Wednesday, Canadian gold miner Barrick Gold Corp. (ABX,ABX.TO), reported a decline in profit for the first quarter, reflecting lower realized prices and higher costs from last year. Both earnings and revenues exceeded analysts' expectations, however, on an adjusted basis, earnings were short of estimates. Barrick reaffirmed its production forecasts for 2009 and expects production to increase in 2010.
The Toronto, Canada-based company's net income for the first quarter dropped to US$371 million from US$514 million in the prior-year quarter. On a per-share basis, earnings declined to US$0.42 from US$0.58 in the year-ago quarter.
Net income, excluding charges for the quarter declined to US$298 million or US$0.34 per basic share from US$537 million or US$0.62 per basic share in the year-ago quarter.
On average, 16 analysts polled by Thomson Reuters expected the company to earn US$0.36 per share for the quarter. Analysts' estimates typically exclude special items.
In the previous fourth quarter, Barrick Gold posted a net loss of US$468 million or US$0.53 per share from the prior year, negatively impacted by hefty impairment charges. Excluding charges, net income dropped to US$277 million or US$0.32 per basic share from last year.
Sales for the quarter under review declined to US$1.83 billion from US$1.96 billion, yet topping analysts' consensus estimate of US$1.76 billion.
For the sequentially preceding quarter, sales increased to US$2.11 billion from the prior-year quarter.
For the first quarter under review, Barrick Gold reported production of 1.76 million ounces of gold at net cash costs of US$404 per ounce or total cash costs of US$484 per ounce, compared to 1.74 million ounces produced at net cash costs of US$250 per ounce or total cash costs of US$395 per ounce in the prior-year quarter.
Average realized gold price for the quarter was US$912 per ounce, compared to US$925 per ounce in the year-ago quarter.
The company said its first quarter witnessed lower production and higher cost as expected due to planned mine sequencing.
Operating cash flow for the quarter was US$349 million, compared to US$718 million in the corresponding quarter of last year.
Barrick indicated that Buzwagi in Tanzania is expected to pour first gold shortly, on schedule and in line with its US$400 million pre-production capital budget. The mine is expected to produce 200 thousand ounces of gold at total cash costs of US$320 per ounce to US$335 per ounce in 2009. The Cortez Hills and Pueblo Viejo projects also remain on schedule and in line with their pre-production capital budgets.
The company still anticipates total cash costs for gold in 2009 to be in the range of US$450 to US$475 per ounce, or US$360 to US$385 per ounce applying full credit for non-gold sales. For 2009, the company said it was on track with full year copper production guidance of 375 million pounds to 400 million pounds at total cash costs of US$1.25 to US$1.35 per pound.
For fiscal year 2010, production is expected to increase to about 7.7 million ounces to 8.1 million ounces at lower total cash costs with the start-up of Cortez Hills scheduled in the first quarter.
Amongst others in the sector, Denver, Colorado-based Newmont Mining Corp. (NEM) is scheduled to announce its quarterly financial results on April 30. Analysts currently expect the company to earn US$0.42 per share, on revenues of US$1.40 billion for the quarter.
ABX is currently trading at US$29.73, up US$0.76 or 2.62%, on a volume of 2.5 million shares on the NYSE. In the past 52 weeks, the stock trended in a broad range of US$17.27 - US$52.48, with a three-month average volume of 14.51 million shares.
ABX.TO is trading at C$35.62, up C$0.02 or 0.06%, on a volume of 1.26 million shares on TSX.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.