US stocks drop, Aug. 19–23: Barrick, AngloGold Ashanti, Harmony Gold

The Dow Jones Industrial Average fell 0.99% to 25,628.90, and the S&P 500 Index dropped 1.44% to 2,847.11.

Barrick Gold rose US75¢ to US$19.14 per share. The company reported second-quarter production of 1.35 million oz. gold, compared with 1.37 million oz. in the first quarter of the year. Net earnings came in at 11¢ per share — up from 6¢ per share in the first quarter — and adjusted net earnings were 9¢ per share, down from 11¢ per share in the first quarter. Debt net of cash was the same at US$3.7 billion, after payment of its first-quarter dividend, and Barrick kept the 4¢ dividend per share in the second quarter. After June, the gold major repurchased US$248 million of outstanding debt due in 2020, which it says could save annualized interest of US$12 million. Net cash from operating activities reached US$434 million.

Shares of AngloGold Ashanti rose US$1.49 to US$22.53. The company reiterated its 2019 production guidance of between 3.25 million and 3.45 million oz. gold at total cash costs of between US$730 and US$780 per oz. gold, and all-in sustaining costs of between US$935 and US$995 per oz. gold. Production in the first half reached 1.55 million oz. at total cash costs of US$792 per oz. gold, compared to 1.58 million oz. at total cash costs of US$807 per oz. gold in the first six months of 2018. All-in sustaining costs in the first six months of 2019 came in at US$1,002 per oz. gold — a 2% year-on-year improvement. During the second quarter, production rose 7% to 801,000 oz. from 752,000 oz. gold in the first quarter. Second-quarter free cash flow reached US$78 million, compared with an outflow of US$109 million in the first quarter.

Harmony Gold Mining’s shares rose 20.5%, or US61¢, to close at US$3.58. The gold-mining and exploration company, which operates in South Africa and Papua New Guinea, reported that gold production during the year ended June 30 increased 17% to 1.44 million ounces. A full year of production from Hidden Valley, an open-pit, gold-silver mine in Papua New Guinea, and the Moab Khotsong gold mine in South Africa — which Harmony acquired from AngloGold Ashanti in March 2018 — boosted annual gold production and cash flows. The company reported a net loss in the 2019 fiscal year of US$185 million, compared to a net loss of US$321 million in the 2018 fiscal year.