Lower production and higher costs combined to reduce third-quarter earnings for
Net earnings topped US$66 million (or 17 per share) in the three months ended Sept. 30, US$20 million less than a year ago. Comparable revenue was up U$5 million, to US$317 million. Cash flow was off US$1 million from a year ago, at US$162 million.
Earnings in the first nine months of this year totalled US$204 million (52 per share) on revenue of US$954 million, compared with US$230 million (58 per share) on US$953 million last year.
Cash flow topped US$466 million, down significantly from a year ago.
Barrick produced 944,811 oz. at an average cash cost of US$156 per oz. Nine-month figures are 2.8 million oz. and US$157 per oz., respectively.
The Goldstrike mine in Nevada contributed 1.7 million oz. to the major’s 9-month production. Total cash costs have averaged US$190 per oz. so far this year.
In Peru, the Pierina mine cranked out 264,586 oz. during the quarter, bringing 9-month production to 691,869 oz. Cash costs over the longer period averaged US$40 per oz.
Across the Atlantic, in Tanzania, the Bulyanhulu mine produced 85,384 oz. at US$199 per oz. during the quarter. The mine began commercial production in early April. It has since produced 148,963 oz. at a total cash cost of US$202 per oz. The mine is expected to have produced 240,000 oz. by year-end at a total cash cost of US$195 per oz.
Barrick realized an average gold price of US$340 per oz. on its 9-month production. This represents a premium of US$71 per oz. over the spot price, reflecting the company’s hedging program.
In 2001, Barrick expects to churn out 3.7 million oz. at a total cash cost of US$158 per oz. This is expected to translate into net earnings of US70 per share, which represents the lower end of of a range provided at the year’s start. Operational adjustments are partly to blame.
The earnings forecast excludes any adjustments that would be required if the proposed merger with
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