Barrick Gold Corporation GOLD recently issued preliminary results for second-quarter 2020.
In the second quarter, gold production and sales were 1.15 million ounces and 1.22 million ounces, respectively. Copper production and sales amounted to 120 million pounds and 123 million pounds, respectively. Average market price for gold was $1,711 per ounce and the same for copper was $2.43 per pound.
Preliminary gold production for the second quarter was sequentially lower than the first quarter mainly due to the impact of the coronavirus pandemic at Veladero in Argentina along with a planned maintenance shutdown at Pueblo Viejo and lower production at Porgera in Papua New Guinea. Second-quarter gold cost of sales are projected to be 4-6% higher sequentially. Per Barrick, all-in sustaining costs per ounce for gold are expected to be 7-9% higher than the first quarter and total cash costs per ounce are expected to be 2-4% higher.
In the second quarter, preliminary copper production and sales were both sequentially higher compared with the first quarter. Cost of sales per pound for copper is expected to be 5-7% higher on a sequential comparison basis.
Barrick also noted that strong second-quarter results have positioned the company to attain its guidance for full-year 2020, notwithstanding the impact of coronavirus and associated lockdowns.
Barrick is slated to report its second-quarter 2020 results on Aug 10, before the opening bell.
The company’s shares have surged 62.1% in the past year compared with the industry’s 49.9% rise.
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Zacks Rank & Key Picks
Barrick currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space include Sandstorm Gold Ltd. SAND, Harmony Gold Mining Company Limited HMY and Northern Dynasty Minerals Ltd. NAK, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Sandstorm Gold has an expected earnings growth rate of 55.6% for 2020. The company’s shares have surged 52.3% in the past year.
Harmony Gold has an expected earnings growth rate of 264.3% for fiscal 2020. Its shares have returned 163.4% in the past year.
Northern Dynasty has an expected earnings growth rate of 28.6% for 2020. The company’s shares have skyrocketed 228.5% in the past year.
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