CORRECTED-UPDATE 2-Barrick sees lower gold output, higher costs in Q1

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Corrects analysts' expectations in paragraph 8 to 988,700 ounces from 988.7 million ounces. The error appeared in a previous version of the story as well) April 13 (Reuters) - Barrick Gold Corp said on Thursday first-quarter gold production fell 15% sequentially, as a harsh winter hampered the Canadian miner's operations in northern Nevada and annual maintenance weighed on output at its Goldstrike mine. Barrick's gold output has been on a steady decline, falling for at least three consecutive years. But the company said on Thursday it expects gold production to increase through the year, with the first quarter being the lowest. Copper production is expected to be higher in the second half of the year. Gold output at Carlin took a hit from annual maintenance, resulting in lower throughput at Goldstrike mine in the mining district, Barrick said. Gold's all-in sustaining costs (AISC), a key industry metric that reflects total expenses, are expected to be 9% to 11% higher from the prior quarter on lower sales volumes.


AISC for copper, however, is expected to be down 14% to 16% due to lower sustaining capital expenditures. Barrick's total preliminary gold output was 952,000 ounces in the three months ended March 31, compared with 1.1 million ounces in the previous quarter. Analysts on an average expected gold production of 988,700 ounces, according to Refinitiv IBES data. The Toronto, Ontario-based firm's copper production was 88 million pounds during the quarter, down 8.3% from the previous three months, weighed down by lower output at its Lumwana mine in Zambia and Zaldívar mine in Chile. Gold prices rose 7.9% during the January-March period, after a 9.9% increase in the previous quarter, as recent volatility in the banking sector spurred a rush toward the safe haven. Barrick, scheduled to release its first-quarter results on May 3, said the average market price for gold in the period was $1,890 per ounce, up from $1,726 per ounce in the prior three months. (Reporting by Arshreet Singh; Editing by Shilpi Majumdar)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.