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Barrick (GOLD) Q3 Earnings Surpass Estimates, Sales Miss
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Barrick Gold Corporation (GOLD - Free Report) recorded net earnings (on a reported basis) of $368 million or 21 cents per share in third-quarter 2023, up from $241 million or 14 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 24 cents. The figure beat the Zacks Consensus Estimate of 21 cents.
Barrick recorded total sales of $2,862 million, up 13% year over year. The figure missed the Zacks Consensus Estimate of $2,998.8 million.
Barrick Gold Corporation Price, Consensus and EPS Surprise
Total gold production was 1,039,000 ounces in the reported quarter, up around 5% year over year. Our estimate for the same was 1,142,000 ounces. The average realized price of gold was $1,928 per ounce in the quarter, up around 12% year over year. This compares to our estimate of $1,924.
The cost of sales increased around 4% year over year to $1,277 per ounce. All-in-sustaining costs (AISC) moved down around 1% year over year to $1,255 per ounce in the quarter.
Copper production decreased roughly 9% year over year to 112 million pounds. Our estimate for the quarter was pegged at 119 million pounds. The average realized copper price was $3.78 per pound, up 17% year over year.
Financial Position
At the end of the quarter, Barrick had cash and cash equivalents of $4,261 million, down 19% year over year. The company’s total debt was $4,775 million at the end of the quarter, down 6% year over year.
The operating cash flow was $1,127 million for the quarter, whereas the free cash flow was $359 million.
Guidance
For 2023, Barrick anticipates attributable gold production to be modestly below the bottom end of its earlier announced guidance range of 4.2-4.6 million ounces.
AISC is projected to be $1,170-$1,250 per ounce. Cash costs per ounce are forecast to be $820-$880 per ounce. The company also expects to see a cost of sales of $1,170-$1,250 per ounce.
GOLD expects a copper production of 420-470 million pounds at AISC of $2.95-$3.25 per pound, cash costs per ounce of $2.05-$2.25 and cost of sales of $2.60-$2.90 per pound.
Capital expenditures are projected to be around the midpoint of the full-year guidance of $2,200-$2,600 million.
Price Performance
Barrick’s shares have gained 13% in the past year compared with a 15.4% rise of the industry.
The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 3.3% upward in the past 60 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4% on average. ANDE shares have rallied around 39% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.57, indicating year-over-year growth of 213.2%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have surged 73.5% in the past year.
The consensus estimate for Linde’s current fiscal year earnings is pegged at $14.08, indicating year-over-year growth of 14.6%. LIN beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 5.7%. The company’s shares have rallied 26.1% in the past year.
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Barrick (GOLD) Q3 Earnings Surpass Estimates, Sales Miss
Barrick Gold Corporation (GOLD - Free Report) recorded net earnings (on a reported basis) of $368 million or 21 cents per share in third-quarter 2023, up from $241 million or 14 cents per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were 24 cents. The figure beat the Zacks Consensus Estimate of 21 cents.
Barrick recorded total sales of $2,862 million, up 13% year over year. The figure missed the Zacks Consensus Estimate of $2,998.8 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 was 1,039,000 ounces in the reported quarter, up around 5% year over year. Our estimate for the same was 1,142,000 ounces. The average realized price of gold was $1,928 per ounce in the quarter, up around 12% year over year. This compares to our estimate of $1,924.
The cost of sales increased around 4% year over year to $1,277 per ounce. All-in-sustaining costs (AISC) moved down around 1% year over year to $1,255 per ounce in the quarter.
Copper production decreased roughly 9% year over year to 112 million pounds. Our estimate for the quarter was pegged at 119 million pounds. The average realized copper price was $3.78 per pound, up 17% year over year.
Financial Position
At the end of the quarter, Barrick had cash and cash equivalents of $4,261 million, down 19% year over year. The company’s total debt was $4,775 million at the end of the quarter, down 6% year over year.
The operating cash flow was $1,127 million for the quarter, whereas the free cash flow was $359 million.
Guidance
For 2023, Barrick anticipates attributable gold production to be modestly below the bottom end of its earlier announced guidance range of 4.2-4.6 million ounces.
AISC is projected to be $1,170-$1,250 per ounce. Cash costs per ounce are forecast to be $820-$880 per ounce. The company also expects to see a cost of sales of $1,170-$1,250 per ounce.
GOLD expects a copper production of 420-470 million pounds at AISC of $2.95-$3.25 per pound, cash costs per ounce of $2.05-$2.25 and cost of sales of $2.60-$2.90 per pound.
Capital expenditures are projected to be around the midpoint of the full-year guidance of $2,200-$2,600 million.
Price Performance
Barrick’s shares have gained 13% in the past year compared with a 15.4% rise 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 The Andersons Inc. (ANDE - Free Report) and Carpenter Technology Corporation (CRS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) and Linde plc (LIN - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ANDE's current-year earnings has been revised 3.3% upward in the past 60 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4% on average. ANDE shares have rallied around 39% in a year.
The consensus estimate for CRS’s current fiscal year earnings is pegged at $3.57, indicating year-over-year growth of 213.2%. CRS beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 14.3%. The company’s shares have surged 73.5% in the past year.
The consensus estimate for Linde’s current fiscal year earnings is pegged at $14.08, indicating year-over-year growth of 14.6%. LIN beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 5.7%. The company’s shares have rallied 26.1% in the past year.