Barrick Gold misses profit estimates on higher costs, lower Nevada production
Canada's Barrick Gold missed Wall Street estimates for third-quarter profit on Thursday, weighed down by higher costs and lower production at its Nevada mines.
Total gold output at Nevada Gold Mines fell to 385 000 oz in the July-September quarter, compared with 401 000 oz in the preceding three months, the company reported in October.
Meanwhile, all-in sustaining costs (AISC) for gold, an industry metric reflecting total expenses, rose to $1,507 per ounce in the quarter, from $1 255 per ounce last year.
US-listed shares slipped 1.6% in premarket trade.
Newmont, the world's biggest gold miner, also reported a rise in costs in the third quarter due to higher contractual labor costs.
Barrick's realized price for gold rose 29.4% to $2 494 per ounce during the quarter, tracking a rally in bullion prices following a 50 basis point rate cut by the US 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 reiterated it was on track for an improved performance in the fourth quarter with production ramp-ups at Pueblo Viejo at the Dominican Republic and higher output from its Nevada mines.
Barrick said full-year production at its Loulo-Gounkoto project in Mali - where it is currently locked in a dispute related to an agreement with the government - would be at the top end of its forecast.
On an adjusted basis, the world's second-largest gold miner posted a profit of 30 cents per share for the quarter ended Sept. 30, compared to analysts' average estimate of 31 cents, according to data compiled by LSEG.
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