Mining Company Barrick Gold Posts Mixed Q3 Results Despite Higher Gold Production, Plans To Focus On Boosting Copper Portfolio

Barrick Gold Corp GOLD reported Q3 2023 revenue growth of 13% Y/Y to $2.86 billion, missing the consensus of $2.892 billion.

Gold production stood at 1.04 million ounces (+5% Y/Y), driven by improved performances at Cortez, Turquoise Ridge and Kibali. Gold sales were 1.027 million ounces (3% Y/Y).

The Average realized gold price rose 12% Y/Y to $1,928 per ounce, and All-in sustaining costs (AISC) fell 1% Y/Y to $1,255 per ounce in Q3.

Copper production declined 9% Y/Y to 112 million pounds, and the Average realized copper price was $3.78 per pound (+17% Y/Y).

Adjusted EPS of $0.24 exceeded the consensus of $0.20.

At the end-Q3, cash and cash equivalents stood at $4.26 billion, and debt was $4.77 billion.

Capital expenditure fell 3% Y/Y to $768 million, and operating cash flow rose 49% Y/Y to $1.127 billion. 

Dividend: GOLD declared a Q3 dividend per share of $0.10, payable on December 15, 2023, to shareholders of record as of November 30, 2023.

"Growing the copper portfolio is one of our strategic priorities, and when these two mines are in full production, they will promote Barrick to the premier league of copper producers alongside its peerless gold portfolio. In the meantime, we're using our very successful Jabal Sayid copper mine in Saudi Arabia as a springboard for the discovery of new opportunities within the Kingdom and around the Red Sea to Egypt, where we believe the Arabian-Nubian Shield is poised to become a major new mining destination," said Mark Bristow President and Chief Executive.

Related: Barrick Gold Injects $2B In Zambia Mine Expansion, Projects Multi-Fold Annual Copper Production Growth

2023 Outlook: 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 $2.60-$2.90 per pound in 2023.

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

Price Action: GOLD shares are trading higher by 0.04% at $16.04 on the last check Thursday.