Barrick Gold Corporation GOLD reported preliminary second-quarter production and sales figures, with 948,000 ounces of gold and 43,000 tons of copper produced and preliminary second-quarter sales of 956,000 ounces of gold and 42,000 tons of copper. Per the previous forecast, Barrick expects its gold and copper production in 2024 to progressively increase each quarter, with a higher weighting in the second half of the year. This will likely keep GOLD on track to meet its full-year gold and copper guidance.
In the second quarter, the average market price for gold was $2,338 per ounce. The average market price for copper was $4.42 per pound.
The preliminary second-quarter gold production surpassed first-quarter levels due to increased production at Turquoise Ridge following the completed maintenance at the Sage autoclave in the first quarter, the continued successful ramp-up at Porgera and significant increases at Tongon, North Mara and Kibali. These gains were partially offset by planned lower production at Cortez and Phoenix. Pueblo Viejo's production remained steady as throughput ramped up with a shift to recovery rate optimization in the second half of 2024.
Barrick Gold Corporation Price and Consensus
Barrick Gold Corporation price-consensus-chart | Barrick Gold Corporation Quote
Compared with the first-quarter tally, second-quarter gold costs of sales per ounce and total cash costs per ounce are expected to be 0 to 2% higher. Without the second-quarter increase in gold prices and the resulting higher royalties, total cash costs per ounce would have been lower compared to the first quarter. All-in sustaining costs per ounce are expected to rise by 1% to 3%. However, costs are anticipated to decline in the year's second half as production ramps up.
Preliminary second-quarter copper production was higher than in the first quarter, primarily due to higher grades and recoveries at Lumwana following the ramp-up in stripping activities and a planned shutdown in the first quarter. Compared with first-quarter 2024 levels, second-quarter copper cost of sales per pound is expected to be 4-6% lower, C1 cash costs per pound are expected to be 8-10% lower, while all-in sustaining costs per pound are expected to be 1-3% higher due to increased waste stripping at Lumwana. Copper costs are also expected to decline in the second half of the year as production ramps up.
Barrick will provide a detailed discussion and analysis of its second-quarter 2024 production and sales when it reports its quarterly results before the opening bell on Aug 12, 2024.
Barrick’s shares have gained 9.1% in the past year compared with a 14.6% rise of the industry.
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Zacks Rank & Other Key Picks
Barrick currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS, Eldorado Gold Corporation EGO and Kinross Gold Corporation KGC. Carpenter Technology and Eldorado Gold sport a Zacks Rank #1 (Strong Buy), and Kinross carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CRS’s current-year earnings is pegged at $4.35, indicating a year-over-year rise of 282%. CRS’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while matching it once, the average earnings surprise being 15.1%. The company’s shares have soared 111.5% in the past year.
The Zacks Consensus Estimate for EGO’s current-year earnings is pegged at $1.09, indicating a year-over-year rise of 91.2%. EGO’s earnings estimates have increased 10% in the past 60 days. EGO beat the consensus estimate in the last four quarters, with the average earnings surprise being 430.7%. The stock has rallied 50.7% in the past year.
The Zacks Consensus Estimate for Kinross's current-year earnings is pegged at 52 cents, indicating a rise of 18.2% from the year-ago levels. KGC beat the consensus in the last four quarters, with the average earnings surprise being 46%. The stock has surged nearly 79.9% in the past year.
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