Barrick Has 1.34 Million Ounces Of Gold Production In Q2

TORONTO - Barrick Gold Corporation reported net earnings of $138 million, and adjusted net earnings1 of $158 million for the second quarter. 

The company reported revenues of $2.01 billion in the second quarter, and net cash provided by operating activities was $527 million. Barrick generated $274 million in free cash flow in the second quarter, marking five consecutive quarters of positive free cash flow.

Gold production in the second quarter was 1.34 million ounces at a cost of sales applicable to gold of $1.23 billion, and all-in sustaining costs of $782 per ounce. Compared to the first half of 2015, cost of sales applicable to gold has declined by 14 percent to $2.43 billion. Over the same period, Barrick has reduced all-in sustaining costs by 19 percent.

For the full year, Barrick expects cost of sales applicable to gold to be in the range of $5.2-$5.5 billion. All-in sustaining cost4 guidance for 2016 has been reduced to $750-$790 per ounce, down from $760-$810 per ounce at the end of the first quarter, and below our original 2016 guidance of $775-$825 per ounce. We continue to expect gold production of 5.0-5.5 million ounces for the year.

Barrick’s operations continued to deliver robust performance in the second quarter, demonstrating capital discipline, improved operational efficiency and productivity, and stronger cost management as we target Best-in-Class performance. This is driving growing margins and profitability across the entire business, in support of the overriding objective to grow free cash flow per share. At the same time, Barrick continues to strengthen the balance sheet with nearly $1 billion in debt repayments completed so far this year, or roughly half of our $2 billion debt reduction target for 2016. Barrick has the industry's largest gold reserves and resources, with an average reserve grade significantly higher than our peer group average.5 This represents an immense source of value and optionality for the company.