Barrick Gold Q4 Loss Narrows - Quick Facts

(RTTNews) - Canadian gold producer Barrick Gold Corp. (ABX, ABX.TO) said that its fourth-quarter of 2013 narrowed to $2.83 billion and $2.61 per share from $3.01 billion and $3.01 per share in the prior-year quarter.

The latest-quarter results included $2.82 billion in impairment charges, primarily related to Pascua-Lama, Porgera, Veladero and the Australia Pacific gold segment; and $176 million in suspension-related costs at Pascua-Lama.

Adjusted net earnings were $0.41 billion and $0.37 per basic share down from $1.16 billion and $1.16 per basic share in the prior-year period. The decrease reflected lower realized gold and copper prices and a decline in gold and copper sales volumes. Analysts polled by Thomson Reuters expected the company to report earnings of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.

Quarterly revenues sharply declined to $2.926 billion from $4.149 billion in the prior year quarter. Six analysts had consensus revenue estimate of $2.84 billion for the quarter.

Barrick's 2014 gold cost guidance is the lowest among senior producers, with AISC expected to be $920-$980 per ounce and adjusted operating costs projected to be $590-$640 per ounce.

The company anticipates 2014 gold production of 6.0-6.5 million ounces. Lower production in 2014 reflects the company's strategy to maximize free cash flow and returns over ounces, the divestment of high-cost, short-life mines, lower production from Cortez, and the decision to close Pierina. These declines will be partially offset by an increase in production at Pueblo Viejo.

Total capital expenditures are expected to decrease by approximately 50 percent in 2014 to $2.40-$2.70 billion, a reduction of approximately $2.5 billion compared to 2013. The lower expenditures reflect the temporary suspension of construction at Pascua-Lama and lower mine site sustaining and expansion capital requirements.

During the fourth quarter of 2013, Barrick announced the temporary suspension of construction at its Pascua-Lama project, except for those activities required for environmental and regulatory compliance. The ramp-down is on schedule for completion by mid-2014. The company expects to incur costs of about $300 million this year for the ramp-down and environmental and social obligations. A decision to restart development will depend on improved economics and reduced uncertainty related to legal and regulatory requirements.

In December, 2013, Barrick announced that its Founder and Chairman, Peter Munk, would retire as Chairman and step down from the Board of Directors at the company's 2014 Annual General Meeting (AGM). John Thornton, currently Co-Chairman, will become Chairman following the 2014 AGM. Barrick also announced it will implement a new executive compensation plan in 2014 that is fully aligned with the principle of pay-for-performance, and further links compensation with the long-term interests of shareholders.