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Barrick (GOLD) Reports Strong Preliminary Q2 Sales & Production
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Barrick Gold Corporation (GOLD - Free Report) has announced its preliminary sales and production figures for the second quarter. During this period, the company sold 1 million ounces of gold and 101 million pounds of copper. Additionally, it produced 1.01 million ounces of gold and 107 million pounds of copper. Barrick expects its gold and copper production to continue to increase throughout 2023, with higher production anticipated in the second half of the year. The company remains confident about achieving its full-year guidance for gold and copper.
In the second quarter, the average market price for gold was $1,976 per ounce, while copper averaged $3.84 per pound. However, Barrick's realized copper price for the quarter is expected to be 3% to 5% lower than the average market price. This decline is primarily due to provisional pricing adjustments that reflect the decrease in copper prices during the second quarter.
Preliminary gold production in the second quarter exceeded that of the first quarter. This increase was mainly driven by higher production at the Carlin mine, where normal throughput levels were restored after significant maintenance work conducted in the first four months of the year. Additionally, higher grades at the Kibali and Veladero mines contributed to the overall increase. However, production was lower at the Cortez mine due to mine sequencing, at the Turquoise Ridge mine due to planned autoclave maintenance and at the Pueblo Viejo mine due to tie-in work and commissioning of the plant expansion project.
Compared to the first quarter, the second-quarter gold cost of sales per ounce is expected to be 3% to 5% lower, total cash costs per ounce are expected to be 1% to 3% lower, and all-in sustaining costs per ounce are anticipated to be up to 2% lower.
In terms of copper production, the second quarter exceeded the production in the first quarter, primarily driven by the Lumwana mine. Compared to the first quarter, the second quarter copper cost of sales per pound is expected to be 11-13% lower, C1 cash costs per pound are expected to be 15-17% lower, and all-in sustaining costs per pound are anticipated to be 7-9% lower.
Barrick stock has gained 11.6% in the past year compared with the industry’s rise of 28.2% in the same period.
The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 3.7% upward in the past 60 days. ATI beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 13%. The company’s shares have rallied 105.9% in the past year.
The Zacks Consensus Estimate for PPG’s current-year earnings has been revised 6.3% upward in the past 90 days. PPG beat the Zacks Consensus Estimate in three of the last four quarters and missed once, with the average earnings surprise being 6.8%. The company’s shares have gained 31.9% in the past year.
The Zacks Consensus Estimate for APD’s current-year earnings has been revised 0.3% upward in the past 60 days. Air Products beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 1.3% on average. The company’s shares have risen roughly 34.7% in the past year.
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Barrick (GOLD) Reports Strong Preliminary Q2 Sales & Production
Barrick Gold Corporation (GOLD - Free Report) has announced its preliminary sales and production figures for the second quarter. During this period, the company sold 1 million ounces of gold and 101 million pounds of copper. Additionally, it produced 1.01 million ounces of gold and 107 million pounds of copper. Barrick expects its gold and copper production to continue to increase throughout 2023, with higher production anticipated in the second half of the year. The company remains confident about achieving its full-year guidance for gold and copper.
In the second quarter, the average market price for gold was $1,976 per ounce, while copper averaged $3.84 per pound. However, Barrick's realized copper price for the quarter is expected to be 3% to 5% lower than the average market price. This decline is primarily due to provisional pricing adjustments that reflect the decrease in copper prices during the second quarter.
Preliminary gold production in the second quarter exceeded that of the first quarter. This increase was mainly driven by higher production at the Carlin mine, where normal throughput levels were restored after significant maintenance work conducted in the first four months of the year. Additionally, higher grades at the Kibali and Veladero mines contributed to the overall increase. However, production was lower at the Cortez mine due to mine sequencing, at the Turquoise Ridge mine due to planned autoclave maintenance and at the Pueblo Viejo mine due to tie-in work and commissioning of the plant expansion project.
Compared to the first quarter, the second-quarter gold cost of sales per ounce is expected to be 3% to 5% lower, total cash costs per ounce are expected to be 1% to 3% lower, and all-in sustaining costs per ounce are anticipated to be up to 2% lower.
In terms of copper production, the second quarter exceeded the production in the first quarter, primarily driven by the Lumwana mine. Compared to the first quarter, the second quarter copper cost of sales per pound is expected to be 11-13% lower, C1 cash costs per pound are expected to be 15-17% lower, and all-in sustaining costs per pound are anticipated to be 7-9% lower.
Barrick stock has gained 11.6% in the past year compared with the industry’s rise of 28.2% in the same period.
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Zacks Rank & Key Picks
Barrick currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space include ATI Inc. (ATI - Free Report) and PPG Industries, Inc. (PPG - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Air Products and Chemicals, Inc. (APD - Free Report) , carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ATI’s current-year earnings has been revised 3.7% upward in the past 60 days. ATI beat the Zacks Consensus Estimate in all the last four quarters, with the average earnings surprise being 13%. The company’s shares have rallied 105.9% in the past year.
The Zacks Consensus Estimate for PPG’s current-year earnings has been revised 6.3% upward in the past 90 days. PPG beat the Zacks Consensus Estimate in three of the last four quarters and missed once, with the average earnings surprise being 6.8%. The company’s shares have gained 31.9% in the past year.
The Zacks Consensus Estimate for APD’s current-year earnings has been revised 0.3% upward in the past 60 days. Air Products beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 1.3% on average. The company’s shares have risen roughly 34.7% in the past year.