We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Barrick (GOLD) Q2 Earnings Surpass Estimates, Sales Miss
Read MoreHide Full Article
Barrick Gold Corporation (GOLD - Free Report) recorded net earnings (on a reported basis) of $305 million or 17 cents per share in second-quarter 2023, down from $488 million or 27 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 19 cents. The figure beat the Zacks Consensus Estimate of 17 cents.
Barrick recorded total sales of $2,833 million, down 0.9% year over year. The figure missed the Zacks Consensus Estimate of $3,397 million.
Barrick Gold Corporation Price, Consensus and EPS Surprise
Total gold production was 1,009,000 ounces in the reported quarter, down around 3% year over year. Our estimate for the same was 1,074,000 ounces. The average realized price of gold was $1,972 per ounce in the quarter, up around 6% year over year.
The cost of sales increased around 9% year over year to $1,323 per ounce. All-in-sustaining costs (AISC) moved up around 12% year over year to $1,355 per ounce in the quarter.
Copper production decreased roughly 11% year over year to 107 million pounds. Our estimate for the quarter was pegged at 118 million pounds. The average realized copper price was $3.70 per pound, down 1% year over year.
Financial Position
At the end of the quarter, Barrick had cash and cash equivalents of $4,157 million, down 28% year over year. The company’s total debt was $4,774 million at the end of the quarter, down 7% year over year.
The operating cash flow was $832 million for the quarter, whereas the free cash flow was $63 million.
Guidance
For 2023, Barrick anticipates attributable gold production of 4.2-4.6 million ounces.
AISC is projected to be $1,170-$1,250 per ounce and cash costs per ounce are forecast to be $820-$880 per ounce. The company also expects to see a cost of sales of $1,170-$1,250 per ounce.
GOLD expects a copper production of 420-470 million pounds at AISC of $2.95-$3.25 per pound, cash costs per ounce of $2.05-$2.25 and cost of sales of $2.60-$2.90 per pound.
Capital expenditure is projected between $2,200 million and $2,600 million.
Price Performance
Barrick’s shares have gained 0.1% in the past year against a 11.7% rise 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 PPG Industries Inc. (PPG - Free Report) , TimkenSteel Corporation and Carpenter Technology Corporation (CRS - Free Report) .
PPG, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 20.8% for the current fiscal year. The Zacks Consensus Estimate for PPG's earnings for the current fiscal year has been revised 1.6% upward in the past 60 days. It delivered an earnings surprise of 7.3% each of the trailing four quarters, on average. PPG has gained 12.7% over a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
TimkenSteel currently carries a Zacks Rank #2 (Buy). The consensus estimate for TMST's current-year earnings has been revised 2.3% upward over the past 60 days. TimkenSteel’s earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of 18.8%, on average. TMST shares have gained around 26% in a year.
CRS, currently flaunting a Zacks Rank #1, has a projected earnings growth rate of 198.11% for the current year. Its earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of 30.9%, on average. CRS shares have surged 74.3% in a year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Barrick (GOLD) Q2 Earnings Surpass Estimates, Sales Miss
Barrick Gold Corporation (GOLD - Free Report) recorded net earnings (on a reported basis) of $305 million or 17 cents per share in second-quarter 2023, down from $488 million or 27 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 19 cents. The figure beat the Zacks Consensus Estimate of 17 cents.
Barrick recorded total sales of $2,833 million, down 0.9% year over year. The figure missed the Zacks Consensus Estimate of $3,397 million.
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 was 1,009,000 ounces in the reported quarter, down around 3% year over year. Our estimate for the same was 1,074,000 ounces. The average realized price of gold was $1,972 per ounce in the quarter, up around 6% year over year.
The cost of sales increased around 9% year over year to $1,323 per ounce. All-in-sustaining costs (AISC) moved up around 12% year over year to $1,355 per ounce in the quarter.
Copper production decreased roughly 11% year over year to 107 million pounds. Our estimate for the quarter was pegged at 118 million pounds. The average realized copper price was $3.70 per pound, down 1% year over year.
Financial Position
At the end of the quarter, Barrick had cash and cash equivalents of $4,157 million, down 28% year over year. The company’s total debt was $4,774 million at the end of the quarter, down 7% year over year.
The operating cash flow was $832 million for the quarter, whereas the free cash flow was $63 million.
Guidance
For 2023, Barrick anticipates attributable gold production of 4.2-4.6 million ounces.
AISC is projected to be $1,170-$1,250 per ounce and cash costs per ounce are forecast to be $820-$880 per ounce. The company also expects to see a cost of sales of $1,170-$1,250 per ounce.
GOLD expects a copper production of 420-470 million pounds at AISC of $2.95-$3.25 per pound, cash costs per ounce of $2.05-$2.25 and cost of sales of $2.60-$2.90 per pound.
Capital expenditure is projected between $2,200 million and $2,600 million.
Price Performance
Barrick’s shares have gained 0.1% in the past year against a 11.7% rise 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 PPG Industries Inc. (PPG - Free Report) , TimkenSteel Corporation and Carpenter Technology Corporation (CRS - Free Report) .
PPG, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 20.8% for the current fiscal year. The Zacks Consensus Estimate for PPG's earnings for the current fiscal year has been revised 1.6% upward in the past 60 days. It delivered an earnings surprise of 7.3% each of the trailing four quarters, on average. PPG has gained 12.7% over a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
TimkenSteel currently carries a Zacks Rank #2 (Buy). The consensus estimate for TMST's current-year earnings has been revised 2.3% upward over the past 60 days. TimkenSteel’s earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of 18.8%, on average. TMST shares have gained around 26% in a year.
CRS, currently flaunting a Zacks Rank #1, has a projected earnings growth rate of 198.11% for the current year. Its earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of 30.9%, on average. CRS shares have surged 74.3% in a year.