Yahoo Finance Barrick (GOLD) Delivers Strong Q4 Production, Misses FY22 View
Barrick Gold Corporation GOLD reported preliminary fourth-quarter and full-year 2022 production and sales results. The company posted preliminary full-year 2022 production of 4.14 million ounces of gold and 440 million pounds of copper. It announced preliminary fourth-quarter production of 1.12 million ounces of gold and 96 million pounds of copper. Preliminary sales for the fourth quarter were 1.11 million ounces of gold and 99 million pounds of copper.
Barrick’s preliminary gold production for 2022 was roughly 1% lower than 4.2 million ounces, as guided previously by the company. Its copper production was in line with the guidance of 420-470 million pounds provided by the company.
Backed by a solid fourth quarter due to strong performance at the Cortez, Carlin and Tongon, production of gold was 13% higher than 988,000 ounces reported in the third quarter. However, weak production was seen at Pueblo Viejo in the quarter. The production of gold in the fourth quarter was down around 6.7% from the prior-year quarter’s production of 1.2 million ounces of gold.
The production of copper was 22% down from the third-quarter level of 123 million pounds due to higher waste stripping, lower throughput and lower production at Lumwana. In addition to lower sales from Lumwana resulting from reduced production, GOLD witnessed higher input costs and higher sustaining capital at Zaldivar. The production of copper was also 23.8% down from 126 million pounds reported in the year-ago quarter.
Barrick’s fourth-quarter preliminary gold sales increased 11.3% from third-quarter sales of 997,000 ounces of gold. Also, compared with fourth-quarter 2021 sales of 1.23 million ounces, gold sales for the fourth quarter are down around 9.8%. The company’s fourth-quarter copper sales were 17.5% down from the third-quarter level of 120 million pounds. It fell 12.4% when compared with the year-ago quarter level of 113 million pounds.
The company’s average market price for gold in the fourth quarter was $1,726 per ounce, which was 0.2% higher than the reported figure in the third quarter and 3.7% down from the year-ago quarter. The average market price for copper in the fourth quarter was $3.63 per pound, which was 12% higher than the third quarter. The market price for copper was 21.6% down from the prior-year quarter.
Barrick expects the cost of sales for gold for the fourth quarter to be 4-6% higher than the third quarter and the total cash cost to be 2-4% lower than the prior quarter. The company expects its all-in sustaining costs per ounce to be 1-3% lower than the third quarter. Cost of sales per pound for copper is expected to be 38-40% higher than the third quarter. Also, the company expects its C1 cash costs per pound to be 20-22% higher than the prior quarter. All-in sustaining costs per pound are forecast to be 26-28% higher sequentially in the fourth quarter.
Shares of Barrick have declined 7.7% in the past year against 7.5% growth recorded by its industry.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
GOLD currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks to consider in the basic materials space include Commercial Metals Company CMC, Cal-Maine Foods, Inc. CALM and Carpenter Technology Corporation CRS. CMC and CALM both sport a Zacks Rank #1 (Strong Buy), while CRS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Commercial Metals’ shares have gained 48.3% in the past year. The Zacks Consensus Estimate for CMC’s current fiscal-year earnings has been revised 19.4% upward in the past 60 days. Commercial Metals beat Zacks Consensus Estimate in all of the last fourth quarters. It delivered a trailing four-quarter earnings surprise of 16.7% on average.
Cal-Maine’s shares have gained 34.8% in the past year. The Zacks Consensus Estimate for CALM’s earnings for the current fiscal has been revised 73.9% upward in the past 60 days. The company has a projected earnings growth rate of 417.7% for the current fiscal year.
Cal-Maine topped Zacks Consensus Estimate in three of the last fourth quarters while missing once. It delivered a trailing four-quarter earnings surprise of 15.3% on average.
Carpenter Technology’s shares have gained 45% in the past year. The company has a projected earnings growth rate of 208.5% for the current fiscal year. CRS beat the Zacks Consensus Estimate in all of the last fourth quarters. It delivered a trailing four-quarter earnings surprise of 33.5% on average.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CalMaine Foods, Inc. (CALM) : Free Stock Analysis Report
Carpenter Technology Corporation (CRS) : Free Stock Analysis Report
Commercial Metals Company (CMC) : Free Stock Analysis Report
Barrick Gold Corporation (GOLD) : Free Stock Analysis Report
