Barrick Sticks to 2020 View Even as Quarterly Gold Output Sags

(Bloomberg) -- Barrick Gold Corp., the world’s second-largest producer of the metal, reported the lowest quarterly production since the third quarter of 2018 but still thinks it will make its annual guidance.

“These results positioned Barrick well to achieve its guidance for the year despite the impact of the global Covid-19 pandemic and the resultant lockdowns,” Barrick Chief Executive Officer Mark Bristow said Thursday in a statement.

Key Insights

• In February, Barrick forecast production this year will range from 4.8 million to 5.2 million ounces.
• First-quarter all-in sustaining costs for gold are expected to be similar to the fourth quarter.
• Gold producers have benefited from rising prices for bullion as the coronavirus weighs on expectations for economic growth. Spot gold averaged $1,582 an ounce in the first quarter, 21% more than a year earlier, and the metal has extended gains in April.
• In its annual report, Barrick projected production would hold around 5 million ounces of gold a year over the next decade based on its current operating asset portfolio and other assumptions, excluding possible impacts from the Covid-19 pandemic.

Market Reaction

• Barrick’s U.S. shares gained 32% in this year through Wednesday.

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