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Barrick (GOLD) to Report Q3 Earnings: What's in the Offing?
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Barrick Gold Corporation (GOLD - Free Report) is scheduled to report third-quarter 2021 results before the opening bell on Nov 4. The company’s results are expected to reflect the benefits of higher gold production. However, lower year over year gold prices are likely to have affected its performance.
The gold mining giant surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16%. It posted an earnings surprise of 11.5% in the last reported quarter.
The stock is down 33.5% in the past year compared with the industry’s 24.8% decline.
Image Source: Zacks Investment Research
Let’s see how things are shaping up for this announcement.
What Do the Estimates Say?
Last month, Barrick announced preliminary results for the third quarter. It reported preliminary third-quarter sales of 1.07 million ounces of gold and 101 million pounds of copper. It also reported preliminary third-quarter production of 1.09 million ounces of gold and 100 million pounds of copper. The average market price for gold in the quarter was $1,790 per ounce, while the average market price for copper was $4.25 per pound.
Barrick also expects third-quarter gold cost of sales per ounce and total cash costs per ounce to be flat to 2% higher. All-in sustaining costs per ounce are projected to be 4-6% lower than second-quarter levels. Third-quarter copper cost of sales per pound is forecast to be 5-7% higher, C1 cash costs per pound are expected to be flat to 2% higher and copper all-in sustaining costs per pound are projected to be 4-6% lower than the previous quarter’s figures.
The Zacks Consensus Estimate for third-quarter consolidated revenues for Barrick is currently pegged at $2,833 million, which calls for a decline of around 20% year over year.
Some Factors to Watch For
The company’s third-quarter results are expected to reflect the impacts of lower year over year gold prices. Apprehensions regarding the global economic growth fueled safe haven demand for gold last year. The ultra-low interest rate environment, geopolitical tensions and fears over supply crunch stemming from suspensions of operations by miners amid the pandemic also spurred up demand for the yellow metal in 2020.
However, gold lost the momentum this year, largely due to vaccine rollouts and optimism over economic recovery. The metal came under pressure in the third quarter, especially in September, from a stronger dollar, higher U.S Treasury yields and the U.S. Federal Reserve's tapering jitters. Prices of the yellow metal declined around 4% in September 2021 and were also down roughly 1.1% in the third quarter. The impacts of lower year over year averaged realized gold prices are expected to have affected Barrick’s performance in the third quarter.
However, sequentially higher gold production is likely have aided the company’s performance in the quarter to be reported. The preliminary gold production in the third quarter was higher than the previous quarter’s level of 1.04 million ounces, with improved performance at Nevada Gold Mines following planned maintenance shutdowns in the previous quarter. The continuing ramp-up of operations at Bulyanhulu and better performance at Veladero also contributed to the upside.
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 third quarter is currently pegged at 23 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 #4 (Sell).
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:
Image: Bigstock
Barrick (GOLD) to Report Q3 Earnings: What's in the Offing?
Barrick Gold Corporation (GOLD - Free Report) is scheduled to report third-quarter 2021 results before the opening bell on Nov 4. The company’s results are expected to reflect the benefits of higher gold production. However, lower year over year gold prices are likely to have affected its performance.
The gold mining giant surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16%. It posted an earnings surprise of 11.5% in the last reported quarter.
The stock is down 33.5% in the past year compared with the industry’s 24.8% decline.
Let’s see how things are shaping up for this announcement.
What Do the Estimates Say?
Last month, Barrick announced preliminary results for the third quarter. It reported preliminary third-quarter sales of 1.07 million ounces of gold and 101 million pounds of copper. It also reported preliminary third-quarter production of 1.09 million ounces of gold and 100 million pounds of copper. The average market price for gold in the quarter was $1,790 per ounce, while the average market price for copper was $4.25 per pound.
Barrick also expects third-quarter gold cost of sales per ounce and total cash costs per ounce to be flat to 2% higher. All-in sustaining costs per ounce are projected to be 4-6% lower than second-quarter levels. Third-quarter copper cost of sales per pound is forecast to be 5-7% higher, C1 cash costs per pound are expected to be flat to 2% higher and copper all-in sustaining costs per pound are projected to be 4-6% lower than the previous quarter’s figures.
The Zacks Consensus Estimate for third-quarter consolidated revenues for Barrick is currently pegged at $2,833 million, which calls for a decline of around 20% year over year.
Some Factors to Watch For
The company’s third-quarter results are expected to reflect the impacts of lower year over year gold prices. Apprehensions regarding the global economic growth fueled safe haven demand for gold last year. The ultra-low interest rate environment, geopolitical tensions and fears over supply crunch stemming from suspensions of operations by miners amid the pandemic also spurred up demand for the yellow metal in 2020.
However, gold lost the momentum this year, largely due to vaccine rollouts and optimism over economic recovery. The metal came under pressure in the third quarter, especially in September, from a stronger dollar, higher U.S Treasury yields and the U.S. Federal Reserve's tapering jitters. Prices of the yellow metal declined around 4% in September 2021 and were also down roughly 1.1% in the third quarter. The impacts of lower year over year averaged realized gold prices are expected to have affected Barrick’s performance in the third quarter.
However, sequentially higher gold production is likely have aided the company’s performance in the quarter to be reported. The preliminary gold production in the third quarter was higher than the previous quarter’s level of 1.04 million ounces, with improved performance at Nevada Gold Mines following planned maintenance shutdowns in the previous quarter. The continuing ramp-up of operations at Bulyanhulu and better performance at Veladero also contributed to the upside.
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 third quarter is currently pegged at 23 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 #4 (Sell).
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:
The Chemours Company (CC - Free Report) , scheduled to release earnings on Nov 4, has an Earnings ESP of +1.26% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Albemarle Corporation (ALB - Free Report) , scheduled to release earnings on Nov 3, has an Earnings ESP of +8.73% and carries a Zacks Rank #3.
Franco-Nevada Corporation (FNV - Free Report) , scheduled to release earnings on Nov 3, has an Earnings ESP of +0.38% and carries a Zacks Rank #3.