Barrick Gold Posts Mixed Q2 Performance, Pueblo Viejo Expansion Project On Track

Barrick Gold Corp GOLD reported Q2 2023 revenue decline of 1% Y/Y to $2.83 billion, missing the consensus of $3.40 billion.

In Q2, gold production stood at 1.01 million ounces (-3% Y/Y). Gold sales were 1.00 million ounces (-4% Y/Y).

The company witnessed improved performances at Carlin, Kibali and Lumwana assets in the quarter.

The Average realized gold price rose 6% Y/Y to $1,972 per ounce, and All-in sustaining costs (AISC) increased 12% Y/Y to $1,355 per ounce in Q2.

Copper production declined 11% Y/Y to 107 million pounds, and the Average realized copper price was $3.70 per pound (-1% Y/Y).

Adjusted EPS of $0.19 exceeded the consensus of $0.17.

At the end-Q2, cash and cash equivalents stood at $4.16 billion, and debt was $4.77 billion.

Capital expenditure rose 2% Y/Y to $769 million, and operating cash flow declined 10% Y/Y to $832 million. 

Dividend: GOLD declared a Q2 dividend per share of $0.10, payable on September 15, 2023, to shareholders of record as on August 31, 2023.

2023 Outlook Reiterated: The company expects attributable gold production in the range of 4.2-4.6 million ounces and AISC in the range of $1,170-$1,250 per ounce.

The company projects copper production in the range of 420-470 million pounds and an AISC of $2.95-$3.25 per pound in 2023.

For 2023, capital expenditures are expected to be within $2.20 billion-$2.60 billion.

"The massive Pueblo Viejo expansion project is making significant progress with the process plant currently ramping up to full capacity. The plant expansion and associated new tailings storage facility will extend the Tier One mine's life to beyond 2040 and is designed to sustain gold production above 800,000 ounces pear year (100% basis) going forward. In Papua New Guinea, the resolution of the tax dispute has allowed us to work toward the re-opening of the Porgera gold mine by the end of the year, with a potential Tier One production profile, while the prefeasibility study on a Super Pit at Lumwana is driving its transformation into another Tier One asset, capable of producing into the 2060s," said Mark Bristow, president and chief executive.

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Price Action: GOLD shares are trading lower by 1.64% at $16.24 on the last check Tuesday.