Barrick Gold’s 1Q18 results
Barrick Gold (ABX) reported its 1Q18 results on April 23 after the market closed. It held a conference call the next day. It reported EPS (earnings per share) of $0.15, which represented a beat of $0.01 on consensus expectations. However, it missed on revenues by ~$50 million, reporting a top line of $1.8 billion. It maintained its production and unit costs for 2018.
ABX stock rose 3.6% on April 24, the day after the results, outperforming its peers. The slight outperformance on earnings and the company’s renewed focus on growth most likely led to the stock’s outperformance. Year-to-date (or YTD), however, the stock has fallen 9.4% as of April 23—an underperformance given the -2.9% return of the VanEck Vectors Gold Miners ETF (GDX). The SPDR Gold Shares ETF (GLD), which provides access to physical gold prices, has risen 1.7%. ABX’s close peers Newmont Mining (NEM), Goldcorp (GG), and Harmony Gold (HMY) have returned 9.8%, 10.8%, and 4%, respectively.
Barrick Gold has been underperforming since 2017. The stock fell 9.4% in 2017 compared to a gain of 11.1% for GDX. Barrick’s weak operational results and the issues with its mines led to this underperformance.
In this series, we’ll be looking at Barrick Gold’s recent results as well as what they mean for the company’s future. We’ll also look at its 1Q18 earnings call and management’s comments. Then we’ll examine the company’s production and cost performance.