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Barrick's (GOLD) Q1 Earnings Surpass Estimates, Sales Lag

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·4 min read
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Barrick Gold Corporation GOLD recorded net earnings (on a reported basis) of $538 million or 30 cents per share in first-quarter 2021, up from $400 million or 22 cents per share in the year-ago quarter.

Barring one-time items, adjusted earnings per share surged 81% year over year to 29 cents. The figure also beat the Zacks Consensus Estimate of 26 cents.

Barrick recorded total sales of $2,956 million, up 8.6% year over year. However, the figure missed the Zacks Consensus Estimate of $3,055.1 million.

Barrick Gold Corporation Price, Consensus and EPS Surprise

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

Barrick Gold Corporation price-consensus-eps-surprise-chart | Barrick Gold Corporation Quote

Operational Highlights

Total gold production amounted to around 1.1 million ounces in the first quarter, down 12% year over year from 1.25 million ounces. Average realized price of gold was $1,777 per ounce in the quarter, up 12% year over year.

Cost of sales increased 5.2% year over year to $1,073 per ounce. All-in sustaining costs (AISC) moved up around 6.7% year over year to $1,018 per ounce in the quarter.

Copper production declined 19% year over year to 93 million pounds. Average realized copper price was $4.12 per pound, up 85% year over year.

Financial Position

At the end of the quarter, Barrick had cash and cash equivalents of $5,672 million, up 70% year over year. The company’s long-term debt was $5,140 million at the end of the quarter, down from $5,150 million in the previous-year quarter.

Net cash provided by operating activities surged 46.5% year over year to $1,302 million.

Guidance

For 2021, Barrick anticipates attributable gold production in the range of 4.4-4.7 million ounces. AISC is expected in the range of $970-$1,020 per ounce and cost of sales is expected in the range of $1,020-$1,070 per ounce.

The company also expects copper production in the range of 410-460 million pounds at AISC of $2.00-$2.20 per pound and cost of sales of $1.90-$2.10 per pound.

Capital expenditures are projected between $1,800 million and $2,100 million.

Price Performance

Barrick’s shares have declined 18.4% in the past year against 8.3% decline of the industry.

Zacks Rank & Other Key Picks

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

Some better-ranked stocks in the basic materials space are Dow Inc. DOW, Nucor Corporation NUE and Impala Platinum Holdings Limited IMPUY.

Dow has a projected earnings growth rate of roughly 261.5% for the current year. The company’s shares have surged 107.2% 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.

Nucor has an expected earnings growth rate of around 228.4% for the current year. The company’s shares have gained 127% in the past year. It currently sports a Zacks Rank #1.

Impala has an expected earnings growth rate of 197.6% for the current fiscal. The company’s shares have skyrocketed 223.3% in the past year. It currently flaunts a Zacks Rank #1.

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