Barrick Reports Preliminary First Quarter Production Results
April 11 2018 - 5:00PM
All amounts expressed in U.S. dollars
Barrick Gold Corporation (NYSE:ABX) (TSX:ABX) (“Barrick” or the
“Company”) today announced preliminary first quarter production of
1.05 million ounces of gold, and 85 million pounds of copper, and
preliminary first quarter sales of 1.07 million ounces of gold, and
85 million pounds of copper. The average market price for gold in
the first quarter was $1,329 per ounce, while the average market
price for copper was $3.16 per pound. The Company’s first quarter
realized copper price is expected to be approximately five percent
below the average first quarter market price for copper as a result
of provisional pricing adjustments1 that reflect the downward trend
in copper prices over the period.2
Barrick will provide additional discussion and
analysis regarding first quarter production and sales when the
Company reports quarterly results on April 23, 2018, followed by a
conference call and webcast on April 24 at 8 am ET. The following
table includes preliminary gold and copper production and sales
results from our operations:
|
Production |
|
Sales |
|
Three months ended March 31, 2018 |
|
Three months ended March 31, 2018 |
Gold (equity ounces (000s)) |
Barrick Nevada3 |
471 |
|
462 |
Pueblo Viejo (60%) |
141 |
|
148 |
Lagunas Norte |
66 |
|
69 |
Veladero (50%)4 |
74 |
|
74 |
Turquoise Ridge
(75%) |
46 |
|
63 |
Acacia (63.9%) |
77 |
|
75 |
Kalgoorlie (50%) |
85 |
|
83 |
Porgera (47.5%) |
40 |
|
45 |
Hemlo |
40 |
|
44 |
Golden
Sunlight |
9 |
|
8 |
Total
Gold |
1,049 |
|
1,071 |
|
|
|
|
|
Copper (equity pounds (millions)) |
Lumwana |
48 |
|
47 |
Zaldívar (50%) |
24 |
|
24 |
Jabal
Sayid (50%) |
13 |
|
14 |
Total Copper |
85 |
|
85 |
INVESTOR CONTACT |
MEDIA CONTACT |
Deni
Nicoski Senior Vice President Investor Relations
Telephone: +1 416 307-7474 Email: dnicoski@barrick.com |
Andy
Lloyd Senior Vice President Communications
Telephone: +1 416 307-7414 Email: alloyd@barrick.com |
TECHNICAL INFORMATION
The scientific and technical information
contained in this press release has been reviewed and approved by
Steven Haggarty, P. Eng., Senior Director, Metallurgy of Barrick
who is a “Qualified Person” as defined in National Instrument
43-101 – Standards of Disclosure for Mineral Projects.
FIRST QUARTER 2018 RESULTS
Barrick will release its First Quarter 2018
Results on April 23, 2018, followed by a conference call and
webcast on April 24 at 8:00 am ET.
Toll Free (U.S. and Canada):
1-800-319-4610International: +1 416 915-3239
The webcast and presentation materials will be
available on Barrick’s website at www.barrick.com/investors. The
conference call will be available for replay by phone at
1-855-669-9658 (U.S. and Canada toll free), and +1 604 674-8052
(international), access code 2130.
CAUTIONARY STATEMENTS REGARDING
PRELIMINARY FIRST QUARTER PRODUCTION AND SALES FOR 2018 AND
FORWARD-LOOKING INFORMATION
Barrick cautions that, whether or not expressly
stated, all 2018 figures contained in this press release including
production levels and sales are preliminary and reflect our
expected first quarter results as of the date of this press
release. Actual reported first quarter production levels and sales
are subject to management’s final review, as well as review by the
Company’s independent accounting firm, and may vary significantly
from those expectations because of a number of factors, including,
without limitation, additional or revised information, and changes
in accounting standards or policies, or in how those standards are
applied. Barrick will provide additional discussion and analysis
and other important information about its first quarter production
levels and sales when it reports actual results on April 23, 2018.
Barrick further cautions that the information contained in this
press release does not provide a complete picture of the Company’s
overall performance and profitability, as this press release does
not address any of the costs associated with the production of gold
and copper reported herein. For a complete picture of the Company’s
financial performance, it will be necessary to review all of the
information in the Company’s first quarter financial report and
related MD&A. Accordingly, readers are cautioned not to rely
solely on the production information contained herein.
Finally, Barrick cautions that this press
release contains forward-looking statements with respect to the
impact of the downward trend of copper prices in the first quarter
on provisional pricing adjustments and first quarter 2018 copper
realized price which, while considered reasonable by the Company at
the date of this press release in light of management’s experience
and perception of current conditions and expected developments, are
inherently subject to significant uncertainties and
contingencies. Barrick disclaims any intention or obligation
to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise, except as
required by applicable law.
ENDNOTES
- The sales price for Barrick’s copper production is determined
provisionally at the date of sale with the final price determined
based on market copper prices at a future date set by the customer,
generally one to three months after the initial date of sale.
Market prices for copper may fluctuate during this extended
settlement period. The prices of Barrick’s copper sales are
marked-to-market at the balance sheet date based on the forward
copper price for the relevant quotational period. All such
mark-to-market adjustments are recorded in copper sale revenues. If
the market price for copper declines, the final sale price realized
by the Company at settlement may be lower than the provisional sale
price initially recognized by the Company, requiring negative
adjustments to Barrick’s average realized copper price for the
relevant period.
- Copper realized price is a non-GAAP financial measure which
excludes from sales: (i) unrealized gains and losses on non-hedge
derivative contracts; (ii) unrealized mark-to-market gains and
losses on provisional pricing from copper sales contracts; (iii)
sales attributable to ore purchase arrangements; (iv) treatment and
refining charges; and (v) export duties.This measure is intended to
enable management to better understand the price realized in each
reporting period for copper sales because unrealized mark-to-market
values of non-hedge copper derivatives are subject to change each
period due to changes in market factors such as market and forward
copper prices, so that prices ultimately realized may differ from
those recorded. The exclusion of such unrealized mark-to-market
gains and losses from the presentation of this performance measure
enables investors to understand performance based on the realized
proceeds of selling copper production.The gains and losses on
non-hedge derivatives and receivable balances relate to
instruments/balances that mature in future periods, at which time
the gains and losses will become realized. The amounts of these
gains and losses reflect fair values based on market valuation
assumptions at the end of each period and do not necessarily
represent the amounts that will become realized on maturity. We
also exclude export duties that are paid upon sale and netted
against revenues as well as treatment and refining charges that are
paid to the refiner on copper concentrate sales that are netted
against revenues. For those reasons, management believes that this
measure provides a more accurate reflection of our Company’s past
performance and is a better indicator of its expected performance
in future periods.The realized price measure is intended to provide
additional information, and does not have any standardized
definition under IFRS and should not be considered in isolation or
as a substitute for measures of performance prepared in accordance
with IFRS. The measure is not necessarily indicative of sales as
determined under IFRS. Other companies may calculate this measure
differently.
- Includes our 60% equity share of South
Arturo.
- Reflects our 50% equity share of Veladero from July 1, 2017
onwards.
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