Canadian Mining Journal

News

GOLD: Barrick reports Q1 net earnings of $170M



Guidance for bullion production during the second quarter remains about the same as for the first quarter, 1.0 million oz. (Image: Barrick Gold)

TORONTO – Barrick Gold has reported first quarter adjusted net earnings of $170 million (all U.S. dollars) on revenues of $1.8 billion for the period. The company’s operating cash flow was $507 million and free cash flow was $181 million.

Despite lower production for Q1 2018 compared to the same period a year earlier, these numbers all increased thanks to the stronger price of gold.

The company recorded first quarter production of 1.05 million oz. of gold at an all-in sustaining cost of $804 per oz. and cash costs of $573 per oz. Copper production was 85 million lb. at an all-in sustaining cost of $2.61 per lb. and C1 cash costs of $1.88 per lb.

Full year gold guidance remains at 4.5 million to 5.0 million oz. with all-in sustaining costs in the range of $765 to $815 per oz. Full year copper guidance is also unchanged at 385 million to 450 million lb. at an all-in sustaining cost of $2.30 to $2.60 per lb.

The company has set a capital expenditures target of $1.4 billion to $1.6 billion, the bulk of which will be for sustaining costs at existing mine sites. Only $450 million to $550 million are earmarked for new projects.

Barrick says no more assets will be sold to reduce debt. Rather the company will use cash on hand and cash flow for future repayments.

Further details of quarterly financial results are available at www.Barrick.com.