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Barrick grows revenue by a third, outlook for 2020 is flat

Kitco News

Barrick Gold (NYSE:GOLD) grew revenues by a third in 2019 hitting $9.7 billion in its year end financial statements released today.

Net earning were up 357%, reversing last years loss. Net earnings per share were $2.26 for 2019, adjusted net earnings rose by 46%1, net debt was halved to $2.2 billion and the quarterly dividend was increased three times during the year. It was Barrick's first year full year of operation after its merger with Randgold Resources.

Barrick had some significant asset sales in 2019 that boosted earnings.

The company said the significant increase in revenue was mainly due to a gain of $1.9 billion relating to the remeasurement of Turquoise Ridge to fair value as a result of its contribution to Nevada Gold Mines and a gain of $408 million resulting from the sale of Barrick's 50% interest in Kalgoorlie.

Gold production was up a healthy 21% to 5.46 million ounces. Despite higher production gold all-in-sustaining production was up 11% to $892 ounce.

The Nevada gold mines performed well up 9% to 585,000 ounces. Pueblo Viejo also performed, up 29% to 179,000 ounces.

In its outlook section, gold production is flat with the same number of ounces expected in 2020 as in 2019.

In a news release, the company highlighted gold production at the top end of the guidance range; copper production which exceeded its forecast; the consummation of the Nevada Gold Mines joint venture, majority-owned and operated by Barrick; the consolidation of the Tanzanian mines; and the disposal of some non-core assets. Net of depletion, proven and probable reserves increased year-over-year at a higher grade.

Regarding COVID-19 the company said it is fully engaged and emergency response measures have been rolled out at all sites and operations. Barrick said it is in a strong position to contend with the challenge.

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