Barrick Gold Reports 2015 First Quarter Results

Barrick Gold Corp (TSX:ABX) announced its first quarter results for 2015, which show net earnings of $57 million or $0.05 per share.

As quoted in the press release:

Adjusted net earnings were $62 million ($0.05 per share)1. Operating cash flow was $316 million. Gold production guidance for 2015 remains at 6.2-6.6 million ounces, with production 55 percent weighted to the second half of the year, in line with plan. Costs are also expected to be 20 percent lower in the second half of the year, with full-year all-in sustaining costs in line with guidance of $860-$895 per ounce.

Highlights from Q1 2015 include:

• Production and costs in the first quarter were in line with operating plans. The company produced 1.39 million ounces of gold at all-in sustaining costs (AISC)(1) of $927 per ounce and generated $316 million in operating cash flow.
• Full-year gold operating guidance remains on track for 6.2-6.6 million ounces at all-in sustaining costs of $860-$895 per ounce, with higher production and lower costs expected in the second half of the year. All-in sustaining costs and cash costs are expected to be highest in the second quarter of the year.
• The company remains committed to debt reduction of at least $3 billion by the end of 2015, with asset sales and other initiatives well advanced.
• Detailed evaluation of all capital spending plans using a 15 percent hurdle rate is now underway. To date, we have identified $200 million in capital expenditure reductions for 2015, with further reductions expected as the evaluation proceeds.
• Barrick is announcing a significant new gold discovery, known as Alturas, on Chile’s prolific El Indio belt. Drilling to date suggests Alturas is geologically similar to Veladero, with the potential to be significantly higher grade.
• Barrick has formed a new partnership with Quantum Pacific Exploration, a company using innovative strategies and tools to increase the probability of discovery, faster than conventional approaches and at lower costs.
• The Lumwana mine will continue operating following announcement of new tax system by the government of Zambia . Copper production guidance for 2015 has been increased to 480-520 million pounds, with C1 cash costs unchanged at$1.75-$2.00 per pound.Value Realization Reviews underway to identify opportunities to maximize free cash flow, grow production and lower costs across the portfolio.

Click here to read the full Barrick Gold Corp (TSX:ABX) press release.