Commodities & Metals

Barrick Earnings Hampered by Currency Losses

Paul Ausick

Published: April 26, 2016 7:55 am

Last Updated: January 13, 2020 10:19 am

Barrick Gold Corp. (NYSE: ABX) reported first-quarter 2016 earnings before markets opened Tuesday. For the quarter, the gold miner posted adjusted earnings per share (EPS) of $0.11 on revenues of $1.93 billion. In the same period a year ago, the company reported EPS of $0.05 on revenues of $2.25 billion. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.10 and $1.99 billion in revenues.

On an as-reported basis, Barrick posted a net loss per share of $0.07, primarily due to the impact of foreign currency losses.

Gold production totaled 1.28 million ounces in the quarter, compared with production of 1.39 million ounces in the first quarter of 2015. Sales slipped from 1.385 million ounces to 1.306 million, and the average realized price also slipped from $1,219 to $1,181 per ounce.

The company’s all-in sustaining costs fell sharply from $927 per ounce to $706, and cash costs dropped from $642 an ounce to $553.

Barrick guided full-year gold production at 5.0 million to 5.5 million ounces at a cash cost per ounce of $540 to $580 and an all-in sustaining cost of $760 to $810. The company had previously guided all-in sustaining costs at $775 to $825 per ounce.

Copper production is forecast at 370 to 410 million pounds at a cash cost of $1.35 to $1.65 a pound, and all-in sustaining costs are tabbed at $1.95 to $2.25. The company originally had expected all-in sustaining costs of $2.05 to $2.35 per pound. Capital spending is forecast at $1.35 billion to $1.55 billion, with the bulk of expected spending directed to sustaining existing mines.

Shares of Barrick closed down less than 0.1% on Monday, at $16.11 in a 52-week range of $5.91 to $16.70. Thomson Reuters had a consensus analyst price target of $14.98 before Monday’s report.