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Barrick Gold Tanks on Mixed Results

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Feb. 13 2019, Updated 11:09 a.m. ET

Barrick Gold’s Q4 2018 earnings

Barrick Gold (GOLD) reported its Q4 2018 and 2018 results today before markets opened. It reported adjusted EPS of $0.06 for Q4, slightly beating the consensus estimate of $0.05. Its actual net earnings per share came in at -$1.02 and mainly included impairment charges and tax adjustments. Barrick missed top-line estimates by ~$60 million, reporting revenues of $1.9 billion for Q4. The company released mixed results for its Q3 2018 as well.

Barrick stock was trading with a loss of ~5% at 9:40 AM EST as compared to gains of 0.56%, 0.71%, and 0.53% for the S&P 500 (SPY), the Dow Jones Industrial Average Index (DIA), and the NASDAQ Composite (QQQ), respectively.

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Guidance for 2019

The company pre-released its production for 2018, which came in at 4.53 million ounces, which is in line with its guidance range of 4.5–5.0 million ounces and implies fourth-quarter gold production of 1.26 million ounces.

Barrick Gold (GOLD) completed its merger with Randgold Resources on January 1. You can read Is Barrick Worth a Look after Its Merger with Randgold? for more on this. The combined company is expecting to produce 5.1–5.6 million ounces of gold in 2019, which implies growth of 18% at the mid-point of the guidance range.

Looking forward to the call

One of the major issues for Barrick Gold remains subsidiary Acacia’s tax dispute with the Tanzanian government. While the company didn’t provide an update regarding this issue in its earnings release, investors are awaiting an update from the company during the earnings call.

You can read What to Look For in Barrick Gold’s Q4 Earnings to compare actual results versus market expectations. Investors can also look at Digging into Gold Miners’ Performances ahead of Their Q4 Results for analyst expectations and ratings on Barrick’s peers (GDX) ahead of their Q4 results. Kinross Gold (KGC) is expected to report results today after the market closes, while Yamana Gold (AUY) is expected to report tomorrow before the market opens. Newmont Mining (NEM) is scheduled to release its results on February 21.

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