TORONTO – Barrick Gold released its Q2 2015 numbers on Wednesday, revealing that it had a net loss of $9 million (all US dollars) or $0.01 per share. The adjusted net earnings were $60 million ($0.05 per share).
Quarterly production was 1.45 million oz of gold at an all-in sustaining cost of $895 per ounce. For the full year production is targeted at 6.1 million to 6.4 million oz, reflecting the impact of recent asset sales. The company also believes the 2015 AISC will be lowered to $840 to $880 per oz of gold produced.
Barrick is also barreling ahead on debt reduction. At the beginning of the year, it said $3 billion would be cut from its debt in 2015 and 2016. Already $2.45 billion from asset sales and joint ventures has been achieved. And the company is now targeting an additional $2-billion debt pay down by the end of 2016. The total debt reduction during 2015-16 is now targeted at $4 billion.
Barrick says it has a $4 billion undrawn credit facility and $2.1 billion in cash at the end of Q2 2015. Debt reduction will continue including the possible sale of non-core North American assets. Bald Mountain, 50% of Round Mountain, 70% of Spring Valley, Ruby Hill, Hilltop, and Golden Sunlight are all on the block.
The company has also reduced sustaining and capital requirements – by $50 million and $100 million respectively – in the second quarter. Preproduction capital and exploration budgets have also been trimmed.
Barrick's complete Q2 2015 results are available at Barrick.com.
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