Latest News

Barrick Gold misses revenue estimates on greater costs, lower Nevada production

Canada's Barrick Gold missed Wall Street price quotes for thirdquarter profit on Thursday, weighed down by higher costs and lower production at its Nevada mines.

Overall gold output at Nevada Gold Mines fell to 385,000 ounces in the July-September quarter, compared to 401,000 ounces in the preceding three months, the company reported in October.

Meanwhile, all-in sustaining costs (AISC) for gold, an industry metric showing total costs, increased to $1,507 per ounce in the quarter, from $1,255 per ounce in 2015.

U.S.-listed shares slipped 1.6% in premarket trade.

Newmont, the world's greatest gold miner, also reported an increase in expenses in the third quarter due to greater contractual labor expenses.

Barrick's realized cost for gold increased 29.4% to $2,494 per ounce during the quarter, tracking a rally in bullion costs following a 50 basis point rate cut by the U.S. Federal Reserve and safe heaven demand due to the conflict in the Middle East.

Copper AISC rose 10.5% year-over-year, even as it declined quarter-over-quarter.

The Toronto-based miner restated it was on track for an enhanced performance in the fourth quarter with production ramp-ups at Pueblo Viejo at the Dominican Republic and greater output from its Nevada mines.

Barrick said full-year production at its Loulo-Gounkoto job in Mali - where it is presently locked in a conflict associated to an agreement with the federal government - would be at the top end of its forecast.

On an adjusted basis, the world's second-largest gold miner posted an earnings of 30 cents per share for the quarter ended Sept. 30, compared to analysts' average estimate of 31 cents, according to information put together by LSEG.

(source: Reuters)