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Barrick has solid Q2 results and maintains production guidance

Aug 10, 2020

What pandemic? Half way through 2020, Barrick Gold Corporation is on track to achieve annual production guidance, despite the impact of the global Covid-19 pandemic, the company said today.

Second quarter results show year-to-date gold production of 2.4 million ounces, at the mid-point of its 4.6 million to 5 million ounce annual guidance, driven by strong operating performances, particularly from Nevada Gold Mines (NGM) in the United States, Loulo-Gounkoto in Mali and Kibali in the Democratic Republic of Congo. Barrick’s copper portfolio continued to outperform with Lumwana in Zambia posting its best quarterly production in years.

Operating cash flow exceeded $1 billion for the quarter and free cash flow1 was $522 million. Net earnings per share was 20 cents. Adjusted net earnings per share2 was 23 cents, up 44% from Q1 and well ahead of the market consensus, debt net of cash was reduced by almost 25% to $1.4 billion from the end of Q1, and the quarterly dividend was increased by 14% to 8 cents per share. The quarterly dividend has more than doubled since the announcement of the merger between Barrick and Randgold in September 2018. The non-core asset disposal strategy, which is ongoing, has so far delivered value of $1.5 billion of which $1.25 billion was in cash.

Key Performance Indicators

  • Continued solid performance positions Barrick well within annual production guidance, despite Covid-19 challenges
  • Improvement in safety management following increased focus
  • Strong cash generation highlights quality of assets and leverage to gold price
  • Barrick continues to be vigilant in its approach to contain the impact of Covid-19
  • Higher gold prices also result in higher royalty payments and costs
  • Strong operating performance for copper with costs per pound at lower end of the guidance range
  • Operating Cash Flow in excess of $1.0 billion and Free Cash Flow1 greater than $0.5 billion for the quarter
  • Net debt down almost 25% to $1.4 billion with no significant maturities until 2033
  • Net earnings per share of 20 cents; adjusted net earnings per share2 up 44% to 23 cents for the quarter
  • Strong operating performance from Tier One12 assets, with Pueblo Viejo production impacted by planned maintenance shutdown
  • Veladero production impacted by Argentina’s Covid-19 movement and social distancing restrictions
  • 30% of stockpiled concentrate shipped from Tanzania and first $100 million paid to Government
  • Agreement reached in Mali to extend the Loulo convention to 2038
  • Significant exploration drill results from Nevada, Dominican Republic, Mali and Tanzania
  • Pueblo Viejo expansion, Goldrush development, Turquoise Ridge shaft and other key projects remain on track despite Covid-19 challenges
  • Non-core asset disposal strategy delivers $1.5 billion value realization, including $1.25 billion in cash, with more to come
  • Barrick increases quarterly dividend by 14% to $0.08 per share

(Photo: Barrick Hemlo operation)

Tags: Northern Ontario / Operational Updates / Gold / All Articles