Barrick Gold Corporation GOLD recorded net earnings (on a reported basis) of $305 million or 17 cents per share in second-quarter 2023, down from $488 million or 27 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 19 cents. The figure beat the Zacks Consensus Estimate of 17 cents.
Barrick recorded total sales of $2,833 million, down 0.9% year over year. The figure missed the Zacks Consensus Estimate of $3,397 million.
Barrick Gold Corporation Price, Consensus and EPS Surprise
Barrick Gold Corporation price-consensus-eps-surprise-chart | Barrick Gold Corporation Quote
Operational Highlights
Total gold production was 1,009,000 ounces in the reported quarter, down around 3% year over year. Our estimate for the same was 1,074,000 ounces. The average realized price of gold was $1,972 per ounce in the quarter, up around 6% year over year.
The cost of sales increased around 9% year over year to $1,323 per ounce. All-in-sustaining costs (AISC) moved up around 12% year over year to $1,355 per ounce in the quarter.
Copper production decreased roughly 11% year over year to 107 million pounds. Our estimate for the quarter was pegged at 118 million pounds. The average realized copper price was $3.70 per pound, down 1% year over year.
Financial Position
At the end of the quarter, Barrick had cash and cash equivalents of $4,157 million, down 28% year over year. The company’s total debt was $4,774 million at the end of the quarter, down 7% year over year.
The operating cash flow was $832 million for the quarter, whereas the free cash flow was $63 million.
Guidance
For 2023, Barrick anticipates attributable gold production of 4.2-4.6 million ounces.
AISC is projected to be $1,170-$1,250 per ounce and cash costs per ounce are forecast to be $820-$880 per ounce. The company also expects to see a cost of sales of $1,170-$1,250 per ounce.
GOLD expects a copper production of 420-470 million pounds at AISC of $2.95-$3.25 per pound, cash costs per ounce of $2.05-$2.25 and cost of sales of $2.60-$2.90 per pound.
Capital expenditure is projected between $2,200 million and $2,600 million.
Price Performance
Barrick’s shares have gained 0.1% in the past year against a 11.7% rise of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Barrick currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are PPG Industries Inc. PPG, TimkenSteel Corporation TMST and Carpenter Technology Corporation CRS.
PPG, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 20.8% for the current fiscal year. The Zacks Consensus Estimate for PPG's earnings for the current fiscal year has been revised 1.6% upward in the past 60 days. It delivered an earnings surprise of 7.3% each of the trailing four quarters, on average. PPG has gained 12.7% over a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
TimkenSteel currently carries a Zacks Rank #2 (Buy). The consensus estimate for TMST's current-year earnings has been revised 2.3% upward over the past 60 days. TimkenSteel’s earnings beat the Zacks Consensus Estimate in three of the last four quarters. It has a trailing four-quarter earnings surprise of 18.8%, on average. TMST shares have gained around 26% in a year.
CRS, currently flaunting a Zacks Rank #1, has a projected earnings growth rate of 198.11% for the current year. Its earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of 30.9%, on average. CRS shares have surged 74.3% in a year.
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