Barrick Gold Profit Declines On Lower Gold Sales, Ups Copper Production Outlook

(RTTNews) - Canadian gold producer Barrick Gold Corp. (ABX, ABX.TO) Thursday reported lower profit for the third quarter, as revenues were affected by lower gold bullion sales. The firm now expects full year gold production at the low end of the original guidance. Copper sales improved and the firm lifted its annual production guidance.

Net income attributable to equity holders declined to $172 million or $0.17 per share from $649 million or $0.65 per share in the same quarter last year, reflecting the impact of lower realized gold and copper prices, higher interest expense and higher income tax expense, partially offset by higher copper sales.

The latest results included $280 million in income tax expense at Pueblo Viejo, $47 million increase in the rehabilitation provision for Pierina as a result of its accelerated closure and $40 million in unrealized foreign currency translation losses.

Adjusted net earnings per basic share was $0.58, while it totaled $0.88 in the prior year. On average, 22 analysts polled by Thomson Reuters expected the company to report earnings of $0.51 per share. Analysts' estimates typically exclude special items.

Revenues slipped to $2.98 billion from $3.40 billion in the prior year quarter. Analysts had a consensus revenue estimate of $2.94 billion for the quarter.

Gold bullion sales dropped to $2.51 billion from $3.06 billion, while copper sales advanced to $432 million from $307 million.

Gold production improved to 1.85 million ounces from 1.779 million ounces in the prior year. Gold sold was 1.78 million ounces compared to 1.79 million ounces last year.

Adjusting for the sale of the Yilgarn South mines, full year gold production is now expected to be at the low end of the original 7 to 7.4 million ounce guidance range.

Copper production for the third quarter advanced to 139 millions pounds from 112 millions pounds. Barrick said the Lumwana copper mine continues to benefit from changes made to the mine plan in the second quarter and other initiatives to decrease costs. Due to the mine's improved operating performance, Barrick increased full year company-wide copper production guidance to 520 to 550 million pounds from 480 to 540 million pounds.

ABX closed down 1.5 percent at $20.50 on Wednesday.

ABX.TO settled higher by 4.1 percent at C$21.55.