Barrick Gold Q3 Profit Falls - Quick Facts

(RTTNews) - Canadian gold producer Barrick Gold Corp. (ABX, ABX.TO) said that its third-quarter 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. Net earnings reflected the impact of lower realized gold and copper prices, higher interest expense and higher income tax expense, partially offset by higher copper sales.

Net income plunged to $9 million from last year's $652 million.

Adjusted net earnings for the quarter slipped to $577 million from $880 million last year. Adjusted net earnings basic per share was $0.58, down from $0.88 in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.51 per share. Analysts' estimates typically exclude special items.

Significant adjusting items for the quarter included $280 million in income tax expense at Pueblo Viejo, primarily due to the recognition of an increase in the deferred tax liability which will be drawn down over the life of the mine, as well as an acceleration of current taxes payable for 2012 and 2013 related to the enactment of the revised Special Lease Agreement; $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.

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

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 7.0-7.4 million ounce guidance range.

Third quarter copper production was 139 million pounds at C1 cash costs of $1.69 per pound and C3 fully allocated costs of $2.15 per pound. The Lumwana copper mine continues to benefit from changes made to the mine plan in the second quarter and other business improvement initiatives to decrease costs and maximize cash flow. Due to the mine's improved operating performance, Barrick said it has increased full year company-wide copper production guidance to 520-550 million pounds.