Barrick reports net earnings of $241M in Q3, says on track to achieve its 2022 production guidance

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(Kitco News) - Barrick Gold (NYSE: GOLD) (TSX: ABX) announced today that the company produced 988 koz of gold in Q3 2022, which is a decline of 10% compared to Q3 2021 (1,092 koz) and 5% lower than 1,043 koz produced in Q2 2022.

The company said that its Q3 2022 gold production was lower than Q2 2022 as a strong performance from Pueblo Viejo was offset by lower production at Veladero, Carlin and Turquoise Ridge. In addition, production at Long Canyon was lower than Q2 2022 following the completion of Phase 1 mining in May 2022.

The company added it produced 123 million pounds of copper in Q3 2022, which is an increase of 23% compared to Q3 2021 (100 million pounds) and 3% higher than 120 million pounds produced in Q2 2022, mainly due to strong performance from Lumwana.

Barrick’s operating cash flow for the quarter was $758 million (Q3 2021: $1,050 million) and was supplemented by the sale of non-core royalty assets.

The company also reported Q3 2022 net earnings of $241 million or $0.14 per share (Q3 2021: $347 million or $0.20 per share) and adjusted net earnings of $224 million or $0.13 per share (Q3 2021: $419 million or $0.24 per share).

Barrick reiterated it remains on track to achieve its 2022 production guidance despite some short-term operational challenges and rising input costs.

Importantly, the company announced the declaration of a dividend of $0.15 per share for the third quarter of 2022, leading to record annual returns in 2022.

“Barrick’s core strategy is one of long-term value creation and our focus remains firmly on this goal. We continue to maintain a strong balance sheet and to develop our wealth of organic growth projects. We also keep a sharp lookout for M&A opportunities, but those that could pass our strict investment filters are few and far between,” president and chief executive Mark Bristow said.

“Barrick is successfully executing its strategy to create the world’s most valued gold and copper mining company through the performance of its peerless asset portfolio and a pipeline of high-quality organic growth prospects. This is evident in its industry-leading and sustainable shareholder returns, delivered in a disciplined dividend framework,” he added.