Post Earnings Coverage as Barrick Gold's Q4 Revenues and Adjusted EPS Beat Estimates
Upcoming AWS Coverage on Franco-Nevada Post-Earnings Results
LONDON, UK / ACCESSWIRE / March 7, 2017 / Active Wall St. announces its post-earnings coverage on Barrick Gold Corp. (NYSE: ABX). The company reported its fourth quarter fiscal 2016 (Q4 FY16) and full year fiscal 2016 (FY16) earnings on February 15, 2017. The Toronto, Canada-based Company's quarterly revenues grew on a year-over-year basis and reported positive net earnings for the fourth quarter of FY16. Register with us now for your free membership at:
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One of Barrick Gold's competitors within the Gold space, Franco-Nevada Corp. (NYSE: FNV), announced on February 09, 2017, that it will release its 2016 financial results on March 22, 2017, after market close. The Company will also conduct a Conference Call and Webcast on March 23, 2017 at 11:00 a.m. ET. AWS will be initiating a research report on Franco-Nevada in the coming days.
Today, AWS is promoting its earnings coverage on ABX; touching on FNV. Get our free coverage by signing up to:
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Earnings Reviewed
During Q4 FY16, Barrick Gold reported revenues of $2.32 billion compared to $2.24 billion in Q4 FY15. Revenues number for Q4 FY16 outperformed market expectations of $1.82 billion.
The gold and copper mining Company reported net earnings of $425 million, or $0.36 per diluted share, in Q4 FY16 versus net loss of $2.62 billion, or $2.25 loss per diluted share, in the prior year's comparable quarter. The Company's adjusted earnings increased during Q4 FY16 to $255 million, or $0.22 per share, from $91 million, or $0.08 per share, in Q4 FY15. Additionally, Wall Street had expected the Company to report adjusted earnings of $0.21 per diluted share. The Company attributed this growth in adjusted net earnings primarily to higher realized gold and copper prices, partly offset by a year-over-year decrease in gold and copper sales volumes.
Barrick Gold's revenues fell during FY16 to $8.56 billion from $9.03 billion in FY15. The Company's net earnings for FY16 were $655 million, or $0.56 per diluted share, compared to a net loss of $2.84 billion, or $2.44 loss per diluted share, in FY15. Furthermore, adjusted earnings for FY16 stood at $818 million, or $0.70 per share, versus $344 million, or $0.30 per share, in FY15.
Production Numbers
The Company's Gold production volume in Q4 FY16 was 1.52 million ounces compared to 1.62 million ounces in the previous year's same quarter. The gold cost of sales reduced during Q4 FY16 to $784 per ounce from $848 per ounce in Q4 FY15. Furthermore, the all-in sustaining costs were $732 per ounce in Q4 FY16 versus $733 per ounce in the prior-year corresponding period.
In Q4 FY16, Copper production volume was 101 million pounds, down from 138 million pound in the last year comparable quarter. For the reported quarter, cost of sales attribute to copper production increased to $1.45 per pound from $1.09 per pound in Q4 FY15. However, all-in sustaining costs associated with copper production were down to $2.04 per pound in Q4 FY16 from $2.15 per pound in Q4 FY15.
Cash Flow and Balance Sheet
In the three months ended December 31, 2016, net cash generated by operating activities rose to $711 million from $698 million in Q4 FY15. Additionally, free cash flow during the reported quarter grew to $385 million from $387 million in Q4 FY15.
As on December 31, 2016, cash and cash equivalents balances stood at $2.39 billion with working capital (excluding cash) position of $1.16 billion compared of cash equivalents and working capital (excluding cash) balance of $2.46 billion and $1.31 billion, respectively as on December 31, 2015. Furthermore, the Company's non-current debt position as on December 31, 2016 was $7.79 billion, lower than $9.77 billion recorded on December 31, 2015.
Dividends and Share Repurchases
In a separate press release on February 15, 2017, Barrick Gold's Board of Directors raised quarterly dividend from $0.02 cents per share to $0.03 per share. The dividend will be payable on March 15, 2017, to shareholders of record at the close of business on February 28, 2017.
Earnings Outlook
The Company raised its outlook for full year FY17 and expects gold production in the range of 5.60 million to 5.90 million ounces from previous production guidance range of 5.0 million to 5.5 million ounces. The Company anticipates cost of sales applicable to gold during FY17 to be between $780 and $820 per ounce. Additionally, the Company reduced the all-in sustaining costs guidance range to $720 to $770 per ounce from prior guidance range of $740-$790 per ounce. Furthermore, the Company is targeting a free cash flow breakeven gold price of $1,000 per ounce, which should ensure that the Company generates cash even in periods of lower gold prices, while generating a windfall at higher gold price.
Stock Performance
On Monday, March 06, 2017, the stock closed the trading session at $18.02, slipping 1.21% from its previous closing price of $18.24. A total volume of 13.08 million shares have exchanged hands. Barrick Gold's stock price rallied 20.16% in the past three months, and 32.02% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 12.94%. The stock is trading at a PE ratio of 32.06 and has a dividend yield of 0.67%.
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