Barrick Posts Lower 3Q Profit Due To Lower Gold Sales, MetalBarrick Gold Corp. (TSX:ABX)(NYSE:ABX) reported net earnings for the third quarter of $125 million, or 11 cents per share, compared to net earnings of $172 million, or 17 cents per share, during last year’s third quarter.
The company said the decrease in profit stems from lower gold and copper sales volumes and lower realized gold and copper prices, partially offset by lower cost of sales applicable to gold and copper.
Barrick also noted $51 million in unrealized losses on non-hedge derivative instruments and $42 million in unrealized foreign currency translation losses. Adjusted net earnings totaled $222 million, or 19 cents per share, compared to $577 million, or 58 cents per share, in last year’s comparative quarter.
Third quarter operating cash flow dipped to $852 million, compared to $1.2 billion this time last year due to lower sales volumes and lower gross margins, partially offset by a decrease in income tax payments, they said.
Production totaled 1.65 million ounces of gold at average all-in sustaining costs of $834 per ounce, while copper production totaled 131 million pounds at cash costs of $1.82 per pound in the third quarter.
The company narrowed their 2014 gold production guidance to between 6.1 million and 6.4 million ounces, compared to their previous guidance of 6 million to 6.5 million ounces at all-in sustaining cash costs between $880 to $920 per ounce. Copper guidance for 2014 was raised to between 440 million and 460 million pounds, up from 410 million to 440 million pounds, at cash costs between $1.90 to $2.10 per pound, they said.