In stark contrast to its struggling peers, industry-leader
For the first quarter ended March 31, Barrick posted net income of US$87 million (23 cents per share) on gold sales revenues of US$390 million, compared with earnings of US$75 million (20 cents per share) on revenue of US$302 million in the corresponding period of 1998.
Operating cash flow between the two periods increased to US$210 million (56 cents per share) from US$135 million (36 cents per share).
Gold production during the recent 3-month period rose to more than 1 million oz. at a cash operating cost of US$116 per oz., a marked improvement over the 769,282 oz. produced a year earlier at US$154 per oz.
Most of the additional production is due to the November startup of the Pierina mine in Peru, where Barrick mined 315,660 oz. at a cash operating cost of just US$39 per oz.
Barrick also produced:
- 288,507 oz. gold from the Betze-Post mine in Nevada;
- 237,795 oz. from the Meikle mine, also in Nevada;
- 55,158 oz. from the Bousquet operation in Quebec;
- 27,434 oz. from Holt-McDermott in Ontario; and
- 86,359 oz. from projects that are being phased out, including the El Indio and Tambo mines in Chile.
Barrick realized an average price of US$385 per oz. for its gold during the quarter, generating US$99 million in additional revenue. Barrick still had 12.5 million oz. gold sold forward at the end of the first quarter, and the company’s production through to 2001 is being sold forward at an average minimum price of US$385 per oz.
The company says it is on track to meet its 1999 operating target of 3.6 million oz. gold, which it intends to produce at a cash operating cost of US$125 per oz.
At the Bulyanhulu property in Tanzania (acquired through the March acquisition of Sutton Resources), Barrick plans to double the reserve base by year-end and achieve production in late 2000.
As of March 31, Barrick had no net debt and a cash balance of US$554 million.
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