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Barrick's (GOLD) Q1 Earnings Beat, Revenues Miss Estimates

Zacks Equity Research

Barrick Gold Corporation GOLD recorded net earnings of $111 million or 6 cents per share in first-quarter 2019, down from $158 million or 14 cents in the year-ago quarter.  

Barring one-time items, adjusted earnings per share (EPS) came in at 11 cents, which beat the Zacks Consensus Estimate of 10 cents.

Barrick recorded revenues of $2,093 million, up roughly 17% year over year. However, the figure trailed the Zacks Consensus Estimate of $2,160 million.

Barrick Gold Corporation Price, Consensus and EPS Surprise

 

Barrick Gold Corporation Price, Consensus and EPS Surprise | Barrick Gold Corporation Quote

 

Operational Highlights

Total gold production was around 1.37 million ounces in the quarter, up roughly 30% year over year. Average realized price of gold fell around 2% year over year to $1,307 per ounce.

Cost of sales per ounce went up roughly 8% year over year to $947 million. All-in sustaining costs (AISC) rose 3% to $825 per ounce in the quarter.

Copper production increased 25% year over year to 106 million pounds. Average realized copper price was $3.07 per pound, up 3% year over year.

Financial Position

As of Mar 31, 2019, the company had cash and cash equivalents of $2,153 million, down roughly 9.7% year over year. Long-term debt was $5,499 million at the end of the first quarter.  

Net cash provided by operating activities rose 2.6% year over year to $520 million.

Guidance

Barrick stated that its key growth projects were on track. Also, brownfields and greenfields exploration were boosting reserves and enabling the company to identify new opportunities.

For 2019, the company anticipates gold production in the range of 5.1-5.6 million ounces at AISC of $870-$920 per ounce and cost of sales of $910-$970 per ounce.

The company expects copper production in the range of 375-430 million pounds at AISC of $2.40-$2.90 per pound and at cost of sales of $2.30-$2.70 per pound.  

Capital expenditure is projected between $1,400 million and $1,700 million.

Price Performance

Barrick’s shares have lost 5.6% in the past year compared with the industry’s 5.5% decline.



Zacks Rank & Other Key Picks

Barrick currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the basic materials space are Materion Corporation MTRN, Verso Corporation VRS and AngloGold Ashanti Limited AU, all currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Materion has an expected earnings growth rate of 16.4% for 2019. The company’s shares have gained 24.8% in the past year.

Verso has an expected earnings growth rate of 7% for the current year. The company’s shares have appreciated 22.1% in a year’s time.

AngloGold has an expected earnings growth rate of 86.8% for 2019. Its shares have rallied 30.3% in a year’s time.

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