Barrick Gold: Lower Q3 Output but On Track for 2024 Targets

Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX), one of the world's largest gold mining companies, reported preliminary Q3 production results that showed a slight decrease in gold output compared to Q2. However, the company remains confident in its ability to achieve its full-year 2024 guidance for gold and copper production.

Preliminary Q3 gold production totaled 943 thousand ounces, a 1% decrease from Q2. This decrease can be attributed to several operational factors, including planned maintenance at Nevada Gold Mines and mine sequencing at various sites. Despite the lower production, Barrick's gold cost of sales per ounce is expected to be 1% to 3% higher in Q3 compared to Q2, primarily due to higher royalties from the higher gold price received.

Barrick's copper production also decreased in Q3, with preliminary production totaling 48 thousand tonnes, a 4% decrease from Q2. This decrease was driven primarily by lower grades mined at Lumwana in accordance with the mine plan. As a result, copper cost of sales per pound is expected to be 5% to 7% higher in Q3 compared to Q2.

Despite the lower production in Q3, Barrick remains on track to achieve its full-year 2024 guidance for gold and copper production. The company's gold production is expected to progressively increase each quarter through the year, with the Pueblo Viejo plant expansion ramping up from Q2 and the Porgera mine restart continuing in line with plans.

Barrick is implementing operational improvements and cost-cutting measures to mitigate the Q3 cost increase. The company's planned expansion projects, such as the Pueblo Viejo plant expansion, are expected to impact its cost structure in the long term by increasing production and improving efficiency.

Barrick's cost management strategy is comparable to its peers in the mining industry, with a focus on reducing costs and improving operational efficiency. The company's exploration efforts play a crucial role in offsetting increased costs per ounce and ensuring long-term profitability by discovering new reserves and enhancing existing operations.

In conclusion, while Barrick Gold experienced a slight decrease in Q3 gold and copper production, the company remains confident in its ability to achieve its full-year 2024 guidance. With a focus on operational improvements, cost-cutting measures, and exploration efforts, Barrick is well-positioned to maintain its status as a leading gold mining company.