(Kitco News) - The mining sector could start to attract new investor attention as the world’s second-largest gold producer reported an increase in gold production in the second quarter, with prices trading near all-time highs.
On Tuesday, Barrick Gold (NYSE)(TSX) said that, according to preliminary estimates, it produced 948,000 ounces of gold and 43,000 tonnes of copper and sold 956,000 ounces of gold and 42,000 tonnes of copper in the second quarter.
“The average market price for gold in Q2 was $2,338 per ounce, while the average market price for copper in Q2 was $4.42 per pound,” the company said in the report.
Second-quarter production increased from 940,000 ounces of gold and 39,000 tonnes of copper produced in the first quarter.
“As previously guided, Barrick’s gold and copper production in 2024 is expected to progressively increase each quarter through the year, with a higher weighting in the second half. The company remains on track to achieve our full-year gold and copper guidance,” the company said.
Barrick mentioned that increased activity at Turquoise Ridge, following the completed maintenance at the Sage autoclave in Q1, continued successful ramp-up at Porgera, and significant increases at Tongon, North Mara, and Kibali were all factors that drove production higher in the second quarter.
While Barrick has been busy digging, the company also noted that costs are increasing.
“Compared to Q1, Q2 gold cost of sales per ounce and total cash costs per ounce are both expected to be 0 to 2% higher. Absent the increase in the gold price in Q2 and the consequential increase in royalties, total cash costs per ounce would have been lower compared to Q1. All-in sustaining costs per ounce are expected to be 1 to 3% higher. Costs are expected to drop in the second half of the year as production ramps up,” the company said.
