Barrick Gold output rises 5%, Tanzanian assets post solid performance

Canada-headquartered Barrick Gold on Thursday announced higher preliminary second-quarter gold production, with output of more than one-million ounces for the three months ended June 30.

The mining company, headed by CEO Mark Bristow, increased its production from 990-million ounces in the first quarter to 1.04-million ounces in the second quarter – a 5% quarter-on-quarter improvement.

The higher production was expected, Barrick said in a statement, noting that it was driven by a stronger performance across the portfolio, particularly at its Carlin and Turquoise Ridge mines, which form part of the 61.5%-owned Nevada Gold Mines (NGM) venture with Newmont.

Carlin produced 243 000 oz and Turquoise Ridge produced 75 000 oz. Overall, NGM delivered 462 000 oz in the three months, compared with 459 000 oz in the prior quarter.

Production at the Cortez mine, which is also part of NGM, fell by 15% quarter-on-quarter. The lower production at Cortez is owing to mine sequencing as it transitioned from the end of openpit mining at Pipeline to a new phase at Crossroads, said Barrick, stating that a stronger performance was expected in the fourth quarter.

The 50%-owned Veladero mine, in Argentina, as well as the Tanzania assets, including Bulyanhulu and North Mara, had strong performances in the quarter, the miner noted.

Compared with the first quarter, second-quarter gold cost of sales per ounce is expected to be 1% to 3% higher, total cash costs per ounce are expected to be 2% to 4% higher and all-in sustaining costs (AISC) per ounce are expected to be 3% to 5% higher.

Preliminary second-quarter copper production was higher than the first quarter, driven by Lumwana, in Zambia, as planned. However, copper sales were in line with the prior quarter owing to the timing of shipments.

Compared with the March quarter, the June quarter’s copper cost of sales per pound is expected to be 4% to 6% lower and C1 cash costs per pound are expected to be 5% to 7% lower. Copper AISC per pound is expected to be 2% higher than in the first quarter.

Barrick will announce its second-quarter results on August 8.

SOURCE: Mining Weekly