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Barrick's (GOLD) Q2 Earnings Surpass Estimates, Sales Lag
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Barrick Gold Corporation (GOLD - Free Report) recorded net earnings (on a reported basis) of $411 million or 23 cents per share in second-quarter 2021, up from $357 million or 20 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 29 cents. The figure beat the Zacks Consensus Estimate of 26 cents.
Barrick recorded total sales of $2,893 million, down 5% year over year. The figure missed the Zacks Consensus Estimate of $2,967.3 million.
Barrick Gold Corporation Price, Consensus and EPS Surprise
Total gold production amounted to around 1.04 million ounces in the second quarter, down 9% year over year from 1.15 million ounces. Average realized price of gold was $1,820 per ounce in the quarter, up 6% year over year.
Cost of sales increased 3% year over year to $1,107 per ounce. All-in sustaining costs (AISC) moved up around 5% year over year to $1,087 per ounce in the quarter.
Copper production declined 20% year over year to 96 million pounds. Average realized copper price was $4.57 per pound, up 64% year over year.
Financial Position
At the end of the quarter, Barrick had cash and cash equivalents of $5,138 million, up 37% year over year. The company’s total debt was $5,152 million at the end of the quarter, down 0.3% year over year.
Net cash provided by operating activities declined 38% year over year to $639 million for the quarter.
Guidance
For 2021, Barrick anticipates attributable gold production in the range of 4.4-4.7 million ounces. AISC is expected in the range of $970-$1,020 per ounce and cost of sales is projected in the band of $1,020-$1,070 per ounce.
The company also expects copper production in the range of 410-460 million pounds at AISC of $2.00-$2.20 per pound and cost of sales of $1.90-$2.10 per pound.
Capital expenditures are projected between $1,800 million and $2,100 million.
Price Performance
Barrick’s shares have declined 21.7% in the past year compared with 19.4% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Barrick currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Cabot Corporation (CBT - Free Report) .
Nucor has a projected earnings growth rate of around 455.7% for the current year. The company’s shares have surged 137.4% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dow has an expected earnings growth rate of around 403.01% for the current year. The company’s shares have gained 38.9% in the past year. It currently sports a Zacks Rank #1.
Cabot has an expected earnings growth rate of around 137.5% for the current fiscal. The company’s shares have rallied 31.9% in the past year. It currently holds a Zacks Rank #2 (Buy).
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Barrick's (GOLD) Q2 Earnings Surpass Estimates, Sales Lag
Barrick Gold Corporation (GOLD - Free Report) recorded net earnings (on a reported basis) of $411 million or 23 cents per share in second-quarter 2021, up from $357 million or 20 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 29 cents. The figure beat the Zacks Consensus Estimate of 26 cents.
Barrick recorded total sales of $2,893 million, down 5% year over year. The figure missed the Zacks Consensus Estimate of $2,967.3 million.
Barrick Gold Corporation Price, Consensus and EPS Surprise
Barrick Gold Corporation price-consensus-eps-surprise-chart | Barrick Gold Corporation Quote
Operational Highlights
Total gold production amounted to around 1.04 million ounces in the second quarter, down 9% year over year from 1.15 million ounces. Average realized price of gold was $1,820 per ounce in the quarter, up 6% year over year.
Cost of sales increased 3% year over year to $1,107 per ounce. All-in sustaining costs (AISC) moved up around 5% year over year to $1,087 per ounce in the quarter.
Copper production declined 20% year over year to 96 million pounds. Average realized copper price was $4.57 per pound, up 64% year over year.
Financial Position
At the end of the quarter, Barrick had cash and cash equivalents of $5,138 million, up 37% year over year. The company’s total debt was $5,152 million at the end of the quarter, down 0.3% year over year.
Net cash provided by operating activities declined 38% year over year to $639 million for the quarter.
Guidance
For 2021, Barrick anticipates attributable gold production in the range of 4.4-4.7 million ounces. AISC is expected in the range of $970-$1,020 per ounce and cost of sales is projected in the band of $1,020-$1,070 per ounce.
The company also expects copper production in the range of 410-460 million pounds at AISC of $2.00-$2.20 per pound and cost of sales of $1.90-$2.10 per pound.
Capital expenditures are projected between $1,800 million and $2,100 million.
Price Performance
Barrick’s shares have declined 21.7% in the past year compared with 19.4% fall of the industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Barrick currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Cabot Corporation (CBT - Free Report) .
Nucor has a projected earnings growth rate of around 455.7% for the current year. The company’s shares have surged 137.4% in a year. It currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dow has an expected earnings growth rate of around 403.01% for the current year. The company’s shares have gained 38.9% in the past year. It currently sports a Zacks Rank #1.
Cabot has an expected earnings growth rate of around 137.5% for the current fiscal. The company’s shares have rallied 31.9% in the past year. It currently holds a Zacks Rank #2 (Buy).