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Barrick Gold maintains 2024 production guidance

Published 16/07/2024, 17:14
GOLD
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TORONTO - Barrick Gold (LON:0R22) Corporation (NYSE:GOLD)(TSX:ABX) announced its preliminary production results for the second quarter of 2024 today, with gold production at 948 thousand ounces and copper production at 43 thousand tonnes. The company also reported gold sales of 956 thousand ounces and copper sales of 42 thousand tonnes for the same period.

The mining giant remains on track to meet its full-year guidance for both gold and copper production, which is projected to increase each quarter with a higher output expected in the latter half of the year.

Preliminary figures suggest that the average market price for gold in the second quarter was $2,338 per ounce, while copper averaged $4.42 per pound. The increase in gold production over the first quarter was attributed to heightened activity at several mines, including Turquoise Ridge, Porgera, Tongon, North Mara, and Kibali.

However, this was partially offset by lower production at Cortez and Phoenix. Pueblo Viejo's production remained consistent, with a focus on ramping up throughput and optimizing recovery rates for the second half of the year.

Costs for gold are expected to be marginally higher by 0 to 2% compared to the first quarter, while copper costs are anticipated to be lower by 4 to 6%. Despite the slight increase in costs for gold due to rising gold prices and associated royalties, Barrick predicts a decrease in costs in the second half of 2024 as production escalates.

Barrick Gold plans to provide a more detailed analysis and discussion of its second-quarter production and sales when it reports its quarterly results on August 12, 2024. The company has scheduled a live presentation of the results on the same day, allowing for interactive participation and questions.

This press release statement serves as the source of information for the preliminary second-quarter production, sales, and cost figures provided by Barrick Gold.

In other recent news, Barrick Gold Corp. has been garnering attention due to its promising financial outlook and strategic operational moves. Scotiabank reaffirmed its Sector Outperform rating and expects a slight improvement in the company's gold production for the second half of 2024.

Similarly, Jefferies updated its outlook on Barrick Gold, predicting a rise in earnings and cash flow for the company, attributing this to an uptick in gold sales from its African operations.

In terms of copper production, the outlook is optimistic, with projections for a modest increase over the first quarter of 2024. Barrick Gold's production and sales of gold and copper are expected to be more substantial in the latter half of the year, with significant contributions from mines at Lumwana, North Mara, Kibali, Tongon, and Bulyanhulu. The company also completed the second and final phase of the TS Solar Power facility at Nevada Gold Mines during the second quarter.

BMO Capital Markets has given Barrick Gold an Outperform rating with a one-year target price of US$26.00.

Despite a temporary suspension of Barrick Gold's shares from trading on the New York Stock Exchange due to technical difficulties, the company maintains a robust outlook for its operations, emphasizing the rising demand for copper and gold.

These are all recent developments that investors should take into account when considering Barrick Gold Corp.

InvestingPro Insights

Barrick Gold Corporation's (NYSE:GOLD) recent announcement of its preliminary production results for Q2 2024 has been met with optimism, reflecting the company's steady progress towards its annual production targets. In light of these developments, certain metrics and insights from InvestingPro provide additional context to the company's financial health and market performance.

With a market capitalization of $32.18 billion, Barrick Gold is maintaining its stature in the mining sector. The company's P/E ratio, which stands at 22.5, suggests investors are recognizing its earnings potential. This is further supported by the company's performance over the last twelve months, with a revenue growth of 6.46%, underscoring its ability to expand operations and sales efficiently.

An InvestingPro Tip highlights that Barrick Gold has been consistent in rewarding its shareholders, maintaining dividend payments for an impressive 38 consecutive years. This commitment to shareholder returns is a testament to the company's financial stability and prudent management. Moreover, the company's liquid assets surpass its short-term obligations, indicating a robust liquidity position that enables it to navigate through market fluctuations and invest in growth opportunities.

For investors seeking to delve deeper into Barrick Gold's performance and potential, InvestingPro offers additional insights. There are currently 5 more InvestingPro Tips available, providing a comprehensive analysis of the company's prospects. Interested readers can access these valuable tips and benefit from an exclusive offer by using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

As Barrick Gold approaches its next earnings date on August 12, 2024, investors and analysts will be closely watching to see if the company can maintain its upward trajectory and realize the profitability predicted by analysts this year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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