Barrick Announces Q1 2018 Results

Barrick Gold Corporation (TSX:ABX) reported first quarter results for the period ending March 31, 2018. Gold production and costs for the quarter were in line with expectations, with higher production and lower costs expected in the second half of 2018 driven by the timing of capital expenditures, higher throughput, and improved grades. Despite lower production levels, adjusted net earnings, operating cash flow, and free cash flow all increased compared to the prior-year period, primarily driven by higher gold prices.

Highlights are as follows:

• Barrick reported first quarter net earnings attributable to equity holders of US$158 million (US$0.14 per share), and adjusted net earnings of US$170 million (US$0.15 per share).
• The company reported first quarter revenues of US$1.79 billion, net cash provided by operating activities (“operating cash flow”) of US$507 million, and free cash flow of US$181 million.
• Gold production in the first quarter was 1.05 million ounces, at a cost of sales applicable to gold of US$878 per ounce, all-in sustaining costs of US$804 per ounce, and cash costs of US$573 per ounce.
• Copper production was 85 million pounds, at a cost of sales applicable to copper of US$2.07 per pound, all-in sustaining costs of US$2.61 per pound, and c1 cash costs of US$1.88 per pound.
• We continue to expect full-year gold production of 4.5-5.0 million ounces, at a cost of sales of US$810-US$850 per ounce, all-in sustaining costs of US$765-US$815 per ounce, and cash costs of US$540-US$575 per ounce.
• Full-year copper production guidance remains 385-450 million pounds, at a cost of sales of $1.80-$2.10 per pound, all-in sustaining costs of US$2.30-US$2.60 per pound, and 1 cash costs of US$1.55-US$1.75 per pound.
• During the first quarter, S&P Global Ratings and Moody’s Investors Service upgraded Barrick’s credit rating, citing significant improvements in free cash flow generation and liquidity, supported by the Company’s low-cost portfolio and favorable geopolitical risk profile.
• The Company does not intend to sell additional assets for purposes of debt reduction, and will use cash on hand and cash flow from operations for future debt repayments. Proceeds from any future portfolio optimization will be used to enhance our project pipeline, or returned to shareholders.
• Nevada growth projects remain on schedule and within budget. The Fourmile exploration program in the Cortez district is progressing well, with encouraging initial assay results.

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