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Barrick (GOLD) Q2 Production Dips, Set to Achieve FY21 Targets

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Barrick Gold Corporation GOLD reported preliminary second-quarter sales of 1.07 million ounces of gold and 96 million pounds of copper. It also reported preliminary second-quarter production of 1.04 million ounces of gold and 96 million pounds of copper.

The company continues to be on track to achieve 2021 guidance, with the Africa and Middle East as well as Latin America and Asia Pacific regions trending to the top end of their regional gold guidance and North America to the lower end.

The average market price for gold in the quarter was $1,816 per ounce, while the average market price for copper was $4.40 per pound.

The preliminary gold production in second quarter was lower than the previous quarter’s level of 1.1 million ounces, with planned maintenance shutdowns at Nevada Gold Mines’ processing facilities further affected by a mechanical mill failure at Carlin’s Goldstrike roaster as well as planned maintenance at Pueblo Viejo.

Barrick expects gold production in the second half of 2021 to be higher than the first half. Second-quarter gold cost of sales per ounce is forecast to be 2-4% higher, total cash costs per ounce are expected to be 1-3% higher and all-in sustaining costs per ounce are projected to be 6-8% higher than first-quarter levels.

Preliminary second-quarter copper production was modestly higher than the first quarter. Second-quarter copper cost of sales per pound is expected to be 14-16% higher and C1 cash costs per pound are forecast to be 13-15% higher than previous quarter’s figures. Copper all-in sustaining costs per pound are projected to be 20-22% higher than the first quarter, primarily due to reduced sales at Lumwana and maintenance at Zaldivar as well as the impact of a higher copper price transitioning into higher royalty costs.

Shares of Barrick have declined 22.2% in the past year compared with 18.1% fall of the industry.

Zacks Investment Research
Zacks Investment Research


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 Nucor Corporation NUE, Olin Corporation OLN and Cabot Corporation CBT.

Nucor has a projected earnings growth rate of around 381.7% for the current year. The company’s shares have surged 131.2% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Olin has an expected earnings growth rate of around 523.7% for the current year. The company’s shares have skyrocketed 254% in the past year. It currently sports a Zacks Rank #1.

Cabot has an expected earnings growth rate of around 137.5% for the current fiscal. The company’s shares have surged 46.4% in the past year. It currently flaunts a Zacks Rank #1.


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