Barrick announced that profits were down in Q1 2019, in the miner’s first quarterly report since merging with Randgold earlier this year.
The company stated that the profit amounted to 6 cents per share for the quarter, down from 14 cents per share a year earlier. Despite the decrease, Barrick managed to raise its revenue from US$1.79 billion this time last year to US$2.09 billion in the first quarter of this year.
This is the first quarterly report that the company has released since merging with Randgold Resources at the beginning of 2019. Mark Bristow, president and CEO, commented, “We have gone a long way towards integrating the organizations, streamlining the processes and ensuring that all the sites have the geological, operational and technical capability to meet their business objectives.
“We’re also well advanced in establishing our new joint venture with Newmont (TSX:NGT,NYSE:NEM), which has been named Nevada gold mines,” he added.
In a conference call Wednesday morning, Bristow noted that the joint venture with Newmont is expected to close before the end of the second quarter of this year.
Overall, the Toronto-based gold producer stated that its Q1 adjusted net income was 11 cents a share versus analyst expectations of 9 cents. Adjusted net income climbed to US$184 million, up from the US$170 million garnered in 2018, although it fell on a per share basis from 15 cents.
In terms of production, gold output rose to 1.37 million ounces, at an all-in sustaining cost of US$825 per ounce, which is up from 1.05 million ounces at US$804 per ounce this time last year. Copper production increased to 106 million pounds from 85 million pounds during Q1 2018.
Looking ahead, Barrick remains focused on streamlining operations and reviewing assets to focus on its “best-performing and lowest-cost mines.”
The company noted that it has already identified the assets that no longer fit into the miner’s portfolio profile, but withheld naming specific mines. Barrick added that it has begun “looking at other prospects to the north and into Canada.”
The miner also revealed a production forecast of 5.1 million to 5.6 million ounces of gold for 2019, which is an increase of at least 13 percent from last year. However, all-in sustaining costs are expected to rise to between US$870 and US$920 per ounce, from US$806 in 2018.
As of 3:20 p.m. EDT on Wednesday, Barrick was trading at C$16.82.
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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.