TORONTO - Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX), a major mining company, reported its preliminary third-quarter results today, revealing gold production of 943 thousand ounces and copper production of 48 thousand tonnes. The company also announced gold sales of 967 thousand ounces and copper sales of 42 thousand tonnes for the same period. These figures are in line with the company's expectations, setting the stage for a strong fourth quarter to meet its annual production targets.
The average market price for gold in the third quarter was $2,474 per ounce, and for copper, it was $4.18 per pound. Barrick's gold production remained consistent with the second quarter, while copper production increased, primarily due to higher grades and recoveries at the Lumwana mine.
Operational highlights included a 23% increase in output at Pueblo Viejo due to continued plant optimization and a stronger quarter at North Mara driven by higher grades. The Gold Quarry roaster expansion at Carlin is expected to enhance throughput and recoveries in the upcoming quarter. Turquoise Ridge also saw improved underground mining performance.
Costs for gold are anticipated to be slightly higher compared to the second quarter, with sales costs per ounce expected to rise by 1% to 3%, total cash costs by 3% to 5%, and all-in sustaining costs by 0% to 2%. This increase is partly due to higher royalties from the increased gold prices. Conversely, copper costs per pound are expected to be 5% to 7% higher for sales, 13% to 15% higher for C1 cash costs, but all-in sustaining costs per pound are projected to be 2% to 4% lower.
The company will offer further details and analysis of its third-quarter performance when it reports its full quarterly results on November 7, 2024. The presentation will be hosted by President and CEO Mark Bristow in London, with a live presentation and interactive webinar.
The preliminary figures presented are based on the company's expectations as of today and may change upon final review. Investors are reminded that these figures are not definitive and are subject to final adjustments.
This article is based on a press release statement and aims to provide investors with a concise overview of Barrick Gold's preliminary third-quarter results, maintaining a neutral perspective and focusing solely on the factual content provided.
In other recent news, Barrick Gold Corporation has been making significant strides in its operations. The company recently reached an agreement with the Mali government to settle disputes concerning the Loulo and Gounkoto gold mines, ensuring the long-term operation and productivity of these key economic contributors in Mali. Barrick Gold also reported strong Q2 2024 results, highlighting progress in growth projects such as the development of a potential Tier 1 gold mine in Nevada and expansion in copper production.
Analysts from Scotiabank and Argus have shown confidence in the company's trajectory. Scotiabank reaffirmed its Sector Outperform rating for Barrick Gold, following a technical webinar on the company's Lumwana super pit expansion project, which now has an estimated capital expenditure of approximately $2 billion due to inflationary pressures and project scope modifications. Argus upgraded Barrick Gold's stock rating to Buy from Hold, acknowledging the company's strong historical presence and solid financial foundation.
In addition, Barrick Gold announced a share buyback program to address the perceived undervaluation of its shares. This move, along with other recent developments such as the expansion of the Pueblo Viejo plant and operational status of the Porgera mine, underscores the company's strategic growth and value orientation. These are the recent developments that investors should keep an eye on.
InvestingPro Insights
Barrick Gold's preliminary third-quarter results align with several key metrics and insights from InvestingPro. The company's consistent gold production and increased copper output, particularly at the Lumwana mine, are reflected in its solid financial performance.
According to InvestingPro data, Barrick Gold's revenue growth stands at 9.77% over the last twelve months as of Q2 2024, with a quarterly revenue growth of 11.61% in Q2 2024. This growth trajectory supports the company's strong production figures and positions it well to meet its annual targets.
An InvestingPro Tip highlights that Barrick Gold operates with a moderate level of debt, which is crucial for maintaining operational flexibility in the capital-intensive mining industry. This financial prudence is particularly important as the company continues to optimize its operations and expand projects like the Gold Quarry roaster at Carlin.
Another relevant InvestingPro Tip notes that Barrick Gold has maintained dividend payments for 38 consecutive years. This long-standing commitment to shareholder returns is significant, especially considering the company's ability to sustain dividends while investing in growth and managing costs in a fluctuating commodity price environment.
The company's market capitalization of $35.39 billion USD underscores its position as a major player in the gold mining sector. With a P/E ratio of 23.41, investors are pricing in expectations of continued strong performance, which aligns with the company's positive outlook for the fourth quarter.
For readers interested in a deeper analysis, InvestingPro offers additional tips and metrics that could provide further insights into Barrick Gold's financial health and future prospects.
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