Barrick's (GOLD) Earnings and Sales Surpass Estimates in Q1
Barrick Gold Corporation GOLD recorded net earnings (on a reported basis) of $438 million or 25 cents per share in first-quarter 2022, down from $538 million or 30 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 26 cents. The figure beat the Zacks Consensus Estimate of 23 cents.
Barrick recorded total sales of $2,853 million, down 3.5% year over year. The figure surpassed the Zacks Consensus Estimate of $2,841 million. Results in the reported quarter benefited from higher gold prices. The company witnessed a strong performance from Loulo-Gounkoto in the quarter, driven by solid throughput, recovery and grade.
Operational Highlights
Total gold production amounted to around 990,000 ounces in the first quarter, down 10% year over year. The average realized price of gold was $1,876 per ounce in the quarter, up 6% year over year.
Cost of sales increased 11% year over year to $1,190 per ounce. All-in sustaining costs (AISC) moved up around 14% year over year to $1,164 per ounce in the quarter.
Copper production increased 9% year over year to 101 million pounds. The average realized copper price was $4.68 per pound, up 14% year over year.
Financial Position
At the end of the quarter, Barrick had cash and cash equivalents of $5,887 million, up 4% year over year. The company’s total debt was $5,144 million at the end of the quarter, flat year over year.
Net cash provided by operating activities declined 23% year over year to $1,004 million for the quarter.
The company’s board declared a dividend of 20 cents per share for the first quarter of 2022, suggesting an increase of 100% on the previous base quarterly dividend of 10 cents.
Guidance
For 2022, the outlook for Barrick remains unchanged. It anticipates attributable gold production in the range of 4.2-4.6 million ounces. AISC is expected in the range of $1,040-$1,120 per ounce and cash costs per ounce are projected in the band of $730-$790 per ounce.
The company also expects copper production in the range of 420-470 million pounds at AISC of $2.70-$3.00 per pound and cost of sales of $2.20-$2.50 per pound.
Capital expenditures are projected between $1,900 million and $2,200 million.
Price Performance
Barrick’s shares have dropped 1.6% in the past year compared with a 5.3% decline of the industry.
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Zacks Rank & Key Picks
Barrick currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Nutrien Ltd. NTR, AdvanSix Inc. ASIX and Allegheny Technologies Incorporated ATI.
Nutrien has a projected earnings growth rate of 127.9% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 31.1% upward in the past 60 days.
Nutrien’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, while missing once. It delivered a trailing four-quarter earnings surprise of roughly 5.9%, on average. NTR has rallied around 80.2% in a year and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
AdvanSix has a projected earnings growth rate of 63.4% for the current year. The Zacks Consensus Estimate for ASIX’s current-year earnings has been revised 39.4% upward in the past 60 days.
AdvanSix’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 23.6%. ASIX has surged 53% in a year. The company carries a Zacks Rank #1.
Allegheny, currently sporting a Zacks Rank #1, has an expected earnings growth rate of 707.7% for the current year. The Zacks Consensus Estimate for ATI's earnings for the current year has been revised 6.1% upward in the past 60 days.
Allegheny’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 127.2%. ATI has rallied around 17.3% over a year.
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