Barrick annual production on track despite Covid-19
Barrick is expected to achieve annual production within its 2020 target range.
Second quarter results show year-to-date gold production of 2.4 million ounces, mid-year forecast of 4.6 million to 5 million ounces.
The company announced that gold production was down 15% from 1.149 million ounces in the second quarter compared to 1.353 million ounces in the same period in 2019, reflecting the coronavirus impact at the Veladero mine in Argentina and the Porgera dispute -Goldmine in Papua New is attributed to Guinea.
Barrick ceased production at Porgera and sued the government after refusing to renew the mine’s expired lease in April.
Prime Minister James Marape said last week that the mine could be closed for up to three years.
“The chances of saving the mine if it is closed for three years are very slim,” Barrick CEO Mark Bristow told Reuters.
The miner said he had an average gold price of $ 1,725 an ounce for the quarter, up 31% year over year.
“Our major projects, including the Pueblo Viejo expansion, the Goldrush development and the Turquoise Ridge shaft, remain on track. The only exception was Veladero, where the heap leach and cross-border Chilean power line projects were affected by the Argentine government’s quarantine restrictions, ”said Bristow.
In North America, the Nevada gold mines spearheaded by the Cortez Mine tended to be at the high end of their guidelines as the integrated structure enabled the management team to adjust ore routing through Carlin’s processing facilities in real time while exploration was underway at the restructured Hemlo operations in Ontario Assistance in extending my lifespan over 10 years with a production profile of around 220,000 ounces per year.
In the Africa and Middle East region, Loulo-Gounkoto and Kibali were also at the top of their leadership.
“The Tanzanian assets are still being resuscitated but exports of the stockpiled concentrate have resumed and the Bulyanhulu underground operation is being recommissioned,” Barrick said in the press release.
According to Bristow, North Mara and Bulyanhulu were capable of producing more than 500,000 ounces annually for at least 10 years.
In Latin America, Pueblo Viejo’s production was down 22% compared to Q1 due to a planned plant maintenance shutdown, while production and costs at Veladero were impacted by a nationwide quarantine and severe winter weather.
Dividend up
Barrick beat quarterly profit estimates, benefiting from a rise in demand for gold.
The company has hiked the quarterly dividend by 14% up to 8 cents per share. Brokerage Scotiababank told Reuters the increase “was not a surprise,” but came slightly earlier than it had expected.
Operating cash flow exceeded $1 billion for the quarter and free cash flow was $522 million. Net earnings per share was 20 cents. Adjusted net earnings per share was 23 cents, up 44% from Q1. The company debt net of cash was reduced by almost 25% to $1.4 billion from the end of Q1.
Barrick is the world’s second-biggest gold miner.
