Barrick Gold sees little hit from inflation, reaffirms 2021 targets
Barrick Gold, said on Monday it was not expecting a major hit from inflation this year and stuck to its full-year forecasts as prices for the yellow metal tick up.
CEO Mark Bristow said the miner had accounted for costs at current levels, but if costs climbed further, Barrick could see a 1% hit.
He also said the company did not expect to exceed costs on new projects even though there was some impact, particularly from rising steel prices.
Last month, rival Newmont warned of rising costs for materials, energy and labor in second half of the year and in 2022, adding aggregate costs were seen rising about 5% when steel, fuel and oils were factored in.
Barrick reiterated its plans to spend between $1.8-billion and $2.1-billion, and all-in-sustaining costs of $970/oz to $1 020/oz of gold and $2/lb to $2.20/lb of copper in 2021.
It maintained its production estimate of 4.4-million ounces to 4.7-million ounces of gold attributable to the company, and 410-million pounds to 460-million pounds of copper.
Production fell 9.4% to 1.04-million ounces in the second quarter, while realized gold prices rose 5.5% to $1 820/oz as a weaker dollar and safe-haven buying due to pandemic-related uncertainties boosted demand.
Barrick's all-in-sustaining costs, a metric that reflects total costs associated with production, rose 5.4% to $1 087/oz of gold.
US-listed shares of the company, which have fallen 8% this year, were down 1.4% in premarket trading, tracking a dip in gold prices.
Shares of global miners have fallen this year after surging on record high gold prices last year.
Barrick's second-quarter adjusted earnings per share of 29c beat estimates of 26c, according to Refinitiv IBES. Revenue of $2.89-billion, however, missed estimates of $2.92-billion.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Immersive Technologies is the world's largest, proven and tested supplier of simulator training solutions to the global resources industry.
VISIT SHOWROOM
Weir is a global leader in mining technology. We recognise that our planet’s future depends on the transition to renewable energy, and that...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
