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(Kitco News) - Barrick Gold (NYSE: GOLD) (TSX: ABX), the world’s second largest gold miner, announced today that the company produced 0.95 million ounces of gold and 88 million pounds of copper in Q1 2023.
For comparison, Barrick produced 1.0 million ounces of gold and 101 million pounds of copper in Q1 2022 and 1.12 million ounces of gold and 96 million pounds of copper in Q4 2022.
The company said that, as previously guided, preliminary Q1 gold production was lower than Q4 2022 primarily as a result of lower production at Carlin, mainly due to annual roaster maintenance resulting in lower throughput at Goldstrike, the conversion of the Goldstrike autoclave to a conventional carbon-in-leach process and a harsh winter in northern Nevada impacting operations. This was combined with lower grades at Kibali due to mine sequencing.
According to a company press release, compared to Q4 2022, Q1 gold cost of sales per ounce is expected to be 3% to 5% higher, total cash costs per ounce are expected to be 13% to 15% higher and all-in sustaining costs per ounce are expected to be 9% to 11% higher.
Barrick explained that the higher total cash costs per ounce reflects the lower ounces produced and sold relative to the prior quarter, while the increase in all-in sustaining costs per ounce was also driven by lower sales volumes partially offset by lower sustaining capital expenditures.
The company added that preliminary Q1 copper production was lower than Q4 2022, driven by lower production at Lumwana and Zaldívar, as expected.
“Compared to Q4 2022, Q1 copper cost of sales per pound is expected to be up to 2% higher and C1 cash costs per pound are expected to be 19% to 21% higher, mainly due to lower mining rates as the new fleet at Lumwana continues to ramp up, as well as higher labor costs at Zaldívar,” the company said.
All-in sustaining costs per pound are expected to be 14% to 16% lower, as lower sustaining capital expenditures more than offset the increase in C1 cash costs per pound, it added.
As previously guided, Barrick’s gold production in 2023 is expected to increase through the year with the first quarter being the lowest, while copper production is expected to be higher in the second half of the year.
“We remain on track to achieve our full year gold and copper guidance,” Barrick said.
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