Holders of Barrick Gold (TSE) shares got a smaller slice of a bigger pie this year as 9-month earnings increased to US$214.2 million from US$184.1 million in the same period last year, and earnings per share fell marginally to 60 cents from 62 cents.
For the nine months ended Sept. 30, Barrick generated revenue of US$928.5 million, up from US$624.5 million for the nine months of 1994. Barrick’s outstanding shares rose to 353 million from 287 million following last year’s acquisition of Lac Minerals, diluting the per-share figures.
Barrick has spent US$30.9 million on exploration in the past nine months, compared with US$11.4 million in the same period in 1994. Gold production during the period was 2.2 million oz., leaving management confident that the company’s goal of 3 million oz.
in 1995 would be achieved.
The company’s large, low-cost Betze-Post mine in northeastern Nevada is scheduled to increase its production rate, and Barrick’s Canadian and Chilean operations are poised to take advantage of mine development and processing improvements.
Barrick has set a goal for production costs of US$175 per oz., and reports that for the first three quarters of 1995, costs were US$183. With increased production from Betze-Post, the average cost is expected to decline.
Forward sales of gold allowed Barrick to post an average sale price of US$406 per oz. for the 9-month period, during which the spot price averaged US$384 per oz.
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