Copper boosts Barrick Gold earnings

Kitco Media
By Rajan Dhall
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Updated
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(Kitco News) - Barrick (ABX:TSX) produced 120 million pounds of copper in the second quarter, up 25% from the first quarter, while gold output rose marginally to 1.043 million ounces from 1.041 million ounces. The firm reported a nearly 19% rise in second-quarter profit.

Net earnings stood at $488 million, or 27 cents per share, for the quarter ended June 30, compared with $411 million, or 23 cents per share, a year earlier.

EBITDA was down 10% from the same period a year ago, due in part to a 5% fall in gold production.

Project capital expenditure also jumped by 23% in the first half of this year as Barrick pushed ahead with expanding its Pueblo Viejo mine in the Dominican Republic, while free cash flow fell by 24%.

Mark Bristow said the critical scrutiny of ESG and sustainability disclosures was intensifying in a climate of skepticism about so-called greenwashing. Against this background, Barrick's annual Sustainability Scorecard, an industry first, continues to report the group's performance transparently and objectively against a wide range of standard metrics.

"We've taken the leadership in integrating the various aspects of ESG and managing these complex issues in a measured and holistic manner," he said.

Looking at the weekly chart below the company's share price has been under pressure recently. There is a support level very close to the current price level and the next resistance stands at 22.64. On the downside, the green horizontal line is the support area but it is looking pretty formidable at the moment.

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Rajan Dhall

Rajan Dhall is a financial analyst that has been in the trading industry since 2009. From working in Canary Wharf (London) as a head trader to becoming a journalist on a real-time news desk, Rajan has worked his way through many positions in the financial sector. The main area of Raj's expertise lies in technical and statistical analysis. Rajan currently lectures technical analysis with the Society of Technical Analysts (STA) at the London School of Economics. One of the main areas Rajan has based his analysis on is probability. Raj completed his certification (probability) with Harvard and regularly uses probability theories in his analysis as he feels it helps him add value to his clients and customers.

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