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Barrick (ABX) Declares Preliminary Q3 Production Results

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Barrick Gold Corporation provided a preliminary third-quarter 2017 production results.

During the quarter, preliminary gold and copper production was 1.24 million ounces and 115 million pounds, respectively. Gold and copper sales of 1.23 million ounces and 107 million pounds, respectively, were generated in the quarter under review. Average market price for gold during the quarter was $1,278 per ounce, while for copper it was $2.88 per pound.

According to the company, its operations deliver solid results and remains on track for the year. Barrick’s third-quarter gold and copper production was in-line with estimates. The company also reiterated that it expects lower costs and higher production in fourth-quarter 2017.   

Shares of Barrick have moved up 6.2% in the last three months, underperforming the industry’s 10.5% growth.

 

Barrick, in July, announced that for 2017 it anticipates gold production in the range of 5.3-5.6 million ounces, at an all-in sustaining cost (AISC) of $720-$770 per ounce and cost of sales of $780-$820 per ounce. The company expects production to be weighted toward the fourth quarter.  

While Barrick remains exposed to a volatile gold pricing environment, it should benefit from its major exploration programs. Barrick is also making significant progress with its cost and efficiency improvement programs. The company’s aggressive debt reduction action should also lower its interest expenses. The company has cut its total debt by $487 million in first-half 2017.

Moreover, Barrick has a healthy liquidity position and generates substantial cash flows, which positions it well to take advantage of attractive development, exploration and acquisition opportunities. The company continues to make high return investments in its businesses.  

Zacks Rank & Stocks to Consider

Barrick currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space are Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) , The Chemours Company (CC - Free Report) and FMC Corporation (FMC - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Sociedad Quimica has an expected long-term earnings growth rate of 32.5%.

Chemours has an expected long-term earnings growth rate of 15.5%.

FMC has an expected long-term earnings growth rate of 11.3%.

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