27TH OCTOBER 2016
VANCOUVER (miningweekly.com) – The world's major gold producers on Wednesday reported mostly positive results for the three months ended September, saying profits increased while costs continued to fall in a higher gold price environment.
The world’s largest gold producer by output Barrick Gold reported adjusted earnings of $0.24 a share, compared with $0.11 a share in the comparable period last year. This beat analyst expectations of average earnings of $0.20 a share.
Revenue was down slightly at $2.3-billion from $2.32-billion a year earlier, while free cash flow fell to $674-million from $866-million.
Toronto-based Barrick increased its full-year 2016 production forecast to a range of 5.25-million to 5.55-million ounces of gold, from a previous target of 5-million to 5.5-million. Barrick has also lowered its estimate of all-in sustaining costs (AISC) to between $740/oz and $775/oz from a previous target of $750/oz to $790/oz.
The company added that capital expenditure for the current year was also lowered at between $1.2-billion and $1.3-billion, down from between $1.25-billion and $1.4-billion in the previous quarter.
Third-quarter gold output fell to 1.38-million ounces from 1.66-million ounces. AISC improved to $704/oz from $771/oz. Copper output fell to 100-million pounds from 140-million pounds.
Barrick reduced its debt load by $1.4-billion so far this year and the company said it was on track to meet its 2016 reduction target of $2-billion. In the medium term, it wants to reduce its $8.5-billion debt to below $5-billion.
NEWMONT DOUBLES DIVIDEND
Meanwhile, Greenwood Village, Colorado-based Newmont doubled its quarterly dividend to $0.05 from $0.025 previously. The company also refreshed its dividend policy, which is linked to the gold price. CEO Gary Goldberg stated that the revised policy had the potential to increase payout levels by more than 100%, starting in the first quarter of 2017..