The international miner is set on reaching its guidance of 5.1 million to 5.6 million ounces of gold while working to keep costs on the low side.
The international miner said on Thursday (October 17) that it is set on reaching its guidance of 5.1 million to 5.6 million ounces of gold while working to keep costs on the low side.
According to Barrick, the results come on the back of a strong performance across its portfolio and increased value due to the company’s merger with Randgold Resources earlier this year.
The Randgold merger facilitated the creation of a joint venture between Barrick and Newmont Goldcorp (TSX:NGT,NYSE:NEM). Called Nevada Gold Mines, it is the world’s largest gold complex.
“The third quarter results, which include the impact of the Nevada Gold Mines joint venture established on 1 July, show preliminary third quarter sales of 1.32 million ounces of gold and 64 million pounds of copper, as well as preliminary third quarter production of 1.31 million ounces of gold and 111 million pounds of copper,” notes a press release from Barrick.
The added value the gold price experienced in the third quarter likely bolstered revenue as well. The average market price for gold was up from US$1,345 per ounce in the second quarter of the year to US$1,472 during the most recent three month period.
Copper had a more volatile quarter, with the average market price for the red metal sitting at roughly US$2.63 per pound in Q3.
Speaking at this year’s Denver Gold Forum, Mark Bristow, president and CEO of Barrick, spoke about changes at the company and how it has stayed on track to meet its goals.
“If you compare what we said we would do with what we’ve done, every single box has been ticked,” he said during a presentation at the show. “All the planning that preceded the merger and a lot of hard work enabled us to sprint out of the starting box.”
Despite nearing its guidance totals, the company experienced a few hiccups during Q3. Reduced gold production quarter-over-quarter was attributed to operational restrictions at North Mara in Tanzania.
The company’s total gold output for Q3 was 1,306,000 ounces, while sold ounces totaled 1,317,000.
Even though gold production was lower, copper recovery was up compared to Q2 thanks to an uptick in output from the Lumwana mine in Zambia.
Shares of Barrick were up slightly on Thursday, trading at C$22.60.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.