The results were in line with Barrick’s stated budgets for the quarter but lower than in the second quarter of 1999, when the company earned US$84 million on revenue of US$373 million. The decrease in revenue reflected lower production in 2000, which fell to 899,000 oz., from 969,000 oz. in the corresponding quarter of 1999.
For the six months ended June 30, Barrick showed a profit of US$144 million on revenue of US$641 million. In the first half of 1999, it made US$171 million on revenue of US$763 million.
Development at the Bulyanhulu gold project in Tanzania is on schedule and meeting its US$280-million budget. Barrick is predicting that the mine will exceed expected performance once it is in production. Bulyanhulu is expected to produce 400,000 oz. per year at a cash cost of US$130 per oz.
Barrick’s management also said they expected the Pascua mine development to meet its budget and schedule.
At the Pierina mine in Peru, cash production costs (US$39 per oz.) and total costs (US$247 per oz.) were little changed. James Sokalsky, Barrick’s chief financial officer, told a mining analysts’ conference call that anticipated changes to the Peruvian tax code, now being put through the national legislature by the government of President Alberto Fujimori, “will have absolutely no impact on Pierina. We have a tax stabilization agreement and there won’t be any impact on that whatsoever.”
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