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Barrick's (GOLD) Tongon Mine Life Extension to Drive Production
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Barrick Gold Corporation (GOLD - Free Report) said that the operational life of its Tongon gold mine in Ivory Coast continues to be extended through successful exploration campaigns. Originally slated for closure in 2020, the mine's extended operation promises to bolster production and generate significant benefits for Barrick and its stakeholders in the Ivory Coast.
Barrick holds an 89.7% stake in the Tongon mine, located north of the Cote d’lvoire port city of Abidjan. Since its first gold pour in 2010, Tongon has injected an impressive $2.2 billion into the Ivorian economy through taxes, infrastructure development, employee salaries, and payments to local suppliers. With the mine's life being extended, these positive impacts are set to continue.
The extension of Tongon's life allows the mine to further share the value it creates with its Ivorian stakeholders. Barrick will continue investing in community infrastructure development and income-generating projects, ensuring sustainable growth and prosperity for the local communities.
Exploration efforts have played a pivotal role in securing the mine's extended life. The Seydou North, Tongon West and Djinni satellite targets have been successfully added to the mine's portfolio, further extending its operational life. Additionally, Barrick has been awarded a new exploration permit for Boundiali and ongoing drilling is taking place at the Fonondara conversion project.
The extension of the life of the Tongon mine not only ensures sustained production and profitability for Barrick but also reinforces its commitment to the Ivorian community. As the mine continues to thrive, it will create additional opportunities for economic growth, job creation and infrastructure development in the region. With ongoing exploration efforts and a proven track record of profitability, Tongon is poised for continued success in the years to come.
Tongon has never experienced an unprofitable quarter since its first gold pour despite encountering operational challenges and a challenging socio-political environment throughout its existence. The mine remains on track to achieve its annual production guidance once again.
Barrick expects attributable gold production of 180,000-210,000 ounces for Tongon in 2023. Attributable production from the mine was 180,000 ounces in 2022.
GOLD’s shares have lost 5.6% in the past year against the 14.4% rise of its industry. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 1.1% upward in the past 60 days. The consensus estimate for current-year earnings is currently pegged at 95 cents, suggesting year-over-year growth of around 26.7%.
Image Source: Zacks Investment Research
For 2023, Barrick anticipates total attributable gold production in the range of 4.2-4.6 million ounces. It sees stronger year-over-year production performance from Cortez, Pueblo Viejo and Turquoise Ridge. The company also projects total copper production in the range of 420-470 million pounds for 2023.
Zacks Rank & Key Picks
Barrick currently has a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include PPG Industries, Inc. (PPG - Free Report) , Koppers Holdings Inc. (KOP - Free Report) and Linde plc (LIN - Free Report) .
PPG Industries currently carries a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for PPG's current-year earnings has been stable over the past 60 days.
PPG Industries’ earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 6.8%, on average. PPG shares have gained around 23% in a year.
The consensus estimate for current-year earnings for KOP is currently pegged at $4.40, indicating year-over-year growth of 6.3%. Koppers’ shares have rallied roughly 54% in the past year.
Linde currently carries a Zacks Rank #2. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 0.7% upward in the past 60 days.
Linde beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 6.9% on average. LIN shares have risen roughly 33% in the past year.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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Barrick's (GOLD) Tongon Mine Life Extension to Drive Production
Barrick Gold Corporation (GOLD - Free Report) said that the operational life of its Tongon gold mine in Ivory Coast continues to be extended through successful exploration campaigns. Originally slated for closure in 2020, the mine's extended operation promises to bolster production and generate significant benefits for Barrick and its stakeholders in the Ivory Coast.
Barrick holds an 89.7% stake in the Tongon mine, located north of the Cote d’lvoire port city of Abidjan. Since its first gold pour in 2010, Tongon has injected an impressive $2.2 billion into the Ivorian economy through taxes, infrastructure development, employee salaries, and payments to local suppliers. With the mine's life being extended, these positive impacts are set to continue.
The extension of Tongon's life allows the mine to further share the value it creates with its Ivorian stakeholders. Barrick will continue investing in community infrastructure development and income-generating projects, ensuring sustainable growth and prosperity for the local communities.
Exploration efforts have played a pivotal role in securing the mine's extended life. The Seydou North, Tongon West and Djinni satellite targets have been successfully added to the mine's portfolio, further extending its operational life. Additionally, Barrick has been awarded a new exploration permit for Boundiali and ongoing drilling is taking place at the Fonondara conversion project.
The extension of the life of the Tongon mine not only ensures sustained production and profitability for Barrick but also reinforces its commitment to the Ivorian community. As the mine continues to thrive, it will create additional opportunities for economic growth, job creation and infrastructure development in the region. With ongoing exploration efforts and a proven track record of profitability, Tongon is poised for continued success in the years to come.
Tongon has never experienced an unprofitable quarter since its first gold pour despite encountering operational challenges and a challenging socio-political environment throughout its existence. The mine remains on track to achieve its annual production guidance once again.
Barrick expects attributable gold production of 180,000-210,000 ounces for Tongon in 2023. Attributable production from the mine was 180,000 ounces in 2022.
GOLD’s shares have lost 5.6% in the past year against the 14.4% rise of its industry. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 1.1% upward in the past 60 days. The consensus estimate for current-year earnings is currently pegged at 95 cents, suggesting year-over-year growth of around 26.7%.
Image Source: Zacks Investment Research
For 2023, Barrick anticipates total attributable gold production in the range of 4.2-4.6 million ounces. It sees stronger year-over-year production performance from Cortez, Pueblo Viejo and Turquoise Ridge. The company also projects total copper production in the range of 420-470 million pounds for 2023.
Zacks Rank & Key Picks
Barrick currently has a Zacks Rank #3 (Hold).
Better-ranked stocks worth a look in the basic materials space include PPG Industries, Inc. (PPG - Free Report) , Koppers Holdings Inc. (KOP - Free Report) and Linde plc (LIN - Free Report) .
PPG Industries currently carries a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for PPG's current-year earnings has been stable over the past 60 days.
PPG Industries’ earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 6.8%, on average. PPG shares have gained around 23% in a year.
The Zacks Consensus Estimate for Koppers’ current-year earnings has been stable over the past 60 days. KOP currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for current-year earnings for KOP is currently pegged at $4.40, indicating year-over-year growth of 6.3%. Koppers’ shares have rallied roughly 54% in the past year.
Linde currently carries a Zacks Rank #2. The Zacks Consensus Estimate for LIN’s current-year earnings has been revised 0.7% upward in the past 60 days.
Linde beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 6.9% on average. LIN shares have risen roughly 33% in the past year.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.