Extractive and Energy

World’s largest gold miner by production records $1.08 billion in net earnings

Barrick's chairman John Thornton met Tanzania's president in mid-June and they agreed to hold discussions to resolve the row.

There is no greater joy in the business environment as making money without spending any…or investing little and gaining much. It is popularly said you use money to gain more money. It was perhaps a slightly different scenario in the mining industry.

Barrick Gold Corp, the world’s largest gold miner by production, reported better-than-expected quarterly earnings  as its mining costs fell.

Barrick reported adjusted net earnings of $261 million, or 22 cents a share, in the three months to end-June, up from $158 million, or 14 cents a share, in the year-ago period on the back of lower mining costs and higher gold and copper sales volumes.

Net earnings for the quarter surged to $1.08 billion, or 93 cents a share, from $138 million, or 12 cents a share, in the year-ago period. This reflected gains related to the sales of stakes in its Veladero gold mine in Argentina and a project in Chile, Barrick said.

With mines in Nevada, Australia, South America and Tanzania, Barrick produced 1.43 million ounces of gold in the quarter, up from 1.34 million a year ago, at an all-in sustaining cost of $710 an ounce compared to $782 per ounce last June quarter.

Barrick subsidiary Acacia Mining has three mines in Tanzania, which introduced an export ban on concentrates of gold and copper ore in March.

Acacia’s operations affected by the ban account for about 6 percent of Barrick’s 2017 gold production forecast. Even so, Barrick left unchanged its forecast at between 5.3 million and 5.6 million ounces of gold, but it cautioned that this could change.

“Barrick continues to monitor the situation and should Acacia revise its full-year outlook Barrick will evaluate the impact to its own guidance at that time,” the Toronto-based miner said in its earnings statement.

Any effect will depend in large part on the duration of the concentrate export ban, Barrick said.

Acacia, of which Barrick owns 63.9 percent, is caught up in sweeping changes to Tanzania’s mining industry spearheaded by President John Magufuli, who believes the East African country is not getting its fair share of profits from the sector.

Barrick’s chairman John Thornton met Tanzania’s president in mid-June and they agreed to hold discussions to resolve the row.

Click to comment

Leave a Reply

Your email address will not be published.

Most Popular

To Top