Barrick Sees Stable Gold Output In Q3, Prepares For Stronger Q4

Barrick Gold Corporation GOLD shares are trading lower on Wednesday. The company reported preliminary third-quarter production metrics.

The company sees production of 943,000 ounces of gold and 48,000 tonnes of copper and preliminary sales of 967,000 ounces of gold and 42,000 tonnes of copper.

Barrick anticipates a significantly stronger fourth quarter, aiming to meet its full-year production guidance for both gold and copper in 2024.

Notably, in the third quarter, the average market price for gold was $2,474 per ounce, while copper averaged $4.18 per pound.

The company said that preliminary gold production remained steady on a Q/Q basis.

Pueblo Viejo sequentially improved by 23% due to ongoing plant optimization, while North Mara benefited from higher grades.

On a Q/Q basis, the third quarter gold cost of sales per ounce is expected to increase by 1% to 3%, total cash costs by 3% to 5%, and all-in-sustaining costs by 0% to 2%, partly due to higher royalties from increased gold prices.

Meanwhile, preliminary copper production increased Q/Q, mainly due to higher grades and recoveries at Lumwana, which benefited from improved ore access following ramped-up stripping activities in the second quarter.

On a Q/Q basis, the third quarter cost of sales per pound is expected to rise by 5% to 7% and C1 cash costs by 13% to 15%.

However, all-in-sustaining costs per pound are expected to decrease by 2% to 4%, primarily due to reduced capitalized waste stripping at Lumwana.

Barrick is scheduled to release its third quarter results before the market opens on November 7, 2024.

Investors can gain exposure to the stock via Sprott Gold Miners ETF SGDM and VanEck Gold Miners ETF GDX.

Price Action: GOLD shares are down 0.47% at $20.12 at the last check Wednesday.

Image via Shutterstock

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