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Barclays Gold (GOLD.US) Q3 profit misses expectations due to lower production and higher costs

AInvestThursday, Nov 7, 2024 7:30 am ET
1min read

Zhitong Finance learned that Barrick Gold (GOLD.US) reported its third-quarter financial results. The data showed that Q3 revenue was US$3.37bn, up 18% YoY, but lower than the expected US$3.46bn. Adjusted EPS was US$0.30, slightly lower than the expected US$0.31.

The third-quarter earnings missed Wall Street's expectations mainly due to the decline in its mine production. Barrick's gold production in October fell to 943,000 ounces, down 9% YoY and 1% MoM, below market expectations, due to the decline in production at its Carlin and Cortez gold mines in Nevada.

The consolidated AISC for gold rose from US$1,255/oz in the same period last year to US$1,507/oz in Q3 (up 20% YoY), also higher than US$1,498/oz in Q2. AISC for gold is an industry indicator reflecting the total cost of gold.

Barrick's copper production in October was 480,000 tonnes, down 6% YoY and up 12% MoM. AISC rose from US$3.23/lb in the same period last year to US$3.57/lb in Q3 (up 20% YoY), but lower than US$3.67/lb in Q2.

Barrick Gold announced a quarterly dividend of US$0.10/share for Q3, in line with its dividend policy, which will be paid to shareholders of record as of November 29, 2024 on December 16, 2024. In Q3, the Company repurchased 4.725mn shares under its US$1bn share repurchase program announced in February 2024, bringing the total repurchases this year to 7.675mn shares.

The Company emphasized its focus on maintaining financial flexibility while returning value to shareholders through dividends and share repurchases, despite the slightly lower-than-expected quarter. Graham Shuttleworth, Executive Vice President and Chief Financial Officer, said: "Our balance sheet remains strong, supported by record gold prices and a world-class gold and copper asset base, allowing us to pay a robust quarterly dividend while maintaining ample liquidity to invest in the growth of our business and repurchase additional shares at compelling valuations."

Against the backdrop of a strong performance expected in Q4, Barrick Gold maintained its annual production and cost guidance. The Company expects its full-year gold production to be between 3.9-4.3mn ounces in 2024, with expected sales cost of US$1,320-1,420/oz. It also expects its full-year copper production to be between 1.8-2.1mn tonnes in 2024, with expected sales cost of US$2.68-2.95/lb.

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