Q1 Financial & Operating resultsHighlights
Financial and Operating Results
-- Q1 reported net earnings rose 22% to $1.0 billion ($1.00 per share) from
$820 million in the prior year period. Q1 adjusted net earnings
increased 32% to $1.0 billion ($1.01 per share)(1) from $763 million
(
.78 per share) in Q1 2010, reflecting higher realized prices for both
gold and copper and better than expected total gold cash costs. This
results in an annualized return on equity of about 20%(1). Operating
cash flow increased 27% to $1.44 billion from $1.13 billion in the same
prior year period.
-- Q1 gold production of 1.96 million ounces at total cash costs of $437
per ounce and net cash costs of $308 per ounce(1) was ahead of plan
primarily as a result of higher production from the Cortez, Goldstrike
and Veladero mines. The Company is on track to meet its 2011 guidance
of 7.6-8.0 million ounces at total cash costs of $450-$480 per ounce or
net cash costs of $340-$380 per ounce(2), positioning Barrick as one of
the lowest cost senior gold producers.
-- Q1 gold cash margins also continued to benefit from higher gold prices
and better than plan cash costs increasing 32% to $952 per ounce(1) from
$722 per ounce in Q1 2010 and net cash margins rose 32% to $1,081 per
ounce(1)from $821 per ounce in the prior year period. Copper cash
margins increased 33% to $3.00 per pound from $2.25 per pound(1) in the
prior year period on higher copper prices. This significant margin
expansion demonstrates the Company's exceptional leverage to metal
prices.