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Barrick (GOLD) Q1 Production Falls, On Track to Meet FY23 Goals
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Barrick Gold Corporation (GOLD - Free Report) has announced preliminary sales and production figures for the first quarter of 2023. It reported sales of 0.95 million ounces of gold and 89 million pounds of copper in the quarter. The company also reported first-quarter production of 0.95 million ounces of gold and 88 million pounds of copper. As projected earlier, GOLD anticipates an increase in gold production through 2023, with the lowest output in the first quarter, while copper production is expected to be higher in the latter half of the year. The company remains on track to achieve its gold and copper targets for the full year.
Barrick reported an average market price of $1,890 per ounce for gold and $4.05 per pound for copper in the first quarter. Preliminary first-quarter gold production was lower than the fourth quarter, mainly due to reduced output at Carlin resulting from annual roaster maintenance, which led to a fall in throughput at Goldstrike. Additionally, the conversion of the Goldstrike autoclave to a conventional carbon-in-leach process and severe winter weather in northern Nevada adversely impacted operations, resulting in a decline in production. At Kibali, lower grades were observed due to mine sequencing.
Compared to the fourth quarter, it expected first-quarter gold cost of sales per ounce to be 3% to 5% higher. It estimated total cash costs per ounce to be 13% to 15% higher and all-in sustaining costs per ounce to be 9% to 11% higher. The increase in total cash costs per ounce is due to the lower ounces produced and sold in the quarter compared to the previous quarter. Meanwhile, the increase in all-in sustaining costs per ounce was due to lower sales volumes, partially offset by a fall in sustaining capital expenditures.
Barrick also reported that first-quarter copper production was lower than the previous quarter due to decreased output at Lumwana and Zaldivar. The cost of sales per pound of copper in the first quarter is estimated to rise up to 2% from the prior quarter, while the C1 cash costs per pound are projected to increase 19% to 21%. This is primarily due to reduced mining rates, as the new fleet at Lumwana is still in the ramp-up phase, as well as higher labor expenses at Zaldivar. However, all-in sustaining costs per pound are expected to decrease 14% to 16% since lower sustaining capital expenditures mitigate the increase in C1 cash costs per pound.
The company is slated to release first-quarter results on May 3, 2023.
Barrick’s shares are down 20.4% over the past year compared with a 9.9% decline recorded by its industry.
Olympic Steel’s shares have gained 33% in the past year. The Zacks Consensus Estimate for ZEUS’ current-year earnings has been revised 33.1% upward in the past 60 days. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 26.2% on average.
Steel Dynamic’s shares have gained 19.2% in the past year. The Zacks Consensus Estimate for STLD’s current-year earnings has been revised 37% upward in the past 60 days. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 11.3% on average.
Linde’s shares have gained 13.6% in the past year. The company has an expected earnings growth rate of 8.1% for the current year. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 0.38% upward in the past 60 days.
LIN topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 6% on average.
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Barrick (GOLD) Q1 Production Falls, On Track to Meet FY23 Goals
Barrick Gold Corporation (GOLD - Free Report) has announced preliminary sales and production figures for the first quarter of 2023. It reported sales of 0.95 million ounces of gold and 89 million pounds of copper in the quarter. The company also reported first-quarter production of 0.95 million ounces of gold and 88 million pounds of copper. As projected earlier, GOLD anticipates an increase in gold production through 2023, with the lowest output in the first quarter, while copper production is expected to be higher in the latter half of the year. The company remains on track to achieve its gold and copper targets for the full year.
Barrick reported an average market price of $1,890 per ounce for gold and $4.05 per pound for copper in the first quarter. Preliminary first-quarter gold production was lower than the fourth quarter, mainly due to reduced output at Carlin resulting from annual roaster maintenance, which led to a fall in throughput at Goldstrike. Additionally, the conversion of the Goldstrike autoclave to a conventional carbon-in-leach process and severe winter weather in northern Nevada adversely impacted operations, resulting in a decline in production. At Kibali, lower grades were observed due to mine sequencing.
Compared to the fourth quarter, it expected first-quarter gold cost of sales per ounce to be 3% to 5% higher. It estimated total cash costs per ounce to be 13% to 15% higher and all-in sustaining costs per ounce to be 9% to 11% higher. The increase in total cash costs per ounce is due to the lower ounces produced and sold in the quarter compared to the previous quarter. Meanwhile, the increase in all-in sustaining costs per ounce was due to lower sales volumes, partially offset by a fall in sustaining capital expenditures.
Barrick also reported that first-quarter copper production was lower than the previous quarter due to decreased output at Lumwana and Zaldivar. The cost of sales per pound of copper in the first quarter is estimated to rise up to 2% from the prior quarter, while the C1 cash costs per pound are projected to increase 19% to 21%. This is primarily due to reduced mining rates, as the new fleet at Lumwana is still in the ramp-up phase, as well as higher labor expenses at Zaldivar. However, all-in sustaining costs per pound are expected to decrease 14% to 16% since lower sustaining capital expenditures mitigate the increase in C1 cash costs per pound.
The company is slated to release first-quarter results on May 3, 2023.
Barrick’s shares are down 20.4% over the past year compared with a 9.9% decline recorded by its 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 Olympic Steel, Inc. (ZEUS - Free Report) , Steel Dynamics, Inc. (STLD - Free Report) and Linde plc (LIN - Free Report) . LIN currently carries a Zacks Rank #2 (Buy), while ZEUS and STLD sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Olympic Steel’s shares have gained 33% in the past year. The Zacks Consensus Estimate for ZEUS’ current-year earnings has been revised 33.1% upward in the past 60 days. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 26.2% on average.
Steel Dynamic’s shares have gained 19.2% in the past year. The Zacks Consensus Estimate for STLD’s current-year earnings has been revised 37% upward in the past 60 days. It topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 11.3% on average.
Linde’s shares have gained 13.6% in the past year. The company has an expected earnings growth rate of 8.1% for the current year. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 0.38% upward in the past 60 days.
LIN topped the Zacks Consensus Estimate in all the last four quarters. It delivered a trailing four-quarter earnings surprise of 6% on average.