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Barrick's (GOLD) Earnings Beat Estimates in Q3, Sales Lag
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Barrick Gold Corporation (GOLD - Free Report) recorded net earnings (on a reported basis) of $347 million or 20 cents per share in third-quarter 2021, down from $882 million or 50 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 24 cents. The figure beat the Zacks Consensus Estimate of 23 cents.
Barrick recorded total sales of $2,826 million, down 20.2% year over year. The figure missed the Zacks Consensus Estimate of $2,832.7 million. Results in the reported quarter were hurt by lower gold prices.
Nevada Gold Mines delivered a quarter-on-quarter improvement driven by improved run time at all major processing facilities.
Barrick Gold Corporation Price, Consensus and EPS Surprise
Total gold production amounted to around 1.09 million ounces in the third quarter, down 5.5% year over year from 1.15 million ounces. Average realized price of gold was $1,771 per ounce in the quarter, down 8% year over year.
Cost of sales increased 5.4% year over year to $1,122 per ounce. All-in sustaining costs (AISC) moved up around 7% year over year to $1,034 per ounce in the quarter.
Copper production declined 2.9% year over year to 100 million pounds. Average realized copper price was $3.98 per pound, up 21.3% year over year.
Financial Position
At the end of the quarter, Barrick had cash and cash equivalents of $5,043 million, up 6% year over year. The company’s total debt was $5,154 million at the end of the quarter, flat year over year.
Net cash provided by operating activities declined 43.5% year over year to $1,050 million for the quarter.
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 projected in the band 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 35% in the past year compared with a 28% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Barrick currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , The Chemours Company (CC - Free Report) and Olin Corporation (OLN - Free Report) .
Nucor has a projected earnings growth rate of around 583.5% for the current year. The company’s shares have soared 130.9% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chemours has an expected earnings growth rate of around 86.9% for the current year. The company’s shares have gained 30.6% in the past year. It currently carries a Zacks Rank #2 (Buy).
Olin has an expected earnings growth rate of around 740% for the current year. The company’s shares have surged 192.3% in the past year. It currently flaunts a Zacks Rank #1.
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Barrick's (GOLD) Earnings Beat Estimates in Q3, Sales Lag
Barrick Gold Corporation (GOLD - Free Report) recorded net earnings (on a reported basis) of $347 million or 20 cents per share in third-quarter 2021, down from $882 million or 50 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 24 cents. The figure beat the Zacks Consensus Estimate of 23 cents.
Barrick recorded total sales of $2,826 million, down 20.2% year over year. The figure missed the Zacks Consensus Estimate of $2,832.7 million. Results in the reported quarter were hurt by lower gold prices.
Nevada Gold Mines delivered a quarter-on-quarter improvement driven by improved run time at all major processing facilities.
Barrick Gold Corporation Price, Consensus and EPS Surprise
Barrick Gold Corporation price-consensus-eps-surprise-chart | Barrick Gold Corporation Quote
Operational Highlights
Total gold production amounted to around 1.09 million ounces in the third quarter, down 5.5% year over year from 1.15 million ounces. Average realized price of gold was $1,771 per ounce in the quarter, down 8% year over year.
Cost of sales increased 5.4% year over year to $1,122 per ounce. All-in sustaining costs (AISC) moved up around 7% year over year to $1,034 per ounce in the quarter.
Copper production declined 2.9% year over year to 100 million pounds. Average realized copper price was $3.98 per pound, up 21.3% year over year.
Financial Position
At the end of the quarter, Barrick had cash and cash equivalents of $5,043 million, up 6% year over year. The company’s total debt was $5,154 million at the end of the quarter, flat year over year.
Net cash provided by operating activities declined 43.5% year over year to $1,050 million for the quarter.
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 projected in the band 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 35% in the past year compared with a 28% fall of the industry.
Zacks Rank & Key Picks
Barrick currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , The Chemours Company (CC - Free Report) and Olin Corporation (OLN - Free Report) .
Nucor has a projected earnings growth rate of around 583.5% for the current year. The company’s shares have soared 130.9% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chemours has an expected earnings growth rate of around 86.9% for the current year. The company’s shares have gained 30.6% in the past year. It currently carries a Zacks Rank #2 (Buy).
Olin has an expected earnings growth rate of around 740% for the current year. The company’s shares have surged 192.3% in the past year. It currently flaunts a Zacks Rank #1.