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Key Highlights from Barrick Gold’s Q1 2019 Results

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May. 8 2019, Published 10:55 a.m. ET

Barrick’s gold production rises

In the first quarter, Barrick Gold (GOLD) produced 1.36 million ounces of gold—up ~30% YoY (year-over-year) and 8% sequentially. This jump was expected due to Barrick’s merger with Randgold Resources, which came into effect on January 1, 2019. The company expects 18% higher production at the midpoint in 2019 compared to 2018 due to its merger with Randgold. It’s maintained its production guidance at 5.1 million–5.6 million ounces of gold.

GOLD’s copper production increased 25% YoY to 106 million pounds at all-in sustaining costs of $2.46 per ounce.

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Barrick’s all-in sustaining costs increase

Barrick’s all-in sustaining costs rose 2.3% YoY to $825 per ounce of gold in the first quarter despite an increase in its production. Barrick guided for all-in sustaining costs of $870–$920 per ounce for 2019 compared to its actual all-in sustaining costs of $806 per ounce in 2018. The company’s higher sustaining capex and the cessation of production at the comparatively high-grade and low-cost Cortez Hills open pit in the first half of 2019 were the major drivers of its higher expected costs.

Looking forward to the call

During Barrick’s first-quarter earnings call, investors will likely be looking forward to the company’s strategic update on its assets. It’s also expected to provide updates on many assets’ go-forward plans, such as its plans for the Porgera project in Papua New Guinea.

Barrick has stated that it could close its Golden Sunlight mine in Montana in May unless it can find a way to keep the nearly depleted 44-year-old operation in business. It could provide an update on the matter during its first-quarter earnings call.

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