Barrick Gold Corp (ABX.TO) said third quarter net profit fell to
$618 million or 62 cents per share, down from $1.37 billion or
$1.37 per share a year earlier. On an adjusted basis, Barrick
earned 85 cents per share, down from $1.38 per share, a year
earlier. Analysts, on average, had expected earnings of 98 cents a
share, according to Thomson Reuters I/B/E/S. It declared a
quarterly dividend of US20 cents per share, payable on December 17,
2012 to shareholders of record at the close of business on November
ABX is now trading at $36.78, down $3.61 from yesterday's close.
Day range is $36.61 - 37.95.
Revenue dropped 13.5% to $3.4 billion on lower gold sales and
Operating cash flow of $1.73 billion and adjusted operating cash
flow of $1.27 billion for the quarter compared to operating cash
flow of $1.90 billion and adjusted operating cash flow of $2.00
billion, respectively, in the same prior year period.
The company expects 2012 gold production of 7.3-7.5 million
ounces, within the original guidance range of 7.3-7.8 million
ounces. Total cash costs for gold are anticipated to be $575-$585
per ounce, compared to the previous guidance of $550-$575 per
ounce, primarily due to higher cash costs from Australia Pacific
and African Barrick Gold (
). Net cash costs are anticipated to be $480-$500 per ounce, within
the previous guidance of $460-$500 per ounce.
Full year 2012 copper production is expected to be about 450
million pounds as a result of the delay in first production at
Jabal Sayid in Saudi Arabia. C1 cash costs in 2012 are still
anticipated to be $2.10-$2.30 per pound.
Pascua-Lama Project Update:
During the quarter, Barrick made substantial progress at
Pascua-Lama. Along with construction advancement at site, the
company strengthened the construction management team and hired
Fluor to assume overall project management. Fluor is a global
leader in construction of large mining projects, and the same firm
that successfully managed construction of our recently completed
Pueblo Viejo mine.
In July, the company announced preliminary results of a review
indicating an increase in capital costs to $7.5-$8.0 billion and a
delay in first production to mid-2014. Since then, Barrick has been
working with Fluor on a more comprehensive top-to-bottom review.
This review will be complete by our 2012 year-end results release;
however, work to date suggests capital costs will be closer to
$8.0-$8.5 billion, with first production in the second half of
More than 5 million shares have changed hands, making it the
second most actively traded on the TSX at midday.