-quarter 2020 results before the opening bell on Feb 18. The company’s results are expected to reflect the benefits of higher gold prices and strong production.
The gold mining giant surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average being 17.7%. It posted an earnings surprise of 28.1% in the last reported quarter.
The stock has gained 12.4% in the past year compared with the industry’s 19.6% rise.
Let’s see how things are shaping up for this announcement.
What Do the Estimates Say?
In January 2021, Barrick announced preliminary results for fourth-quarter 2020. The preliminary results for the fourth quarter reflect sales of 1.19 million ounces of gold and 108 million pounds of copper for the quarter. The company also reported preliminary fourth-quarter production for gold and copper of 1.21 million ounces and 119 million pounds, respectively. Moreover, the average market price for gold in the fourth quarter was $1,874 per ounce, while for copper it was $3.25 per pound.
Barrick also expects gold cost of sales per ounce for the fourth quarter to be in line with third-quarter 2020 figures. All-in sustaining costs (“AISC”) per ounce for gold are expected to be 3-5% lower than the third quarter. The company also expects fourth-quarter cost of sales per pound for copper to be 4-6% higher than the third quarter and AISC per pound for copper to be 4-6% higher than the prior quarter.
The Zacks Consensus Estimate for fourth-quarter consolidated revenues for Barrick is currently pegged at $3,221 million, which calls for a rise of 11.7% year over year.
Some Factors to Watch For
Strong gold and copper production coupled with higher gold prices are likely have aided the company’s performance in the quarter to be reported. Barrick, last month, noted that the preliminary fourth-quarter gold production was sequentially higher than the previous quarter owing to strong performance from Pueblo Viejo, the ramp-up of mining operations at Bulyanhulu and ongoing improvement at Turquoise Ridge. As the plant maintenance of Lumwana was completed, preliminary fourth-quarter copper production was also higher than third-quarter levels.
Moreover, gold had a stellar run in 2020 as fears over the coronavirus pandemic made it the most attractive safe-haven asset. Apprehensions regarding the global economic growth fueled safe haven demand for the metal through the year. A slump in crude oil prices, the ultra-low interest rate environment and geopolitical tensions also spurred up demand for gold. Moreover, concerns over supply crunch stemming from suspensions of operations by miners per government mandates to curb the virus spread also contributed to the rally in gold prices. Meanwhile, Barrick’s averaged realize price of gold also climbed roughly 30% year over year in the third quarter. The trend is likely to have continued in the fourth quarter and supported its margins.
Barrick Gold Corporation Price and EPS Surprise
Barrick Gold Corporation price-eps-surprise | Barrick Gold Corporation Quote
Zacks Model
Our proven model does not conclusively predict an earnings beat for Barrick this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Earnings ESP: Earnings ESP for Barrick is 0.00%. The Zacks Consensus Estimate for earnings for the fourth quarter is currently pegged at 31 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Barrick currently carries a Zacks Rank #3.
Stocks That Warrant a Look
Here are some companies in the basic materials space you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:
Teck Resources Limited (TECK - Free Report) , scheduled to release earnings on Feb 18, has an Earnings ESP of +5.57% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
SSR Mining Inc. (SSRM - Free Report) , scheduled to release earnings on Feb 17, has an Earnings ESP of +2.07% and carries a Zacks Rank #3.
Koppers Holdings Inc. (KOP - Free Report) , scheduled to release earnings on Feb 24, has an Earnings ESP of +23.20% and carries a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>