On the back of excellent contributions from the Pierina mine in Peru and the Goldstrike property in Nevada, juggernaut
The company earned US$72 million (or US18 per share) on revenue of US$318 million, compared with year-ago earnings of US$87 million (US23 per share) on US$390 million. Operating cash flow fell to US$177 million from US$210 million a year earlier.
Production for the three months ended March 31 totalled 902,617 oz., compared with more than 1 million oz. for the same period in 1999. The company realized an average gold price of US$360 per oz., a US$70 premium over the average spot price for the period.
The bulk of production came from the Pierina mine, which turned out 274,308 oz., and Goldstrike, which poured 504,663 oz. The company expects to increase production to a record 3.7 million oz. for 2000 with the commissioning of the new US$330-million roaster facility at Goldstrike, which is slated for the second half of the year.
Total cash costs for the quarter were US$133 per oz., US$12 lower than the company’s target of US$145 per oz. Pierina produced at US$38 per oz.
Barrick has sold forward its production through 2001 at an average minimum price of US$360 per oz. Overall, its committed position remains at 9.8 million oz. gold.
In late March, the company signed an agreement for a US$200-million limited-recourse project-financing for construction of the 8.8-million-oz. Bulyanhulu mine in Tanzania. Mine construction at Bulyanhulu and Rodeo is on schedule and budget. Production at both properties is slated to begin in 2001.
At March 31, Barrick had no net debt, a cash balance of US$526 million and shareholders’ equity of US$3.9 billion.
Be the first to comment on "Pierina, Goldstrike power Barrick’s quarter"