Barrick Gold will release its Q4 2017 earnings results on February 14 and conduct a conference call with analysts the next day. We expect Barrick Gold to report a sluggish quarter in comparison to the same period last year due to a lower production volume reported in Q4 and a nominal improvement in the company's cost-saving initiatives. The graph below highlights our expectations from the upcoming results, details of which are summarized in our interactive dashboard .
Barrick's total gold production volume in Q4 receded by 12% on a year-on-year (Y-o-Y) basis, whereas its average realized price per ounce for its gold output displayed a minimal Y-o-Y growth of 2%. Gold production was largely impacted by the ongoing disruption in the company's Acacia mines. Both of these factors are expected to negatively impact the company's top line in Q4.
Furthermore, the company anticipates the full-year cost of sales per ounce and its all-in sustaining cost per ounce to reside at $800 and $745, respectively. These cost estimates are marginally higher than the average cost level achieved for 2016. Barrick is further expected to report a pre-tax $429 million impairment charge this quarter as a result of the reclassification of its reserves at the Pascua-Lama project located on the border between Argentina and Chile.
Nevertheless, the company's results in Q4 would be among the strongest throughout 2017 and are expected to display greater strength in the upcoming quarters as the situation in Acacia stabilizes.
We have a $15 price estimate for Barrick Gold's stock, which is 11% below the current market price.
Have more questions about Barrick Gold? See the links below.
- What is the Upside to Barrick's Price Estimate if Gold Reaches $1400?
- How Sensitive is Barrick's Share Price to its Copper Margins?
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