Higher Nevada production pushes up Barrick Gold's gold output forecasts
(Reuters) - Canadian miner Barrick Gold Corp on Thursday forecast fourth-quarter gold production above analysts’ expectations, as its Nevada Gold Mines joint venture with Newmont Corp yielded more of the precious metal.
The company said it expects the joint venture - located in the one of the world’s largest gold producing areas - to produce 585 million ounces of gold for the three months ended Dec.31.
Total preliminary gold production rose 14% to 1.44 million ounces from a year earlier.
Nevada Gold was formed last year after Barrick pulled its $18 billion hostile bid for Newmont Corp, the world’s largest gold producer, and combined assets with the rival. They both expect to save more than $5 billion over the next 20 years.
Last year Barrick also acquired Africa-focused Rangold Resources to boost its gold reserves and grades.
Gold gained about 18% in 2019, fueled by investors seeking safe-haven assets on the back of global recessionary fears triggered by the long-drawn out trade spat between the United States and China, the world’s two largest economies.
Barrick’s copper output gained 7.3% to 117 million pounds in the fourth quarter, while it sold 91 million pounds of copper.
The company also said it expects a quarter-over-quarter decrease in total cash costs per gold ounce and all-in sustaining costs per ounce of about 1-3% and 6-8%, respectively.
Reporting by Arundhati Sarkar in Bengaluru; Editing by Shinjini Ganguli