Barrick Expects Gold Production at Upper End of 2019 Guidance

(Bloomberg) -- Barrick Gold Corp. said it’s on track to meet its production guidance this year as strong performances at mines in Mali and Argentina offset lower production elsewhere.

Key Insights

• Second-quarter gold costs are expected to be “marginally higher” than the first quarter while quarter-over-quarter copper costs will be slightly lower.
• In February, Barrick said its costs to produce gold would be higher this year, following its merger with Randgold Resources Ltd., primarily because operations at its high-grade, low-cost open pit mine at Cortez Hills in Nevada were winding down.
• As of May, the Toronto-based company expected 2019 gold production of 5.1 million to 5.6 million ounces and copper output of 375 million to 430 million pounds.
• Spot gold prices averaged $1,309 an ounce in the second quarter, little changed from a year earlier. Prices have rallied since late May as the Federal Reserve signaled a more dovish policy on interest rates.
• Both Barrick and rival Newmont Goldcorp Corp. have looked to multibillion-dollar mergers as a means of improving their portfolios and replenishing finite gold reserves.

Market Reaction

• Barrick released the statement before the start of regular trading in New York, where the shares slipped 1.2% as of 7:19 a.m.

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• To see the release, click here

To contact the reporter on this story: Danielle Bochove in Toronto at dbochove1@bloomberg.net

To contact the editors responsible for this story: Luzi Ann Javier at ljavier@bloomberg.net, Steven Frank, Joe Carroll

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