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Barrick Declares Preliminary Q4 & FY17 Production Numbers

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Barrick Gold Corporation reported preliminary production results for the fourth quarter and full-year 2017.

Barrick stated that preliminary full-year gold production of 5.32 million ounces for 2017 came in line with its adjusted guidance range of 5.30-5.50 million ounces. Gold production for the fourth quarter was 1.34 million ounces. The company’s preliminary full-year and fourth-quarter gold sales were 5.30 million ounces and 1.37 million ounces, respectively. Average market price for gold during the fourth quarter was $1,275 per ounce.

Preliminary full-year copper production figure of 413 million pounds were modestly below Barrick’s adjusted guidance of 420-440 million pounds for 2017, but on par with its original guidance range of 400-450 million pounds. Copper production during the fourth quarter was 99 million pounds. The company’s preliminary full year and fourth quarter copper sales were 405 million pounds and 107 million pounds, respectively. Average market price for copper during the fourth quarter was $3.09 per pound.    

Shares of Barrick have declined 9.2% in the last three months, underperforming the industry’s 2.9% gain.

 


 

Barrick is making progress with its cost-improvement programs. Its all-in sustaining costs is among the lowest in the gold mining industry.

Barrick also remains committed to deleverage its balance sheet.  The company cut its total debt by roughly $1 billion in third-quarter 2017. It also exceeded its initial target to reduce debt by $1.45 billion for 2017. Barrick looks to reduce its total debt by $2.9 billion to $5 billion by the end of 2018 using cash flows from operations.

The company’s aggressive debt reduction action should further lower its interest expenses in 2018. Improving balance sheet is also expected to allow the company to look for acquisition opportunities for growth this year.

Zacks Rank & Stocks to Consider

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

Some better-ranked stocks in the basic materials space are Methanex Corporation (MEOH - Free Report) , Huntsman Corporation (HUN - Free Report) and Kronos Worldwide Inc. (KRO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Methanex has an expected long-term earnings growth rate of 15%. Its shares have soared 32% over a year.

Huntsman has an expected long-term earnings growth rate of 8%. Its shares rallied 73.8% over a year.

Kronos has an expected long-term earnings growth rate of 5%. Its shares have surged a whopping 123.8% in a year’s time.

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